Risk of death is closely related to the age of the life to be assured Hence the age at entry into the contract of insurance becomes the most significant factor to determine premium Months and ID: 526693
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Slide1
CALCULATION OF AGE OF THE LIFE TO BE ASSURED
Risk of death is closely related to the age of the life to be assured. Hence, the age at entry
into the
contract of insurance becomes the most significant factor to determine premium.
Months and
days over the completed years of age are not taken as such, but the age to be taken
is rounded
off to the years in integer may be defined as :
(
1) Age nearer to the birthday
(
2) Age on next birthday
(
3) Age on last
birthday
If a person was born 22 years 8 months earlier. Then
(
1) Age nearer to the birthday is 23
(
2) Age on next birthday is 23
(
3) Age as on last birthday is
22
If a person is 22 years 5 months 29 days then the age nearer birthday will be 22 years and
if the
age is 22 years 5 months 30 days the age nearer birthday will be 23 years.Slide2
We will explain this with the help of the following examples:
(
1) If a person is born on 1/1/1980, then on 1/8/2000 he is 20 years 7 months and 1 day
old therefore
:
(
a) his age nearer to his birthday 21 years.
(
b) his age as per last birthday 20 years.
(
c) his age as per next birthday 21 years.
(
2) If a person is born on 1/1/1980, then on
11/4/2000 he
is 20 years 3 months and 11
days old
therefore:
(a) his age nearer to his birthday 20 years.
(b) his age as per last birthday 20 years.
(c) his age as per next birthday 21 years.Slide3