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| 9% would be death and disability insurance. That seems expensive as it would only cover until 65 (in the case of disability obviously), but I’d need to ask an actuary if it is fairly priced. | |
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9% for the insured component feels
toppy, but I suppose it depends on the benefits provided.
By contrast, we have pension insurances for death and disability, plus widows and and orphans pensions. The employee contributes 1% of their income, subject to AVS, and the employer contributes 2%. Our benefits are pretty good, but might not be comparable to a bank.
It's also true that our risk profile and claims experience is low. The average age of our staff is 36, average seniority is 5 years, and many staff don't have dependents.
By the way, the premiums are not always spent only on the insurances. In our LPP, total annual premiums are a little over 1%, and the rest used to build the pension reserve, or boosts the annual interest rate applied to members accrued savings.