Life insurance is a contract between the policy owner and the insurance company, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals.
life assurance is a contract between the insurance company and the policy buyer whereby a benefit is paid to the designated Beneficiaries if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life/s of the people named in the policy.
Insured events that may be covered to include death and accidental death.
Life insurance may be divided into basic classification of temporary and permanent and may be sub classified into term, universal, whole life, variable, variable universal and endowment life insurance.
Term life insurance provides for life insurance coverage for a specified term of years for a specified premium.
Permanent life insurance is life insurance that remains in force until the policy matures or unless the policy owner fails to pay the premium when due.
life insurance is an easy way to protect your family and further more you can get great coverage at a price you can afford.
Life insurance offers financial protection for the family. You may think that you will not need life insurance when you are still single and young. One thing for sure is when you get a life insurance policy at a younger age; your cost of the premiums will be low.
But as you take on more responsibilities and your family grows, your need for life insurance increases. The proceeds from a life insurance policy can replace the income lost to your family upon your death. Life insurance to pay off debts and expenses, leave money to charity, and cover final and estate expenses and even double as a life long savings. You may able to cash out as and when you may need emergency cash. For this you will have to look closely to the terms and conditions as stated in your policies. Talk to an insurance agent or a financial planner for details advices.
Thursday, August 9, 2007
Personal Insurance
A personal insurance review is simply reviewing your insurance policies with your agent. This can be done by phone or in person. I feel it is always nice to do these in person. Meeting in person makes the review more personal and builds rapport with your agent. I recommend completing a personal insurance review every one to two years. There are several benefits to having a regular insurance review.
One benefit is that you may uncover discounts that you are eligible to receive. Insurance companies offer a variety of discounts to their policyholders, so you want to see that you are receiving all discounts available to you. One example of a discount that may be overlooked is the Good Student Discount. Most companies offer this discount, but the agent may not be aware that a child qualifies for the discount until an insurance review is done. Updating the electrical, heating, or plumbing on your home may provide you a discount on your home insurance; but your agent may not know that these updates have been done to your home until you have an insurance review. Personal insurance reviews are a great opportunity for you to discuss all discounts available with your agent.
A second benefit is to review the coverage on existing policies. Your situation may have changed since the policy was written and you may not need the same coverage as you did previously. One common situation is people that have vehicles on their policies for several years. Sometimes these vehicles still have full coverage, but the customer does not realize it. The age or condition of the vehicle may not warrant the additional premium for full coverage. Another common situation is people that still have very low deductibles on their home insurance. It was not uncommon to have $50, $100, or $250 deductible 15 to 20 years ago, but many times there is a significant savings in premium to raise the deductible. A personal insurance review is a great time to remove any coverage that may no longer be needed.
A third benefit is to locate any gaps in coverage. There are many areas where gaps can occur in your insurance program without you realizing it. Your life changes frequently and many of the changes may seem minor, but can have an effect on your insurance coverage. Some common changes that affect your insurance are updating a home can increase its value; having children may increase the need for life insurance; purchasing an expensive television or jewelry may require additional endorsements be added to your home insurance. Having an annual or bi-annual review helps to uncover areas where gaps in coverage may exist.
People are often hesitant to have an insurance review because they feel the sole purpose is for the agent to sell more insurance. However, the purpose of the insurance review is to make sure that the individual has the proper coverage in place for their situation. This is a benefit to the agent and the customer. The customer benefits by gaining a knowledge of their coverage and receiving the peace of mind that they are properly insured. The agent benefits by knowing their customers will have no gaps in coverage if a loss occurs.
It is important to have regular insurance reviews with your agent. The reviews make sure proper coverage is in place before a loss occurs and that you are paying the proper premium by taking full advantage of all discounts available.
One benefit is that you may uncover discounts that you are eligible to receive. Insurance companies offer a variety of discounts to their policyholders, so you want to see that you are receiving all discounts available to you. One example of a discount that may be overlooked is the Good Student Discount. Most companies offer this discount, but the agent may not be aware that a child qualifies for the discount until an insurance review is done. Updating the electrical, heating, or plumbing on your home may provide you a discount on your home insurance; but your agent may not know that these updates have been done to your home until you have an insurance review. Personal insurance reviews are a great opportunity for you to discuss all discounts available with your agent.
