D
drake
Member
I m kinda confused regarding the calculation of net premium under with-profit policies. On page 24 in the 2nd paragraph, it talks about bonus loading (i have attached page 24 with the thread ) and on the very next page (page 25) it explains how bonus loading is used for calculating premiums but on page 28 under the heading "Rationale of with-profit policies" it states that 'net premium is valued ignoring all bonuses' now my question is:
1.) why have we considered bonus in calculating premiums if we're not supposed to consider bonuses while calculating premiums?
2.) Is the premium calculated on page 25 net premium?
3.) In question 6.13 why haven't we considered the terminal bonus for calculating net reserve?
4.) For terminal bonus calculation do we consider the reversionary bonus policyholder receives during the term of the policy?
Thank You.
1.) why have we considered bonus in calculating premiums if we're not supposed to consider bonuses while calculating premiums?
2.) Is the premium calculated on page 25 net premium?
3.) In question 6.13 why haven't we considered the terminal bonus for calculating net reserve?
4.) For terminal bonus calculation do we consider the reversionary bonus policyholder receives during the term of the policy?
Thank You.