Life Insurance Premiums Calculations

d-wilcox

I have looked over my set up. I did not change it from the previous years with the exception of the rate and the premium is not coming out correctly.  Infor says it is calculating correctly, but when I look at the BN320, it is not calculating the way the broker says it should. Does anyone have any information or guidance in this area for me?  It is basic life insurance.

Lawson calculates:  example volume of insurance/1000 = 60 * .185 = 11.1 /26 pay periods = .4269.  The broker wants:

volume * .185/1000*12 = annual/ 26.

deday

When you enter the rate on BN02 you need to enter the annual rate.. So with your example above:

If you enter 2.22 (0.185*12) on BN02 your outcome would be:



60,000/1000=60*2.22=133.20/26=5.12



This would be the same outcome as your broker example. This is how we have our life insurance premiums set up in Lawson and have never had a problem. I don't have experience with the BN320 it's not a report we use but we have 8 life insurance plans and we have the base rate set to the annual amount.



Hope that helps.