ProfitComponentsMultipleEnum-class: Enum to define the different components of profit...

In kainhofer/r-life-insurance-contracts: Framework for Traditional Life Insurance Contracts

Enum to define the different components of profit participation.

Description

Enum to define the different components of profit participation.

Details

Profit participation schemes typically consist of different components, which are calculated independently. Typical components are interest profit to distribute investment gains to the customer, risk profit and expense profit to return security margins in the biometric risk and the expenses to the customer and sum profit, which aplies to contracts with higher sums insured, where charged expenses are calculated from the sum insured, while the actual expenses are more or less constant. Thus, high contracts are charged more, which causes profits that are returned as sum profit.

As a special case, part of the profits can be stored in a terminal bonus reserve and only distributed on maturity (or potentially on death), but not on surrender. Some (older) profit participation schemes add an independently calculated bonus on maturity (e.g. twice the total profit assignment of the last year) at maturity to give customers an additional incentive not to surrender a contract.

Possible values are (multiple can be given):

• "interest"

• "risk"

• "expense"

• "sum"

• "terminal"

• "TBF"

kainhofer/r-life-insurance-contracts documentation built on Sept. 18, 2022, 7:56 p.m.