MTHEL131 Lecture Notes - Lecture 3: Munich Re, Whole Life Insurance, With-Profits Policy

• School: University of Waterloo
• Department: Mathematics Electives
• Course: MTHEL131
• Professor: David Kohler

Document Summary

Mthel 131 lecture 3,4,5 types of policies, riders, reinsurance. Financial planning 6 step process: gather information, establish objectives, analyze information, develop plan, implement, monitor. Access to raise funds by selling shares. If someone purchases 51% of shares, could take over. Has surplus: shares with policy holders, (cid:272)alled (cid:862)e(cid:454)perie(cid:374)(cid:272)e di(cid:448)ide(cid:374)ds(cid:863) What mutual companies do with experience dividends: premium reduction (pro, paid up additions (pua): additional coverage for beneficiary, cash, accumulation. Get nothing back if cancel (no csv) Can switch to whole life at a renewal point. Cash surrender value (csv): if you want to surrender your policy, will receive an amount of money called cash surrender value, starts after 5 years of having the policy. Types: whole life, t-100 (term to 100, cheapest permanent option level premiums, has no csv, universal life, very flexible, deposits into a reserve, (cid:862)cost of i(cid:374)sura(cid:374)(cid:272)e(cid:863) (cid:894)coi(cid:895, level.