Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.
As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy.
The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.
To be a life policy the insured event must be based upon the lives of the people named in the policy.
Insured events that may be covered include:
Serious illness
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories:
Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.
Friday, July 10, 2009
Tuesday, July 7, 2009
Affirmative Insurance Holdings Reports Several Recent Actions
Tuesday, July 07, 2009ADDISON, Texas, July 7, 2009 (GLOBE NEWSWIRE) -- Affirmative Insurance Holdings, Inc. (Nasdaq:AFFM) announced the following actions: The Company and M. Sean McPadden, Executive Vice President andPresident -- Insurance Companies, have mutually agreed to terminateMr. McPadden's employment. The Company will incur a charge to its second quarter earnings inconnection with Mr. McPadden's severance in accordance with hisemployment agreement....
Tuesday, June 30, 2009
Three Notes on Insurance
Note 1. Cover or protection first, investment next. In the present period of economic difficulties, medium and low income families should have priority in covering both the short-term insurance of pure consumption and the long-term savings insurance of pure protection, namely, first cover such non-investment insurances as Life Insurance, Health Insurance, Pension Plan and Education Insurance, then take the investment insurances into account like Participating Insurance, Universal Insurance.
Note 2. Adults first, kids next.The main objective for medium and low income families to purchase insurance is to prevent their family economy from great losses by means of the insurance protection of the company when an accident happens to one of their families. Therefore, the limited premium budget for the medium and low income families should be considered as the major economic pillar insurance, and the covering order should be like " Adults first, kids next".
Note 3. Suitably shorten the period of insurance. The long-run or short-run period of insurance is directly interrelated to the high or low rate of premium. In the aspect of Life Insurance, the cover rate of both Accidental Insurance and Time-fixed Insurance per year is lower than that of Whole Life Insurance, while in the way of health protection, the rate of both major consuming illness insurance and great fixed-period illness insurance is also lower than that of Whole Life Illness Insurance. Athough Term Life Insurance is the same, yet there are still differences in the period of insurance, and the corresponding premium has different standards or grades.
Therefore, in order to save the charge of insurance, medium and low income families should suitably shorten the period of insurance, and it's OK that the insurance protection exists once in urgent need of insurance cover.
Announcements:The article excerp
Note 2. Adults first, kids next.The main objective for medium and low income families to purchase insurance is to prevent their family economy from great losses by means of the insurance protection of the company when an accident happens to one of their families. Therefore, the limited premium budget for the medium and low income families should be considered as the major economic pillar insurance, and the covering order should be like " Adults first, kids next".
Note 3. Suitably shorten the period of insurance. The long-run or short-run period of insurance is directly interrelated to the high or low rate of premium. In the aspect of Life Insurance, the cover rate of both Accidental Insurance and Time-fixed Insurance per year is lower than that of Whole Life Insurance, while in the way of health protection, the rate of both major consuming illness insurance and great fixed-period illness insurance is also lower than that of Whole Life Illness Insurance. Athough Term Life Insurance is the same, yet there are still differences in the period of insurance, and the corresponding premium has different standards or grades.
Therefore, in order to save the charge of insurance, medium and low income families should suitably shorten the period of insurance, and it's OK that the insurance protection exists once in urgent need of insurance cover.
Announcements:The article excerp
Landlord Insurance - An Overview
Are you new into property business? Then this is sure to help you. The article below shows the very thin margins that bind the whole process of landlord insurance. There are various advantages of this kind of policy, which range from giving you benefit against different risks (like theft, fire and any natural calamity) to giving an individual peace of mind. It has many similarities that link it to the normal insurance and the procedure might also be same but unlike other policies it is specifically devised to solve the problems of a landlord.
