The world is always a complicated place. What should be simple turns out to be hard. What should be obvious turns out to be obscure. Logic tells us that when the law says everyone should buy something, this should make for a bigger market. When the market is bigger, the prices should fall. In the case of insurance, this should be even more true. The whole point of insurance is that you gather a group of people together and share the cost of the risk between them. The more people in the group, the smaller the cost of each share. Except it never works out like you expect. When it comes to capitalism and the profit motive, logic loses out to corporations and their need to pay a dividend to their stockholders.
This is a story about Wisconsin today. Tomorrow, it could be about states across the US. The reason? The same problems that the state lawmakers were trying to solve in Wisconsin apply to every other state in the union. Let's start at the beginning. All but three states have laws requiring vehicle owners to carry liability insurance when they drive on a public road. They all set minimum levels of cover against personal injuries and property damage caused to third parties. The justification is all about responsibility. The general view is that if you injure someone else, you should compensate them. Unfortunately, not everyone has a pile of cash sitting in their bank account so insurance is the name of the game. This gives every innocent victim the chance to get some money to cover their medical bills and repair their property.
Unfortunately, states have never thought it a priority to keep these minimum figures under review. So as the value of the dollar has fallen through inflation, the value of the insurance pay-outs has also fallen. What were reasonably big sums of money thirty or forty years ago no longer pay for much. In Wisconsin, the last review was more than thirty years ago. But, in February 2009, the Legislature decided to catch up. The result has been a sometimes quite large increase in the premium rates.
There was a major publicity campaign back in February so everyone should have known this change was coming. It was all carefully explained. It would mean more money for people who were injured or the families of those killed. But now people face the reality of the increases, they are shocked and angry. When there is a recession, how can premiums go up so much? The answer varies depending on who you ask. The auto insurance industry says it's the fault of the state government. The politicians say it's profiteering by the insurers. In a sense, it no longer matter why. The premium increases are here and people have to cope. Two facts stand out. There has been a significant increase in the number of claims made, particularly for vehicle theft and personal injuries. Fraud has also increased. It's sometimes surprising how many people inflate or invent claims, particularly when their personal finances are under pressure. The result is that premiums go up and everyone suffers. But also remember that this question of the minimum liability requirements is not unique to Wisconsin. Sooner or later, every state is going to raise these numbers and the auto insurance industry is waiting to raise the premiums.
Monday, December 30, 2013
Final Expense Leads The Easy Way To Increase Insurance Agent Bonuses
Almost all jobs require a special set of skills associated with them. However, there are a few extremely demanding portfolios that require more than what an average person can achieve. Being an insurance agent is one such profession that requires you to be a great communicator, have amazing marketing skills, after all you are asking somebody to select you over a zillion others who are selling the same product, have the stamina to scout through scores of potential customers, have data mining knowledge so that you can arrive at the list of those scores of potential customers and a few more capabilities that I might have missed here. This can often be too much of an ask for and several insurance agents often end up leaving this field as they are just not able to meet their numbers and targets no matter how much of an effort they put.
While marketing and communicating skills are definitely needed for selling anything the rest can easily be outsourced to the experts so that you can focus on what is essential which is getting people to buy you policies. Final expense is a kind of insurance that is often tough to sell. While most of us plan for our old age and pensions there are very few of us who actually think of what would happen after we die. There are not many who understand that this insurance is not just a burial policy instead it also allows a person to make bequests after his death and also let his loved ones pay off his pending debts with ease. In order to make this understood you need to get a good database of people who might be your potential customers.
This database or final expense leads can easily be acquired by buying them from certain firms. These firms have an expertise in data mining and marketing and can get you really cast iron leads that can materialize given the proper persuasion from you. While there are several firms telemarketing firms available in the market who can sell final expense leads to you most of them generally sell the same ones to a number of other buyers as well. This would essentially entail that your so called prospective customers are the prospective clients for a number of other insurance companies as well. This is really not an ideal scenario as the competition again becomes very high. It is a better idea to buy your final expense leads from someone who sources them out only to you. This way only you get to approach via appointments or phone calls your set of people and finally converting these leads into real customers is your job.