A second benefit is to review the coverage on existing policies. Your situation may have changed since the policy was written and you may not need the same coverage as you did previously. One common situation is people that have vehicles on their policies for several years. Sometimes these vehicles still have full coverage, but the customer does not realize it. The age or condition of the vehicle may not warrant the additional premium for full coverage. Another common situation is people that still have very low deductibles on their home insurance. It was not uncommon to have $50, $100, or $250 deductible 15 to 20 years ago, but many times there is a significant savings in premium to raise the deductible. A personal insurance review is a great time to remove any coverage that may no longer be needed.
A third benefit is to locate any gaps in coverage. There are many areas where gaps can occur in your insurance program without you realizing it. Your life changes frequently and many of the changes may seem minor, but can have an effect on your insurance coverage. Some common changes that affect your insurance are updating a home can increase its value; having children may increase the need for life insurance; purchasing an expensive television or jewelry may require additional endorsements be added to your home insurance. Having an annual or bi-annual review helps to uncover areas where gaps in coverage may exist.
People are often hesitant to have an insurance review because they feel the sole purpose is for the agent to sell more insurance. However, the purpose of the insurance review is to make sure that the individual has the proper coverage in place for their situation. This is a benefit to the agent and the customer. The customer benefits by gaining a knowledge of their coverage and receiving the peace of mind that they are properly insured. The agent benefits by knowing their customers will have no gaps in coverage if a loss occurs.
It is important to have regular insurance reviews with your agent. The reviews make sure proper coverage is in place before a loss occurs and that you are paying the proper premium by taking full advantage of all discounts available.
Compare Insurance
One thing that is certain in modern times is the fact that life has become uncertain. With terrorist activities on rise threat to life has indeed increased manifold. Then again the accident rate has also gone up alarmingly in recent times. Many cases reported proved to be fatal. This analysis points towards a simple fact that life has become very uncertain these days. And if something happens to the earning member of the family then one can very well understand the plight of the family.
To save one's family from this trauma it is always advisable to go for insurance which is a very good bet against all sorts of calamities. When it comes to insurance there are several insurance companies in UK who are rendering yeomen services and are playing a very appreciable part in bringing some sanity to one's life after the storm.
When it comes to insurance and insurance companies than one name that simply cannot be overlooked is that of Life Saver. It is a big name in UK and has earned a reputation for itself. It offers plenty of options to people who can choose the plan that suits them. Then whether it is life insurance or short-term insurance the consumer stands to get maximum benefit which is the philosophy that drives Life Saver.
Then there is Sanisbury's Bank, another heavy weight in the field of insurance. Its reputation is no less, neither is its policy behind any other insurance company. All its policies are aimed at providing maximum benefit to people. Since it is reputed to be extremely loyal to its clients, it must be added that it has carved a name for itself in the insurance sector.
There are however, other companies as well without the mention of which the whole debate on insurance companies would remain inconclusive. Companies like Tesco, Egg (Prudential), Hallfax etc. are also reputed names in the field of insurance sector and the ones who have won the respect of people.
Thus it becomes pretty clear that insurance is meant for the benefit of people and if they compare insurance deals before investing then there is no doubt that this would be a very wise decision on their part and an investment that they would be very pleased to make.
To save one's family from this trauma it is always advisable to go for insurance which is a very good bet against all sorts of calamities. When it comes to insurance there are several insurance companies in UK who are rendering yeomen services and are playing a very appreciable part in bringing some sanity to one's life after the storm.
When it comes to insurance and insurance companies than one name that simply cannot be overlooked is that of Life Saver. It is a big name in UK and has earned a reputation for itself. It offers plenty of options to people who can choose the plan that suits them. Then whether it is life insurance or short-term insurance the consumer stands to get maximum benefit which is the philosophy that drives Life Saver.
