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  • User Input Formula: Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

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    Kaushalya-FrankMunro
    26 views6 pages
    This document contains two tables that model commission income from insurance premiums over a 10 year period under different assumptions. The first table models declining premium lapse rates from 100% in year 1 to 2.5% in year 10, along with declining commission rates. It calculates total commission income of $2,160,000 annually, with commissions ranging from $486,000 in year 1 to $3,567 in year 10. The second table models a static 0% lapse rate and 100% commission rate, resulting in higher total commission income of $148,500 per month versus $71,563 in the first table.

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    WP Income Example

    Original Title

    WP Income Example

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    This document contains two tables that model commission income from insurance premiums over a 10 year period under different assumptions. The first table models declining premium lapse rates from 100% in year 1 to 2.5% in year 10, along with declining commission rates. It calculates total commission income of $2,160,000 annually, with commissions ranging from $486,000 in year 1 to $3,567 in year 10. The second table models a static 0% lapse rate and 100% commission rate, resulting in higher total commission income of $148,500 per month versus $71,563 in the first table.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    26 views6 pages

    User Input Formula: Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

    Uploaded by

    Kaushalya-FrankMunro
    This document contains two tables that model commission income from insurance premiums over a 10 year period under different assumptions. The first table models declining premium lapse rates from 100% in year 1 to 2.5% in year 10, along with declining commission rates. It calculates total commission income of $2,160,000 annually, with commissions ranging from $486,000 in year 1 to $3,567 in year 10. The second table models a static 0% lapse rate and 100% commission rate, resulting in higher total commission income of $148,500 per month versus $71,563 in the first table.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Key

    User Input
    Formula
    Month
    Y0
    Y1
    Y2
    Y3
    Y4
    Y5
    Y6
    Y7
    Y8
    Y9
    Y10

    Premium Lapse Rate In-Force Rate Commission Rate


    100%
    50%
    50%
    30%
    30%
    35%
    20%
    20%
    28%
    15%
    20%
    22%
    10%
    20%
    18%
    7.5%
    20%
    14%
    2.5%
    20%
    11%
    2.5%
    20%
    9%
    2.5%
    20%
    7%
    2.5%
    20%
    6%
    2.5%

    Annual ANP
    2,160,000

    Period
    Y1
    Y2
    Y3
    Y4
    Y5
    Y6
    Y7
    Y8
    Y9
    Y10

    Commission - Y1 Commission - Y2 Commission - Y3


    486,000
    183,600
    102,060
    54,432
    32,659
    8,709
    6,967
    5,574
    4,459
    3,567

    486,000
    183,600
    102,060
    54,432
    32,659
    8,709
    6,967
    5,574
    4,459

    486,000
    183,600
    102,060
    54,432
    32,659
    8,709
    6,967
    5,574

    Commission - Y4 Commission - Y5

    486,000
    183,600
    102,060
    54,432
    32,659
    8,709
    6,967

    486,000
    183,600
    102,060
    54,432
    32,659
    8,709

    Monthly Income
    71,563

    Key
    User Input
    Formula
    Month
    Y0
    Y1
    Y2
    Y3
    Y4
    Y5
    Y6
    Y7
    Y8
    Y9
    Y10

    Premium Lapse Rate In-Force Rate Commission Rate


    100%
    0%
    100%
    30%
    0%
    100%
    20%
    0%
    100%
    15%
    0%
    100%
    10%
    0%
    100%
    7.5%
    0%
    100%
    2.5%
    0%
    100%
    2.5%
    0%
    100%
    2.5%
    0%
    100%
    2.5%
    0%
    100%
    2.5%

    Annual ANP
    2,160,000

    Period
    Y1
    Y2
    Y3
    Y4
    Y5
    Y6
    Y7
    Y8
    Y9
    Y10

    Commission - Y1 Commission - Y2 Commission - Y3


    648,000
    432,000
    324,000
    216,000
    162,000
    54,000
    54,000
    54,000
    54,000
    54,000

    648,000
    432,000
    324,000
    216,000
    162,000
    54,000
    54,000
    54,000
    54,000

    648,000
    432,000
    324,000
    216,000
    162,000
    54,000
    54,000
    54,000

    Commission - Y4 Commission - Y5

    648,000
    432,000
    324,000
    216,000
    162,000
    54,000
    54,000

    648,000
    432,000
    324,000
    216,000
    162,000
    54,000

    Monthly Income
    148,500

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