Return of Premium Term Refund At Maturity Worth It Verdict
Conditional nominal return-of-premium comparison using matched coverage/time and independently verified refund eligibility. Exact one-currency minor units; ignores timing, investment returns, fees, tax and early lapse, so not a worth-it verdict.
Description
Return-of-premium comparisons separate the additional nominal premium from the amount returned.
Return-of-premium comparisons separate the additional nominal premium from the amount returned.1
Net nominal cost is different from a present-value comparison or a suitability recommendation.
When to use Return of Premium Term Refund At Maturity Worth It Verdict
Use this tool to calculate or review the supplied observations under the stated rules. Establish the contract, jurisdiction, reporting basis, currency and dated evidence that apply.
How to use Return of Premium Term Refund At Maturity Worth It Verdict and understand its results
- Establish the contract, jurisdiction, reporting basis, currency and dated evidence that apply.
- Enter returnOfPremiumPolicyTotalPremiumMinor, comparableTermTotalPremiumMinor, independentlyVerifiedEligibleRefundMinor, using the field meanings and rules below, then run the tool.
- Read result.extraNominalPremiumMinor, result.conditionalNominalNetExtraOutlayMinor, using the output meanings and calculation rules below.
- Correct any reported input issue and run again. Before using a successful result, check the stated units, signs, reference scope and observation coverage.
| Input field | Meaning | Value type | Requirement |
|---|---|---|---|
| returnOfPremiumPolicyTotalPremiumMinor | Return of premium policy total premium minor | number | Required |
| comparableTermTotalPremiumMinor | Comparable term total premium minor | number | Required |
| independentlyVerifiedEligibleRefundMinor | Independently verified eligible refund minor | number | Required |
Use nonnegative safe-integer comparable term premium, return-of-premium total and refund in one minor-unit currency. Refund cannot exceed the return-of-premium total. Return the added premium and then added premium minus refund, retaining signed results and rejecting unsafe integer results.
addedPremium=ROPtotal−comparableTermTotal; netAddedCost=addedPremium−refund Use the matching field units and the exact boundary, ordering and reference rules above.
| Output field | Meaning | Value type |
|---|---|---|
| result | Calculated observation or qualified reference | object |
| result.extraNominalPremiumMinor | extra Nominal Premium Minor | number |
| result.conditionalNominalNetExtraOutlayMinor | conditional Nominal Net Extra Outlay Minor | number |
{
"input": {
"returnOfPremiumPolicyTotalPremiumMinor": 30000,
"comparableTermTotalPremiumMinor": 20000,
"independentlyVerifiedEligibleRefundMinor": 25000
},
"output": {
"result": {
"extraNominalPremiumMinor": 10000,
"conditionalNominalNetExtraOutlayMinor": -15000
}
}
}Limitations and assumptions
The calculation is nominal, with no discount rate, timing, tax, refund eligibility or investment comparison. A negative net figure is arithmetic under the supplied amounts, not a recommendation.
Missing required fields, unknown fields, wrong types and violated rules return input issues. Numeric values and outputs must be finite. Extremely large composite outputs are rejected.
Alternative or Complementary methods
For a related step, use Laddered Term Policies Staggered Face Amounts Strategy: A term-policy ladder can provide different aggregate face amounts at different points in time. For a complementary comparison, use Term Conversion Privilege Whole Life No Exam Window Lookup: Term conversion privileges can allow conversion to specified permanent coverage without new evidence of insurability during contract-defined windows.
References
Similar or alternative tools
- Laddered Term Policies Staggered Face Amounts Strategy
A term-policy ladder can provide different aggregate face amounts at different points in time.
- Term Conversion Privilege Whole Life No Exam Window Lookup
Term conversion privileges can allow conversion to specified permanent coverage without new evidence of insurability during contract-defined windows.