What Does Safety Margin Mean?

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

Safety Margin

Safety Margin

A safety margin is the number of sales or amount of gains required to cover expenses, or to "break even." However, it can also refer to an increase in mortality rates above the expected rates for life insurance or a decrease in mortality rates below those that are expected for any annuities that a life insurance company is offering.

We hope the you have a better understanding of the meaning of Safety Margin.

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