The benefits that the landlord insurance brings to you are summarized below:
Certainty- Landlord insurance provides certainty of payment at the uncertainty of loss. The uncertainty of loss can be reduced by better planning and administration. But, the landlord insurance relieves the person from such different take. Moreover, if the subject matters are not adequate, the self-provision may prove costlier. There are different types of uncertainty in risk. The risk will occur or not, when will occur, how much loss will be there? In other words, there are uncertainty of happening of time and amount of loss. Landlord insurance removes all these uncertainties and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty.
Protection - The main function of the landlord insurance is to provide protection against the probable chance of loss. The landlord insurance guarantees the payment of loss and thus, protects the assured from sufferings. The insurance cannot check the happening of risk but can provide for losses at the happening of risk.
Sharing of risk - In fact - the risk is uncertain, so the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons, who are exposed to the risk. The risk-sharing in ancient times was done only at the time of death or damage. But, now-a-days, on the basis of probability of risk, the share is obtained from each and every insured in the shape of premium without which protection is not guaranteed by the insurer.
Prevention of loss- The landlord insurance joins hands with institutions, which are engaged in preventing the losses of the society because the reduction in loss causes lesser payment to the assured and so more saving is possible, which will assist in reducing the premium. Lesser premium invites more business and more business cause lesser share to be assured.
Provides capital- It provides capital to the industry in different forms:
i. It reduces financial risk by providing facilities to core capital investment; and
ii. The amount received on account of premium by various insurance companies is made available for the industrial development.
Economic progress- The landlord insurance by protecting the society from the losses of damage and destruction, provides an initiative to work hard for the betterment of the masses.
Be sure to avail of all the above benefits and advantages as they will safeguard the property from the various risks associated with the owning of land and from any eventuality of loss.
The benefits that the landlord insurance brings to you are summarized below:
Certainty- Landlord insurance provides certainty of payment at the uncertainty of loss. The uncertainty of loss can be reduced by better planning and administration. But, the landlord insurance relieves the person from such different take. Moreover, if the subject matters are not adequate, the self-provision may prove costlier. There are different types of uncertainty in risk. The risk will occur or not, when will occur, how much loss will be there? In other words, there are uncertainty of happening of time and amount of loss. Landlord insurance removes all these uncertainties and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty.
Protection - The main function of the landlord insurance is to provide protection against the probable chance of loss. The landlord insurance guarantees the payment of loss and thus, protects the assured from sufferings. The insurance cannot check the happening of risk but can provide for losses at the happening of risk.
Sharing of risk - In fact - the risk is uncertain, so the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons, who are exposed to the risk. The risk-sharing in ancient times was done only at the time of death or damage. But, now-a-days, on the basis of probability of risk, the share is obtained from each and every insured in the shape of premium without which protection is not guaranteed by the insurer.
Prevention of loss- The landlord insurance joins hands with institutions, which are engaged in preventing the losses of the society because the reduction in loss causes lesser payment to the assured and so more saving is possible, which will assist in reducing the premium. Lesser premium invites more business and more business cause lesser share to be assured.
Provides capital- It provides capital to the industry in different forms:
i. It reduces financial risk by providing facilities to core capital investment; and
ii. The amount received on account of premium by various insurance companies is made available for the industrial development.
Economic progress- The landlord insurance by protecting the society from the losses of damage and destruction, provides an initiative to work hard for the betterment of the masses.
Be sure to avail of all the above benefits and advantages as they will safeguard the property from the various risks associated with the owning of land and from any eventuality of loss.
Insurance Can Really Prevent Debt?
One of the biggest effects of debt is that you are only ever one minor problem away from a disaster. By living on the edge you'll always be worried about what is around the corner and this is really no way to live.
To abate such fears the solution is insurance; it allows you to get on without having to treed on eggshells and means that whatever happens you'll be ready. Be it medical or homeowners insurance, paying the premiums is much more effective than waiting for something to go wrong and then scrambling to find a solution. Especially with health care where even the healthiest of us can bump into a problem overnight which could run into thousands and thousands of dollars. On top of that if you're car breaks down and you need to get a replacement for work, you simply can't afford to wait for the bank to approve more credit.
