MTHEL131 Lecture Notes - Lecture 7: Confederation Life, Disability Insurance, Life Insurance
13 Jun 2017
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Insurer"s rallied together and took over policies of confederation life. After aftermath of confederation life fallout, industry formed an organization called assuris. Funded by existing insurance companies, relative to insurer"s market shares. Bigger companies should greater weight to provide funds to assuris if funds are needed. Life policies <= ,000: assuris would pay beneficiary dollar for dollar if life insured passes away. Life policies > ,000: assuris would pay 85% of sum insured in the case life insured passes away/insurer goes bankrupt. Assuris pays until another insurance company takes over the bankrupt company"s payments. Will pay for monthly income benefits (disability insurance, annuity payments, retirement income payments) up to /month. Monthly income benefits > /month: assuris will pay 85% Critical illnesses insurance: lump sum payments, if > ,000, then will pay 85%, otherwise, dollar for dollar. Tells us how long it will take money to double (depending on interest) Example: at 2%, money will double in 36 years.
