Risk and the Benefit Multiplier (BM)

There are two categories of risk that affect a benefit payout – individual risk and portfolio risk. From a member’s perspective, consider individual risk as being the risk of I, the member, passing away; and portfolio risk as the risk of other people passing away.

The benefit payout in the event of a successful payout request is calculated as follows:

Benefit payout	=	Base Benefit Multiplier (B.BM)	x	Benefit Multiplier Adjuster (BM.A)	x	Individual Annual Contribution