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IN THE NEWS
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Cost Comparison Indexes |
Cost Comparison Indexes
are now included in many insurance
company proposal ledgers to assist you in evaluating
the proposed policy. Indexes take into account the loss
of the potential earnings on your money.
There are two types of cost comparison index numbers.
Both assume you will live and pay premiums for the next
10 or 20 years.
The net cost comparison index helps you compare costs
over a 10 or 20 year pay period assuming you will continue
to pay premiums on your policy and do not take its cash
value. It is useful if your main concern is the benefits
that are to be paid at your death.
The surrender cost comparison index helps you compare
costs over a 10 or 20 year period assuming you surrender
the policy and take its cash value at the end of the
period. It is useful if you consider the level of cash
values to be of special importance to you.
The two index numbers are the same for a policy
without cash values.
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