COMMERCE 4FP3 Study Guide - Final Guide: Growth Stock, Nyse Composite, Current Yield
21 Dec 2016
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Lo 1: life insurance, its purpose and principle. Life insurance: a contract (policy), stating that a company promises to pay a lump sum to beneficiary at the time of insured"s death or sometime while they are still alive, for exchange of a regular premium payment. Purpose: to protect a financial dependent in case policyholder dies. Principle: mortality table --> odds of dying --> base premium on that; factors include: age, sex, other risk factors. How much can i pay for insurance program. Income replacement method = (current income * 7) * 0. 7. (cid:838)family nee (cid:839) mehto : detailed assessment of insurance need based on each family. Lo 3: two types of life insurance policies & various types of life insurance. Term life insurance: protection for specific period of time (ex. 10 20 yrs); stop premium payment = no coverage. Some options: 1. renewability option: renew insurance plan without a physical.
