Policy Renewal Values Calculations

When renewing a policy, the same 3 fields as for policy creation are automatically calculated: Start Date, Expiry Date and Value

These values are still (but slightly differently) calculated based on:

• Product (or insurance scheme)

• Family composition (only influences the Value)

• The Enrollment Date (influences both start/expiry dates and Value)

Calculation of the Start Date

In case of renewal, the start date is computed to exact same way as for new policies, from the user-provided enrollment date (depending of product ‘cycles’,…) EXCEPT that no Administration Period is added to user-provided enrollment date.

Calculation of the Expiry Date

The expiry date is calculated from the start date, exactly the same way as for new policies (based on product insurance period)

Calculation of the Value

The Policy Value, for a renewed policy, is the sum of 2 (and not 3) ‘buckets’ (contributions and assembly) minus a discount. In other words, there is no ‘registration’ amount added to the policy

Contributions and Assembly buckets are calculated the exact same way as for new policy values (with or without lump sum,…)

The Discount is however slightly different: the discount (percentage on the base amount) is only applied if the new enrollment date (not start date) is before the previous policy expired first day , minus the renewal discount period)

Example:

For a product with a renewal discount period of 1 month and a renewal discount of 10%. If the base policy value is 10.000 and the enrollment date is 20/09/2020. If the renewed (aka ‘previous’) policy expires on 28/10/2020, a discount of 10% will be applied since 20/09/2020 <= 29/09/2020.

29/09/2020 = 28/10/2020 + 1 day (first expired day) - 1 month (discount period)