What does Actuarial Present Value mean? Read on to discover the definition & meaning of the term Actuarial Present Value - to help you better understand the language used in insurance policies.
Actuarial Present Value
An insurance company's actuarial present value is the amount of money it projects needing in order to pay for the promised benefits. This figure is based on the payments received from the insured, the interest rate, and the probable time and frequency at which they will have to provide the promised benefits.
We hope the you have a better understanding of the meaning of Actuarial Present Value.