Buying such final expense leads makes a lot of sense as it allows you to focus on the marketing to the people who really want your services rather than anybody who walks into your office. Such focused marketing can definitely better results and can help you reach an even exceed your targets.
While marketing and communicating skills are definitely needed for selling anything the rest can easily be outsourced to the experts so that you can focus on what is essential which is getting people to buy you policies. Final expense is a kind of insurance that is often tough to sell. While most of us plan for our old age and pensions there are very few of us who actually think of what would happen after we die. There are not many who understand that this insurance is not just a burial policy instead it also allows a person to make bequests after his death and also let his loved ones pay off his pending debts with ease. In order to make this understood you need to get a good database of people who might be your potential customers.
This database or final expense leads can easily be acquired by buying them from certain firms. These firms have an expertise in data mining and marketing and can get you really cast iron leads that can materialize given the proper persuasion from you. While there are several firms telemarketing firms available in the market who can sell final expense leads to you most of them generally sell the same ones to a number of other buyers as well. This would essentially entail that your so called prospective customers are the prospective clients for a number of other insurance companies as well. This is really not an ideal scenario as the competition again becomes very high. It is a better idea to buy your final expense leads from someone who sources them out only to you. This way only you get to approach via appointments or phone calls your set of people and finally converting these leads into real customers is your job.
Buying such final expense leads makes a lot of sense as it allows you to focus on the marketing to the people who really want your services rather than anybody who walks into your office. Such focused marketing can definitely better results and can help you reach an even exceed your targets.
Fundamental Principles Of Insurance
Insurance is a contract, a risk transfer mechanism whereby a company (Underwriter) promised to compensate or indemnify another party (Policyholder) upon the payment of reasonable premium to the insurance company to cover the subject-matter of insurance. If you are well conversant with these principles, you will be in a better position in negotiating you insurance needs.
1. Insurable interest. This is the financial or monetary interest that the owner or possessor of property has in the subject-matter of insurance. The mere fact that it might be detrimental to him should a loss occurred because of his financial stake in that assets gives him the ability to insure the property. Castellin Vs Preston 1886.
2. Umberima fadei. It means utmost good faith, this principle stated that the parties to insurance contract must disclose accurately and fully all the facts material to the risk being proposed. That is to say that the insured must make known to the insurer all facts regarding the risk to be insured (Looker Vs Law Union and Rock 1928). Likewise, the underwriter must highlight and explain the terms, conditions and exceptions of the insurance policy. And the policy must be void of small prints.
3. Indemnity. It stated that following a loss, the insurer should ensure that they placed the insured in the exact financial position he enjoyed prior to the loss (Leppard Vs Excess).
4. Contribution. In a situation where two or more insurers is covering a particular risk, if a loss occurred, the insurers must contribute towards the settlement of the claim in accordance with their rateable proportion.
5. Subrogation. It has often been said that contribution and subrogation are corollary of indemnity, which means the afore-mentioned two principles operates so that indemnity does not fail.
Subrogation operates mainly on motor insurance. When an accident occurred involving two or more vehicles, there must be tortfeasor(s) who is responsible for accident. On this basis, the insurer covering the policyholder who was not at fault can recover their outlay from the underwriter of the policyholder who is responsible for the incidence.
1. Insurable interest. This is the financial or monetary interest that the owner or possessor of property has in the subject-matter of insurance. The mere fact that it might be detrimental to him should a loss occurred because of his financial stake in that assets gives him the ability to insure the property. Castellin Vs Preston 1886.
2. Umberima fadei. It means utmost good faith, this principle stated that the parties to insurance contract must disclose accurately and fully all the facts material to the risk being proposed. That is to say that the insured must make known to the insurer all facts regarding the risk to be insured (Looker Vs Law Union and Rock 1928). Likewise, the underwriter must highlight and explain the terms, conditions and exceptions of the insurance policy. And the policy must be void of small prints.
3. Indemnity. It stated that following a loss, the insurer should ensure that they placed the insured in the exact financial position he enjoyed prior to the loss (Leppard Vs Excess).
4. Contribution. In a situation where two or more insurers is covering a particular risk, if a loss occurred, the insurers must contribute towards the settlement of the claim in accordance with their rateable proportion.
