MTHEL131 Lecture Notes - Lecture 10: Long-Term Care Insurance, Long-Term Care, Canada Pension Plan
Document Summary
Broker, in theory, can sell the products of any insurer out there. In reality, 80% of the products the broker would sell would be with the same company. Why does the broker tend to sell products primary from on company: the insurance products can be complex, related to administration; the industry is proliferative with different forms, financial incentives, prizes and rewards, extra commission. Insure high value with low probability of loss. Uninsured low value with high probability of loss. Long term care insurance became a product in canada 15 years ago. Long term care insurance is designed to provide a monthly income to the insured in the event they cannot care for themselves. Benefit period: 2 years, 3 years, or whole life. Benefit amount: range of ,000, ,000 or ,000. When the premium is paid by the policy holder, the benefit is tax free. Long term care insurance manages the risk of depleting your investment.