If your company has benefit plans for which premium amounts differ by age group, you can use this screen to set up the insurance premium rates as they relate to the ages of the employees. These rates are generally used only for life insurance plans. You can use this screen to set up codes, related descriptions, and other information that will be used in determining the premium for plans that are based on age rate tables.
Use this screen to set up insurance premium rates for employee age ranges. You can apply this information to a benefit plan by entering the rate table code in the Rate Table column in the Coverage Options subtask of the Benefit Plan Setup screen under the following conditions
You selected the Rate Table radio button in the Premium Calculation Method group box in the Coverage Options subtask of the Benefit Plan Setup screen;
You selected the Age radio button in the Premium Table group box in the Coverage Options subtask of the Benefit Plan Setup screen.
You should enter the premium rates by age information before setting up a benefit plan that will be using this table. However, you can add to this table any time, and you can establish an unlimited number of records.
Enter up to 12 alphanumeric characters to uniquely identify this rate table. This is a required field.
Enter up to 30 alphanumeric characters to describe the Rate Table Code. This field is required.
After selecting the New Line button on the toolbar, enter up to three digits that identify the age (in whole number years) at which to start the range. In the first row, this field must be "0." Subsequent rows must equal the previous row's Up To & Incl Age + one year. For example, for the age range 0 - 19, you will enter "0" in this field on the first row. On the second row, this field will be "20." This is a required field.
Enter up to three digits to identify the age (in whole number years) at which the range ends. This value must be equal to or greater than the value in the From Age field. For example, for the age range 0 - 19, you will enter "19" in this field on the first row. This is a required field.
Enter up to six digits, plus up to four digits to the right of the decimal, for the premium amount per $1,000 of coverage per month for an employee in this age bracket. For example, if life insurance costs a particular age group $2.50 per $1,000 of coverage, you will enter "2.50" in this field. You can enter an amount as large as $999,999.0000.
If dependents have a different rate per $1,000 of coverage, enter up to six digits, plus up to four digits to the right of the decimal, for the premium amount per $1,000 of coverage per month for a dependent of an employee in this age bracket. For example, if life insurance costs a particular age group $2.50 per $1,000 of coverage, you will enter "2.50" in this field. You can enter an amount as large as $999,999.0000. Premiums for any covered dependents will be calculated separately and added to the employee's premium to come up with the deduction amount.
If your company wanted to offer life insurance at different premiums, based on the ages of the employees, you could set up a table similar to the one below:
|
Age Ranges |
Employee Rate Per $1,000 |
Dependent Rate Per $1,000 |
|
0 - 19 |
$ 2.50 |
$ 2.00 |
|
20 - 29 |
$ 2.25 |
$ 1.75 |
|
30 - 39 |
$ 2.00 |
$ 1.50 |
|
40 - 49 |
$ 1.75 |
$ 1.25 |
|
50 - 99 |
$ 1.50 |
$ 1.00 |
According to this table, employees up through age 19 pay $2.50 per $1,000 of life insurance coverage as a monthly premium and an additional $2.00 per $1,000 for dependent life insurance coverage. Employees between the ages of 20 through 29 pay $2.25 per $1,000 of life insurance coverage as a monthly premium and an additional $1.75 per $1,000 for dependent life insurance coverage, and so on. The age of an employee is determined by the radio button you selected in the Age Calculation Method group box in the Coverage Detail subtask of the Benefit Plan Setup screen.
Changes to this screen update the following tables:
Age Rate - HB_AGE_RT
Age Rate Schedule - HB_AGE_RT_SCH
Benefit Plan Setup - HB_BEN_PLAN_HDR
HB_BEN_PLAN_LN