Life insurance companies

Insurance companies may be classified into two groups:

Life insurance companies, which sell life insurance, annuities and pensions products.

• Non-life or property/casualty insurance companies, which sell other types of insurance.
• General insurance companies can be further divided into these sub categories.

1.   Standard lines
2.   Excess lines

In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between the two types of company is that life, annuity, and pension business is very long-term in nature coverage for life assurance or a pension can cover risks over many decades. 

By contrast, non-life insurance cover usually covers a shorter period, such as one year.

Insurance companies are generally classified as either mutual or proprietary companies. Mutual companies are owned by the policyholders, while shareholders (who may or may not own policies) own proprietary insurance companies.

Health insurance

Health insurance policies cover the cost of medical treatments. Dental insurance, like medical insurance, protects policyholders for dental costs. 

Income protection insurance

Disability insurance policies provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgage loans and credit cards. Short-term and long-term disability policies are available to individuals, but considering the expense, long-term policies are generally obtained only by those with at least six-figure incomes, such as doctors, lawyers, etc. 

Short-term disability insurance covers a person for a period typically up to six months, paying a stipend each month to cover medical bills and other necessities.

Long-term disability insurance covers an individual's expenses for the long term, up until such time as they are considered permanently disabled and thereafter Insurance companies will often try to encourage the person back into employment in preference to and before declaring them unable to work at all and therefore totally disabled.

Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work.

Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.

Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.

Whole life insurance

Whole life insurance, or whole of life assurance (in the Commonwealth of Nations), sometimes called "straight life" or "ordinary life," is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date.

 As a life insurance policy it represents a contract between the insured and insurer that as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies.

Because whole life policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are typically much higher than those of term life insurance where the premium is fixed only for a limited term.

Whole life premiums are fixed, based on the age of issue, and usually do not increase with age. The insured party normally pays premiums until death, except for limited pay policies which may be paid-up in 10 years, 20 years, or at age 65.

Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies.

Credit protection insurance

Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt. It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. 

PPI was widely sold by banks and other credit providers as an add-on to the loan or overdraft product.

Credit insurance can be purchased to insure all kinds of consumer loans including car loans, loans from finance companies, and home mortgage borrowing. Credit card agreements may include a form of PPI cover as standard. Policies are also available to cover specific categories of risk, e.g. credit life insurance, credit disability insurance, and credit accident insurance.

PPI usually covers payments for a finite period (typically 12 months). For loans or mortgages this may be the entire monthly payment, for credit cards it is typically the minimum monthly payment.

After this point the borrower must find other means to repay the debt, although some policies repay the debt in full if you are unable to return to work or are diagnosed with a critical illness. The period covered by insurance is typically long enough for most people to start working again and earn enough to service their debt. PPI is different from other types of insurance such as home insurance, in that it can be quite difficult to determine if it is right for a person or not.

Careful assessment of what would happen if a person became unemployed would need to be considered, as payments in lieu of notice (for example) may render a claim ineligible despite the insured person being genuinely unemployed. In this case, the approach taken by PPI insurers is consistent with that taken by the Benefits Agency in respect of unemployment benefits.

Most PPI policies are not sought out by consumers. In some cases, consumers claim to be unaware that they even have the insurance. In sales connected to loans, products were often promoted by commission based telesales departments. Fear of losing the loan was exploited, as the product was effectively cited as an element of underwriting.

Any attention to suitability was likely to be minimal, if it existed at all. In all types of insurance some claims are accepted and some are rejected. Notably, in the case of PPI, the number of rejected claims is high compared to other types of insurance. In the rare cases where the customer is not prompted or pushed towards a policy,but seek it out,may have little recourse if and when a policy does not benefit them.

As PPI is designed to cover repayments on loans and credit cards, most loan and credit card companies sell the product at the same time as they sell the credit product. By May 2008, 20 million PPI policies existed in the UK with a further increase of 7 million policies a year being purchased thereafter.[citation needed] Surveys show that 40% of policyholders claim to be unaware that they had a policy.

"PPI was mis-sold and complaints about it mishandled on an industrial scale for well over a decade." with this mis-selling being carried out by not only the banks or providers, but also by third party brokers. The sale of such policies was typically encouraged by large commissions, as the insurance would commonly make the bank/provider more money than the interest on the original loan, such that many mainstream personal loan providers made little or no profit on the loans themselves; all or almost all profit was derived from PPI commission and profit share.

