Since premiums reflect the ages, sex and sums assured of each individual director or partner, the amounts paid do not necessarily reflect the benefits each may receive in the event of a claim. This could be achieved through apportioning premiums according to each director’s or partner’s stake in the business.

Assuming directors or partner’s wish to address the issue and distribute costs fairly, the following premium equalisation calculator will help to calculate a fair distribution of premiums.

Simply type in the name of your client’s business, each partner or director’s name, the sums assured and quoted premiums and the calculator will work out the equalised premium for each individual.

 

Premium equalisation calculator

 

Once completed, click the print button to print off the details.
A worked example - Premium equalisation flyer

 

More calculators to follow