Single premium is calculated depending on a variety of factors, such as the type and cost of insurance coverage, the length of the term, age, and the type of actuarial data used. For example, a life insurance policy requires a single premium payment, based on the individual’s age, health, and the amount and type of coverage desired.
For a universal life insurance policy, a single premium may be used to fund the policy and still guarantee a death benefit for a set period of time and a minimum cash value. The premium is determined by the individual's age, health, and the amount and type of coverage requested, as well as the mortality tables and other variables used to calculate the rate.
For an annuity policy, the single premium payment is calculated based on the individual’s age, sex, and financial situation. The single premium payment is calculated by the insurance company and will provide predetermined income for a set number of years, usually for retirement purposes.
It is important to remember that the single premium will vary by insurance policy, as there are many details that can influence the amount. You should contact your insurance company to discuss the specific details of your coverage and the cost of any premiums.
