MTHEL131 Lecture Notes - Lecture 2: Life Insurance, Manulife, Risk Management
6 Feb 2018
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Canada life: first life insurance company in canada: hamilton 1847. Matual life second company in canada: waterloo 1870. Not available to people of poor health: risk management process, underwriting: check health of person, activities (dangerous?, not everyone who wants life insurance can get it. Life insurance is a complex product: difficult to compare. Premiums associated with life insurance policy reduce the amount of money $ available for investment and consumption: opportunity cost. Montreal, vancouver, calgary: life and health insurance industry meets the financing needs that the different levels of gov"t have. Creditor group: ex: rbc wants to offer life insurance to customers who borrow , asks manulife for group life insurance for clients. 4: contract of group insurance is between insurer and the bank. Group is significantly inferior than individual industry offers both. Ex: couple buys house, mortgage is k: bank offers life insurance on mortgage, one of them dies -> mortgage will be paid off.
