MTHEL131 Lecture Notes - Disability Insurance, Contract, Life Insurance
11 Oct 2013
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* beneficiary is not part of the contract. They can be replaced at any time. Life insurance contract is a unilateral contract (one party can get out of the deal). The policy owner can withdraw at any time. It is valid for the whole of life. Premiums vary based on age of entry. In the case of public calamity, premiums could be increased, payout could be done in installments. Life insurance industry in canada: the industry offers a wide range of financial products on insurance: Etc: the life and health insurance industry in canada protects more than 26 million. 19% is paid to the living policy owner (annuity, disability, healthcare, etc. ) 10% is paid as death benefits: the industry plays a big role in meeting the financing needs of all levels of government the taxes that government collects aren"t enough. Governments create bonds ( 000) that last 20 years at a rate of 1. 8% insurance companies purchase those bonds (invest)
