| Scenario | Age | Occupation | Base SA | Riders | Indexation | Mode |
|---|---|---|---|---|---|---|
| Starter protection | 28 | Low | 2,000,000 | Accidental death (1,000,000) | 0% | Annual |
| Family coverage | 35 | Medium | 5,000,000 | Critical illness (2,000,000), Funeral (250,000) | 3% | Monthly |
| Income safeguard | 42 | High | 8,000,000 | Disability (3,000,000), Waiver (0) | 2% | Quarterly |
- Mortality rate (qx) is approximated from age bands, adjusted for gender and smoker status.
- Risk multiplier combines occupation, health class, family history, and BMI factors.
- Expected annual claim ≈ Base Sum Assured × qx × Risk multiplier.
- Level base premium ≈ (Expected annual claim × Term) ÷ Annuity factor.
- Riders premium sums each rider: (Rate/1,000 × Rider SA/1,000) × Waiting adjustment × Risk multiplier.
- Loading increases modeled risk costs: Premium × (1 + Loading%).
- Fees include admin fee (inflation-adjusted) plus policy fee per payment (annualized).
- Tax is applied to the subtotal to estimate a gross premium.
- Projection can apply indexation to coverage and escalation to premiums each year.
- Enter age, smoker status, and risk details.
- Set base coverage and choose up to three riders.
- Adjust fees, loading, and taxes for your scenario.
- Select indexation and escalation for projections if needed.
- Calculate, review charts, then export PDF or CSV.
- Compare multiple runs to support selection decisions.
Rider pricing drivers and typical levers
Rider cost is primarily driven by age, rider type, and selected rider coverage. In this calculator, rider pricing starts from a rate per 1,000 coverage and applies waiting-period and risk multipliers. For example, critical illness and disability riders are modeled with stronger age loadings than accidental death. Risk settings (occupation, health class, family history, and BMI) are combined into one multiplier, helping you stress test scenarios when underwriting assumptions change.
Coverage and premium projections across the term
The projection engine produces year-by-year totals for the chosen term, allowing you to see how modeled premiums and coverage evolve. Indexation increases coverage annually, while premium escalation increases the premium stream. The chart overlays premium totals and coverage on separate axes, making it easier to compare affordability and benefit growth. Use these settings to evaluate long-term sustainability, especially for longer policy terms.
Fee structure and payment frequency impacts
Premium mode changes the number of payments per year and can increase the effective cost through modal factors and per-payment fees. This calculator annualizes a policy fee per payment and combines it with an inflation-adjusted admin fee. If you switch from annual to monthly, per-payment fees can become more visible, particularly at smaller coverage levels. Exporting CSV helps document the total fee impact for compliance notes.
Comparing scenarios using premium per 1,000
Premium per 1,000 coverage is a normalization metric that supports apples-to-apples comparisons across different sums assured. It is useful when evaluating whether adding a rider delivers proportional value relative to base coverage. Run multiple combinations of riders and record the per‑1,000 figure, then compare against internal benchmarks or historical quotes to identify outliers worth revisiting.
Interpreting graphs and exporting results responsibly
Chart 1 summarizes the premium breakdown including tax. Chart 2 visualizes the term projection with coverage indexed if selected. Chart 3 provides rider sensitivity by varying the first selected rider’s sum assured while holding other assumptions constant. Use PDF export for client-friendly summaries, and use CSV export for audit trails and spreadsheet analysis.
FAQs
No. It is a planning model using simplified mortality, rider rates, and assumptions. Use it for comparison and budgeting, then request an official quote from an insurer or licensed advisor.
Payment mode uses a modal factor and may increase the annualized total. Per-payment policy fees are also annualized based on the number of payments, making monthly plans appear higher overall.
You can add up to three riders. The calculator prices each rider separately using its rate per 1,000, waiting adjustment, and risk multiplier, then sums them into the riders premium component.
It aggregates occupation risk, health class, family history, and BMI factors into one number. Higher multipliers increase expected claim cost and rider cost to simulate tougher underwriting conditions.
Indexation increases coverage annually to help keep pace with inflation. Premium escalation increases premiums each year. Use them to model long-term affordability and benefit adequacy for longer terms.
Chart 3 uses the first selected rider. If no rider is selected or the rider sum assured is zero, the chart cannot build a meaningful curve. Add a rider with coverage to enable it.