Thursday, January 28, 2010

Individual Health Insurance

Individual Health Insurance
When shopping for individual health insurance it pays to shop around and get multiple rate quotes from different companies. Price is the most confusing aspect of the individual health insurance market. For instance, the premiums for similar products from different insurers can vary by as much as 50 percent for the same person. In addition, the rules and regulations about individual health insurance vary from state to state, making comparison-shopping a challenge for the consumer.

Choosing individual health insurance is going to be a balancing act between cost and coverage, as well as your philosophy of care.

Finding the right balance of coverage and cost can be tough, but it's a necessity. So take your search one step at a time. The first step is to evaluate your needs and understand your health-insurance options.

Among your choices, you'll find that the individual health market offers the same plans as the group market, including HMOs, PPOs, point-of-service plans, and traditional fee-for-service arrangements. Your budget, physician preferences, and health requirements will all have a hand in deciding which type of plan is best for you

Sunday, January 24, 2010

Insurance Definitions Beneficiary

Insurance Definitions
The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.

Cash (Surrender) Value
The amount that is available in cash for loans and that may be available for withdrawals. Accessing Cash Surrender Value may reduce the death benefit and may increase the risk of lapse.

Convertible Term Insurance
Term insurance which can be exchanged (converted), at the option of the policyowner and without evidence of insurability, for a permanent insurance policy.

A return of part of the premium on participating insurance that is based on the insurer's investment, mortality, and expense experience. Dividends are not guaranteed.
Face Amount
The amount stated on the face of the policy that will be paid in case of death. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

Acceptability to the company of an applicant for insurance.

Insured or Insured Life
The person on whose life the policy is issued.

Level Premium (Term Insurance)
Life insurance for which the premium remains the same from year to year. The premium is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The building of a reserve is a natural result of level premiums. The payments in the early years, together with the interest that is to be earned, serves to balance out the underpayment of the later years.

Loan (Policy Loan)
A loan made by a life insurance company from its general funds to a policyowner on the security of the cash value of a policy.

Paid-up Insurance
Insurance that will remain in force with no need to pay additional premiums.

Participating Policy
A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend.)

Permanent (Term Insurance)
Any form of life insurance except term; generally insurance that builds up a cash value, such as whole life.

The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.

Payments to the insurance company to buy a policy and to keep it in force.

Renewable Term Insurance
Term insurance which can be renewed at the end of the term, at the option of the policyowner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the insured increases.

Term Insurance
Life insurance that does not build up cash value and where the premium normally increases as the insured gets older.

Universal Term Insurance
A flexible premium life insurance policy under which the policyowner may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates which may change from time to time.

Whole Term Insurance
A basic type of permanent life insurance which can provide lifetime protection at a level premium. Premiums must generally be paid for as long as the policy is in force.

Monday, January 11, 2010

Applying for life insurance

Applying for life insurance can be a long, involved process. Filling out a life insurance application is certainly not easy, and can be frustrating, time-consuming, and difficult.
But this application does not need to be so difficult. If you understand what the insurance company is looking for, you can fill out your life insurance application in such a way that you have a good chance of getting the best premium possible.
Tell the Truth... But Not Too Much
The most important part about filling out a life insurance application is being completely honest in your answer to every question. It may be tempting to try to lie about or cover up a medical condition that you fear might make you ineligible for the insurance, but it is better to have your application denied than to have your policy revoked later (when it might be even more difficult to find another one) or have your heirs' claim rejected.
You do not, however, want to give the insurance company more information than they ask for. If there is a question about a specific health condition and you have a related condition but not the condition asked about, there is no need to explain your condition under that question. If you plan to travel to a place or for a length of time not mentioned on the application, there is no need to mention your trip.
Many times, life insurance companies will assess you at a higher risk level if you give any indication that you could possibly be at higher risk of death. Telling them more than they ask for on your life insurance application gives them even more reason to do this.
Fill in the Blanks
Make sure you complete the entire life insurance application and provide any other documentation the insurance company requests. Any lack in this area gives them grounds to reject your application or assess you at a higher risk level, which means you may not get the best premiums even if they do issue you a policy.
If you have any questions about what they want in a certain question, contact the company or ask someone else what they think. If a question does not apply to you, write "N/A" in the blank so the company knows you read and considered the question and did not just skip over it.
Provide Documentation
Many life insurance applications require other documentation, like a statement or a form filled out by your doctor certifying your health or documentation of your driving record. If at all possible, include these items with your application when you send it in to the company.
If you cannot include them or the company requests them separately, keep track of everything you send in case of a dispute or some confusion later. Once you send everything in, you should hear back from the insurance company about your captive insurance application in a matter of a few weeks. Feel free to follow up with them if you do not hear anything in that span of time.


Group Insurance is universally acknowledged as the best way to safeguard employee’s interests. During the times of sheer misfortune such as Death, Disability and Sickness, Group Insurance yields a specified sum to the Insured & his family just when it’s needed the most.

A group Insurance scheme demonstrates a company’s concern for its employees’ welfare and provides them sense of security and peace of mind.
Some of the eminent Advantages of Group Insurance are outlined below:
Fulfilling Legal Requirements
According to Clause 10-B of W.P(Standing orders) it is a mandatory obligation on the part of an employer to provide Group Life Insurance to his employees.
Obtaining Tax advantages
The premium that the company pays for Insurance are deducted from its taxable income. Furthermore, the benefits paid on death and disabilities are exempt from income and estate taxes. Hence, the employees and/or his family obtain tax free claim amounts.
Attracting Ingenious Employees
Group Insurance is a standard benefit in most, if not all companies. It provides Competitive advantage to the employer and helps in attracting and retaining capable staff.
Keeping Costs Low
Critical Illness Covers: Myocardial Infraction, Coronary Artery Surgery, Stroke, Cancer, Renal Failure.
Accidental Medical Expense: If an employee incurs Medical expenses due to accidental injuries, this coverage provides payment of actual medical expenses subject to maximum of 10% of life sum assured.