ADJUSTED PREMIUM
An adjusted premium is a life insurance policy's premium that is adjusted through the amortization of the expense connected with the acquisition of the insurance policy. This term is tantamount to the net-level premium with an adjustment, to show the cost related with the initial acquisition expenses within the first year.
The net level premium adjustment is an expense amortization related with the establishment of the primary insurance policy. The net-level premium is the whole financial value of the policy ( from inception up to payout), divided by the amount of forecasted years that the policy will run. This term is exclusive to life insurance companies.
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