The exclusion ratio is a term used to describe the portion of an income or benefit that is not subject to tax. It helps determine how much of the income or benefit is taxable and how much can be excluded from taxation. Full definition
A qualifying LTC event exempts withdrawals from surrender charges and turns the taxable portion of an annuity (gain in excess of basis amortized via exclusion ratio) into tax - FREE income. (insurancenewsnet.com)
How do you calculate a tax - quivalent rate of return for an annuity with a exclusion ratio? (allfinancialmatters.com)
Just the terminology would befuddle anyone — «exclusion ratio», «annuitization», «indexed», «cap rate», «participation rate», etc.. (blog.annuity123.com)