MTHEL131 Lecture Notes - Lecture 7: Confederation Life, Disability Insurance, Life Insurance
27 Mar 2016
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Insurer"s rallied together and took over policies of confederation life. Demise of confederation life: after aftermath of confederation life fallout, industry formed an organization called assuris. Tells us how long it will take money to double (depending on interest) Example: at 2%, money will double in 36 years. Example: at 9%, money will double in 8 years. At 6% of interest, his ,000 would be ,000 when he is 41-years-old. Other side of rule of 72: how long it will take inflation to erode purchasing power. Over the past 15 years, inflation has been ~2% Over the past 30 years (before the 15), inflation have been ~4% At age 60, with ,000 income and 4% inflation: The ,000 will become ,000 in 18 years (age 78) At age 96, the ,000 will become ,500. Come back to us in a year: bob wants to take over jane"s role -> sally like na because he"s unqualified.
