Insurance Premium Calculation Method
- Calculating Formula
Insurance premium per month = Monthly insured amount x Insurance Premium Rate
Insured person's self-paid premium per month= Monthly insured amount x Insurance Premium Rate x Insured person's self-paid ratio
Insurance premium paid by the governments per month = Monthly insured amount x Insurance premium rate – Insured person's self-paid premium
- During the period of October, 2008 to December, 2011, the premium for the National Pension Program was calculated on a monthly basis. In other words, the premium was collected on a full-month basis regardless of the number of insured days in the month. Similarly, the number of insured years was calculated on a full-month basis after the insured has paid the premium.
- With effect from January 2012, the premium calculation basis has been changed to a daily basis. In other words, for those with an insured period of less than a month, the premium shall be calculated proportionately according to the actual number of days enrolled and on a 30 day/month basis. Similarly, the number of years insured will be calculated according to the actual number of days of premium paid, on a 30 day/month basis.