Insurance
Monthly premium
Applies the insurer's rate per 100 of monthly benefit.
The Formula
Premium = benefit / 100 x rate per 100
Applies the insurer's rate per 100 of monthly benefit.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| r | Rate per 100 | currency | Monthly premium per 100 of benefit. |
What Each Symbol Means
rcurrency
Rate per 100
Monthly premium per 100 of benefit.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate disability insurance page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Disability Insurance, filed under Finance. Every number the guide produces comes from substituting into this one line.