net cost

Definition

The total premiums paid minus their cash value and any dividends generated by the policy as of the time the difference is being calculated. Insurers who supply life insurance policies usually make comparisons of net cost every ten or 20 years.

Use net cost in a sentence

  • The net cost was a reasonable amount for the project to be completed on time so the businessmen proceeded with it.

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  • I wanted to figure out the net cost of the thing, so we could use the data later to determine the cost of other stuff.

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  • You need to know what the total net cost of any new project will be to figure out if you really can afford it.

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