MTHEL131 Lecture Notes - Lecture 4: Whole Life Insurance, Term Life Insurance, Life Insurance
13 Jun 2017
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Rent: rent goes up every year, no matter how long you rent, you"re not going to get it back, if you want to stay, you have to pay. Home ownership: mortgage payments are constant, equity increases, mortgage is eventually going to get paid off, so you don"t need to pay after some time. Of the two most common types of life insurance, one is like renting, and the other is like owning. 10 years, do not have to re-prove your health. You can switch to the whole life insurance during a renewable point. However, premium for whole life will increase to fit the age you covert it at. * cash surrender value (csv): if you decide at any point that you want to surrender the policy (cancel the policy) you will receive a cash surrender value. Permanent insurance: life insurance that never expires -> 3 types: whole life. > * limited pay whole life (policy under whole life)
