MTHEL131 Lecture Notes - Lecture 4: Whole Life Insurance, Term Life Insurance, Life Insurance
27 Mar 2016
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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. What kind of coverage is appropriate: of the two most common types of life insurance, one is like renting, and the other is like owning. Renewable plans renew automatically every 10 years, do not have to re-prove your health. Convertibility 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.
