Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points

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  • Rebate for sum assured - offered to those who buy policies with higher amounts of sum assured
  • Rebate for mode of premium - premiums to be paid on annual, half yearly, quarterly or monthly basis. More frequent the mode, more the cost of service. Hence Monthly mode of Premium is slighly costlier than Yearly mode
  • Tabular Premium is only for Standard Lives (Lives with no extra risk factors). Such rates are called Ordinary Rates.
  • Gross premium = Net premium + Loading for expenses + Loading for contingencies + Bonus loading
  • The premium charged by insurance companies is different for each individual and premium calculations are based on many factors : age of the individual, his/her medical condition, sum assured, morality rate, type of insurance plan and several other factors which differ from person to person like his family history, social habits ,occupation etc..
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IC02 Practice of Life Insurance

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