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  #1  
Old 08-24-2018, 12:31 AM
ReturnStudent ReturnStudent is offline
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Default 3 year guaranteed rate

Hello,
I apologize in advance for this "dumb" question. I have experience in Property Casualty and somehow life is bringing me a question on group term life insurance.

I have monthly rates per $1000 payroll for age and sex.

How do I calculate the one-time lump sum premium for a 3-year period group term life?

Much appreciation for your answer!
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  #2  
Old 08-24-2018, 09:02 AM
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Quote:
Originally Posted by ReturnStudent View Post
Hello,
I apologize in advance for this "dumb" question. I have experience in Property Casualty and somehow life is bringing me a question on group term life insurance.

I have monthly rates per $1000 payroll for age and sex.

How do I calculate the one-time lump sum premium for a 3-year period group term life?

Much appreciation for your answer!
Why do you think you need to calculate this? Did your boss ask you to do so?
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Old 08-24-2018, 10:29 AM
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Quote:
Originally Posted by ReturnStudent View Post
Hello,
I apologize in advance for this "dumb" question. I have experience in Property Casualty and somehow life is bringing me a question on group term life insurance.

I have monthly rates per $1000 payroll for age and sex.

How do I calculate the one-time lump sum premium for a 3-year period group term life?

Much appreciation for your answer!
Quote:
Originally Posted by JMO View Post
Why do you think you need to calculate this? Did your boss ask you to do so?
I agree that the "why" is a key question. Also, before you could make any reasonable estimate you would need to clarify what you are covering, such as:
1. If new employees are hired, are they covered at all? Is there an additional premium?
2. If some of those employees leave, are they still covered? Or is there any kind of premium refund?
3. If the employees receive raises, are their benefits based on their increased salary? If so, is there any additional premium then?
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Old 08-24-2018, 10:46 AM
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I agree that the "why" is a key question. Also, before you could make any reasonable estimate you would need to clarify what you are covering, such as:
1. If new employees are hired, are they covered at all? Is there an additional premium?
2. If some of those employees leave, are they still covered? Or is there any kind of premium refund?
3. If the employees receive raises, are their benefits based on their increased salary? If so, is there any additional premium then?
+1
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  #5  
Old 08-24-2018, 12:42 PM
ReturnStudent ReturnStudent is offline
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Sorry for being vague, a strange piece of work requires this.

All other assumptions have been taken care of. I just need to figure out how to go from a monthly rate to one lump sum premium at front for the period of 3 years.
I'm in P&C reserving and that makes this a difficult task.

Would you be able to give me a general answer as to how to approach it?
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Old 08-24-2018, 01:39 PM
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Old 08-24-2018, 01:46 PM
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Sorry for being vague, a strange piece of work requires this.
Can you be any less subtle?

You should delete this and figure it out
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  #8  
Old 08-24-2018, 06:57 PM
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Quote:
Originally Posted by ReturnStudent View Post
Sorry for being vague, a strange piece of work requires this.

All other assumptions have been taken care of. I just need to figure out how to go from a monthly rate to one lump sum premium at front for the period of 3 years.
I'm in P&C reserving and that makes this a difficult task.

Would you be able to give me a general answer as to how to approach it?
calculate a present value? Do P&C people know how to do that?
Also, note the issues raised in Gandalf's post.
__________________
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
Quote:
Originally Posted by El Actuario View Post
Therapists should ask the right questions, not give the right answers.
Quote:
Originally Posted by Sredni Vashtar View Post
I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
Reply With Quote
  #9  
Old 08-28-2018, 10:13 AM
ReturnStudent ReturnStudent is offline
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Yes, but is there any thing else other than discount rate?
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  #10  
Old 08-28-2018, 10:44 AM
Kalium Kalium is offline
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Clearly not because "all the other assumptions have been taken care of".

How are we supposed to know, when you haven't told us what data and other assumptions you've got?
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