Then there is Sanisbury's Bank, another heavy weight in the field of insurance. Its reputation is no less, neither is its policy behind any other insurance company. All its policies are aimed at providing maximum benefit to people. Since it is reputed to be extremely loyal to its clients, it must be added that it has carved a name for itself in the insurance sector.
There are however, other companies as well without the mention of which the whole debate on insurance companies would remain inconclusive. Companies like Tesco, Egg (Prudential), Hallfax etc. are also reputed names in the field of insurance sector and the ones who have won the respect of people.
Thus it becomes pretty clear that insurance is meant for the benefit of people and if they compare insurance deals before investing then there is no doubt that this would be a very wise decision on their part and an investment that they would be very pleased to make.
Travel Insurance
Travel insurance is a good policy to consider if you plan to travel whether outside the country or inside. It helps you to be protected from any of the various emergencies that can come up while you're traveling. In fact, since you are traveling to a different place, you can come under a lot of situations which may require attention from the experts and the authorities. What can you do if you face a loss of baggage due to the negligence of the concerned authorities? Next to nothing except when you have a travel insurance because this insurance is designed to help you overcome any situation with a sufficient claim over the loss.
This insurance covers a wide range of things that can affect your life, such that you face no hassle abroad, where help may be difficult to come by otherwise. An insurance can give you the assurance of saving your monetary losses. It is easy to avail to this type of insurance as you can go online and find many insurers willing to serve you the same. Most policies also do not require any minimum age criteria.
If you are traveling by flight, you can avail to air Travel Insurance wherein you would be covered for lost luggage as well as flight or hotel room cancellation or any other such discrepancy which causes losses for you. Insurance for medical emergencies while traveling is the most common thing on anyone's mind. And there are special provisions for any accident or illness that strikes you during travel. Take care to read the policy thoroughly so that the terms and conditions are clear to you and you are not under any wrong notions and that you face no troubles while making the claims.
So you can avail to Travel Insurance to see to it that your travel is safe and you are in safe hands wherever you go and even if any untoward event occurs.
This insurance covers a wide range of things that can affect your life, such that you face no hassle abroad, where help may be difficult to come by otherwise. An insurance can give you the assurance of saving your monetary losses. It is easy to avail to this type of insurance as you can go online and find many insurers willing to serve you the same. Most policies also do not require any minimum age criteria.
If you are traveling by flight, you can avail to air Travel Insurance wherein you would be covered for lost luggage as well as flight or hotel room cancellation or any other such discrepancy which causes losses for you. Insurance for medical emergencies while traveling is the most common thing on anyone's mind. And there are special provisions for any accident or illness that strikes you during travel. Take care to read the policy thoroughly so that the terms and conditions are clear to you and you are not under any wrong notions and that you face no troubles while making the claims.
So you can avail to Travel Insurance to see to it that your travel is safe and you are in safe hands wherever you go and even if any untoward event occurs.
Endowment Plans
An endowment policy is a life assurance agreement proposed to pay a lump sum after a particular term or on earlier death. Endowments can be cashed in early - known as surrendered - and will then be paid the surrender value which is decided by the insurance company depending on how long the policy has been running and how much has been paid in to it.
For the duration of unfavorable investment circumstances, the encashment worth or surrender worth may be trim down by a 'Market Value Adjuster' to allow for the require to cash in units at a time when investment circumstances are not perfect. This means that the investor would take delivery of the surrender value less the market worth adjuster.
• An endowment policy is a mixture of insurance and investment: The life of the individual taking the policy is insured for a definite sum. This life cover is referred to as the sum assured. A definite part of the premium gets billed towards this sum assured. A quantity of portion of the premium is allocated towards the administrative operating cost of the insurance company selling the policy. The left over portion of the premium gets invested.
• An endowment policy might announce a bonus each year: The money that is invested produce a definite return each year. This return may be affirmed as a bonus. The bonus is characteristically generated as a definite proportion of sum assured or life cover as it is commonly recognized.
