Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

interest factor

Insurance. In life-insurance ratemaking, an estimate of the interest or rate of return that the insurer will earn on premium payments over the life of a policy. ( The interest factor is one element that a life insurer uses to calculate premium rates. See PREMIUM RATE; gross premium (1) under PREMIUM (1). Cf MORTALITY FACTOR; RISK FACTOR.