- 54 -
life of Dr. Desai, age 46. The first-year premium was
$19,004.55, and the cost of insuring Dr. Desai for that year was
$3,786.22. Lakewood paid this premium, and, at the end of that
year, the conversion credit balance was $15,903.15 ($19,004.55 -
$3,786.22 + $684.82); the $684.82 is the interest of 4.5 percent
earned on the conversion credit balance (($15,903.15 - $684.82) x
4.5% = $684.82)). None of the conversion credit balance could
have been transferred at this time to the C-group conversion UL
policy, upon conversion thereto, because the C-group term policy
was in its first year.
The second-year premium, before any experience refund, was
$19,366.35. The policy was credited with an experience refund of
$145.33, and Lakewood paid the net premium of $19,221.02
($19,366.35 - $145.33). The cost of insuring Dr. Desai for the
second year was $4,072.87, and, at the end of that year, the
conversion credit balance was $32,600.48 ($15,903.15 + $19,366.35
- $4,072.87 + $1,403.85); the $1,403.85 is the interest of 4.5
percent earned on the conversion credit balance (($32,600.48 -
$1,403.85) x 4.5% = $1,403.85)). Of the conversion credit
balance, $15,485.23 could have been transferred at this time to
the C-group conversion UL policy, upon conversion thereto,
because the C-group term policy was in its second year
($32,600.48 x 47.5%).
Page: Previous 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 NextLast modified: May 25, 2011