• The bonus affirmed is not to be paid right away: Like is the case with a stock dividend or a mutual fund dividend which is to be paid without delay after it is declared, the bonus affirmed build up and is to be paid only when the policy matures or in case the policy holder dies.
• The bonus declared does not multiple it, only accumulates
• Since the bonus declared does not compound returns are low
For the duration of unfavorable investment circumstances, the encashment worth or surrender worth may be trim down by a 'Market Value Adjuster' to allow for the require to cash in units at a time when investment circumstances are not perfect. This means that the investor would take delivery of the surrender value less the market worth adjuster.
• An endowment policy is a mixture of insurance and investment: The life of the individual taking the policy is insured for a definite sum. This life cover is referred to as the sum assured. A definite part of the premium gets billed towards this sum assured. A quantity of portion of the premium is allocated towards the administrative operating cost of the insurance company selling the policy. The left over portion of the premium gets invested.
• An endowment policy might announce a bonus each year: The money that is invested produce a definite return each year. This return may be affirmed as a bonus. The bonus is characteristically generated as a definite proportion of sum assured or life cover as it is commonly recognized.
• The bonus affirmed is not to be paid right away: Like is the case with a stock dividend or a mutual fund dividend which is to be paid without delay after it is declared, the bonus affirmed build up and is to be paid only when the policy matures or in case the policy holder dies.
• The bonus declared does not multiple it, only accumulates
• Since the bonus declared does not compound returns are low
Benefit of Insurance
Insurance exists long time ago where it was first to serve as a protection to the global trader’s goods against loss due to pirate attacks in the sea. The insurance company during that period of time will bear all the losses of the unfortunate traders using the money it has gathered from other participating traders in order to help the unfortunate traders.
The purpose of insurance in a general term is mainly to help the unfortunate one by using some portion of the collected/pooled money to compensate whatever amount of loss to the victim. With this method, many of the unfortunate victims can carry on with their daily lives immediately without having to worry about other financial obligations.
There are many classes of insurance available through out the world. Each country has its own meaning and definition of each insurance class. However, I am not going to elaborate on the different meaning by each country. What I am about to discuss here mainly on the general factors and the benefit it could bring to each individual life in this world.
Property Insurance / Fire Insurance
Fire Insurance is an insurance which protects the Insured’s (person who buys the insurance policy) property from any disaster or unfortunate event due to or caused by basic fire & lightning or other perils such as Aircraft Damage, Earthquake and Volcanic Eruption, Storm, Tempest, Flood, Explosion, Impact Damage, Bursting or Overflowing of Water Tanks Apparatus or Pipes, Electrical Installations, Bush Fire, Subsidence and Landslip/Landslide, Spontaneous Combustion, Riot Strike and Malicious Damage, Damage By Falling Trees or Branches and Objects Therefrom, and/or even a Cold Storage.
If any of these perils has caused the fire on each property building, the Insured therefore has the right to make a claim against the Insurance Company where the policy is written.
Why it is so important for you to take up Fire Insurance for your property/properties? It is because the benefit it offers is huge. As you can see above, the Fire Insurance policy not only covers fire but also other perils such as Damage by Falling Trees!
So learn the benefits this Fire Insurance can offer to you and start insuring your property immediately. Remember, prevention is better than cure.
Houseowner/Householder Insurance
Similar with Fire Insurance policy, the Houseowner/Householder Insurance mainly covers the property you have against theft, fire, and also flood (depends on the extended perils you may add). Instead protecting the building, Householder Insurance covers all the belongings inside your property such as your HiFi, Plasma TV, Sofas, Kitchen Cabinet, Expensive Vases, Expensive Sculpture, and many more.
Some people only take up Fire Insurance but forgetting about the household items which could be higher than the property itself.
So my suggestion is, whenever you buy Fire Insurance policy from your insurance provider, try asking about the Householder/Houseowner Insurance as well. Make it as add on item in your Fire Insurance policy.
Motor Insurance
Motor Insurance policy or some states called it as Vehicle Insurance policy is vital and a must have policy for car/vehicle owner to own.
