RMIN 317 Lecture Notes - Lecture 15: Term Life Insurance, Crisis Management, Life Insurance

• School: University of Calgary
• Department: Risk Management and Insurance
• Course: RMIN 317
• Professor: Anne Elizabeth Kleffner

Document Summary

Want to understand where client"s assets are i. e. business owner has personal and corporate assets that need to be integrated. Term insurance at some point you will want to switch to permanent insurance to protect your assets. Term insurance good when you"re young for income protection. Term = for short-term disability (2 to 20 years) Permanent = for your whole life until you die. Issue with term insurance: i. e. for the first period of 10 years, premiums are cheap, but during the next 10 years, it gets way more expensive. B/c in the first few periods, you have a low chance of dying, whereas later on in life you have a higher chance of dying (good news is that you"re alive) Insurers rely on the fact that by the next period, you can"t cancel it. Charities: name charity as beneficiary so money doesn"t go to cra. Apply it on your tax return against the income you have upon death.