Carleton Financial Software
 Home  Search  Contact Us 
  
 
 
 
 Products 
 Services 
 Partners 
 of Interest! 
 Who We Are 
 Press Releases 
 
 
   
MOB PRESENTATION
<< Previous TOC Next >>
 
Monthly Outstanding Balance A&H (Disability) coverage
  • Premium Computation concept is the same as MOB life coverage; what is different is the base of coverage.
  • Allocation rules are (1) accrued life, (2) accrued A&H, (3) accrued interest, (4) outstanding principal balance.
  • Coverage can be either of (but not necessarily limited to):
    • Based on cash amount (same as life)
    • Based on payments outstanding
  • If A&H coverage is based on payments outstanding:;
    • A&H premium is insured
    • Interest is insured
 
Monthly Outstanding Balance A&H (Disability) coverage
Based on Cash
    Payment Allocation Prin. & Int.
Payment
Outstanding
Balance		 Payment Life Premium
(1)		 Monthly Life
Base		 A&H
Premium
(2)		 Monthly
A&H Base		 Interest
(3)		 Principal
(4)
$10,000.00 $913.28 $10.00 $10,000.00 $33.85 $10,000.00 $100.00 $769.43 $869.43
$9,230.57 $913.28 $9.23 $9,230.57 $31.24 $9,230.57 $92.31 $780.50 $872.81
$8,450.07 $913.28 $8.45 $8,450.07 $28.60 $8,450.07 $84.50 $791.73 $876.23
$7,658.34 $913.28 $7.66 $7,658.34 $25.92 $7,658.34 $76.58 $803.12 $879.70
$6,855.22 $913.28 $6.86 $6,855.22 $23.20 $6,855.22 $68.55 $814.67 $883.22
$6,040.55 $913.28 $6.04 $6,040.55 $20.44 $6,040.55 $60.41 $826.39 $886.80
$5,214.17 $913.28 $5.21 $5,214.17 $17.65 $5,214.17 $52.14 $838.28 $890.42
$4,375.89 $913.28 $4.38 $4,375.89 $14.81 $4,375.89 $43.76 $850.33 $894.09
$3,525.56 $913.28 $3.53 $3,525.56 $11.93 $3,525.56 $35.26 $862.56 $897.82
$2,663.00 $913.28 $2.66 $2,663.00 $9.01 $2,663.00 $26.63 $874.98 $901.61
$1,788.03 $913.28 $1.79 $1,788.03 $6.05 $1,788.03 $17.88 $887.56 $905.44
$900.47 $913.28 $0.90 $900.47 $3.05 $900.47 $9.00 $900.33 $909.33
0                
          Life Rate = $1.00/$1000/mo
$66,701.87   $66.71 A&H Rate = $2.20 per $100
Month Dollars of
Coverage		         Monthly Payment
$913.28		    
 
Monthly Outstanding Balance A&H (Disability) coverage
Based on Payment Outstanding
    Payment Allocation  
Outstanding
Balance		 Payment Life
Premium
(1)
 Monthly Life
Base		 A&H
Premium
(2)		 Monthly A&H
Base		 Interest
(3)		 Principal
(4)		 Prin. & Int.
Payment
$10,000.00 $914.63 $10.00 $10,000.00 $37.15 $10,975.56 $100.00 $767.48 $867.48
$9,232.52 $914.63 $9.23 $9,232.52 $34.05 $10,060.93 $92.33 $779.02 $871.35
$8,453.50 $914.63 $8.45 $8,453.50 $30.96 $9,146.30 $84.54 $790.69 $875.22
$7,662.82 $914.63 $7.66 $7,662.82 $27.86 $8,231.67 $76.63 $802.48 $879.11
$6,860.34 $914.63 $6.86 $6,860.34 $24.77 $7,317.04 $68.60 $814.40 $883.00
$6,045.94 $914.63 $6.05 $6,045.94 $21.67 $6,402.41 $60.46 $826.45 $886.91
$5,219.49 $914.63 $5.22 $5,219.49 $18.57 $5,487.78 $52.19 $838.64 $890.84
$4,380.84 $914.63 $4.38 $4,380.84 $15.48 $4,573.15 $43.81 $850.96 $894.77
$3,529.88 $914.63 $3.53 $3,529.88 $12.38 $3,658.52 $35.30 $863.42 $898.72
$2,666.46 $914.63 $2.67 $2,666.46 $9.29 $2,743.89 $26.66 $876.01 $902.67
$1,790.44 $914.63 $1.79 $1,790.44 $6.19 $1,829.26 $17.90 $888.74 $906.65
$901.69 $914.63 $0.90 $901.69 $3.10 $914.63 $9.02 $901.62 $910.63
0.08                
  Life Rate = $1.00/$1000/mo
$66,744.00   $66.74   $241.46 A&H Rate = $2.20 per $100
Month Dollars of
Coverage		   Monthly Payment
$914.63		    
 
Monthly Outstanding Balance
A&H (Disability) coverage
  • Closed-end often uses a schedule of A&H rates per $100 of coverage and the rate is converted to an actuarial equivalent monthly rate per $1000 of coverage.
    •  
  • Some Credit Insurance Regulations will publish an underlying rate per $1000 per month.
 
<< Previous TOC Next >>
 (c) 2008 Carleton. Inc.  | Privacy Policy  | Site Map  | Home  | Products  | Services  | Partners  | of Interest!  | Who We Are  | Press Releases