What Does Exclusion Ratio Mean?

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What does Exclusion Ratio mean? Read on to discover the definition & meaning of the term Exclusion Ratio - to help you better understand the language used in insurance policies.

Exclusion Ratio

Exclusion Ratio

Exclusion ratio is the amount paid to the annuitant that represents the return of investment rather than income from the annuity. This amount is not subject to taxes. It is received along with the taxable payment of the purchased annuity.

We hope the you have a better understanding of the meaning of Exclusion Ratio.

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