Motor Insurance covers any mobile items ranging from its cubic capacity, model, type, and usage of each vehicle. Normally, a lower cubic capacity engine vehicle will bear a lower premium amount if to compare with a higher cubic capacity engine.
As for motor sport vehicle or high performance race car, other types of Motor Insurance will apply and normally the premium rate is much higher than other normal vehicle.
In general, Motor Insurance policy covers the insured against loss or damage to his/her own vehicle and the third party vehicle.
In addition, some insurance providers do add PA (Personal Accident) Insurance policy in the Motor Insurance policy to add value as well as to satisfy their customers’ needs.
Travel Insurance / Travel PA
It’s a must have insurance policy especially for travelers. The policy coverage can be for one day trip or to a month trip depending on the purpose of the Insured.
Why a travel insurance?
Travel insurance can protect the insured from loss due to flight delay, where some insurance providers will compensate the Insured with the unavoidable factors like this. Some Travel Insurance also covers the insured against loss of baggage, hospitalization, accident, or other misfortune depending on each insurance provider.
Summary
I urge every one of you to have awareness on the benefit of insurance and get use to it by buying at least one insurance product for your household. To recap, there are four (4) type of insurance in this part I article which are; Fire Insurance, Householder Insurance, Motor Insurance, and Travel Insurance.
In my next article on “The Benefit of Insurance (Part II)”, I will elaborate on the Electronic Equipment Insurance, Machinery Insurance, Burglary Insurance, and Marine Insurance.
Till then, enjoy reading and wait for my other upcoming articles.
The purpose of insurance in a general term is mainly to help the unfortunate one by using some portion of the collected/pooled money to compensate whatever amount of loss to the victim. With this method, many of the unfortunate victims can carry on with their daily lives immediately without having to worry about other financial obligations.
There are many classes of insurance available through out the world. Each country has its own meaning and definition of each insurance class. However, I am not going to elaborate on the different meaning by each country. What I am about to discuss here mainly on the general factors and the benefit it could bring to each individual life in this world.
Property Insurance / Fire Insurance
Fire Insurance is an insurance which protects the Insured’s (person who buys the insurance policy) property from any disaster or unfortunate event due to or caused by basic fire & lightning or other perils such as Aircraft Damage, Earthquake and Volcanic Eruption, Storm, Tempest, Flood, Explosion, Impact Damage, Bursting or Overflowing of Water Tanks Apparatus or Pipes, Electrical Installations, Bush Fire, Subsidence and Landslip/Landslide, Spontaneous Combustion, Riot Strike and Malicious Damage, Damage By Falling Trees or Branches and Objects Therefrom, and/or even a Cold Storage.
If any of these perils has caused the fire on each property building, the Insured therefore has the right to make a claim against the Insurance Company where the policy is written.
Why it is so important for you to take up Fire Insurance for your property/properties? It is because the benefit it offers is huge. As you can see above, the Fire Insurance policy not only covers fire but also other perils such as Damage by Falling Trees!
So learn the benefits this Fire Insurance can offer to you and start insuring your property immediately. Remember, prevention is better than cure.
Houseowner/Householder Insurance
Similar with Fire Insurance policy, the Houseowner/Householder Insurance mainly covers the property you have against theft, fire, and also flood (depends on the extended perils you may add). Instead protecting the building, Householder Insurance covers all the belongings inside your property such as your HiFi, Plasma TV, Sofas, Kitchen Cabinet, Expensive Vases, Expensive Sculpture, and many more.
Some people only take up Fire Insurance but forgetting about the household items which could be higher than the property itself.
So my suggestion is, whenever you buy Fire Insurance policy from your insurance provider, try asking about the Householder/Houseowner Insurance as well. Make it as add on item in your Fire Insurance policy.
Motor Insurance
Motor Insurance policy or some states called it as Vehicle Insurance policy is vital and a must have policy for car/vehicle owner to own.
