MTHEL131 Lecture Notes - Lecture 4: Demutualization, Manulife, The Great-West Life Assurance Company
14 Oct 2018
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Renewability automatically renewed every 10 years (based on your. Increases every 10 years (based on your policy) No need to renew policy) despite his/her health conditions. Convertibility you can switch to whole life insurance at any time. However, premium will be based on your age at the time of conversion. Cash surrender value(csv): cash that the insured would be entitled to if he surrenders the policy at any time, only applies to whole life insurance. Mutual insurance company: no shareholders; the owners are the owners. When there is a surplus in the reserves, the money is given to the policyholders: cash, premium reduction option (pro, paid-up additions (pua), i. e. more coverage, accumulation ( on deposit ), these earn interests. The opposite would be a stock insurance company. Need to satisfy both the stock holders and the policy holders. Canada life was a stock insurance company. Ability to raise capital (i. e. sell additional shares)
