MTHEL131 Lecture Notes - Demutualization, Group Insurance, Manulife
14 Oct 2013
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How much coverage is required: how much cash do you need if you were to die tomorrow, things to consider (review previous note)(referring to bob and jane) Another option is to take an annuity as a more secure substitute for the. Three primary principals in pricing insurance (old equitable: mortality, investment returns, expenses. How to get the excess money back to the policy owners: (the policy owners. Experience dividend: pro, cash, accumulation (on deposit) (a small savings account attached to the policy, p. u. a. (paid up additions) Participating policy (par policy)- a life insurance policy that participates in experience dividend. Non-par policies- do no participate in the distribution of any surplus. Mutual company- owned by the participating policy owners. Stock company- owned by the shareholders or stock holders. Take over (buy over 51% of the shares) (disadvantage) Issue more shares to raise money (advantage) Canada life wanted to go from a mutual company to a stock.
