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Demo INSCE028FL15 -Life CE: Topic 1 - Lesson 1: Step Rate - 7/27 | OLT

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Topic 1 - Lesson 1

Step Rate - 7/27

T1-L1-P7

Step-Rate

Each time the term ends and the insurance is renewed, the insured has moved into a higher risk pool so the company's mortality rate or the cost of dying will be higher and therefore, the premium will increase each time one renews for a new term. This is known as a step-rate. The face value remains the same at renewal but the price steps up.

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