Insurance Policy Calculator
Premium =
Face Value =
Last Year's Value =
This Year's Value =
Dividend =
Interest Rate =
Price =
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Calculate the price per $1,000 of protection for a single policy year. The price of a non-term life policy is rarely its face value. To evaluate fully the premium payment and interest that could have been earned need to be included in the price.
Some policies use policy surrender values instead of cash values. In addition, if taxable, use after-tax amounts for premium payments and dividends.
Rows
- Premium: annual premium amount
- Face Value: face value of the policy for one year
- Last Year's Value: value of the policy at the end of last year
- This Year's Value: value of the policy at the end of this year
- Dividend: one-year dividend amount
- Interest Rate%: interest rate of an alternative investment
- Price: price per $1000 of protection in one policy year
Examples
A $25,000 insurance policy has annual premiums of $525 and pays $300 dividend. Its value last year was $4,807 and its value at the end of this year is $5,057. If a safe investment rate is 2.5%, what is the price per $1000 of protection per year?
- Premium: 525.00
- Face Value: 25,000.00
- Last Year's Value: 4,807.00
- This Year's Value: 5,057.00
- Dividend: 300.00
- Interest Rate%: 2.500
Select "=" on Price row. The price of $1000 of protection per yeat is $5.43.
Keywords
Premium
Face Value
Last Year's Value
This Year's Value
Dividend
Interest Rate
Price
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