The annual premium equivalent is the sum of the total value of regular–or recurring–premiums plus 10% of any new single premiums written for the fiscal year. If ...
How do you calculate Annualised premium equivalent?
It is the sum of the regular annualized premium from the new business plus 10% of the first single premium in a given period. Description: APE is computed as: APE = Annualized regular premium + 10 % of single premium (Including top-up premium). Where annualized regular premium = Premium amount * Billing frequency.
What is premium equivalent?
PREMIUM EQUIVALENT – For self-insured plans, this is the cost per covered enrollee, or the amount the organization would expect to pay in premiums if the plan were insured by someone else. The premium equivalent is equal to the per-capita amount of claims, administration, and stop-loss premiums for a self-insured plan.
What is meant by annual premium?
Definition: Annualized premium is the total amount paid in a year's time to keep the life insurance policy in force. The annualized premium amount of a life insurance policy does not include taxes and rider premiums.
Does annual premium mean yearly?
Definition: The total amount of premium paid annually is called the annualized premium. Description: Any insurance policy comes up with many premium payment options. Premium can be paid monthly, quarterly, semi annually and annually.