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MTHEL 131 (111)
David Kohler (106)
Lecture 6

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Department
Mathematics Electives
Course
MTHEL 131
Professor
David Kohler
Semester
Fall

Description
Lecture 6 Choices to make when choosing U-life 1. Death benefit: Level death benefit (UL-regular) payment equal to coverage (does not pay out deposits) daily rate based on coverage less deposits (risk in insurance company reduce by the amount in deposit) Level amount at risk (UL-plus) (amount at risk is always equal to coverage) payout equal to coverage and deposit daily rate based on coverage 2. Investments: Level of risk (aggressive or conservative) 3. Cost of insurance: Yearly renewable term (YRT): premiums start low, but increases yearly Level cost of insurance(LCOI): level premiums Missed premium payment: By law: policy is still in force for 30 days: days of grace Except if the policy has CSV “Non-forfeiture options”: APL, RPU, ETI 1. APL (automatic premium loan): loan given to pay off premiums, against CSV. 2. RPU (reduced paid-up): surrender all CSV, no more premium payments, lower coverage for life. 3. ETI (extended term insurance): surrender all CSV, no more premium payments, same coverage for a period of time, expires after a certain period. Reinstatement (within 2 years of cancellation): Pa
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