® / ™ Trademark(s) of Royal Bank of Canada. Used under licence.
VPS 82089
83584 (04/2013)
CALCULATING AN EMPLOYEE’S
STANDARD WORKSHEET
Instructions on calculating an employee’s monthly premium:
Example:
Monthly premium for an individual with basic monthly earnings of \$5,000 and a benet schedule 66.67% of the rst \$2,500 of monthly earnings plus 50% of the
balance to a maximum of \$4,000:
66.67% of \$2,500 = \$1,667
50% of \$2,500 = \$1,250
2,917 x \$1.20 = 3,500 ÷ 100 = \$35.00
1. First benet percentage (your contract/policy is source)
%
2. Second benet percentage (your contract/policy is source)
%
3. Rate per \$100
\$
4. Monthly earnings (from client)
\$
5. Plan monthly maximum
\$
6. Take the rst benet percentage ( )% and multiply it by the rst
of the employee’s monthly earning’s.
\$
7. If the employee’s monthly earnings exceed ,then take the balance and multiply it by the second benet
percentage ( )%.
\$
8. Add the two calculated amounts together to determine the employee’s total coverage amount.
(This equals the employee’s coverage amount.)
If this dollar amount exceeds the policy’s maximum benet (or non-evidence maximum benet, if applicable) the
coverage amount will be limited to the benet maximum/non-evidence maximum benet amount.
\$
9. Multiply employee’s coverage amount (#8) by the rate in (#3).
\$
10. Divide the amount in (#7) by 100.
This equals the employee’s monthly LTD premium amount.
\$