contribution

(kon-tri-bu's hun) [L. contribuere; con-, together, + tribuere, to grant.] A plan for the apportionment of profits to the holder of a life insurance policy by which the policy is credited with the reserve pertaining to it at the end of the previous year and with the annual premium paid at the beginning of the current year, le an expense charge and with interest added. Against this sum are charged the cost of insurance and the reserve required at the end of the current year, the balance being the policy's annual dividend, or its "contribution to surplus."