0
What is the basis on which premium on insurance policy is fixed?
Wiki User
∙ 16y ago
One of the basis is the mortallity table. It is based on the persons age and health. This is than calculated on when the insurance company feels that the individual would pass away. If they are older or unhealthy the premiums are higher to compensate that they could possibly pay out sooner than later. Michael Hartmann FindYourPolicy.com
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What is the difference between a renewable term life insurance policy and a fixed term insurance policy?
The basic difference between a renewable term insurance policy and a fixed term insurance policy is that in the former case premium is payable as per mode chosen for till particular period, whereas in fixed term insurance policy premium has been paid on single or one time basis for a fixed period. However there is no deviation from the basic principle of whole life policy wherein no amount is paid on maturity, only when any eventuality arises during the policy period, the entire sum assured amount is payable by the Insurance Company to the nominee of the deceased person.
What is interest sensitive whole life insurance?
It is a guaranteed fixed premium permanent life insurance policy. It usually has a Guaranteed Minimum Cash Value that increases each year.
Is insurance premium a fixed cost or variable cost?
Yes It is fixed. No matter how much your volume of activity or production you are obliged to pay insurance premium as agreed.
Which is most clearly a fixed cost?
insurance premium
Is term life insurance a permanent policy for which you pay a specified premium each year?
Term insurance is NOT permanent! As the name suggests, the policy is designed to protect for a specific term or number of years. Rates are fixed for a certain number of years selected at policy purchase time. Before the policy expiration, the policy owner has the option to convert the policy to a permanent coverage if insurance is still needed, or let it lapse and stop paying premiums. Some term insurance has a return of premium clause, which allows that premiums be returned and can be used to buy a paid up permanent policy, for a lower benefit amount, without any underwriting. Not all companies have the option to convert to a permanent life insurance policy. Ask for a convertible term life insurance policy when you're looking for term insurance, just in case you may still need the coverage beyond the initial term period. ANOTHER EXPLANATION: No, term life insurance is not a permanent policy. That word applies only to whole life insurance. In term insurance, premiums are fixed for a certain number of years selected at the time of application. One of the choices is usually a level premium for a fixed period of years. The thing to understand about term insurance is that premiums increase with age, unless the level premium option is selected. Even then, the premiums remain level only for a fixed period of time, for example, 20 years.
Can variable universal life insurance be converted into a fixed account?
Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.
What is the cost for a 20 year term life insurance policy?
The cost for the 20 yer term life insuranc policy will be deferrent per insurance company. but here you can check the approximate Whole life insurance, on the other hand, combines a term policy with an ... and a same amount of renewable term coverage with a 20-year fixed premium of $350. .... (ie. medical issue) And if they can how much more will it cost then. ...
Which of these types of insurance is also known as ordinary of straight life insurance?
Straight / Ordinary life insurance usually means that the death benefit and the premium payments are fixed for the lifetime of the insured. Examples of this is what is known as a "whole life policy." It's not the most economical way to buy insurance, but it's certainly predictable.
When you pay your first life insurance premium will your insurance pay your beneficary the same day if you die?
No, usually you have to hold a policy for a fixed term before a payout will be made. However, some policies my provide instant cover, you need to read the small print.
What is an indexed life insurance policy?
if you have to paid indexation amount your cash value increase and amount,allocate and your indexation. but what is the differences between indexation or non indexation so simply answer indexation is not your fixed premium amount because the amount is fluctuation at your maturity you premium amount change your cash value change because non indexation is a fixed premium amount they can not be change design your plane after your maturity.
What is basic life insurance?
Term insurance without any optional rider is considered to be the most basic type of life insurance. You purchase protection for a certain amount of time, after which the policy terminates. You have a fixed premium that does not change until the end of your term policy. You then have the option to terminate, or convert the term to a permanent form of life insurance. Term Assurance Policy is the basic life insurance policy.This is the cheapest pure life risk plan. On maturity, no amount will be paid to the policy holder. On any eventuality of the policy holder during policy term, sum assured amount will be paid to the nominee.
What is the maximum fixed policy loan interest that an insurance company can charge in Florida?
10 %