Therefore taking out insurance is really a must if you are to be able to survive life's little problems. Fortunately to reduce the cost of the repayments there are a bunch of solutions from employer subsidized health care to bank run home insurance schemes all of which will give you the cover you need without the payment schedule you don't.
Finally, you may also want to take out life insurance to protect your family just in case the worst happened. That way they won't be saddled by debt once you're gone and they'll be able to keep living with peace of mind.
To abate such fears the solution is insurance; it allows you to get on without having to treed on eggshells and means that whatever happens you'll be ready. Be it medical or homeowners insurance, paying the premiums is much more effective than waiting for something to go wrong and then scrambling to find a solution. Especially with health care where even the healthiest of us can bump into a problem overnight which could run into thousands and thousands of dollars. On top of that if you're car breaks down and you need to get a replacement for work, you simply can't afford to wait for the bank to approve more credit.
Therefore taking out insurance is really a must if you are to be able to survive life's little problems. Fortunately to reduce the cost of the repayments there are a bunch of solutions from employer subsidized health care to bank run home insurance schemes all of which will give you the cover you need without the payment schedule you don't.
Finally, you may also want to take out life insurance to protect your family just in case the worst happened. That way they won't be saddled by debt once you're gone and they'll be able to keep living with peace of mind.
Why is Insurance So Important
When life is smooth, we don't think about insurance. Most importantly, insurance companies strive in view of the fact that more money is paid into the program than the amount of money which is paid out, similar to a casino. Do you really want to gamble away your future when these things could easily be covered by insurance?
Allowing individuals to take beneficial risks they might not otherwise take, Insurance is one of the most useful and powerful aspects of modern life. Leveling the costs of catastrophe, maintaining a steady flow of money, insurance not only for individuals but, ideally, for the community, the nations, and the world.
Insurance allows people to save for unpredictable life events in a popular and efficient way, even when it's not always managed properly by corporations or individuals, in general. Insurance when it is well decided on and managed is the ultimate winning situation for everyone.
Insurance provides a safety net and provides security. It is far too easy telling yourself that disaster won't ever befall you, or won't hit you hard, or that you're going to have the funds saved allowing you to deal with any upcoming crises. The efficiency of focus that can be given by a managed insurance provider, is something few of us are so lucky or disciplined to have.
In insurance, subsidy is available for cost of medical care, loss of damage to properties and death and more. In the meantime, while the money can "hold your place in line" to receive your benefits in times of economic distress, it can also in turn aid in caring for your neighbors, which will ensure a more stable, financially strong community and nation overall, keeping the lifelines of finances beating worldwide.
It is in moments like today's economic downturn that we realize the importance of insurance, since we witness the effects when it is mismanaged or not invested in enough: insurance failing strikes a devastating blow on all aspects of the economy. When it comes to regulated allows from the insurance development on all levels.
If you are doing business with a reliable provider, it is easy to create savings and provide for the family. Life, health, and well-being is what is covering when it comes to taking care of your business. Few financial services can help you cope with otherwise overwhelming difficulties or more clearly empower you
Allowing individuals to take beneficial risks they might not otherwise take, Insurance is one of the most useful and powerful aspects of modern life. Leveling the costs of catastrophe, maintaining a steady flow of money, insurance not only for individuals but, ideally, for the community, the nations, and the world.
Insurance allows people to save for unpredictable life events in a popular and efficient way, even when it's not always managed properly by corporations or individuals, in general. Insurance when it is well decided on and managed is the ultimate winning situation for everyone.
Insurance provides a safety net and provides security. It is far too easy telling yourself that disaster won't ever befall you, or won't hit you hard, or that you're going to have the funds saved allowing you to deal with any upcoming crises. The efficiency of focus that can be given by a managed insurance provider, is something few of us are so lucky or disciplined to have.
