Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 153

Describe premium factors and how they are used. How often do you prefer paying an insurance premium: annually, semiannually, quarterly, or monthly? (See Objective.)
Use premium factors with different modes of premium payment. Many companies give the insured the option of paying the premium semiannually, quarterly, or monthly. For this convenience, the policyholder pays an additional amount that is determined by a premium factor. The following table shows typical premium factors.