- How do we read the quotations print-out for
bonuses?
The following columns are taken from the quotation printout and the descriptions
are given below.
| Column |
Column Title |
Description |
| D |
Reversionary Bonus |
This is the reversionary bonus currently projected at 3% and compounded at 3%. |
| E |
Bonus payable on surrender |
This is the cash value of the reversionary bonus, payable on surrender. |
| F |
Bonus payable on death |
These are reversionary and terminal bonuses payable on death. |
- What is the difference between cash value and death benefit column in the quotation
print out?
Cash value is the amount of cash a policyholder is able to cash out from an insurer
upon surrendering the policy. It is a "partial refund" of premium paid. Death benefit
is the amount payable upon death of the life insured. It consists of basic sum assured,
reversionary bonus and terminal bonus, assuming bonuses are declared and vested.
- Why is it that the Level Term Rider is not added to the
death benefit in the YippieCare/Oh Wow Care Quotation?
In YippieCare/Oh Wow Care there are two lives involved. The child is the life
assured of the Basic policy whereas the Payour is the life assured of the rider, such
as the Level Term Rider. As you are aware, the basic policy and level term rider
has their own sums assured.
- Why is it that the YippieCare/Oh Wow Care rates
remain unchanged when we change the payor from the father to the mother in the
quotation?
In YippieCare/Oh Wow Care the life insured is the child not the payor. The
basic rate is not affected by the sex of the payor. On top of that, the YippieCare/Oh Wow Care rate is the same for both male and female.
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