The Stop Price is set by Stable and is always fixed at 50% of the current index price. Your income is replaced between the Start Price and the Stop Price. The Stop price is the limit of your protection.
The reason we have a Stop Price is to make the Premiums more affordable. In an index sense, a tonne of wheat for example is always worth something as it can’t be destroyed or stolen. Insuring an index price to zero would be over insuring, so that doesn’t make sense for our clients. Also, Stable offers 12 months of protection, the index price is unlikely to fall below 50% of the current index price in a reasonably short time period.
Having a Stop Price of 50% of the current index price limits the theoretical maximum losses for the Underwriters and therefore the Premiums payable are more affordable. Stable’s Stop Loss policy is designed to provide the maximum level of protection for the most affordable premium.