Certain companies developed sales scripts which guided salespeople to say only that the loan was “protected” without mentioning the nature or cost of the insurance. When challenged by the customer, they sometimes incorrectly stated that this insurance improved the borrower's chances of getting the loan or that it was mandatory.

A consumer in financial difficulty is unlikely to further question the policy and risk the loan being refused.

Several high-profile companies have now been fined by the Financial Conduct Authority for the widespread mis-selling of Payment Protection Insurance. Alliance and Leicester were fined £7m for their part in the mis-selling controversy, several others including Capital One, HFC and Egg were fined up to £1.1m. Claims against mis-sold PPI have been slowly increasing, and may approach the levels seen during the 2006-07 period, when thousands of bank customers made claims relating to allegedly unfair bank charges. In their 2009/2010 annual report, the Financial Ombudsman Service stated that 30% of new cases referred to payment protection insurance. A customer who purchases a PPI policy may initiate a claim for mis-sold PPI by complaining to the bank, lender, or broker who sold the policy.

Slightly before that, on 6 April 2011, the Competition Commission released their investigation order designed to prevent mis-selling in the future. Key rules in the order, designed to enable the customer to shop around and make an informed decision, include: provision of adequate information when selling payment protection and providing a personal quote; obligation to provide an annual review; prohibition of selling payment protection at the same time the credit agreement is entered into. Most rules came into force in October 2011, with some following in April 2012.

The Central Bank of Ireland in April 2014 was described as having "arbitrarily excluded the majority of consumers" from getting compensation for mis-sold Payment Protection Insurance, by setting a cutoff date of 2007 when it introduced its Consumer Protection Code. UK banks provided over £22bn for PPI misselling costs which, if scaled on a pro-rata basis, is many multiples of the compensation the Irish banks were asked to repay. 

The offending banks were also not fined which was in sharp contrast to the regime imposed on UK banks. Lawyers were appalled at the "reckless" advice the Irish Central Bank gave consumers who were missold PPI policies, which "will play into the hands of the financial institution."

Insurance: don't leave home without it

There’s nothing like fine print and legal language to put a dampener on a spontaneous adventure, but many argue that if you can’t afford travel insurance, you can’t afford to travel.

They have a point, even though finding the best policy isn’t always easy. Travel insurance exists to protect a traveller’s investment in their journey and ensure they don’t lose out, and get medical help, if things go wrong.

Whether you lose your luggage or have it stolen, get Delhi belly or tick-borne encephalitis, you need to know you can get help (without a stiff medical bill at the end of it). And that's where insurers come in.

Choosing a suitable policy will give you peace of mind. At best, it could save your life. So when considering which policy is right for you, it pays to look at the details.

What could it cost me to travel uninsured?

In the event of serious injury or illness, insurance payouts can run into hundreds of thousands of US dollars. An uninsured Australian injured in Alabama will end up at the mercy of the expensive American healthcare system. If you consider a Canadian bitten by a rabid dog in Rwanda or British backpacker needing an airlift out of the Himalaya, the benefits of travel insurance are clear.

High prices don’t always mean the best coverage. List what aspects of a policy are important to you. It’s pointless paying a premium to reduce car rental excess if you can’t drive, or covering your luggage when all you have is a backpack full of dirty socks and a dodgy mp3 player. Removing options or lessening limits often reduces the premium you pay.

What needs to be covered by my travel insurance?

We believe emergency medical coverage is most important. Insurance policies vary, so read the fine print carefully to see exactly what is covered. Certain pre-existing medical conditions that increase the likelihood of a claim may be excluded. 

If you have a heart condition or terminal illness, you may need to provide additional information before you can be offered a policy. Sporty people, off-piste skiers and bungee jumpers should check if their activities are covered. And injuries occurring during professional sports are generally not covered.

Insurance premiums are calculated based on your origin, age, destination and duration of travel, with the world divided into different zones. When travelling to countries like the USA, where health insurance is a multi-billion dollar industry, or to less developed countries with a lower standard of healthcare to which you’re accustomed, look for a policy with a high level of cover.

