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    Extra Charges: (Loadings) : I

    Uploaded by

    Anil Kumar
    The document discusses various components that make up life insurance premiums, including the net premium, loadings for expenses and contingencies, and bonus loadings. It also mentions that higher mortality rates or lower assumed interest rates would result in higher premiums. Rebates may be offered on the sum assured or for the mode of premium payment. Loadings are added to the net premium to cover administration charges, medical expenses, and other fees.

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    Extra Charges: (Loadings) : I

    Uploaded by

    Anil Kumar
    12 views1 page
    The document discusses various components that make up life insurance premiums, including the net premium, loadings for expenses and contingencies, and bonus loadings. It also mentions that higher mortality rates or lower assumed interest rates would result in higher premiums. Rebates may be offered on the sum assured or for the mode of premium payment. Loadings are added to the net premium to cover administration charges, medical expenses, and other fees.

    Original Title

    IC-38-Short-notes(2)-43

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    The document discusses various components that make up life insurance premiums, including the net premium, loadings for expenses and contingencies, and bonus loadings. It also mentions that higher mortality rates or lower assumed interest rates would result in higher premiums. Rebates may be offered on the sum assured or for the mode of premium payment. Loadings are added to the net premium to cover administration charges, medical expenses, and other fees.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views1 page

    Extra Charges: (Loadings) : I

    Uploaded by

    Anil Kumar
    The document discusses various components that make up life insurance premiums, including the net premium, loadings for expenses and contingencies, and bonus loadings. It also mentions that higher mortality rates or lower assumed interest rates would result in higher premiums. Rebates may be offered on the sum assured or for the mode of premium payment. Loadings are added to the net premium to cover administration charges, medical expenses, and other fees.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    P a g e | 43

    e.
    Net Premium = premium – interest earnings.

    F . Gross Premium :Net Premium + Loading for expenses + Loading for


    contingencies + Bonus Loading
    g. Higher the mortality rate, higher the premiums would be.
    h. Higher the interest rate assumed, lower the premium

    3. Rebates :

     Life insurance companies may offer certain types of


    rebates on the premium that is payable. Two such rebates are
    o For sum assured
    o For mode of premium.
    3. Extra charges : ( Loadings ) :
    i. Addition to net premium. Example: Administration
    charges, medical expenses, processing fees, profit margin bonus etc.
    4. Components of premium :

    5. Guiding principles of Determining amount of loading :


    Sterling Insurance ATI Services

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