Knowing All About Life Insurance
First of all, just what IS life insurance? It is a contract between a private individual (the policy owner or insured) and an insurance company that promises that, in exchange for an agreed upon amount (the premium) by the policy holder, the insurance company will pay an agreed upon amount of money (the benefit) in the event of the death of the insured. They do not have to be the same party, the policy holder can, and often is different than the insured. Someone may purchase insurance on his or her spouse and then one would be the policy owner and the other the insured. A very frequent occurrence is a company that takes out life insurance on its top officers. In this instance, the owner of the insurance is the business.
Needless to say, the insured will not collect on the policy, his beneficiaries do. As a contract, the insurance policy would very clearly delineate all responsibilities, limitations and exclusions. For instance, many life insurance contracts will exclude payment of the death benefit in the case of suicides.
The three main types of insurance are:
-whole life
-term life
-universal life
Both whole life and term life cover the death benefit, but whole life has a certain payout no matter when the insured dies, whereas term life only covers a certain term, as the name would imply. This is for people who are seeking full coverage over their entire life, not only for a certain time. An added benefit of whole life insurance is that it has a cash accrual. Whole life is more costly because there is positive guarantee of a payout.
Term life insurance, as the name implies, provides insurance for a specific term. This term is a piece of the insurance and the only benefit is the death benefit, no cash accumulation included. Usually people subscribe to term life for a period when their family is vulnerable. Term life is the more affordable kind of life insurance.
Universal life insurance is founded on a cash accumulation. This kind of life insurance builds a cash balance out of the premiums, which are set above the cost of the insurance. From the cash balance, the cost of insurance is deducted, and interest accrued is added. The interest rate is fixed by the insurance firm based on a standard such as government bonds or a standardized interest rate index.
The amount of the insurance premiums is based on how high the risk is that the insurer will have to pay the insurance. Premiums on older people are higher than on younger since the risk of death is greater. The probability of death is calculated with actuarial tables that lay out risk according to age, health and sex.
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About Montréal Québec:
Montreal, Quebec is the second largest city in Canada and the largest city in the province of Quebec, with a population of over 3.5 million people. It is located in the southwest of the province, and is primarily an island at the confluence of the St. Lawrence River and the Ottawa River. It was originally named Ville Marie, but the current name is taken from the hill that is in the center of the city, Mont Royal. (The archaic French was Mont Real.) It is a largely Francophone city, with 70.5% of the population speaking French.
Before the arrival of the Europeans, the Iroquois occupied a village at the foot of Mont Royal. The French explorer Cartier visited this area in 1535 and claimed it for France. When explorer de Champlain visited the area, the Iroquois settlement had disappeared, most likely due to inter tribal wars, migration and diseases introduced by Europeans. In 1611, a fur trading post was established at the confluence of the Saint Pierre and St. Lawrence rivers. In 1639, a Roman Catholic mission was established there.
It was a French colony until 1760, when it was surrendered to Great Britain. In 1832, Montreal was incorporated as a city and the construction of the Lachine Canal and the Victoria Bridge spurred growth in the mid 19th century that established Montreal as the largest city in British North America, as well as the commercial and cultural capital of Canada.
Quebec is a unique province and celebrates this fact in quite a few ways, the most important of which is that its official language is French. Quebec is physically the largest province in Canada as well the second most populous province and is bordered on its south by four states of the United States, Maine, New Hampshire, Vermont and New York. One of the other special qualities of this province is the fact that it is the most independence minded province in the country, with all of the political parties in favor of increased autonomy, and periodic referendums held for independence, so that it is actually thought of as a “nation within a united Canada”. Like many provinces and cities in Canada, Quebec is named from a Native Canadian word, the Algonquin word for “where the river narrows”, referring to where the Saint Lawrence River narrows in the Quebec City area. The basis of the province goes back to the Treaty of Paris, which ended the Seven Years War between Britain and France and gave the area to Britain; but in 1791, it was divided into upper Canada and lower Canada, which are now effectively Ontario and Quebec.