Important Points for IC 26 - Life Insurance Finance Exam
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Premium is considered to be the main source of income for insurance companies.
In term insurance plan, the sum assured is payable only in the event of death of the life assured occurring within a defined period.
Mortality charges are taken into account while calculating Net premium.
Reserve = Accumulated value of all the premiums received under a policy + Interest - cost of meeting the risk already covered - Expenses incurred.
An annuity is a periodical payment made, in exchange for purchase money (capital payment), for the remainder of the life time of a named life or for a specified period, irrespective of the duration of human life.
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