TASK 1

[ILAmember]

Task 1 questions and comments here

[watshann]

Which scenario are you planning to recommend? I feel like I could justify it either way

[Joseph Martin]

I feel like this could go either way if you justify it. Personally, I am planning on recommending scenario 1 since the market is for 20 to 60 year olds in good health so the risk of having longer guaranteed premiums is lower vs if the market was primarily older (50+) with people of not good health. You would want to have the flexibility of being able to raise premiums every 5 years in the latter market but not as important with the market given. Those are my initial thoughts as of now but again, not sure if there is one right answer here.

[Anne-Laure Theall]

I would agree, I think this one is super subjective. They even make a note at the end saying to remember that both are available in the market. I think I chose the second premium scale and tried to defend it. It is a great point to consider the population of people being in good health.

[Alexandra Altshuller]

Hi group. Can you help me identify the reading section that would talk about potential administrative concerns under both scenarios? The only one I can think of off the top of my head is the increased underwriting under scenario 2 by having to re-calculate premium rates every 5 years vs 20 years

[cybo...@gmail.com]

You can think of "administrative work" as all work that goes into marketing, selling and servicing those contracts. 

For example... If premium rates were changed every 5 years, how would those jobs be different? Which kinds of roles/departments/functions will be impacted? Why? Will there be more or less work involved? How? Will certain jobs needs to be more/less rigorous? Are there more opportunities for mistakes or loss of business?

[Arryn Flavius]

Hi everyone, 

I am quite confused about the structure of guaranteed period (sorry because term life in our market is different). So could I ask that:

1. After guaranteed period, whether customer be re-underwrite?

2. Whether health status plays any role in our question? Because some people said above that healthy people is likely to choose scenario 1, but if you dont be underwriten each time premium change, why we need to worry? 

Thanks a lot for answer.

[Introduction to ILA Module]

Hi everyone,

The instruction says "premium scenario" and then "premium schedule", do they mean the same thing?

[Akilah Sue]

Yes, they are referring to the same thing.