Calculator Inputs
Large screens show three columns, medium screens show two, and phones show one. The page stays in a clean stacked layout.
Example Data Table
These values are illustrative and help users understand the expected input structure and output style.
| Scenario | Product | Benefit | Term | Age | Mortality % | Interest % | Mode | Indicative NSP |
|---|---|---|---|---|---|---|---|---|
| Base Case | Term | 100,000 | 20 | 35 | 0.80 | 4.00 | Monthly | 10,500.00 |
| Deferred Cover | Whole Life | 250,000 | — | 42 | 1.10 | 3.75 | Annual | 48,200.00 |
| Savings Blend | Endowment | 150,000 | 15 | 30 | 0.55 | 5.00 | Quarterly | 82,900.00 |
Formula Used
1. Discount factor: v = 1 / (1 + i), where i is the annual interest rate.
2. Mortality path: qt = q × (1 − m)t, where q is the starting mortality rate and m is mortality improvement.
3. Expected present value of benefits: sum each covered year’s death benefit probability multiplied by the discount factor. For endowment, add the discounted maturity benefit weighted by survival to maturity.
4. Premium annuity factor: sum the discounted premium payment times, using survival to each payment date and the chosen payment frequency.
5. Level net premium: Net Premium = EPV(Benefits) / EPV(Premium Annuity).
6. Prospective reserve: discounted future benefits minus discounted future net premiums, conditional on survival to the selected reserve year.
How to Use This Calculator
- Choose the insurance product type: term, whole life, or endowment.
- Enter the benefit amount, issue age, mortality rate, and discount rate.
- Set deferment, premium mode, premium-paying term, and reserve evaluation year.
- For endowment, enter a maturity benefit if a survival payout applies.
- Submit the form to view results above, including premium metrics and the Plotly graph.
- Use the export buttons to save the summary and yearly projection table as CSV or PDF.
Frequently Asked Questions
1. What does net premium mean here?
It is the pure premium needed to cover expected benefits only. It excludes insurer expenses, commissions, taxes, profit margins, and extra risk loadings.
2. Why does the calculator need a mortality rate?
Mortality drives the probability of future claims. Higher mortality assumptions increase the expected present value of benefits and usually raise the net premium.
3. How does interest rate affect net premium?
A higher interest rate increases discounting. That reduces the present value of future claims and often lowers the net premium, all else unchanged.
4. What is the premium annuity factor?
It is the discounted expected value of one-unit premium payments, adjusted for survival to each payment date. It converts benefit value into a level payment amount.
5. When should I use endowment mode?
Use it when the policy pays on death during the term and also pays a maturity amount if the insured survives to the end.
6. What does the reserve output show?
The reserve estimates the policy value at the selected duration. It compares discounted future benefits with discounted future net premiums, conditional on survival.
7. Are these results suitable for regulatory filing?
No. This is an educational and planning tool. Formal pricing should use approved mortality tables, lapse assumptions, expenses, and professional actuarial review.
8. Why do monthly and annual premiums differ?
More frequent payments change timing and survival weighting. That changes the premium annuity factor, so the periodic premium amount shifts even when coverage stays fixed.