MTHEL131 Lecture Notes - Lecture 9: Group Insurance, Underwriting, Life Insurance
6 Feb 2018
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3: occupation will dictate which of 3 policies you are eligible to buy, ex: occupation 5(unskilled labour) can only buy policy 1. Choice made at time of application: benefit amount: how much insured receives, max 60-70% Future purchase option (fpo: not insurable at time and has higher income, ex: history of bad back, do(cid:374)"t ha(cid:448)e to pro(cid:448)e i(cid:374)sura(cid:271)ilit(cid:455), i(cid:374)surer (cid:449)ill agree to sell (cid:373)ore coverage. Cost of living adjustment (cola: inflation each year, costs go up. 5: benefit received is tax free as long as insured is paying premium themselves, group insurance: employer pays premium, benefit is taxable. Benefits in group policy: life insurance, dental, drug, vision care, physiotherapy, massage, chiro, ltd, usually employer pay of everything but disability so that payments are tax free. ^subrogation of rights: individual policies, few insurers do this, great west life, rbc insurance group. Naming beneficiary: revocable: can change beneficiary anytime, irrevocable: cannot change beneficiary.
