Premium, Loading, Reserves. Oh my!

Premium, Loading, Reserves - Miss PiggyMIE – nope, this isn’t what Miss Piggy is famous for saying. Rather, it’s an acronym for the three factors considered in figuring rates for an individual life policy. “M” is for Mortality. “I” is for Interest Rates. “E” is for Expenses.

Mortality are the death claims the company expects to pay. This uses a table issued by the Commissioner to determine mortality statistics over the years by age, sex and occupation. And wouldn’t you know, in spite of the cost of living, it’s still popular – Kathleen Norris.  Race, nationality, or ethnicity would not be considered when figuring these rates. It’s typically used for loss expectancy in life insurance and used in figuring life claims. Mortality has the greatest effect on the premium.

Interest Rates are the money the company plans to earn on the annual premium payments. Finally, Expenses – Loading, are the cost of doing business (ex. Commissions, overhead, and basically claims that wouldn’t be considered in mortality).

The premium rates charged by insurance companies are calculated assuming an annual premium is paid. The interest that’s earned on its investments would help in lowering the premium. Your first premium is going to be due on the day the policy is issued, and is usually paid to the agent at the time of the application.

To make sure this is clear:

Gross Premium = mortality rates, assumed interest and policy’s share of the company’s operating expenses.

Net Premium = the portion of the premium that is based only on mortality tables and assumed interest. Doesn’t include the expenses or loading.

Wouldn’t it be great if there was a formula that was used to help determine how much life insurance a person would need to purchase? As Miss Piggy might say, math moi must admit, is not moi’s cup of java. But luckily there is a simple way to determine this. I’ll explore this in the next post.

Ready to find out which company and plan is right for you? Check out our Life Insurance page for a list of recommended providers.

Tags: , , , , , , , , , , , , , , , , ,

6,417 Comments to "Premium, Loading, Reserves. Oh my!"

  1. estética says:

    What a pleasant blog. I’m going to bookmark your website. I am just thrilled to come across helpful tips, many thanks.

  2. Linker says:

    I like this post, enjoyed this one appreciate it for putting up.

  3. ghana 2013 says:

    You have a nice blog. Really looking forward to reading more.

  4. John Desimon says:

    a very great site. Also very revealing article. Thanks to the contributors.

  5. Louis V. says:

    I agree with all the ideas you have presented in your post. Thanks for it.

  6. louis says:

    Its like you read my thoughts! You appear to understand so much about this, like you wrote the guide in it or something. excellent blog. A great read. I’ll certainly be back.

  7. Blogger says:

    Hello there I am so grateful I found your blog, I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the excellent work.

  8. ralph says:

    I simply want to say I’m newbie to blogging and definitely liked you’re blog. I’m going to bookmark it. You definitely have incredible writings. Appreciate it.

  9. lunette says:

    Invaluable info you offer with your articles. I will bookmark your site and check it routinely.

  10. Steve says:

    this is a very helpful website!

  11. Penelope says:

    Hi! Someone in my Myѕρace grouр shared this site with us so
    I cаme to cheсk it out. Ӏ’m definitеly loving thе information.
    I’m book-mаrking and will be twеeting thіs to my fоllowers!

    Greаt blog and wonderful style and design.

  12. We offer the best quality wholesale jerseys with the cheapest price.
    You can never miss. Buy and enjoy free shipping all over the world.

    more from : wholesale nfl jerseys

  13. Cheap NFL Jerseys From China With Top Quliaty,We Are Offer A
    Fast Shipment & Big Disount To You,If You Have Any Question Please Contact
    Us Immediately,We Look Forward To You. Buy Here: cheap nhl jerseys china

  14. The Stylish Cheap Jersey Hot Sale Online Right Now,The Excellent Quality With Surprsing Discount In Progress,Ship From China.Please Don’t Miss It.

    Access:wholesale jerseys

  15. We have the best wholesale jerseys from China, keep your
    body cozy whole day. Cheap Jerseys sale you can’t miss! Outlet: Access into Site

  16. Great post. I was checking constantly this weblog and I’m inspired!

    Extremely useful information particularly the closing phase :) I deal with such info a lot.
    I was seeking this certain info for a very long time. Thank you and good luck.

    Review my blog post … steam wallet hack

  17. seo plugin says:

    Hello Web Admin, I noticed that your On-Page SEO is is missing a few factors, for one you do not use all three H tags in your post, also I notice that you are not using bold or italics properly in your SEO optimization. On-Page SEO means more now than ever since the new Google update: Panda. No longer are backlinks and simply pinging or sending out a RSS feed the key to getting Google PageRank or Alexa Rankings, You now NEED On-Page SEO. So what is good On-Page SEO?First your keyword must appear in the title.Then it must appear in the URL.You have to optimize your keyword and make sure that it has a nice keyword density of 3-5% in your article with relevant LSI (Latent Semantic Indexing). Then you should spread all H1,H2,H3 tags in your article.Your Keyword should appear in your first paragraph and in the last sentence of the page. You should have relevant usage of Bold and italics of your keyword.There should be one internal link to a page on your blog and you should have one image with an alt tag that has your keyword….wait there’s even more Now what if i told you there was a simple WordPress plugin that does all the On-Page SEO, and automatically for you? That’s right AUTOMATICALLY, just watch this 4minute video for more information at. Seo Plugin

  18. rerfjykqp says:

    Premium, Loading, Reserves. Oh my! « RingQuote.com
    rerfjykqp http://www.ggqc3393429c7cj74i181icqfa7ov7m0s.org/

  19. Fredrick says:

    First off I would like to say awesome blog!

    I had a quick question which I’d like to ask if you do not mind.
    I was curious to find out how you center yourself and clear your
    thoughts prior to writing. I’ve had trouble clearing my thoughts in getting my ideas out there.

    I do enjoy writing however it just seems like the first
    10 to 15 minutes are usually lost simply just trying to figure out how to begin.
    Any recommendations or hints? Cheers!

    My web page – garcinia cambogia free trial australia – Fredrick,

  20. boobs tumblr says:

    Hmm it appears like your blog ate my first comment
    (it was super long) so I guess I’ll just sum it up what I had written and say,
    I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything.

    Do you have any helpful hints for inexperienced blog
    writers? I’d genuinely appreciate it.

  21. media says:

    Just think how much hotter (and longer) your sex sessions will last.

    However, the thing to remember here is that you need to first take a backup before employing any extreme measures.
    Thus, it can access your email account, send messages to your contacts,
    assume your own identity, and also infect and harm other email
    users who are listed on your address book.

    Also visit my web blog media

  22. Google says:

    The time to read or take a look at the subject material or websites we’ve linked to below.