Life Insurance Pricing:

Advertisement

The pricing in case of life insurance is done on the basis of:

Life ExpectancyIn case of life insurance, the premium amount tends to be different for different customers. This differentiation is on the basis of age, medical history of a person.

 

1) Age

E.g.: Low premium is charged for children and youngsters as it is assumed that they are at a lesser risk of death as compared to the aged people.

 

2) Medical History

 

The medical history should be revealed to the insurance company by the customer in Utmost Good Faith i.e. the insured must provide to the insurer complete, correct and clear information of the subject matter of insurance.

 

E.g.: If in the medical history it is mentioned that the person has suffered from heart attack in the past or if he is suffering from any terminal disease like cancer or AIDS then, he is at a higher risk of death and hence higher premium is charged. However, if the insured doesn’t reveal that he is suffering from terminal disease or has suffered a heart attack previously and he dies due to the disease or heart attack then, the insurance company does not pay the claim for the same.

 

 

Case: The pricing of the policies in LIC (India) is done by the Actuarial Department, which is at the corporate level. The prices of the policies are fixed depending on the following conditions:

 

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
7 Comments
  1. bandarqq 2 months ago

    … [Trackback]

    […] There you will find 2392 additional Information on that Topic: bms.co.in/life-insurance-pricing/ […]

  2. kiu teaching hospital 1 month ago

    … [Trackback]

    […] Here you can find 68402 more Info on that Topic: bms.co.in/life-insurance-pricing/ […]

  3. porn 1 month ago

    … [Trackback]

    […] Here you can find 68907 more Info on that Topic: bms.co.in/life-insurance-pricing/ […]

  4. used rv winnipeg 4 weeks ago

    … [Trackback]

    […] Find More on to that Topic: bms.co.in/life-insurance-pricing/ […]

  5. 토토사이트 4 weeks ago

    … [Trackback]

    […] Find More to that Topic: bms.co.in/life-insurance-pricing/ […]

  6. situs judi 2 weeks ago

    … [Trackback]

    […] Find More Information here on that Topic: bms.co.in/life-insurance-pricing/ […]

  7. porno izle 3 days ago

    … [Trackback]

    […] Here you can find 8453 more Information to that Topic: bms.co.in/life-insurance-pricing/ […]

Leave a reply

Your email address will not be published. Required fields are marked *

*

*

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account