ACTSC232-Ch1

ACTSC232-Ch1 - Chapter 1 Introduction to life insurance...

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Unformatted text preview: Chapter 1 Introduction to life insurance Chapter 1 Introduction to life insurance ACTSC 232 Introduction to Actuarial Mathematics Tianxiang Shi Department of Statistics and Actuarial Science University of Waterloo Winter 2012 Chapter 1 Introduction to life insurance Outline 1 Life insurance 2 Life annuities 3 Pension benefits 4 Actuaries’ role Chapter 1 Introduction to life insurance Life insurance Insurance definition Definition A life insurance policy/contract is an agreement between the insurance buyer and an insurer (insurance company) that the insurer agrees to pay certain amount of benefits upon the occurrence of an individual’s or some individuals’ death or survival. In return, the buyer agrees to pay a stipulated amount of money to the insurer. Insurable interest required by law that the person contracting to pay the life insurance premiums should face a financial loss on the death of the insured life that was no less than the sum insured under the policy. disallow the use of insurance as a form of gambling on the lives of public figures Chapter 1 Introduction to life insurance Life insurance Insurance terms Policyholder : the buyer. Insured : the person whose life status is used to determine whether the benefits should be paid or not; often coincide with the policyholder (we assume it is the case throughout the course). Beneficiary : the person who receive the insurance benefits. Sum insured : the predetermined lump sum, delivered to the beneficiary upon the occurrence of the death or survival stipulated in the insurance policy....
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This note was uploaded on 03/30/2012 for the course ACTSC 232 taught by Professor Matthewtill during the Winter '08 term at Waterloo.

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ACTSC232-Ch1 - Chapter 1 Introduction to life insurance...

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