MTHEL131 Lecture Notes - Lecture 6: York Region Transit, Term Life Insurance

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Choices to make when choosing u-life: 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: investments: Level of risk (aggressive or conservative: cost of insurance: Yearly renewable term (yrt): premiums start low, but increases yearly. By law: policy is still in force for 30 days: days of grace. Insurer pays off all the premiums if policyholders becomes disabled and cannot work within 6 months. (starting from the month becoming disabled, until after recovery) Issue additional increments with no need of medical evidence. Typically in 150000 increments per 5 years until age 45. Original coverage at age 22: 50000 => possible coverage at age 45: 800000.

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