interest factor
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. [Cases: Insurance 1542(1). C.J.S. Insurance § 66.]