5. Subrogation. It has often been said that contribution and subrogation are corollary of indemnity, which means the afore-mentioned two principles operates so that indemnity does not fail.
Subrogation operates mainly on motor insurance. When an accident occurred involving two or more vehicles, there must be tortfeasor(s) who is responsible for accident. On this basis, the insurer covering the policyholder who was not at fault can recover their outlay from the underwriter of the policyholder who is responsible for the incidence.
Comparison of Health Insurance Schemes for Senior Citizens
It is absolutely vital that as one approaches old age, one has a substantial health insurance cover. The probability that one's health care expenses would increase substantially is almost a given. In this piece we look and compare the different health insurance plans that are available in the market for senior citizens. While every health insurance company wants to insure the young (and almost by definition, more healthy), there are very few plans which provide health insurance to people beyond 60. Another interesting thing to note here is that most of the health insurance plans for senior citizens is offered by the public sector general insurance companies.
The health insurance plans available for senior citizens are:
Varistha Mediclaim by National Insurance
Senior Citizen plan by Oriental Insurance
Mediclaim for Senior Citizens by New India Assurance
Senior Citizen Plan by United India Insurance
Red Carpet Plan by Star Health Insurance
Varistha Mediclaim by National Insurance: This policy can be bought by anyone between 60 and 80 years of age. Renewals can be done upto the age of 90. Between the age bands of 76-80, premiums have an added factor of 10% and between 80 to 90 years of age, premiums are grossed up by 20%. The sum insured under this policy for hospitalization is Rs 1 lakh. For critical illness, the sum insured is Rs 2 lakhs. Under the critical illness cover, diseases such as cancer, renal failure, stroke, organ transplants etc are covered. If the person has already been insured for 3 years through a health insurance policy, then he or she does not have to undergo a medical test, else there has to be a medical test under the prospective customer's costs. For domiciliary treatment, the maximum claim is fixed at 20% of the sum insured. Ambulance charges upto Rs 1000 are covered under this policy. For a mediclaim cover of Rs 1 lakh and a critical illness cover of Rs 2 lakhs, the premium varies between Rs 6200 (for a 60-65 year old) to Rs 9200 (for a 75-80 year old). One interesting feature of this policy is that pre existing hypertension and diabetes are covered from the 1st year itself of the policy by paying 10% additional premium for each of the two diseases. Pre existing is of course not available for the critical illness policy. Other pre existing diseases are covered after 1 policy year. Dialysis, chemotherapy and radiotherapy for preexisting ailment is never covered. Claims are paid only for events that occur within India. Claims which occur within the first 30 days of the commencement of the policy will not be covered, unless in the case of the person being insured with an Insurance Company without break for the past 12 months. For the purpose of this policy, pre existing diseases such as cataract, piles, fistula, hernia, benign lumps, joint replacement etc will not be covered in the first 12 months. War related medical claims, vaccination, spectacles cost, plastic surgery, corrective dental surgery, venereal disease, vitamins and tonics which are not part of the treatment, nuclear disaster related health claims, alternative treatment like homeopathy etc are excluded.
Opinion: We think it is one of the best policies for senior citizens, except that the sum insured is low. They are quite generous as far as the norms for entry age and pre existing diseases are concerned.
2. Senior Citizen Specified Disease Plan by Oriental Insurance: In this plan, the policyholder has the option to choose sum insured of Rs 1 lakh, 2 lakhs, 3 lakhs, 4 lakhs or 5 lakhs. One restrictive feature of this policy is that 20% of any claim amount has to be co-paid by the insured. Cashless payment through TPA is restricted to Rs 1 lakh. This plan covers 10 specified diseases: cancer, renal failure, heart diseases, liver related diseases, COPD (lung ailment), stroke, prostrate, orthopaedic disease, ophthalmic disease, accidental injury and knee replacement. The amount that one can claim for a particular disease is restricted as a percentage of the sum insured (for e.g., 50% of the sum insured can be claimed for cancer, while 20% of the sum insured can be claimed for stroke). A sum insured of Rs 1 lakh will cost Rs 4500 for a 65 year old, while it will cost Rs 6400 if one is eighty years old or beyond. While this may seem cheaper than National Insurance's Varistha medical scheme, it is less wide in scope. This policy has an interesting refund of premium clause if one withdraws from the policy: if the policyholder gets out of the policy within the first month, 75% of the premium is returned and if he opts out between 3 to 6 months of the policy, 25% of the premium is returned. In this policy, pre-existing diseases are not covered for a period of 2 policy years. Other exclusions are very similar to those of National's Varistha medical scheme.
