Setting Life Insurance Premium Rates

To enter the premium rates for a life insurance group benefit plan, use the Premium Rates form.

The rates you enter in the premium rate table relate to the Cost Basis field in the Group Benefit Plans form. For example, if the cost basis is Monthly, the rates represent monthly premium costs.

To enter premium rates for a life insurance plan:

Open the Premium Rates form.

Use this option	To define this
Benefit Plan ID	The Benefit Plan ID. It is populated from the Group Benefit Plan form.
Network ID	A field that is shown when Premium Rates Vary By Network is selected in the Other Processing Parameters panel.
Plan Type	A list of the plan types defined for the group benefits plan.
Employee Gender	Male or Female. This option is shown when Gender Banded Rates is selected in the Other Processing Parameters panel in Group Benefit Plans.
Spouse Gender	Male or Female. This field is shown when Spouse Gender Banded is selected in the Other Processing Parameters panel in Group Benefit Plans.
Effective Date	The date when the rate goes into effect. Saving rates according to the effective date enables you to view previous rates. The system calculates premium costs using the premium rates with the most recent effective date.
Cost per Employee	The cost of the plan for each employee.

If the benefit plan is also set up as tobacco banded:

Use this option	To define this
From Age To Age	Enter the starting age and the upper age limit. Unless the benefit plan is also set up as age banded by selecting the Age Banded Medical Billing option in Group Benefit Plans, you must enter a one-line "all encompassing" age range in the From Age and To Age fields, for example, 0-99. For a life insurance plan, typically you enter smoking and non-smoking rates. If the plan does not offer separate rates, enter the same rate for non-smoker and smoker. The rates are either per thousand dollars or a flat amount, depending on the Life Calculation Type defined for the Group Benefit Plan
Non-Smoker Premium	The amount billed to the client for the plan type and age group for an employee who does not use tobacco products.
Smoker Premium	The cost for an employee who is a tobacco user.
NonSmoking Spouse Premium	The cost for a spouse who does not use tobacco products.
Smoking Spouse Premium	The cost for a spouse who uses tobacco products.
Dependents Premium	If covered, the cost associated with covering an employee's dependents for this plan type and age group.
Total Premium	The amount billed to the client for the benefit rate level. If the benefit plan is not set up as tobacco banded, the Total Premium field is the sum of the Employee Premium and Dependents Premium. When you enter two values, the third calculates automatically. For example, if you enter a Total Premium of 500 and an Employee Premium of 300, the system populates Dependents Premium with 200. If the benefit plan is not set up as tobacco banded, the Total Premium field is the sum of the Employee Premium and Dependents Premium. After you enter two values, the third calculates automatically. For example, if you enter a Total Premium of 500 and an Employee Premium of 300, the system populates Dependents Premium with 200.
Employee Premium	The cost for the plan type and age group.
Dependents Premium	If covered, the cost associated with covering an employee's dependents for this plan type and age group.

Click Save. The form clears so that you can enter the premiums for another plan type.

Repeat these steps for each plan type.

Click Close when you are finished.