what is ATP in life

by hannah punitha » Fri Sep 28, 2007 02:42 pm

what is ATP in life insurance , the expansion of that

Total Comments: 3

Posted: Sat Sep 29, 2007 05:43 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

Posted: Sat Sep 29, 2007 06:39 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.

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

Posted: Sat Sep 29, 2007 07:16 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. :)

Add your comment

Enter the characters shown in the image.
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.