MTHEL131 Lecture Notes - Lecture 8: Disability Insurance, Canada Pension Plan, Underwriting

• School: University of Waterloo
• Department: Mathematics Electives
• Course: MTHEL131
• Professor: David Kohler

Document Summary

For people who are age 25, the odds that they would suffer a long term disability between now and age 65 (inability to work for at least 3 months or longer): 60% On average, for those who are disable, that disability will last 2. 1 years. For a 35 years old person, the odds that they would suffer a long term disability between now and age 65 (inability to work for at least 3 months or longer): 50% For a 45 years old, the odds is even lower. Because for the younger people, they have more time and more chances for things to go wrong. The odds of getting a car accident: 1 in 100 cars would suffer damage in a year. The odds of a house burn down: 1 in 2,000 or 3,000 homes would burn down. Death through heart attack from 1950 to 2000 dropped by 30%; having being disable by heart attack went up by 40%