LIFE INSURANCE POLICY

Life insurance is a contract between a policy holder and an insurer, where the insurer promises to pay a
designated beneficiary, a sum of money (the benefit) in exchange for a premium, upon the death of an
insured person.

Problem definition:

To find the premium amount to be paid in a year by the client, given His/her age, annual income, insurance
term and gender.

Insurance Policy Model:

The Customer will enter age, gender, term, income details. The premium rate will be chosen from the
premium table based on the customer’s Details. The Base Model premium will be calculated by using the
premium rate and Income. The CGST and SGST will be calculated by from Base Model premium.

The Total Premium amount to be paid will be calculated from Base Model premium and the mode of
payment.

The customer will pay the premium till the insurance term. In case of Death of the insurer, the company
will pay 200% of the policy. In case the insurer is alive at the end of the term, the company will not give any
money back to the customer.

Influence Chart
Data Model:

Formulas used:

1. Randbetween()
2. If(Logic_test,True,False)
3. Vlookup(Lookup_value,Table Array,Column_index_num,[range_lookup])
4. Indirect(Ref_text,[a1])
5. Nested If