Work out net single premium instantly with clear inputs, formula shown and shareable results.
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.
Whole life assurance
Aₓ = q·v / (1 - p·v); NSP = S × Aₓ
Figures are estimates for planning only. Rates, mortality and market assumptions change. This is not financial, actuarial or tax advice.
Because it covers only the expected claims. A gross or office premium adds expenses, commission, reserves margin and profit.
Higher mortality and lower interest both raise it — the benefit becomes more likely and discounting helps less.