MTHEL131 Lecture Notes - Lecture 5: Contract, Reinsurance, Manulife
14 Oct 2018
School
Department
Course
Professor
Document Summary
Clarica had a surplus of $ 2 billion with 1 million policyholders. They calculated the amount that should be paid considering: Whole life insurance: level premium (traditional) Payable for life: ltd (limited) pay. T100 (term to 100) least expensive: level premium, payable for life, coverage the same as whole life, no csv. Premium starts off low, increases very quickly later on: level cost of insurance (lcoi) Premium is constant: death benefit, level death benefit. Net amount at risk (naar) = death benefit reserve value. Premium stays the same: increasing death benefit, or also known as ul plus. Naar = death benefit: investments, using the money in the reserve, tax advantages. Riders, the option to customize the features of the policy to the needs of the customer: waiver of premium (wp) If you are disable for more than 6 months. You are entitled to the premiums you have paid within the 6 months.
