what is ATP in life

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Posted: Fri Sep 28, 2007 2:42 pm Post subject: what is ATP in life

what is ATP in life insurance , the expansion of that

hannahpunitha

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Joined: 28 Sep 2007
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Posted: Sat Sep 29, 2007 5:43 am Post subject: Annual targeted Premium

Hi Hannah, in insurance glossary ATP stands for Annual Target Premium. It is an eligibility criterion the insured needs to satisfy to qualify for a particular coverage. ATP depicts the minimum cost one has to bear to enjoy a particular insurance carrier. It is normally specified by the underwriters of the company and also depends upon the type of perils covered under the policy. Paula _________________ Register Now to have your Insurance queries solved.

PaulaSundars

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Posted: Sat Sep 29, 2007 6:39 am Post subject:

Yeah Paula, you are right. ATP can be termed as the price tag of a particular insurance policy. It is not a mere eligibility criterion but the financial eligibility criterion of the probable customer. Lemme put an example before you.

Quote:

Suppose, a company offers two life policies- ‘A' and ‘A+'. The ATP decided for ‘A' is $2,000 p.a. and for ‘A+', it is $3,000. Now you purchase ‘A+' policy only if you pay the minimum price of $3,000. You can't enjoy the coverages offered by the ‘A+' policy by paying the price of ‘A'.

Hope I was able to clear your confusion.

ArindamSenIndies

ArindamSenIndies

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Posted: Sat Sep 29, 2007 7:16 am Post subject:

Hi it's nice to see so many informative posts. I hope Hannah have already gathered enough knowledge from the previous posters. Well, ATP was a new term for me. However, I have tried to muster some info on it from net. And this is what I could manage. ATP varies with the age of the insured. Coverage level depends on ATP. Normally, it is a multiple of the premium paid. Woops! Not much info but hope it will help you. _________________ Register Now to have your Insurance queries solved.