P
Pat Jennings
Working in the life insurance industry, where it is common that a person's
actual attained age is superseded by that person's actuarial age. Actuarial
age is reached one day prior to six months preceeding birthdate. For
example, a person who's birthdate is December 4 "becomes" one year older on
June 4, preceeding the birthdate. Understood?
The situation is that in order to retain a lower-aged premium, the person
must agree to fund the policy for the days preceeding actuarial age - even
if the policy is dated subsequest to that age. Another example, if the
application is approved on August 23 and the above person accepts "saving
age", the premium payments begin June 4. If deciding not to "save age", the
premium payments begin August 23 at a higher rate.
How can the comparative benefits of pre-funding the policy versus accepting
the higher premium payment be displayed in a meaningful way?
The premium which would be paid "saving age" at June 4 is $230, quarterly.
The premium using the actualrial age, starting in August 23 is $270,
quarterly. The display shoud show difference at end of year (December), at
anniversary years and at the breaeven time.
Any enlighenment is greatly appreciated.
actual attained age is superseded by that person's actuarial age. Actuarial
age is reached one day prior to six months preceeding birthdate. For
example, a person who's birthdate is December 4 "becomes" one year older on
June 4, preceeding the birthdate. Understood?
The situation is that in order to retain a lower-aged premium, the person
must agree to fund the policy for the days preceeding actuarial age - even
if the policy is dated subsequest to that age. Another example, if the
application is approved on August 23 and the above person accepts "saving
age", the premium payments begin June 4. If deciding not to "save age", the
premium payments begin August 23 at a higher rate.
How can the comparative benefits of pre-funding the policy versus accepting
the higher premium payment be displayed in a meaningful way?
The premium which would be paid "saving age" at June 4 is $230, quarterly.
The premium using the actualrial age, starting in August 23 is $270,
quarterly. The display shoud show difference at end of year (December), at
anniversary years and at the breaeven time.
Any enlighenment is greatly appreciated.