What is life insurance? Life insurance is an agreement between an insurance company and a policyholder or purchaser. Policyholders have to pay a certain amount of money every month, known as premium. In exchange, policyholders will receive an agreement where it states that a certain amount of money will be paid by the insurance company to them in the event of some epidemic such as critical illness, death and so on. Based on a study by Canadian Life and Health Insurance Association entitled: ‘Canadian Life and Health Insurance Facts (2016 Edition)’, around 22 million of Canadians owned up to 4.3 trillion of life insurance protection in 2015! Life insurance can be costly, but there are a lot of advantages and benefits that can benefit both individuals …show more content…
As we know, parents’ income is the only thing that is balancing or maintaining a family lifestyle. If an unfortunate event ever occurs, such as disability or death, part of the income for the family will be gone permanently. This mean that the family would not be able to sustain their lifestyle anymore. This is when life insurance will come in and play their part. Life insurance will pay the named beneficiary a certain amount of compensation, depending on the policy, and replace the loss of income in order to maintain the family lifestyle. Immediate needs such as funeral cost, mortgage, card loan, education for children would be a burden too. Which is why the compensation that mentioned above would also cover these cost. Furthermore, a beneficiary would not need to go through long wait to receive the money because it is paid directly to …show more content…
There are many forms of businesses such as sole proprietors, partnership, and etc. Let us take a look at sole proprietors. The business usually faces the fate of closing down in the event of losing the business owner, which then lead to loss of income for the family. Therefore, life insurance would be really helpful in this case. The business would not collapse and is able to keep running until they find a replacement. Moving on to partnership businesses, the company usually purchase the “Key Person Insurance” on their owner or important staffs such as the general manager. The result of losing an owner or key executive can be devastating. Our buyers may lose hope and faith on us and bring their businesses to our competitors. As new replacement would not just show up in our front door, the company might face setback such as decreasing in productivity - and subsequently, making an impact on business income. Thus, money paid by the insurance company can be use to attract desirable talent or to train a new
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
On March 10, 1937, Joseph Lewis and Jack Green started Progressive Mutual Insurance Company. They wanted to provide vehicle owners with security and protection and they thought an insurance company was a good investment for a couple of lawyers who were just getting started. Since its beginning, Progressive has taken an innovative approach to auto insurance. They offered drive-in claims service before any other auto insurance company and in another industry first, they allowed customers to pay their premiums in installments. An appealing option for those who could not afford annual payments. Progressive wanted and still wants to make auto insurance accessible and easy so more people could protect their vehicles.
Liability – The general partners are all responsible for the debts and obligations of the business, but the limited partners are only liable up to their invested amount.
Instead, a part of the internal return is used to pay for the health coverage. Insurance companies typically provide a payout of up to 300% of the aggregate value of a policy for up to three years after the value of the account is depleted. For example, a policy owner, who has a $100,000 annuity and has chosen a two-year benefit factor and aggregate coverage limit of 300%, would immediately create a pool of money worth $200,000 to cover long-term care expenses and another $200,000 of life insurance benefits (Health Insurance, 2016). This only takes effect after the initial policy value, which is $100,000, is depleted. But, if the policy holder is healthy and does not need health care, the unused benefits will be paid out as a lump sum to the policy holder or to any named beneficiary (Health Insurance,
Life insurance is legally enforceable contract issued by insurer based on the payment of premiums. The well understanding the legal aspects of the life insurance contract will give a further benefits to insured as well as beneficiaries to impose their rights to the insurance contract. Insurance contract include insurer, insured, policyowner, and beneficiary. Insurer must be licensed in each states. Although insurer is the first party of the insurance contract, their power enforcing to insured is limited by the state law. Insured and policyowner is not always but can be a same person. For example, when parents want to insure their children, policyowner and beneficiaries will be either parents. At the event of insured’s death, the policy of the
There are three types of life insurance that most insurance companies offer, which are, universal, whole, and term. Universal life insurance is a permanent policy consisting of two parts, which are term insurance and an investment/cash value feature-which is interest bearing. The premiums for the plan allow the policyholder to pay a minimum rate when necessary or to pay the maximum and provide funds to the cash value of the policy. The more that’s paid into it, the bigger the investment/return. With the cash value of the plan, fees are deducted for the costs of the plan and the policyholder receives payment from the interest of the remaining balance. Universal offers clients a definite minimum interest rate on the cash value. Some insurance companies offer a tiered interest rate that pays policyholders a fixed percentage up to a certain amount, then a higher interest rate on balances above that threshold.
