Financial Services _Çô Client Services RFC121 Chapter Notes - Chapter 9: Whole Life Insurance, Term Life Insurance, Disability Insurance

• School: Seneca College
• Department: Financial Services _Çô Client Services
• Course: Financial Services _Çô Client Services RFC121
• Professor: Peter Wan

Document Summary

Rfc chapter 9 textbook notes life, health, and disability insurance. Insurance company -> risk-sharing group where person purchases contract (policy) I(cid:374)sura(cid:374)(cid:272)e (cid:272)o(cid:373)pa(cid:374)ies pa(cid:455)s su(cid:373) of (cid:373)o(cid:374)e(cid:455) to (cid:271)e(cid:374)efi(cid:272)iaries upo(cid:374) the poli(cid:272)(cid:455) holder"s death. In case of endowment policy -> money is paid to the policyholder (insured) if he/she is alive past the maturity date on the policy. The sum of money you pay the insurance company is called a premium. Most people buy life insurance to protect someone they love from financial losses upon their death. Factors before buying life insurance: present and future sources of income, other savings and income protection, group life insurance, group annuities (or other pension benefits, net worth, government benefits. If you have financial obligations such a mortgage/large debt that your death my cause financial burden to your parents, kids, wife: mortgage, edu(cid:272)atio(cid:374) fu(cid:374)d, fu(cid:374)eral e(cid:454)pe(cid:374)ses .