5.

2 PRICING PROCESS

When determining pricing, they also calculate this process-
1 . Single premium plan :
In this policy, the whole premium is paid at the beginning at the policy. As compared
to the annual premium payable , it is costly ,but as compared to aggregate of all
annual premium payable, it is much smaller because all the premium are received in
advance and the insurer can earn additional amount on the premium received.
2. Level premium:
nder this policy, regular and e!ual premiums are paid at a definite interval. "his
premium is lesser than the single premium and is convenient to ma#e at a regular
period. "his may ta#e the shape of an e$pense and can be constantly paid. "he
e!ual installments may be paid monthly, half-yearly, and yearly.
NATIONAL LIFE INSURANCE CO. LTD.
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