page 10 INFLAPRO TUTOR

INFLAPRO APPLICATIONS
(Insurance endowment plan)

Insurance of 1 crore maturity

There is a Inflapro Recurring deposit calculator in both bnv.bvraghav dot com and also in bnvenkat dot com. That principle of RD Calc is used in this application of INFLA INSURANCE.
In conventional insurance the premium is fixed and same throughout and so is the insurance cover also known as death benefit or sum assured to the survivor in case of any eventuality during the policy term. In case or term plan there is no maturity amount. Or in some other policy of term plan with return of premium without interest, there is survival / maturity benefit with the return of premium paid.
In endowment plan there is survival benefit/maturity amount and the policies can be with or with out profit.
In Inflapro insurance the premium is varying according to inflation protection desired and so is the insurance cover also known as death benefit to the survivor in case of any eventuality during the policy term. The suggested scheme is an endowment plan and there is survival benefit/maturity of ₹ 1 crore.
For higher amounts, it can be prorated.
To explain this we should consider the starting age of the policy holder let us say 18 years and policy term of 42 years upto age of 60, then insurance premium in inflapro would be ₹ 11638.34 and on 60th year the premium would be ₹ 5.79 lac per year in a typical case.
Similarly death benefit in first year would be ₹ 2.01 lakh. This I am calling as base sum assured. and the death benefit at age 60 the end sum assured becomes ₹ 1 crore.
This is because, ₹ 2.01 lakh with inflation of 10% in 42 years span becomes ₹ 1 crore.
Software wise there are two programs/menu one as Infla Insu and the other is infla advanced.
in bnvenkat dot com.
Both produce same result with same input parameters.
In this description the menu of infla insu advanced is given.

How to operate the Infla Insu menu

Please visit www.bnvenkat.com and look for link at the bottom lines of the home page, below the school mathematics links. The link for ready reference is given here.
INFLA INSU ADVANCED index.php and click.
On the menu page first enter the starting age of policy holder and click
'set default parameters for this age' link, and submit (no login/password required)
In the next calculator page click the desired inflation protection rate under the shown
starting age/ages.
You will be given a mini table of starting premium. click the audit table link on the mini table.
Also click the graph link in the same mini table.
You will get detailed table of premium year by year and sum assured in year wise.
For this typical case of 4% interest rate insuance with out profit, the profit is the assured 4% (i.e. the interest rate itself). In case of with profit policies the profit can be anticipated over 4%, but the premium is higher, taking a risk in profit margin. In the without profit case the starting premium for 30 years age entrant is ₹ 40,611.22 or Monthly:₹ 3,444.10 or Qly:₹ 10,298.86 or Hly:₹ 20,498.78
The base sum assured is ₹ 6.30 lakh and the end term maturity is ₹ 1 crore.
The premium increases at 10% inflation protection per year.
The sum assured year by year also increases. In a middle policy term say at 15th year of policy i.e. at age of 45, the premium would be ₹1,54,221.06 (say ₹ 1.54 lakh) and sum assured in that year is ₹ 23,93,920.52 (say ₹ 23.94 lakh.)
In these calculations the adviced premiums only the simple factors are considered. One has to add about 1% more (to cover towards admin charges and additional premum aroud ₹ 500 pa toward mortality charges) to be added in practical cases.
For a ready reference the click the following link of pdf file you may be able to view in browser or downloadable for future reading. The link is
TUTOR INFLAINSU.pdf
I wanted to expalin about the inflapro Fixed deposit calculations. But I found some severe problem in the site bnv.bvraghav dot com and the software is not working. So I am going to spend time on diagnosing. So this is not the concluding article on TUTORIAL. That site is where detailed individual option of FD, Pension, Loan, and RD calculations are dealt with. so kindly bear with me for not concluding this session.

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