Class Notes (839,043)
Canada (511,171)
MTHEL 131 (111)
David Kohler (106)

Lecture 2

4 Pages

Mathematics Electives
Course Code
David Kohler

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MTHEL 131 – Lecture 2 Life and Health Insurance Industry INSURANCE - life - disability - health insurance -critical illness - long-term care FINANCIAL - RRSP - GIC - Annuities - Segregated Funds - Mortgages Protects over 27 million Canadians Industry pays out more than $1.1 Billion every single week 90% is giving to living policy holders 10% to people with death benefits Industry helps with funding the government Government gets loads of money from taxpayers, but still need more money for projects Ex. Highways, buildings, hospitals 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 Institutional Investors buy these bonds (career investors) Mutual Fund managers as well Other countries might purchase these bonds Life and Health Industries buys these bonds 1.8% rate of interest for a federal gov’t bond Bonds represent 20% of the government’s money making Corporations need money for projects 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 $400 Billion Over 50% of the premiums come from countries outside of Canada 87% market share by Canadian Companies (Life and Health Insurance) (Highly Competitive) Industry Contributes to small business - Offers products to businesses - Ex. 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) 12,000 of them are in Waterloo Individual Coverage (54% of all coverage) - Bought insurance policy directly from a life insurance company - Coverage between you and insurer - Two types - Whole Life (Permanent) or Term - Your name is on the contract - Much more secure contract Group Coverage (46% of all coverage in force) - Coverage you have access to, coverage you have but through a grou
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