I work for a life insurance company. I am basically building a spreadsheet that would help me calculate the reinstatement interest charged to the customer for letting the policy lapse (kind of a late fee)
Example:
Annual premium: $ 1,200.00
Monthly premium: $ 120.00
Policy lapsed in 01/05/2010
Annual Interest: 8% from 02/05/2010 to 06/05/2011 (16 months)
Monthly premiums needed to reinstate: 17 ($ 2,040.00) = (16 months x $ 120)
Interest: ???????????????????????????????

Any idea that could help me … Thank you so much!

excel interest calculator
 

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background note I had a non-cancellable 20 yr old policy with State Farm here in Texas and I had never ever submitted a claim against my 1k deductible policy! I cancelled my policy 4 yrs ago! I had paid off my mortgage when I did it!

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