Life · Chapter 6 · Policy Cost Comparison
Interest-Adjusted Cost Indexes
Definition
NAIC-required index numbers that let consumers compare policy costs of the same generic type, factoring in premiums, death benefits, cash value, dividends and the time value of money. Two indexes: the surrender cost index and the net payment cost index.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms