A Guide To Life Insurance - Premium Rates More ....

 

Find Out More


  


Premium Rates More...

The effect of these factors emerges only over a long period, and is restricted to two types of policy: those that guarantee the payment of the sum assured at a specific date or on earlier death (endowment policies) and those that guarantee the payment of the sum assured on death whenever this occurs (whole-life policies).

Shorter-term protection policies (term assurances), where the sum assured is payable only on death within a specified period with no return to the policyholder on survival, allow the actuary to calculate with greater precision the necessary sums to be accumulated, and therefore the premium rates.

The impact of changes in mortality and interest rates is therefore of less significance. In pure protection policies, life insurance works very much as house insurance does, the company calculating the risks and working out the required premium with no allowance for any return to the policyholder if he happens to survive.




An Online Guide To Life Insurance - New sections added ....

Other readers found these pages interesting

 

Read On: click here for Management Of Funds


Though companies use similar mortality tables and assume broadly similar rates of interest, premium rates do vary considerably.
These differences arise as a result of several factors.
One is the actual mortality experience of the companies themselves; a company that has suffered lower claims will have acquired larger reserves and be able to quote lower rates.
Another is the type of policyholders a company already has: if too many of these fall into one age group it may wish to........ see: click here for Management Of Funds


Disclaimer

Our insurance website is an independent marketing website which acts as an introducer to 'whole of market' companies who offer specialist Independent Financial Advice. Each company is authorised and regulated by the Financial Services Authority.

 

We are not authorised to give advice and we are not liable for any financial advice provided by, or obtained through a third party. The information published on this website is for information purposes only. This site has been approved for compliance purposes by a Firm of Independent Financial Advisors who are authorised and regulated by the Financial Services Authority (FSA). The Chartered Insurance Institute

Giving power to the reader...

  • To contact us, send an email and we will get back to you as soon as we are able. If you are looking for independent life insurance quotations then click here. If you are looking for any of the folliowing: Car insurance
    Bike insurance, Travel insurance, Home insurance, Life insurance, Landlord insurance, Pet insurance, Medical insurance, Dental insurance, Business insurance please click here

  • Have something to say?
    We publish financial articles on this site if they fulfil our requirments. more>>