MTHEL131 Study Guide - Final Guide: Demutualization, York Region Transit, Mutual Organization
20 Jan 2020
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Term to 100 (less expensive but no cash value) (cheapest) Universal life (u-life) (most expensive and most flexible) Paul can put whatever amount of premiums they want as long as there are money in the reserve. Paul will be charged based on cost of insurance (c. o. i. ) > level cost of insurance (lcot) (same premiums) > regular (level at k - what he needs originally) > plus (ul - plus), bigger death benefit but priced accordingly (more). Interests earned by the reserve are tax free for u-life so some people invest money using. The reserve belongs to policy owner, and they can withdraw from it if they wish to. Options/riders/attachments for insurance: waiver of premium (wp) Designed to make sure the policy is ensured in the event that the policy holder becomes disabled and can"t pay premiums. The holder will have to pay 3 months of premiums first.
