System of comparing costs of life insurance policies by using the following formula: 1. Determine pure cost of protection (mortality expectation). 2. Calculate amount of dividends paid. 3. Subtract the pure cost of protection plus dividends from the gross premiums paid into the policy (savings element). 4. Rate of return equals the interest rate at which the savings element must be accumulated to equal the cash value of the policy at a future specific time period. Also called Linton yield method .