# Multiplier’s Insurance premium calculation
Before you begin reading how the calculation works, here are some[ basic insurance terms](https://help.usemultiplier.com/en/articles/8451471-definition-of-terms-used-in-insurance-premium-calculation) to help you better understand the calculation.
The insurance premium is calculated differently for different segments:
* [Individual Insurance](#individual-insurance)
* [Individual and Dependent Insurance](#individual-and-dependent-insurance)
* [Family Insurance](#family-insurance)
## Individual Insurance
The individual plan covers the employee under an insurance plan and comes with a health ID for the employee.
### Insurance Premium
The employer will be billed for one year (annually) in all countries (except the USA). Insurance invoices for US employees will be billed monthly by Multiplier.
For example, if the premium for the individual is $70 per month. The total premium for the individual for 12 months will be $840.
| Premium of the individual | $70 |
| ------------------------- | --------------------- |
| Total premium | $70\*12 months = $840 |
### Platform Fee
The platform fee is $25 per month, and the total platform fee for 12 months will be $300.
| Platform fee | $25 |
| ------------------- | --------------------- |
| Total platform fees | $25\*12 months = $300 |
**Note:** The platform fee is charged only in some countries.
Total insurance amount = $1140 (Individual Premium + Platform Fee)
**Note** - Employer-employee split in the premium is applicable in a few countries. This means the total amount is split between the employer and the employee, and both contribute a certain percentage. The employer chooses the percentage contribution during onboarding.
* Suppose the employee is also contributing to the premium. In that case, i.e., there is a split between employer and employee for the premium, the employee contribution will be deducted from the employee's salary every month. It will be a part of the payroll.
Let us take an example to understand the pricing split of the premium amount. Let’s say the employer decides to contribute 70% of the premium. This means the employee will contribute 30%.
| Employer will contribute | 70% of $1140 = $798 |
| ------------------------ | ------------------- |
| Employee will contribute | 30% of $1140 = $342 |
### Individual and Dependent Insurance
If dependents have been added for an employee, note that the health ID for all the dependents will be different. This is because each dependent will be covered under a different insurance plan. Also, the premium contribution made for every dependent may differ based on certain age-band criteria.
### Insurance premium
The employer will be billed for one year (annually) in all countries (except the USA). Insurance invoices for US employees will be billed monthly by Multiplier.
For example, let’s say the premium for the individual is $70 per month. The total premium for the individual for 12 months will be $840.
| Premium of the individual | $70 |
| ------------------------- | --------------------- |
| Total premium | $70\*12 months = $840 |
### Insured dependents
Let's say there are 2 dependents - the premium for 1 is $70, and the other is $80. Thus, the total premium for dependent 1 for 12 months will be $840, and the total premium for dependent 2 for 12 months will be $960.
| Premium of insured dependent 1 | $70 |
| --------------------------------- | --------------------- |
| The total premium for dependent 1 | $70\*12 months = $840 |
| Premium of insured dependent 2 | $80 |
| The total premium for dependent 2 | $80\*12 months = $960 |
In the above example, there is a difference in premiums charged due to age-band pricing applicable in some countries. The premium for each dependent will be charged separately.
If age-band pricing is not applicable in a country, then the premium charged will be the same for both dependents, i.e., the same price, either $70 for both dependents or $80 for both.
### Platform fee
Platform fee will be charged thrice since there are 3 insured individuals. If the platform fee is $25 per month, the total platform fee for 12 months will be $300. Since 3 individuals are insured, the total platform fees will be $300 multiplied by 3, i.e., $900.
| Platform fee | $25 |
| ------------------- | ----------------------------------- |
| Total platform fees | $25\*12 months\*3 dependents = $900 |
The platform fee is charged only in some countries.
Total amount = $3540 (Individual Premium + 2 Dependents Premium + Platform Fee)
Note - The employer-employee split in the premium is applicable in a few countries. This means the total amount is split between the employer and the employee, and both contribute a certain percentage. The employer chooses the percentage contribution.
* If the employee is also contributing to the premium, i.e., if there is a split between employer and employee for the premium, then the employee contribution will be deducted from the employee's salary every month and will be a part of the payroll.
Let us take an example to understand the pricing split of the premium amount. Let’s say the employer decides to contribute 70% of the premium. This means the employee will contribute 30%.
| Employer will contribute | 70% of $3540 = $2478 |
| ------------------------ | -------------------- |
| Employee will contribute | 30% of $3540 = $1062 |
## Family Insurance
If the family plan has been selected, the health ID for all the family members will remain the same, i.e., only one health ID for all members covered under the family plan.
### Insurance premium
The employer will be billed for one year (annually) in all countries (except the USA). Insurance invoices for US employees will be billed monthly by Multiplier.
Let’s take an example where the premium of a family plan is $250 per month.
| Premium of the family plan | $250 |
| -------------------------- | ----------------------- |
| Total premium | $250\*12 months = $3000 |
### Platform fee
Since only one policy covers the entire family, the platform fee will be charged once, i.e., $20 per month, and the total platform fee for 12 months will be $240.
| Platform fee | $25 |
| ------------------- | --------------------- |
| Total platform fees | $25\*12 months = $300 |
The platform fee is charged only in some countries.
Total amount = $3300 (Family Premium + Platform Fee)
**Note** - The employer-employee split in the premium is applicable in some countries. This means the total amount is split between the employee and employer, and both contribute a certain percentage. The employer chooses the percentage contribution.
* Suppose the employee is also contributing to the premium. In that case, i.e., there is a split between employer and employee for the premium, the employee contribution will be deducted from the employee's salary every month. It will be a part of the payroll.
Let us take an example to understand the pricing split of the premium amount. Let’s say the employer decides to contribute 70% of the premium. This means the employee will contribute 30%.
| Employer will contribute | 70% of $3300 = $2310 |
| ------------------------ | -------------------- |
| Employee will contribute | 30% of $3300 = $990 |