MTHEL131 Lecture Notes - Life Insurance, Prescription Drug, Procrastination
Document Summary
Industry pays out more than . 1 billion every single week. Government gets loads of money from taxpayers, but still need more money for projects. Borrow money by gov"t of canada bond (includes interest) Bond has a year on it which matures and will be paid off when it matures. 1. 8% rate of interest for a federal gov"t bond. Bonds represent 20% of the government"s money making. Strongest corporations can also sell bonds, but need to sell them at a high interest rate. All the companies in the industry have invested over billion. Over 50% of the premiums come from countries outside of canada. 87% market share by canadian companies (life and health insurance) (highly competitive) Pension plan, dental coverage, prescription drug, vacation outside of canada, disability package. Major employer (nearly 140,000 canadians derive job from life and health insurance industry) Bought insurance policy directly from a life insurance company. Group coverage (46% of all coverage in force)