Opinion: a good scheme in terms of the level of sum insured and price, but the scope of diseases covered is restrictive. Another issue is that pre-existing is covered only after 2 policy years.
Mediclaim for Senior Citizens by New India Assurance: This policy is available for senior citizens between 60 and 80 years, and the sum insured can be Rs 1 lakh or Rs 1.5 lakhs. Pre existing diseases are covered after 18 continuous months of coverage, while for diabetes and hypertension to be covered, additional premium needs to be paid. Pre hospitalization is covered for 30 days, while post hospitalization is covered for 60 days. An insurance of Rs 1 lakh for a 65 year old will cost Rs 3850 while it will cost Rs 5150 for an 80 year old. Thus, premiums are very competitively priced. If one wants to extend beyond 80 years, then loading of 10% or 20% has to be paid. For pre existing diabetes or hypertension, an additional premium of 10% each has to be paid. One interesting feature is that there is a 10% discount if one's spouse is also covered under this policy. This policy also has the same partial refund norms on cancellation as Oriental's Specified Disease Plan. Claims would be paid only for medical treatment in India. The exclusion conditions are standard, and are very similar to National's Varistha Mediclaim.
Opinion: Attractively priced. Sum insured ceilings are low. The product brochure is silent on co-pay, and thus there is no co-pay requirement in all probability.
United India Insurance's Specified Disease Plan: In this policy, sum insured of Rs 50,000 to Rs 300,000 is available to people between 60 to 80 years of age. Sum insured of Rs 1 lakh will cost Rs 3715 for a 65 year old, and Rs 8613 for an 80 year old. So while it is cheaper for the younger age bands, it is a bit expensive for the older age groups. An interesting feature of this policy is that there is a hospitalization cash payment from the 3rd day of hospitalization on payment of a particular additional premium. While other exclusion features of this policy are comparable to that of the previous 3 policies that we have discussed, the biggest problem of this policy is that this has a pre-existing waiting period of 4 years.
Opinion: Pre -existing waiting period of 4 years is restrictive
Star Health's Red Carpet Plan: This plan has been a good marketing success. While one barely gets to hear about the reasonably broad, well priced schemes of the 4 nationalised companies, the market is quite excited about Star Health's Red Carpet scheme. The sum insured under this policy can be for Rs 1 lakh, Rs 2 lakhs, Rs 3 lakhs, Rs 4 lakhs or Rs 5 lakhs. Age of entry is restricted between 60 and 69 years. Pre existing diseases are covered from the 1st year itself, except for those preexisting diseases for which the insured received payment in the preceding 12 months. Subsequently, these pre-existing diseases are covered. There are sub limits under this policy wherein different diseases have different limits as a percentage of the sum insured. Sum insured of Rs 1 lakh will cost Rs 4900 at entry, while a sum insured of Rs 5 lakhs will cost Rs 20000.. The biggest catch in this policy is that there is a 50% co-payment for pre existing diseases and 30% co-payment for other diseases!! Other exclusions are very similar to what is there for the nationalized companies.
Opinion: Simple, well marketed claim. But the co-payment terms are a huge negative! The ceiling for maximum age at entry is quite low (69 years), though the guaranteed renewal feature is a big positive. Also, the sum insured levels of Rs 5 lakh is quite high and attractive in these days of escalated medical costs.
In summary, we feel that National's Varistha Plan is the widest in scope. The only issue with the plans of the Nationalised Insurance companies is that the sum insured levels offered might not be adequate for today's high healthcare costs. On the other hand, they are at least offering senior citizen health plans. It is very difficult to locate any meaningful health insurance scheme for senior citizens offered by any private health insurance company, except Star Health. The only problem that we see with Star Health's Red Carpet plan is that of the Co-pay restriction.
