Net Level Premium Application: A look at Smokers vs. Nonsmoker’s
Document Type
Oral Presentation
Campus where you would like to present
SURC 202
Start Date
16-5-2013
End Date
16-5-2013
Abstract
Like health insurance, life insurance is a continuously growing and complex field that affects almost everyone, and yet not many people know what goes into pricing the premiums of different people. It involves many complicated aspects including life tables, mortality rates, and other risk factors including smoking. Smoking is one of the few legal risk discriminative factors. This spreadsheet application takes a small glimpse into how different types of premiums are priced. This application focuses on standard pricing of insurance contracts issued to policyholders who are smokers versus nonsmokers. It aims to help people get an idea of the key aspects that go into their premium pricing and how much impact a lifestyle such as smoking increases someone’s premium. The mortality rates used in this application are from an industrial table called: “1980 CSO Smoker and Non-Smoker Mortality Rates” that was developed by actuaries. The table was then used by computer codes to find different premiums for a user who input their own information. Inputs include the user’s age, interest rate, the benefit amount, and the term of life policy. This application runs the users input to find the premium rates of various insurance contracts so the user can see their options and the premium difference caused by smoking status.
Recommended Citation
Flatebo, Sarah, "Net Level Premium Application: A look at Smokers vs. Nonsmoker’s" (2013). Symposium Of University Research and Creative Expression (SOURCE). 31.
https://digitalcommons.cwu.edu/source/2013/oralpresentations/31
Additional Mentoring Department
Actuarial Science
Net Level Premium Application: A look at Smokers vs. Nonsmoker’s
SURC 202
Like health insurance, life insurance is a continuously growing and complex field that affects almost everyone, and yet not many people know what goes into pricing the premiums of different people. It involves many complicated aspects including life tables, mortality rates, and other risk factors including smoking. Smoking is one of the few legal risk discriminative factors. This spreadsheet application takes a small glimpse into how different types of premiums are priced. This application focuses on standard pricing of insurance contracts issued to policyholders who are smokers versus nonsmokers. It aims to help people get an idea of the key aspects that go into their premium pricing and how much impact a lifestyle such as smoking increases someone’s premium. The mortality rates used in this application are from an industrial table called: “1980 CSO Smoker and Non-Smoker Mortality Rates” that was developed by actuaries. The table was then used by computer codes to find different premiums for a user who input their own information. Inputs include the user’s age, interest rate, the benefit amount, and the term of life policy. This application runs the users input to find the premium rates of various insurance contracts so the user can see their options and the premium difference caused by smoking status.
Faculty Mentor(s)
Yvonne Chueh