MTHEL131 Lecture Notes - Manulife, Life Insurance
7 Apr 2014
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Document Summary
People"s desire to form a firm to reduce poverty. Protection of income in case of disease of breadwinner. Form life insurance companies for families to buy policies. 2013: motivation to buy life insurance hasn"t changed much (financially protect spouse/children) Three main concerns of canadians: living too long (depletion of savings): pension, dying too soon (sudden loss of income): permanent life insurance, illness, accident and disease (temporary loss of productivity): health insurance. Richard martin estimated the cost of the loss of his company"s manager (). (cost of death: train new person, business drop down, loyal customers turn to competitors) Friends in country club waged against the manager"s death (richard martin pays 8% upfront) (if the manager dies in 12 months, the country club guys pay 383. 1757 death rate stabilized and petition to establish insurance company arouse but not enough votes.
