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VPS 105628
83532 (09/2019)
Calculating an Employee’s
Amount
Standard Worksheet
Instructions on calculating an employee’s monthly premium:
Example:
Monthly premium for an individual with basic monthly earnings of \$3,000 and a benet schedule of 66.67% of earnings to a maximum of \$5,000 per month.
n
66.67% of \$3,000 = \$2,000
n
\$2,000 x \$1.20 = \$2,400 ÷ 100 = \$24.00
1. Benet percentage (your policy/contract is the source)
%
2. Policy rate per \$100
\$
3. Monthly earnings (from client)
\$
4. Plan monthly maximum (or non-maximum if applicable)
\$
5. Take the benet percentage (#1) and multiply it by the employee’s monthly earnings (#3).
(This equals the employee’s coverage amount.)
If this dollar amount exceeds the policy’s maximum benet, the coverage amount will be limited to the policy
maximum benet amount. \$
6. Multiply the employee’s coverage amount in (#5) by the rate in (#2).
\$
7. Divide the amount in (#6) by 100.
This equals the employee’s monthly LTD premium amount. \$