How to Calculate Life Insurance Renewal Premium
When your life insurance policy is maturing and needs to be renewed, you will have to make a decision on whether to renew the policy with your existing company, or purchase a new policy from a different company. Regardless of what you do, it's generally a good idea to apply for, and get approved for, a new policy before canceling the old policy. This ensures that you have uninterrupted life insurance coverage. When you do renew your coverage, you'll want to know how to calculate your new life insurance renewal premium.
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Instructions
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Contact the insurance company you are doing business with and request a life insurance quote.
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Ask for a copy of the quote and an illustration.
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Look for the rate the insurance company is charging you. The cost per thousand dollars of insurance will be listed somewhere on the illustration. The exact location varies depending on the company and the illustration. What you are looking for is the "cost per thousand." This will tell you the unit cost for the insurance. From this, you can add the cost of insurance according to how many thousands of dollars worth of insurance you've purchased. It should match the total premium amount listed on the quote the insurance provides to you. Your renewal premium will be higher than your existing life insurance policy premium.
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