BENEFITS FOR EMPLOYEES--Life Insurance--Term Insurance Conversion Rates
Hardin-Simmons University pays for employees to have a term life insurance in an amount equal to their annual pay. For example, if you annual pay is $20,000, then you have $20,000 in term life insurance. The insurance increases as your pay increases with some rounding of dollars. If you decide to leave Hardin-Simmons and desire to retain this insurance, you will need to convert the term insurance to a permanent individual policy. Permanent life insurance policies are more expensive than term life policies and the conversion rates are provided below. However, the advantage of converting your term life insurance to whole life insurance is that you do not have to prove that your are insurable and you lock in your rates. The coverage is guaranteed.
If you are interested in this conversion, contact Mr. John Snapp at Perry Hunter Hall within 30 days of your last day of employment at Hardin-Simmons. His phone number is (325)6736414.
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TERM TO PERMANENT CONVERSION RATES |
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ANNUAL RATES FOR $1,000 OF WHOLE LIFE INSURANCE |
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MODE
|
POLICY FEE |
MODE FACTIONS |
|
ANNUAL
|
$17.00 | 1.000 |
|
SEMI-ANNUAL
|
9.00 | .520 |
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QUARTERLY
|
5.00 | .265 |
|
AGE* |
RATE |
AGE* |
RATE |
AGE* |
RATE |
AGE* |
RATE |
AGE* |
RATE |
| 20 | 6.51 | 33 | 11.59 | 46 | 21.97 | 59 | 45.16 | 72 | 96.55 |
| 21 | 6.86 | 34 | 12.14 | 47 | 23.14 | 60 | 47.79 | 73 | 102.77 |
| 22 | 7.09 | 35 | 12.70 | 48 | 24.53 | 61 | 50.70 | 74 | 109.38 |
| 23 | 7.42 | 36 | 13.25 | 49 | 25.90 | 62 | 53.72 | 75 | 116.41 |
| 24 | 7.76 | 37 | 13.92 | 50 | 27.36 | 63 | 56.86 | 76 | 123.90 |
| 25 | 8.10 | 38 | 14.58 | 51 | 28.92 | 64 | 60.23 | 77 | 131.94 |
| 26 | 8.56 | 39 | 15.23 | 52 | 30.56 | 65 | 63.84 | 78 | 140.61 |
| 27 | 8.90 | 40 | 15.89 | 53 | 32.28 | 66 | 67.67 | 79 | 150.02 |
| 28 | 9.22 | 41 | 16.77 | 54 | 34.10 | 67 | 71.74 | 80 | 160.20 |
| 29 | 9.68 | 42 | 17.76 | 55 | 36.10 | 68 | 76.05 | ||
| 30 | 10.13 | 43 | 18.73 | 56 | 38.10 | 69 | 80.47 | ||
| 31 | 10.58 | 44 | 19.71 | 57 | 40.30 | 70 | 85.24 | ||
| 32 | 11.03 | 45 | 20.79 | 58 | 42.68 | 71 | 90.70 | ||
| *Age - Last birthday on date of termination of employment. | |||||||||
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HOW TO CALCULATE A PREMIUM |
EXAMPLE $5,000 of Life Insurance at age 25 |
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ANN
RATE $1,000 |
X | # OF
$1,000'S |
X | MODE
FACTOR |
+ | MODAL
POLICY FEE |
= | MODAL
PREM |
| ANNUAL | 8.10 | X | 5 | X | 1.00 | + | 17.00 | = | 57.50 |
| SEMI-ANN | 8.10 | X | 5 | X | .520 | + | 9.00 | = | 30.06 |
| QUARTERLY | 8.10 | X | 5 | X | .265 | + | 5.00 | = | 15.73 |
Tuesday, 24. February 2004