Page 6 - Life Assurance

The information is required for the
calculation of the premium to be paid for
assurance. The premium is rated according to:

- the sum assured.
- the duration of the policy.
- the type and quality of the risk.

These factors may only be calculated by
examining the age, health, occupation, and
movements of the insured, and the comparison
of the risk with the long run "mortality
experience" of life offices.

Any errors in the calculations that lead to
policyholders paying an excess of premiums are
normally corrected by the distribution of
bonuses to those holding life policies "with
profits".

This possibility of surplus payments, and
the certainty that every policy will be redeemed,
guarantees that life offices maintain extremely
detailed and long-serving records .

Life21/life/life08

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