FAQ 328: Insured death benefit - Term Cost

Problem: I would like to calculate the cost of insurance for someone with say a 55,000 face amount using the PS58 tables. On the plan specs under insurance I have the PS58 table chosen and in the employee screen I have the 55,000 entered in as prior face amount. What else do I need to do or what should I not do?

Solution: Code your face amount in a history record (be sure to code an insurance issue date in the history record also), and code in PS58 under table in this same history record. If you have a number of people you can use the set column data feature of the grid to copy prior face to the history record field. Next go to Calculations/Actuarial/Reconstruct from History and select Face amount & premium. You will need to run the Reconstruct program each year to update to the term rate for the current age at valuation.