Is a high premium and better coverage always a better value? Is a low premium and less coverage a better value? What is the probability of different types of claims? Will claims exceed policy limits (policy bump)? It depends and the IPM index and probability factors can help a user make a decision. Potential losses are never known with certainty,
Generally, in retrospect a large policy limit and high premium is "more favorable" if you knew with certainty a costly loss would occur. However, you do not know and cannot predict the future. The IPM Index enables a user to weigh the significance of premium vs. coverage at the time of insurance purchase based on a reasonable probability of different types of claim situations.
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