Sentences with phrase «present value of the death benefit»

In this example, the present value of the death benefit exceeded the present value of the premium payments — i.e., the sum total of each year's discounted cash inflows / outflows is positive — and so the policy is sellable.

When I calculate the expected net present value of death benefits minus premiums for new cash value policies using an after - tax discount rate, the result is usually positive.

In this case, the policy would not be sellable because the present value of premium payments exceeds the present value of the death benefit.

It measures the interest rate at which the net present value of the premium paid equals the net present value of the death benefit.

Not exact matches

Or viewed differently, investors make larger offers when there is a lower discount rate to estimate the present value of a future anticipated death benefit.

If you own a typical permanent life insurance policy (lifetime coverage) and did a straight present value calculation of the premiums you can expect to pay during your lifetime, the total will be less than the death benefit.

To determine the actuarial present value of the benefit we need to calculate the expected value E (Z)-LCB- \ displaystyle \, E (Z)-RCB- of this random variable Z. Suppose the death benefit is payable at the end of year of death.

If the benefit is payable at the moment of death, then T (G, x): = G - x and the actuarial present value of one unit of whole life insurance is calculated as

On death of the policyholder, the insurer invests the present value of all the remaining premiums at one go on behalf of the deceased policyholder, so that the maturity benefits accrue as planned.

The Company provides an option to the policyholder on survival during the payout period or beneficiary in case of death of Life Insured (called Commutation option) to receive the present value of the outstanding survival and death benefit respectively as lump sum.

While receiving the Death Benefit in monthly installments, the beneficiary can also choose at a future date to commute all outstanding payouts and receive the present value of future outstanding payouts as a lumpsum as provided under the commutation option.

The Cash Value of the Death Benefit is higher of 105 % of all premiums paid or 10 times of the annualized premium or present value of the guaranteed payValue of the Death Benefit is higher of 105 % of all premiums paid or 10 times of the annualized premium or present value of the guaranteed payvalue of the guaranteed payouts.

Flexibility To Get Monthly Income As Lump Sum - The Plan offers you the Commutation Option wherein you can receive the present value of the Survival and Death Benefit respectively instead of the monthly payouts.

Purchasers of current - assumption policies are presented with an illustration of projected premiums, cash values, and death benefits that use the company's current assumptions regarding the various premium pricing factors as well as an illustration showing the minimum guaranteed values based on the current premium and the statutorily mandated conservative pricing assumptions.