Today, Canadians are concerned with many issues involving health care. It is the responsibility of the provincial party to come up with a fair, yet reasonable solution to this issue. This solution must support Canadians for the best; it involves people and how they are treated when in need for health care. The Liberal party feels that they have the best solution that will provide Canadians with the best results. It states that people will have the protection of medicare and will help with concerns like: injury prevention, nutrition, physical activity, mental health, etc. The Canadian Alliance Party’s plan is to make several policy-developments to benefit Canada’s health care. They believe it will serve the security and well-being best for all Canadians. The last party involved in this issue is the NDP Party; who indicate that they are fighting hard for a better Health Care system in our economy. The NDP Party states that the income of a family should not dictate the quality of health care.
Insurance is as ancient as Babylon. The first policy dates back to 2100 B.C.; specifically, it is the Code of Hammurabi. A loan from a trader made certain his valuable cargo traveled safe from the harm of thieves or storms (Marples). The term changed drastically through the ages, and insurance is now a mess of premiums, tiers, and co-payments. It may most commonly be known as a negative number on a check stub that ensures health and safety. There exists not one company that covers everything on just one plan, but a step forward may change that.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
The Progress of Canada in the Realm of Human Rights All of humanity has one true factor in common, the claim to be treated within the respectful parameters of their human rights. Human rights can be defined as the rights in which one is entitled to due being human and entail the preservation of one's respect, dignity, equality, and freedom. In the history of Canada, there are many moments in which the government and its people act in protection of these rights. The establishment of Medicare in Saskatchewan as an example took place on July 1st, 1962 and marked the start of Canada's free healthcare reputation. The provincial government at the time, Co-operative Commonwealth Federation or the CCF party under the leadership of T.C. Douglas,
Throughout out Canadian history, there have been many factors that has influenced diagnosis and treatments in healthcare. During the events of the First World War, as many as 395,084 soldiers of the 418,606 that were sent overseas were hospitalized for the cause of various diseases. This then led Canadian specialists to discover many health problems such as venereal disease (sexually transmitted infections), tuberculosis, bad teeth, and flat feet, which prompted for a nationwide health department. In 1919, the federal department of health was created with John Amyot as the minister.
Today, world’s population is aging at a very fast pace and United States is no exception to this demographic change. According to the U.S Census Bureau, senior citizens will be accounted for 21% of the American population in 2050 (Older Americans, 2012). Although living longer lives may not seem like a negative sign, living longer does not necessarily mean living healthier. Older adults of today are in need of long-term and health care services more than any generation before them (Older Americans, 2012). Because of the growing need for senior care, millions of families are facing critical decisions on how to provide care for their parents. In addition, declining birthrates may cause people to have less familial care and support as they age. To be able to provide the necessary care for senior citizens government funded long term care insurance program is needed.
Health insurance comes in handy in case of severe emergencies. The term health insurance (popularly known as Medical Insurance or Mediclaim) is a type of insurance that protects you and your dependents against any financial constraints arising on account of a medical emergency. It sometimes includes disability and long term medical needs. In Mediclaim, you pay
Deciding how important decisions are made is crucial in any business structure, but even more so when there is more than one owner. Therefore, the partnership agreement mandates how the owners will make decisions by either unanimous vote or by majority vote. Capital contributions include funds provided by the partners to be utilized in the business. The partnership agreement dictates how much each partner will contribute to the business as well as plan for future financial obligations. Salaries and distributions are often classified as partner withdrawals and profit/loss allocation. The partnership agreement establishes when money is available for withdrawal and how much of the profits and losses are allocated based on capital contributions. All business entities should be prepared for worst-case scenarios involving death, disability, and dissolution. Deaths and disabilities are untimely, so the partnership agreement outlines who inherits the partnership’s assets through trusts and wills. Dissolution is never a pleasant topic to think about in the beginning, but it is essential nonetheless. The section inclusion in the partnership agreement enables the partners to be prepared in the event that a dissolution does occur (Neville
The insurance is meant to cover the cost costs associated with long-term care for those who have had strokes, chronic diseases, or Alzheimer’s diseases, as well as those who can simply no longer manage to live on their own. It is imperative that I be able to reap the cost-benefits to of being protected against the financial consequences of the high cost due to increasing life expectancies and the resultant rise in the chance that you may eventually need some level of care. In short, creativity in decision making is vital to effective choices. Therefore, it is essential to consider all of the possible alternatives will help you make more efficient and favorable decisions. Moreover, when life events affect your financial needs, the financial planning process will provide a vehicle for adapting to those changes. Also, specific financial goals are vital to financial planning. Others can suggest financial goals for you; however, you must decide which goals to pursue. Your financial goals can range from spending all of your current income to developing an considerable savings and investment program for your future financial