Zillmer's method

 

A method of policy reserve accumulation
Under the method, the amount of policy reserve is accumulated in a smaller amount in the first year.
Since life insurance companies generally incur significant amounts of initial operating expenses in the first year, this initial strain will be amortized over a certain period.

Since the ratio of new policies to the number of policies-in-force is relatively high, newly-founded insurance companies are allowed to use Zillmer's method according to laws and regulations. 
In the 5-year Zillmer's method, policy reserves of new policy will begin to be accumulated in the same manner as in the net level premium method after five years.

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