Terminal reserve

{
  "id": "MLC-T-INS-003302",
  "term": "Terminal reserve",
  "field": "Insurance and risk management",
  "definition": "The actuarial reserve held for a life insurance policy at the end of a policy year, representing the amount of money the insurer must set aside to meet its future obligations to the policyholder. It is calculated as the present value of future benefits minus the present value of future net premiums. This reserve is a key component in determining an insurer's financial strength and solvency, as mandated by regulatory accounting principles.",
  "url": "https://mlchart.com/terminology/insurance/terminal-reserve/"
}