Insurance Actuary Defined
An actuary is a mathematician in the insurance field.
They are responsible for calculating premiums, developing plans and defining underwriting risk.
A person who is an actuary by training or collage degree can work as an insurance company “underwriter”. This is the person that evaluates the risk in taking on a new policy for the insurance company. This person also sets the rate of the premium to be paid for the risk class that the applicant is eligible for.
The premium will be set for the specific duration period the policy is set to have.
For most health insurance policies the premium is set for 12 months and then re-evaluated and priced out.
For life insurance: Term the premium is usually set for the “term” of the policy (10-20-30 year term policy).
For permanent life insurance ((WL) Whole or (UL) Universal Life) the premium is set for the life of the policy or for a set payment period.
Contact your insurance professional if you have more questions and if you do not have and insurance person you work with then give us a call or email and we would be happy to help you.