Estimate an insurance premium from a principal and a rate, either as an annual charge on the original principal or as a single upfront premium.
Annual premium = original principal × annual premium rate / 100. Total annual-mode cost = annual premium × years. Single premium = principal × single rate / 100.
A 100,000 principal at an annual 0.30% costs 300 per year, equivalent to 25 per month. A one-off 3% premium on the same principal is 3,000.
These are different pricing conventions. A rate charged on a declining balance cannot be modelled as a constant rate on the original principal. Coverage, underwriting, taxes and eligibility are not assessed. Verify the premium basis in the actual policy.
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English edition: 16 September 2026.