MTHEL131 Lecture Notes - Lecture 5: Term Life Insurance, Life Insurance, Insurance
12 Mar 2014
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Term insurance: cheaper at the beginning, renewable at every term, health information only required only at the beginning, policy will expire after old age if they don"t die, nothing builds up. Permanent insurance: name given to the group of insurance policies designed to be enforced for the whole of life (opposite of term insurance) Least expensive form of permanent insurance (stripped down-no csv: don"t miss a premium! Customer must make sure that there is money available to the insurance: coverage is very is flexible, if he needs more coverage for whatever reason, the insurance company simply raises the daily premium charge. Investments: customer can oversea how his reserve is being invested and what it is generating. But the insurance is costing him more per premium. Policy owner can change his mind between these policies at any time, depending on insurability (amount of risk to the company)