Motor Insurance covers any mobile items ranging from its cubic capacity, model, type, and usage of each vehicle. Normally, a lower cubic capacity engine vehicle will bear a lower premium amount if to compare with a higher cubic capacity engine.
As for motor sport vehicle or high performance race car, other types of Motor Insurance will apply and normally the premium rate is much higher than other normal vehicle.
In general, Motor Insurance policy covers the insured against loss or damage to his/her own vehicle and the third party vehicle.
In addition, some insurance providers do add PA (Personal Accident) Insurance policy in the Motor Insurance policy to add value as well as to satisfy their customers’ needs.
Travel Insurance / Travel PA
It’s a must have insurance policy especially for travelers. The policy coverage can be for one day trip or to a month trip depending on the purpose of the Insured.
Why a travel insurance?
Travel insurance can protect the insured from loss due to flight delay, where some insurance providers will compensate the Insured with the unavoidable factors like this. Some Travel Insurance also covers the insured against loss of baggage, hospitalization, accident, or other misfortune depending on each insurance provider.
Summary
I urge every one of you to have awareness on the benefit of insurance and get use to it by buying at least one insurance product for your household. To recap, there are four (4) type of insurance in this part I article which are; Fire Insurance, Householder Insurance, Motor Insurance, and Travel Insurance.
In my next article on “The Benefit of Insurance (Part II)”, I will elaborate on the Electronic Equipment Insurance, Machinery Insurance, Burglary Insurance, and Marine Insurance.
Till then, enjoy reading and wait for my other upcoming articles.
Types of Travel Insurance
An insurance covering all your travel surfing becomes necessary when you are travelling abroad. Even in some cases, if you are in your domestic locations, it is important that your trips are covered by an insurance putting your all worries off. Travel insurance is such an insurance scheme which is specially meant to give you a good cover when you are travelling abroad or any domestic location.
Travel insurance is of four types. But it is not that each of the insurance policies are suitable to everybody's insurance need. Knowing which insurance type is best suited to you is in need before you finally buy an insurance. Trip cancellation insurance, Baggage insurance, Emergency medical insurance and Accidental death insurance are the four types of insurance meant to give you a good cover when you are on a trip.
Tip cancellation insurance reimburse you if the plane/cruise on which you are supposed to travel goes out of their business. If you miss the flight caused by your mistakes, you will not get any cover and compensation. But if the trip is cancelled because of illness, death of any kin or any other valid serious reason, you will get the compensation. Baggage insurance covers if you get your luggage stolen/lost/damaged on the tour. Emergency medical assistance insurance protects you when you are on adventurous tour which includes activities like skiing and trekking. Even it will cover you if you get seriously ill during the tour.
The fourth and last type of Travel Insurance is Accidental death insurance, which covers your life. The insurance will compensate your family member if you meet an accidental death on the tour. Thus knowing well about the four types of insurance, which cover you when you are travelling, help you in having a good deal while planning to buy an insurance.
Travel insurance is of four types. But it is not that each of the insurance policies are suitable to everybody's insurance need. Knowing which insurance type is best suited to you is in need before you finally buy an insurance. Trip cancellation insurance, Baggage insurance, Emergency medical insurance and Accidental death insurance are the four types of insurance meant to give you a good cover when you are on a trip.
Tip cancellation insurance reimburse you if the plane/cruise on which you are supposed to travel goes out of their business. If you miss the flight caused by your mistakes, you will not get any cover and compensation. But if the trip is cancelled because of illness, death of any kin or any other valid serious reason, you will get the compensation. Baggage insurance covers if you get your luggage stolen/lost/damaged on the tour. Emergency medical assistance insurance protects you when you are on adventurous tour which includes activities like skiing and trekking. Even it will cover you if you get seriously ill during the tour.
The fourth and last type of Travel Insurance is Accidental death insurance, which covers your life. The insurance will compensate your family member if you meet an accidental death on the tour. Thus knowing well about the four types of insurance, which cover you when you are travelling, help you in having a good deal while planning to buy an insurance.
Subscribe to:
Posts (Atom)