The health insurance plans available for senior citizens are:
Varistha Mediclaim by National Insurance
Senior Citizen plan by Oriental Insurance
Mediclaim for Senior Citizens by New India Assurance
Senior Citizen Plan by United India Insurance
Red Carpet Plan by Star Health Insurance
Varistha Mediclaim by National Insurance: This policy can be bought by anyone between 60 and 80 years of age. Renewals can be done upto the age of 90. Between the age bands of 76-80, premiums have an added factor of 10% and between 80 to 90 years of age, premiums are grossed up by 20%. The sum insured under this policy for hospitalization is Rs 1 lakh. For critical illness, the sum insured is Rs 2 lakhs. Under the critical illness cover, diseases such as cancer, renal failure, stroke, organ transplants etc are covered. If the person has already been insured for 3 years through a health insurance policy, then he or she does not have to undergo a medical test, else there has to be a medical test under the prospective customer's costs. For domiciliary treatment, the maximum claim is fixed at 20% of the sum insured. Ambulance charges upto Rs 1000 are covered under this policy. For a mediclaim cover of Rs 1 lakh and a critical illness cover of Rs 2 lakhs, the premium varies between Rs 6200 (for a 60-65 year old) to Rs 9200 (for a 75-80 year old). One interesting feature of this policy is that pre existing hypertension and diabetes are covered from the 1st year itself of the policy by paying 10% additional premium for each of the two diseases. Pre existing is of course not available for the critical illness policy. Other pre existing diseases are covered after 1 policy year. Dialysis, chemotherapy and radiotherapy for preexisting ailment is never covered. Claims are paid only for events that occur within India. Claims which occur within the first 30 days of the commencement of the policy will not be covered, unless in the case of the person being insured with an Insurance Company without break for the past 12 months. For the purpose of this policy, pre existing diseases such as cataract, piles, fistula, hernia, benign lumps, joint replacement etc will not be covered in the first 12 months. War related medical claims, vaccination, spectacles cost, plastic surgery, corrective dental surgery, venereal disease, vitamins and tonics which are not part of the treatment, nuclear disaster related health claims, alternative treatment like homeopathy etc are excluded.
Opinion: We think it is one of the best policies for senior citizens, except that the sum insured is low. They are quite generous as far as the norms for entry age and pre existing diseases are concerned.
2. Senior Citizen Specified Disease Plan by Oriental Insurance: In this plan, the policyholder has the option to choose sum insured of Rs 1 lakh, 2 lakhs, 3 lakhs, 4 lakhs or 5 lakhs. One restrictive feature of this policy is that 20% of any claim amount has to be co-paid by the insured. Cashless payment through TPA is restricted to Rs 1 lakh. This plan covers 10 specified diseases: cancer, renal failure, heart diseases, liver related diseases, COPD (lung ailment), stroke, prostrate, orthopaedic disease, ophthalmic disease, accidental injury and knee replacement. The amount that one can claim for a particular disease is restricted as a percentage of the sum insured (for e.g., 50% of the sum insured can be claimed for cancer, while 20% of the sum insured can be claimed for stroke). A sum insured of Rs 1 lakh will cost Rs 4500 for a 65 year old, while it will cost Rs 6400 if one is eighty years old or beyond. While this may seem cheaper than National Insurance's Varistha medical scheme, it is less wide in scope. This policy has an interesting refund of premium clause if one withdraws from the policy: if the policyholder gets out of the policy within the first month, 75% of the premium is returned and if he opts out between 3 to 6 months of the policy, 25% of the premium is returned. In this policy, pre-existing diseases are not covered for a period of 2 policy years. Other exclusions are very similar to those of National's Varistha medical scheme.
Opinion: a good scheme in terms of the level of sum insured and price, but the scope of diseases covered is restrictive. Another issue is that pre-existing is covered only after 2 policy years.