Some providers will offer ‘unlimited’ medical coverage for a higher premium, while a cheaper policy might cover up to US$10 million. The highest claims paid globally run into millions of dollars, but are very unlikely to run into the tens of millions.

Other things to consider

Will a provider airlift you home? Do they have doctors on the staff of their emergency hotline? Will they pay to fly your family to you if you’re unable to be moved? Read the fine print and choose what suits your needs.

Reciprocal healthcare agreements

Some countries have reciprocal healthcare agreements with others, meaning that if you’re from a participating country and travelling in another, you’ll be entitled to free or subsidised public healthcare to the same standard enjoyed by residents. Participating countries include (but are not limited to) Australia, New Zealand, the UK and Ireland; Sweden, Norway and Finland; Italy and The Netherlands.

Refer to your government’s traveller information homepage for details, noting that any reciprocal coverage will not be at the same level as facilitated by travel insurance. And if you're an EU citizen, don't forget to carry a European Health Insurance Card to entitle you to cut-price or free state-provided healthcare in EEA countries and Switzerland.

Are your belongings covered?

Next, confirm how your luggage is covered, particularly for theft or damage. Are there individual item limits? What are they? Are electronic devices included? Is theft from inside a car excluded? What if your iPod falls in the Trevi Fountain? If anything is unclear, phone your provider – insurers are legally obliged to unravel the fine print in simple terms.

Important inclusions for your policy

The other essential heavyweight inclusions to investigate are:

Cancellation. You can often nominate the amount of coverage in the event that something prevents you from travelling - this should equal the full cost of your trip and any extras, but the higher the amount, the more expensive the policy becomes.

Travel delay. Count on at least US$250 per day, and look for exclusions relating to strikes, natural disasters, war and terrorism. But don't expect to be showered with cash for a couple of hours spent sweating on a grounded aircraft: you are unlikely to be covered for delays less than 24 hours if it's the airline's fault.

Airline and end supplier insolvency. If the people who took your money go bust, ensured you're covered by US$10,000 and then some. This is a relatively new addition to some policies, so you might have to shop around for this one.

Personal liability. In case someone trips on your carelessly placed luggage, injures themselves and sues you for damages, you'll need to be covered. Look for policies that offer somewhere up to US$2 million in cover. Remember you are up for compensation of medical bills and ongoing treatment, not to mention any medical bills.

Car rental. Travel insurance usually won’t cover the full cost if you’re in an accident in a rental car, even if it’s not your fault. It can help with the excess (the amount you’re liable to pay), but you will need to take out the compulsory insurances provided by the car rental company too. Look out for the excess and if you can reduce it (US$5,000), damage (US$50,000-plus) and liability (US$1 million) in the rental insurance and compare this with the limits and what’s covered under your travel insurance policy so you won’t be out of pocket. Something to keep in mind – the travel insurance cover for personal liability usually excludes motor vehicle usage, so make sure you’ve got the right cover with your car rental company for third party liability.

If accidents happen

When travelling, keep the emergency number close. If you need medical help, seek treatment urgently. If you can’t call for help, someone will find the number on your person so make sure you keep a copy of your Certificate of Insurance on you, just in case. If your situation is not medical in nature, it’s always best to phone the provider anyway, and they’ll advise their protocol.

Making a claim back home is generally straightforward - you’ll need to submit some forms, so keep receipts, get police reports, evidence - everything you can to support your claim. If the claim is investigated and accepted, you should normally be reimbursed within a few weeks. If not, an appeals process is always available.

With some careful investigation, travel insurance doesn’t need to cost the earth. Shop around, get insured, keep your details close at hand, and hopefully you'll never need them. But if you twist your ankle in a Barcelona ballroom or get bitten by a Bornean snake, you'll be very glad to be covered.

Benefits Of Life Insurance Without Medical Exam

Nowadays, it is possible to get Term Life Insurance with No Exam. There are benefits you get when you get this cover. 

The first reason is that you may not be healthy. Moreover, you may not have the funds to undertake medical tests. Therefore, it is necessary to get a good policy, which does not require medical exams. In fact, you can even get an insurance policy online. You will get several options to choose from online. These are benefits of life insurance without medical exam policies:

Easy to Qualify

Some companies charge quite higher fees for policies that do not require medical examination than what is charged for regular life insurance without medical examination 4

insurance. Fortunately, the chances of qualifying for this type of cover is very high. If your health is poor, then this is the best option for you. However, a particular level of health is required. This is determined by self-report questions that you answer when applying for the insurance cover. You are required to be honest when making an application. This is to ensure your claims are not withheld because of dishonest answers. Cheating on your answers can be considered as insurance fraud.

