Temporary Life Insurance

A temporary life insurance is an insurance in which the insurance company promises to pay the face value of the policy to the beinficiary upon the death of the insured, only if the insured dies within n years of the origination date of the policy.

Please note that FinKit's Temporary Life Insurance calculation only calculates the net single premium, ignoring expenses.

Input

• life table
• current age
• policy face value
• nominal annual rate

Note: FinKit assumes that the benefits are paid out at the end of the year in which the insured dies. In real life they are paid promptly upon proof of the insured's death.

Results

• net single premium

• n-year term insurance factor

Example

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What is the net single premium for a ten year life insurance policy of face value $1,000, issued to a male, now aged 65, if interest is at 4 %?