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Definition of terms used in insurance premium calculation
Definition of terms used in insurance premium calculation
R
Written by Ria Mariam Thomas
Updated over a year ago
  • Insurance Premium refers to the amount a business or an individual pays periodically to the insurance provider for their insurance coverage. On Multiplier, the premium is calculated and invoiced for 12 months, except in the USA, where it is calculated monthly.

  • Insured Employee is an individual who is eligible for insurance coverage under the health insurance plan.

  • Insured Dependent is a family member of the employee who is eligible for insurance coverage under the policyholder’s health insurance plan.

  • Platform fee refers to the management fee charged by Multiplier.

  • Employer-employee split means the total amount is split between the employer and the employee, and both contribute a certain percentage.

  • Age band pricing means the insurance premium varies based on the age of the employee and dependents added.

    Hence, the premium pricing for each insured member can vary depending on the age of the insured. Age-band pricing is applicable in some countries.

    For example, if there are 2 employees or dependents whose ages are 35 and 45, the premium for the member aged 35 will be $100 per month, and the member aged 45 will be $140 per month.

Age (in years)

Insurance premium in USD (per month)

18-39

$100

40-49

$140

50-59

$210

60-74

$370

In that case, the premium for each dependent is charged separately.

Note that there will be a difference in premiums charged due to age-band pricing only in some countries. In case age-band pricing is applicable in a certain country, the premium charged will differ for dependents who are in different age brackets.


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