Death benefits

A lot of policies offer death benefits. This is the sum of money that is paid to your designated beneficiaries. When you apply for an insurance policy, you are required to state the persons who shall receive the benefits. The money will be required by your beneficiaries for your funeral expenses. The money can also be used to settle inheritance and estate taxes. If you family depends on you as their bread winner, the benefits will help them in difficult times.

Adequate coverage

You will get an adequate amount of cover. This is the main reason life insurance without medical examination 5for seeking life insurance. In fact, it can settle four funeral expenses. If you want to pay off your mortgage, then it is advisable to go for a larger cover.

Life insurance is a product that secures your future. Most importantly, getting life insurance no medical exam policy relieves you of headaches of undergoing medical tests. Therefore, any person even a drunkard, smoker, HIV patient, or even a cancer patient can get a cover. This will help him or her to secure the future of his or her family. There are many types of insurance covers offered by various companies. Some of the covers include simplified issue, guaranteed, and graded benefit. Do adequate research to find the type of cover you need.This will help you to keep your rate low.

Basic Insurance Mistakes to Avoid

It is basic that you have fundamental protection scope. This a standout amongst the most widely recognized budgetary slip-ups that individuals make.You ought to ensure that you have satisfactory scope for you needs.

It is likewise essential to understand that fundamental protection will shield your advantages and funds from a mishap or another harming circumstance. Be that as it may it is normal to commit errors with regards to protection.

With regards to protection scope, an error can truly influence you monetarily. Here are the five most normal essential protection botches.

1. Choosing Not to Have Basic Insurance

Choosing to spare cash by not having protection is an exorbitant error that you would prefer not to make. You ought to have auto protection that spreads mishaps and burglaries. You ought to have tenant’s or property holder’s protection to cover robberies and fire. Also you completely require essential medical coverage. 

Doctor’s visit expenses can include rapidly and in the event that you don’t have it you can be injured monetarily. In the event that you can’t manage the cost of an exhaustive medical coverage arrangement, you ought to in any event get a high deductible or cataclysmic medical coverage arrange. 

Many individuals battle to manage the cost of human services even with medical coverage, and abandoning may prompt to liquidation on the off chance that you have one calamitous wellbeing occasion. 

The Affordable Care Act additionally obliges you to convey medical coverage or you will confront fines when you document your duties. Make certain that the medical coverage strategy that you agree to accept meets the base prerequisites. Inability protection can likewise ensure you on the off chance that you are truly harmed or turned out to be sick. More

2. Over Insuring Yourself

Another regular error that will cost you is to over safeguard yourself. It can be hard to decide how much essential protection you truly require. This is particularly genuine when you consider the risk protection. You ought to converse with a protection operator (normally a free one is ideal) about your benefits and how best to ensure them. When you are more youthful, you won’t require as much protection, since you don’t have the same number of advantages.

3. Under Insuring Yourself

Another normal misstep is to under guarantee yourself. This can be very exorbitant, when you understand that your essential protection won’t cover required costs. You ought to consider the most extreme sum your protection will pay on every mischance. In the event that you have medical coverage you ought to consider the greatest sum your arrangement will pay. A million dollars may appear to be adequate, however in the event that you were to have malignancy or another significant ailment the expenses of care may surpass that sum.

4. Getting the Wrong Insurance

You may have the wrong sorts of essential protection or excessively numerous strategies. You can squander your cash purchasing arrangements that you are not prone to utilize. On the off chance that you are youthful you don’t have to get each kind of protection accessible. You ought to ensure you comprehend the arrangements that you are getting also. In the event that you comprehend what you agreed to accept you won’t be astounded when it comes time to record a claim.

5. Not Shopping Around for a New Policy

It is vital that you search for a fundamental protection approach. You ought to do this like clockwork. You can spare cash by changing to another strategy. Also you ought to take a gander at approaches that offer rebates for where you work or where you set off for college. It doesn’t require much investment to look for protection strategies like clockwork. This will help you to keep your rate low.