In insurance, subsidy is available for cost of medical care, loss of damage to properties and death and more. In the meantime, while the money can "hold your place in line" to receive your benefits in times of economic distress, it can also in turn aid in caring for your neighbors, which will ensure a more stable, financially strong community and nation overall, keeping the lifelines of finances beating worldwide.
It is in moments like today's economic downturn that we realize the importance of insurance, since we witness the effects when it is mismanaged or not invested in enough: insurance failing strikes a devastating blow on all aspects of the economy. When it comes to regulated allows from the insurance development on all levels.
If you are doing business with a reliable provider, it is easy to create savings and provide for the family. Life, health, and well-being is what is covering when it comes to taking care of your business. Few financial services can help you cope with otherwise overwhelming difficulties or more clearly empower you
What is Burial Insurance
As the saying goes, there are only two guarantees in life: Death and Taxes. Everyone dies eventually. However, you do not have to leave the large expense of your funeral arrangements to your relative's finances. Burial insurance is an easy way to make sure you have a plan in place to pay for your funeral wishes.
This insurance is very similar to life insurance. However, one of the largest differences between burial insurance and life insurance is the fact that burial carries no cash benefit. Life insurance is usually paid out via a check or bank transfer, however, all the proceeds from this type of policy go directly to the funeral home and related expenses. These policies are very low cost, and require no health exam in order to be eligible.
Costs of the policy will depend on the carrier, your general health, and age. Costs are much lower for healthy young people as their risk of dying is less than that of a smoking sixty year old man. Your current life insurance company may be able to supplement your policy with burial insurance, and it will add little additional cost on to your policy.
Also, depending on your insurance carrier and state, you can find burial insurance policies that will cover just you, or your entire family. This can be a life saver if you are in a situation where money is tight. The great thing about it is that it costs next to nothing, and can save your loved ones from having to bear the high cost of a funeral. A good idea is to go to your local funeral home and price out the cost of your funeral before you purchase a policy.
The estimate you get at the funeral home will give you a good base number on which you can make a good guess at what your policy should cover. One thing that you should keep in mind is that funerals do go up in price. Just like everything else, funerals will continue to rise with time and inflation, this means that you should purchase a policy with an extra cushion built in, for whatever may change.
Burial insurance is not a matter of if, but more of a matter of when. Everyone dies at some point, and the sooner you take care of the costs, the better. Burial insurance is a great way to ensure you will not have to burden your loved ones with the high cost of a funeral
This insurance is very similar to life insurance. However, one of the largest differences between burial insurance and life insurance is the fact that burial carries no cash benefit. Life insurance is usually paid out via a check or bank transfer, however, all the proceeds from this type of policy go directly to the funeral home and related expenses. These policies are very low cost, and require no health exam in order to be eligible.
Costs of the policy will depend on the carrier, your general health, and age. Costs are much lower for healthy young people as their risk of dying is less than that of a smoking sixty year old man. Your current life insurance company may be able to supplement your policy with burial insurance, and it will add little additional cost on to your policy.
Also, depending on your insurance carrier and state, you can find burial insurance policies that will cover just you, or your entire family. This can be a life saver if you are in a situation where money is tight. The great thing about it is that it costs next to nothing, and can save your loved ones from having to bear the high cost of a funeral. A good idea is to go to your local funeral home and price out the cost of your funeral before you purchase a policy.
The estimate you get at the funeral home will give you a good base number on which you can make a good guess at what your policy should cover. One thing that you should keep in mind is that funerals do go up in price. Just like everything else, funerals will continue to rise with time and inflation, this means that you should purchase a policy with an extra cushion built in, for whatever may change.
Burial insurance is not a matter of if, but more of a matter of when. Everyone dies at some point, and the sooner you take care of the costs, the better. Burial insurance is a great way to ensure you will not have to burden your loved ones with the high cost of a funeral
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