Net Single Premium Calculator

Work out net single premium instantly with clear inputs, formula shown and shareable results.

About Net Single Premium Calculator

The net single premium is the expected present value of the death benefit, with no allowance for expenses or profit. Under a constant mortality rate the whole-life assurance factor is Aₓ = q·v/(1 − p·v), and the premium is that factor times the sum assured.

Formula

Whole life assurance

Aₓ = q·v / (1 - p·v); NSP = S × Aₓ

q: Mortality rate
p: 1 - q
v: 1/(1+i)
S: Sum assured

Worked example

With the default values below, Net Single Premium Calculator returns Net Single Premium of $19,354.84. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sum Assuredminimum 0: 100,000
Annual Mortality Rateaccepts 0.01–40 %: 1.2 %
Interest Rateaccepts 0.01–25 %: 5 %

Results

Net Single Premium: $19,354.84
Assurance Factor Aₓ: 0.193548
Annuity-Due Factor äₓ: 16.9355 ×
Premium As % Of Sum Assured: 19.355%

Step by step

1Values used
2Whole life assurance
3Net Single Premium= 19,354.84
4Assurance Factor Aₓ= 0.193548
5Annuity-Due Factor äₓ= 16.9355 ×
6Premium As % Of Sum Assured= 19.355

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 6 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates for planning only. Rates, mortality and market assumptions change. This is not financial, actuarial or tax advice.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Rates, mortality and market assumptions change. This is not financial, actuarial or tax advice.

Frequently Asked Questions

Why is it called a net premium?

Because it covers only the expected claims. A gross or office premium adds expenses, commission, reserves margin and profit.

What raises the net single premium?

Higher mortality and lower interest both raise it — the benefit becomes more likely and discounting helps less.