Mediclaim for Senior Citizens by New India Assurance: This policy is available for senior citizens between 60 and 80 years, and the sum insured can be Rs 1 lakh or Rs 1.5 lakhs. Pre existing diseases are covered after 18 continuous months of coverage, while for diabetes and hypertension to be covered, additional premium needs to be paid. Pre hospitalization is covered for 30 days, while post hospitalization is covered for 60 days. An insurance of Rs 1 lakh for a 65 year old will cost Rs 3850 while it will cost Rs 5150 for an 80 year old. Thus, premiums are very competitively priced. If one wants to extend beyond 80 years, then loading of 10% or 20% has to be paid. For pre existing diabetes or hypertension, an additional premium of 10% each has to be paid. One interesting feature is that there is a 10% discount if one's spouse is also covered under this policy. This policy also has the same partial refund norms on cancellation as Oriental's Specified Disease Plan. Claims would be paid only for medical treatment in India. The exclusion conditions are standard, and are very similar to National's Varistha Mediclaim.
Opinion: Attractively priced. Sum insured ceilings are low. The product brochure is silent on co-pay, and thus there is no co-pay requirement in all probability.
United India Insurance's Specified Disease Plan: In this policy, sum insured of Rs 50,000 to Rs 300,000 is available to people between 60 to 80 years of age. Sum insured of Rs 1 lakh will cost Rs 3715 for a 65 year old, and Rs 8613 for an 80 year old. So while it is cheaper for the younger age bands, it is a bit expensive for the older age groups. An interesting feature of this policy is that there is a hospitalization cash payment from the 3rd day of hospitalization on payment of a particular additional premium. While other exclusion features of this policy are comparable to that of the previous 3 policies that we have discussed, the biggest problem of this policy is that this has a pre-existing waiting period of 4 years.
Opinion: Pre -existing waiting period of 4 years is restrictive
Star Health's Red Carpet Plan: This plan has been a good marketing success. While one barely gets to hear about the reasonably broad, well priced schemes of the 4 nationalised companies, the market is quite excited about Star Health's Red Carpet scheme. The sum insured under this policy can be for Rs 1 lakh, Rs 2 lakhs, Rs 3 lakhs, Rs 4 lakhs or Rs 5 lakhs. Age of entry is restricted between 60 and 69 years. Pre existing diseases are covered from the 1st year itself, except for those preexisting diseases for which the insured received payment in the preceding 12 months. Subsequently, these pre-existing diseases are covered. There are sub limits under this policy wherein different diseases have different limits as a percentage of the sum insured. Sum insured of Rs 1 lakh will cost Rs 4900 at entry, while a sum insured of Rs 5 lakhs will cost Rs 20000.. The biggest catch in this policy is that there is a 50% co-payment for pre existing diseases and 30% co-payment for other diseases!! Other exclusions are very similar to what is there for the nationalized companies.
Opinion: Simple, well marketed claim. But the co-payment terms are a huge negative! The ceiling for maximum age at entry is quite low (69 years), though the guaranteed renewal feature is a big positive. Also, the sum insured levels of Rs 5 lakh is quite high and attractive in these days of escalated medical costs.
In summary, we feel that National's Varistha Plan is the widest in scope. The only issue with the plans of the Nationalised Insurance companies is that the sum insured levels offered might not be adequate for today's high healthcare costs. On the other hand, they are at least offering senior citizen health plans. It is very difficult to locate any meaningful health insurance scheme for senior citizens offered by any private health insurance company, except Star Health. The only problem that we see with Star Health's Red Carpet plan is that of the Co-pay restriction.
Defining Risk Behavior And How It Affects Life Insurance Rates
Whether you engage in dangerous activities for business or pleasure, you risk your life. You are also affected financially since you pay higher premiums for your life insurance or even for your medical cover. In some rare cases, insurance companies might even deny you coverage, leaving you unprotected and exposed. To understand your term life insurance rates better, it is vital to know how insurance defines risk behavior or factors and how they affect your rates.
Defining behavior
Definition of risk behavior varies from one insurance company to another. In general, high-risk activities that most insurance carriers consider are motor racing sports, contact sports, wind surfing, water skiing, deep-sea diving, sky diving, triathlons, hang gliding and rollerblading. High-risk professions include law enforcement, roofing, construction, electrical installation and industrial machinery installation. If you engage in one or more of these activities and professions, it may be wise to shop around for an insurance company that offers the cheapest premium rates for life insurance.
