Service Members Group Life Insurance provides Term group life insurance to armed forces members. Actuarially fair premiums are calculated based on risks, and charging a unified premium can impact the insurance company.
SGLI stands for Service Members Group Life Insurance. Members of the armed forces can obtain Term group life insurance through SGLI. This insurance provides coverage for a specified period of time and is a common type of life insurance for military personnel.
Actuarially fair premium for each group would be calculated based on the group's risk profile and demographics. If an insurance company cannot access family cancer histories, the actuarially fair premium for the group as a whole would be determined using available risk factors and data.
Charging the actuarially fair premium to the group as a whole instead of each group separately can impact the insurance company's profitability and sustainability, as it may not accurately reflect the varying risk levels within different groups.
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