BU483 Lecture Notes - Lecture 6: Contract, Munich Re, Life Insurance
Document Summary
Idea on how long it would take to double your money on an investment. Calculate by determining the rate of return. Divide 72 by the rate of return (in this case 6%: therefore, it would take 12 years to double your money at a return of 6% It can also show how inflation will impact purchasing power in the future. Think of inflation of cost of funeral. Assuming 3% inflation, it would double every 24 years (72/3: ,000 right now (age 21, ,000 at age 46, ,000 at age 70, ,000 at age 94. Therefore, this should be considered when determining final expenses in your capital needs analysis. How you can reinstate a cancelled whole life policy exactly as it was before: Have to repay the cash surrender value plus interest. Pay the premiums for period insurance was cancelled (plus interest) Must be within 2 years of cancellation. Amount a company is willing to pay in event of a claim.
