| dc.description.abstract | The main objective of this project was to design a product that pays out a sum assured on the event of death and on the event of maturity and a money back plan to the policy holder provided he / she is still alive within the term of the policy.
The profit margin testing approach was executed in the designing process of this product, however there were several steps taken for example determining of the assumptions like interest rate, risk discount rate, the expenses, mortality tables, and surrender rates.
The results of the calculations done using the profit testing approach indicates that a 35-year old male pays an annual premium of 3,534,256 for a 5-year policy which pays out a sum assured of UGX 10,000,000 on maturity of the policy and on the event of death with a money back of UGX 400,000 in the first year, UGX 450,000 in the second year and 500,000 in the consecutive years provided the policy holder is still alive together with operation expenses and commission. From the results obtained from the modal, based on the mortality table for Uganda assured lives for 2015 – 2019, the males pay a slightly higher premium compared to the females. The overall profit margin for the females is slightly higher than the males from age 35 to 39.
Therefore, by assumption it implies for all ages. However, that does not mean the calculations implemented are wrong | en_US |