Full disclosure
If you have any risk behavior in your life, you might be tempted to hide it from an insurance company when applying for a life policy. It is certainly not a good idea to try to hide such facts from your potential insurance carrier. First, it is illegal to do so and this could bring upon you plenty of legal problems when the insurance company discovers the truth. Secondly, your family may be denied needed insurance claim when you pass away even if the cause of death is not related to what you were hiding. In case of a medical cover, you can be denied of necessary aid for treatment if you lied about the facts. Full disclosure not only protects insurance carriers but also the policyholders.
Factor in new interests
As the years progress, times change and you find yourself accepting a new high-risk job or developing a new hobby that involves considerable life risk. When this happens, you will benefit if you contact your insurance carrier as soon as possible to ensure there is no lost claim later. If you think you will still be covered when you engage in a new high-risk activity, simply because you gave full disclosure back when you were buying your life policy, then you are terribly wrong. If you are going to engage in high-risk behavior only for a short time, you can take a short-term policy to protect yourself.
Defining behavior
Definition of risk behavior varies from one insurance company to another. In general, high-risk activities that most insurance carriers consider are motor racing sports, contact sports, wind surfing, water skiing, deep-sea diving, sky diving, triathlons, hang gliding and rollerblading. High-risk professions include law enforcement, roofing, construction, electrical installation and industrial machinery installation. If you engage in one or more of these activities and professions, it may be wise to shop around for an insurance company that offers the cheapest premium rates for life insurance.
Full disclosure
If you have any risk behavior in your life, you might be tempted to hide it from an insurance company when applying for a life policy. It is certainly not a good idea to try to hide such facts from your potential insurance carrier. First, it is illegal to do so and this could bring upon you plenty of legal problems when the insurance company discovers the truth. Secondly, your family may be denied needed insurance claim when you pass away even if the cause of death is not related to what you were hiding. In case of a medical cover, you can be denied of necessary aid for treatment if you lied about the facts. Full disclosure not only protects insurance carriers but also the policyholders.
Factor in new interests
As the years progress, times change and you find yourself accepting a new high-risk job or developing a new hobby that involves considerable life risk. When this happens, you will benefit if you contact your insurance carrier as soon as possible to ensure there is no lost claim later. If you think you will still be covered when you engage in a new high-risk activity, simply because you gave full disclosure back when you were buying your life policy, then you are terribly wrong. If you are going to engage in high-risk behavior only for a short time, you can take a short-term policy to protect yourself.
The Factors to Consider When Choosing Life Insurance for the Elderly People
Whether renewing their policy or buying insurance for the first time, senior citizens often experience some difficulty finding the right policy. In the past, finding an affordable policy was an impossible task. However today, the marketplace has become friendly to the elderly customers. There are many available options for senior citizens now more than before. The internet makes the process of shopping and comparing policies easy. Therefore, if you are looking for life insurance for seniors over 65, you will not be disappointed. The factors to consider when choosing seniors' insurance includes:
The purpose of the policy
Seniors need insurance now more than ever. The benefits derived from the policy can be used to cater for final expenses including outstanding debts and funeral expenses. Furthermore, the insurance can be used to cover living expenses of dependents such as a disabled child, dependent grandchildren or a spouse. The insurance is also used to offer financial security for the loved ones. Although many of the people purchase insurance coverage when young to protect against untimely death, the elderly too can benefit a great deal from the right policy. As the elderly person contemplates their golden years, they can have tremendous peace of mind knowing the family is financially taken care of. They can purchase insurance to cover debts or the college education of their grandchildren. Therefore, insurance is an important financial decision.
The right company
Finding an affordable policy can prove challenging, but it is not impossible. The perceived risk of the insurance applicant is often responsible for determining the cost of the policy. Therefore, companies will often charge higher rates for people who stand a high chance of dying during the term of the policy. Those who have been diagnosed with chronic health conditions often pay more. However, as a result of the high demand for insurance, companies have sought to stay competitive by reducing their rates. As more senior citizens demand insurance, the overall cost of insurance is reducing. Furthermore, medical advancement has played an important role in keeping the premiums low. People are living longer, which makes insuring people over 65 less risky.
