Belth Method

• Cost of Policy (per thousand)

• Where,– P = Premium– SVPY = Cash Surrender Value at end of Previous Year– i% = interest rate– SVCY = Cash Surrender Value at end of Current Year– Dividend = Dividend or Bonus received during current year– DB = Death Benefit

Belth Chart (Benchmark)

Age (Years) Cost Per Thousand Age (Years) Cost Per ThousandUnder 30 1.5 55 – 59 15

30 – 34 2 60 – 64 25

35 – 39 3 65 – 69 35

40 – 44 4 70 – 74 50

45 – 49 6.5 75 – 79 80

50 – 54 10 80 – 84 125

• If calculated cost of policy is less than benchmark, then policy is Cheap• If calculated cost of policy exceeds two times the benchmark, then policy is Very

Costly• If calculated cost of policy exceeds benchmark but within two times the

benchmark, then policy is Economical