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exclusion ratio

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Financial Dictionary

Exclusion Ratio

The portion of the return on investments that is income tax exempt. It represents a payback of initial investments rather than capital gains.

Investopedia Commentary

The exclusion ratio arises mainly through different forms of non-qualified insurance annuities.

Related Links

Ratio Analysis Tutorial

See also: Annuity, Capital Gain, Exempt Income, Income Tax, Return On Investment - ROI

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