Snapshot of the life insurance industry in 2013 Canada.
1. Provides a wide range of financial products.
Death benefit products(pay beneficiary):
Living benefit products(reimburse policy holder/insured):
Health (dental, prescriptive dugs, outside travel)
New products (less than 20 years):
2. Size of industry:
Protects 26 million Canadians
Pays out 1.1 billion CAD per WEEK
90% of payment made to living policy holders, 10% to death
3. Important role of life insurance: meet financial needs of all levels of
government.(federal, provincial, municipal)
Revenues come from personal and cooperate income taxes, which are not
enough to cover the expense of the government-run hospitals, schools, military
Government creates bonds and sells bonds to raise money. (typical federal gov.
bonds: 100000 dollars, 1.8% interest rate with high credit, maturity 20 years ).
Main buyers of government bonds are other countries, institutional investors
(pension funds), banks and