Calculation of Net Single Premium (NSP)
Problem: 1 Calculate the Net Single Premium (NSP) for 5 years term policy from the following table.
Year of Age No of No of
Insurance Obtained Policyholders(Living) Death
1 30 10000 300
2 31 9700 400
3 32 9300 250
4 33 9050 200
5 34 8850 350
Additional Information: Interest @ 5%, Amount of claim per death= 20000TK.
Problem: 2 calculate the Net Single Premium (NSP) for 5 years term policy from the following table.
Year Age Number of Persons Number of
insured Deaths
during the
year
1 31 10000 300
2 32 9700 400
3 33 9300 250
4 34 9050 200
5 35 8850 350
Additional Information: Interest @ 3%, Amount of claim per death= 5000TK.
Calculation of NSP in term Policy by ‘Probability Method’
Problem: 3 From the following information Calculate the Net Single Premium:
1. The period of term insurance is 5 years.
2. Rate of return on investment is 3%
3. The person is proposing at the age of 35 and the morality rate per 1000 from the above age is
2.10, 2.25, 2.42, 2.63, and 2.85 respectively.
4. The amount of per policy is Tk. 20000
Net Single Premium In Whole Life Policy
Problem: 4 At the age of 91, 10000 people has taken Whole life policy for 20000 each. It has been
assumed in most of the mortality table that the life will continue up to 100 years. Based on the
information from the following table, calculate the Net Single Premium (NSP).
Year Age Number of Number of Deaths PVIF @
Persons during the year 4%
insured
1 91 10000 530
2 92 9470
3 93 8795
4 94 7905
5 95 6477
6 96 5131
7 97 3850
8 98 2693
9 99 1629
10 100 636
Net Single Premium In Pure Endowment Policy
Problem: 5 calculate the Net Single Premium (NSP) for 5 years Pure Endowment policy of TK. 10000
(Policy Value) from the following table.
Age Number Number PVIF @
of of Deaths 5%
Persons during
insured the year
35 24337 1348 .952
36 22989 1703 .907
37 21286 2178 .864
38 19108 2826 .823
39 16282 3025 .784
Net Single Premium In Ordinary Endowment Policy & Double Endowment policy
Problem: 6 calculate the Net Single Premium (NSP) for 5 years Ordinary Endowment policy of TK. 20000
(Policy Value) at the age of 45 from the following table.
Year Age Number of Number of PVIF @
Deaths during Policyholders 5%
the year
1 45 20 5000 .9524
2 46 35 .9070
3 47 48 .8638
4 48 55 .8227
5 49 61 .7835
Problem: 7 calculate the Net Single Premium (NSP) for 5 years Ordinary Endowment policy of TK. 5000
at the age of 36 from the following table.
Year Age Number of Number of PVIF @
Deaths Policyholders 3%
1 36 25 9480 .971
2 37 26 .943
3 38 28 .915
4 39 30 .888
5 40 31 .863
Calculation of Net Annual Premium (NAP)
Problem: 1 calculates the Net Annual Premium (NAP) for 10 years Ordinary Endowment policy of TK.
5000 at the age of 41 from the following table.
Year Age N0 of No of Deaths PVIF @
Policyholders 5%
1 41 10528 .952
2 42 10090 .907
3 43 9627 .864
4 44 9146 .823
5 45 8644 .784
6 46 8105 .747
7 47 7511 .711
8 48 6894 .677
9 49 6204 .645
10 50 5469 500 .614
Calculation of (NSP & NAP)
Problem: 1 calculate the Net Single Premium (NSP) & Net Annual Premium (NAP) for 5 years Term policy
from the following information with a policy value of TK. 10000.
Year Age N0 of No of Deaths PVIF @
Policyholders 5%
1 31 9480 125 .952
2 32 9355 126 .907
3 33 9229 128 .864
4 34 9101 130 .823
5 35 8971 136 .784
Problem: 2 calculate the Net Single Premium (NSP) & Net Annual Premium (NAP) for 5 years
Endowment policy of TK. 5000 from the following:
Age Number Number PVIF @
of of Deaths 2%
Persons during
insured the year
35 30550 4196 .980
36 26335 3285 .961
37 23069 2562 .942
38 20507 1978 .924
39 18529 1164 .906