New Policy Values
When creating a (new) policy 3 fields are automatically calculated: Start Date, Expiry Date and Value
These values are calculated based on:
Product (or insurance scheme)
Family composition (only influences the Value)
The user-defined Enrollment Date (influences both start/expiry dates and Value)
Calculation of the Start Date
The Start Date is calculated based on:
The user-defined Enrollment Date
The Product Administration Period
The Product Enrollment Grace Period
The Product Start Cycles (1,2,3,4)
Rules:
If the Product has no Start Cycle, the Start Date = the Enrollment Date + Grace Period (if there is one)
If the Product has 1 (or more) Start Cycle, the Start Date = next cycle start (if enrollment within the grace period of the next cycle start)
Examples (with product of screenshot):
if Enrollment Date = 23/10/2020, then Start Date = 01/11/2020 (because 23/10/2020 < 01/12/2020 i.e. November cycle + 1 month grace)
if Enrollment Date = 15/11/2020, then Start Date = 01/11/2020 (because 15/11/2020 < 01/12/2020)
if Enrollment Date = 12/12/2020, then Start Date = 01/06/2021 (next year first cycle)
Calculation of the Expiry Date
The Expiry Date is calculated based on:
The policy Start Date
The Product Insurance Period
Rule:
The policy Expiry Date = policy Start Date + Insurance Period months - 1 day
Examples (with product of screenshot):
if start date = 01/11/2020, then Expiry Date = 31/10/2021
if start date = 01/11/2020, then Expiry Date = 31/10/2021
Calculation of the Value
The Value is calculated based on:
The Family composition (number of adults and number of children)
The Product Contributions params: Lump Sum, Threshold Members, Contribution Adult, Contribution Child,
The Product Registration params: Registration Lump Sum and Registration Fee
The Product Assembly params: Assembly Lump Sum and Assembly Fee
The Product Enrollment Discount and Enrollment Discount Period
The Policy Value is the sum of 3 ‘buckets’ (contributions, registrations and assembly) minus a discount:
Value = Contributions + Registrations + Assembly - Discount
Except the discount (which depends on enrollment date), these values only dependent on the family composition. Family members are ‘classified’ (counted) in 4 categories:
adults in ‘standard’ family relationships (like husband, brother,…) - further called adults
adults in ‘other’ family relationship (i.e. special value of the binding relationship) - further called other adults
children in ‘standard’ family relationships (like son, brother,…) - further called children
children in ‘other’ family relationships - further called other children
Calculation of the contributions
There are 2 major strategies to compute contributions part: with a lump sum or without.
Without lump sum, the contributions amount is simply computed as “all” adults * adult contribution + “all” children * child contribution. There is no distinction by ‘relationship’ (so adults/other adults and children/other children are counted “equally” in the contribution part).
With lump sum, the base amount is the defined lump sum, where we add:
the “other” adults/children (* their relative contributions)
if there is a “Threshold members”, the count above that threshold * their relative contributions.
Notes:
the threshold doesn’t concern the ‘other’ adults/children (which are ‘always’ added on top the lump sum)
the threshold first ‘consumes’ the (non-other) adults counts, before adding the children
Example: for a product with 10.000 lump sum, 1.000 adult contribution, 500 children contribution and a threshold members at 5
A family with 2 (non-'other')adults and 3 (non-'other')children will have a contribution = 10.000 (the lump sum).
A family with 1 adult, 1 ‘other’ adult and 8 (non-'other') children will have a contribution = 10.000 + 1.000 (the ‘other’ adult) + 4*500 (members above threshold = 1 + 8 - 5)
Calculation of the registrations
The 2 same major strategies applies to registrations part calculation: with or without lump sum.
However, the calculation doesn’t take any member characteristic into account (adult/child nor ‘others' vs ‘non-others’):
with a registration lump sum, the registrations part is the lump sum
without the lump sum, the amount is simply the number of members * registration fee
Calculation of the assembly
The assembly follow the exact same logic as the registrations part: 2 strategies (with and without lump sum) and, without lump sum, all members are equally.
Calculation of the discount
The discount is a simple percentage of the 3 other ‘buckets’ (contributions + registrations + assembly) which is applied only if the enrollment date is before the start date - enrollment discount period.
Example:
For a product with a Enrollment discount of 10% and a Enrollment Discount period of 1 month, if the registrations + registrations + assembly = 10.000, the enrollment date 05/04/2021 and a start date of 01/06/2021 (cfr. start date calculation to reach this situation). Since 05/04/2021 < 01/05/2021 (01/06/2021 - 1 month), there will be a discount of 1.000.
Policy Renewal Values
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