MTHEL131 Lecture 1: January 5, 2016
12 Jan 2016
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Document Summary
Life insurance: to ensure that money is still available in case of death of breadwinner. Reason for life insurance remains the same. Overwhelming majority of life insurance: ensure standard of living in case mother/father dies to protect the earning power. Life insurance industry exists to address 3 primary financial concerns of canadians. Live too long: protected by life insurance do, leaving money for kids, outliving their savings, life annuity (unique in its design) Disabled or seriously ill: disability/long-term care insurance, one of the primary concerns of retired people, concerns: run out of money/savings, health bills, bank account expires before you. Life insurance promises to pay every month as long as customer lives. Actuaries play a significant role in bringing these products to the marketplace. William gybbons: vice president, elected official of municipality of london. It would cost richard martin 383 if william gybbons died (8% premium on 12 month policy.