The cost of the policy
The premiums paid by a senior citizen are not the same as those paid by people in their 20s. However, the value of insurance for senior citizens is higher when compared with other age groups. Therefore, an elderly policy is a smart investment because they are likely to pass away during the term, leaving the beneficiaries to access the policy. To get competitive rates, it is advisable to apply for insurance when you are healthy. It is equally important to stop smoking at least one year before applying for insurance. In addition, work to lose your weight and reduce your blood pressure. This will help a great deal in getting you lower premiums.
The purpose of the policy
Seniors need insurance now more than ever. The benefits derived from the policy can be used to cater for final expenses including outstanding debts and funeral expenses. Furthermore, the insurance can be used to cover living expenses of dependents such as a disabled child, dependent grandchildren or a spouse. The insurance is also used to offer financial security for the loved ones. Although many of the people purchase insurance coverage when young to protect against untimely death, the elderly too can benefit a great deal from the right policy. As the elderly person contemplates their golden years, they can have tremendous peace of mind knowing the family is financially taken care of. They can purchase insurance to cover debts or the college education of their grandchildren. Therefore, insurance is an important financial decision.
The right company
Finding an affordable policy can prove challenging, but it is not impossible. The perceived risk of the insurance applicant is often responsible for determining the cost of the policy. Therefore, companies will often charge higher rates for people who stand a high chance of dying during the term of the policy. Those who have been diagnosed with chronic health conditions often pay more. However, as a result of the high demand for insurance, companies have sought to stay competitive by reducing their rates. As more senior citizens demand insurance, the overall cost of insurance is reducing. Furthermore, medical advancement has played an important role in keeping the premiums low. People are living longer, which makes insuring people over 65 less risky.
The cost of the policy
The premiums paid by a senior citizen are not the same as those paid by people in their 20s. However, the value of insurance for senior citizens is higher when compared with other age groups. Therefore, an elderly policy is a smart investment because they are likely to pass away during the term, leaving the beneficiaries to access the policy. To get competitive rates, it is advisable to apply for insurance when you are healthy. It is equally important to stop smoking at least one year before applying for insurance. In addition, work to lose your weight and reduce your blood pressure. This will help a great deal in getting you lower premiums.
Free Vin Check From The National Insurance Crime Bureau
The National Insurance Crime Bureau Announces Free VINCheck for Unrecovered Stolen Vehicles
For the second time in as many years, the National Insurance Crime Bureau (NICB) is launching another free service to help protect the nations consumers.
Over one million vehicles have been stolen annually in the United States since 1986. With an annual average recovery rate of just 63 percent, several million vehicles remain unaccounted for and could possibly end up being purchased by unsuspecting consumers.
To help prevent innocent people from buying a stolen vehicle and to help recover stolen vehicles that may enter the commerce stream in the future, NICB today is activating the nations first Unrecovered Stolen Vehicle Database as a free service to the public.
Anyone anywhere can now run a Vehicle Identification Number (VIN) through this database and determine if it has been reported stolen by one of NICBs over 1000 member insurance companies.
To check a vehicle simply visit the NICB web site, and follow the on-screen directions for the VINCheck search feature which is located on the home page.
In recent months, NICB Special Agents have identified numerous stolen vehicles that were in the process of being sold by auto dealers or restored by collectors. These examples demonstrate how even car-savvy people can be duped into unknowingly buying a stolen vehicle. If it happens to experts then the risks are even greater for ordinary consumers.
Seeing a way to help mitigate that risk and to provide another free service to help protect the nations drivers, NICB sought and received the cooperation of its member companies to make this feature possible.
It was in this same spirit of cooperation and assistance that NICBs member companies provided their Hurricane Katrina-related auto claims information to create the flood vehicle database. This unprecedented effort was launched on October 17, 2005, and amassed over 300,000 vehicle and boat records which gave prospective buyers critical information to prevent the fraudulent sale of potentially flood-damaged vehicles.
The National Insurance Crime Bureau is the nations leading non-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training and public awareness.
Anyone with information concerning auto theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422).
For the second time in as many years, the National Insurance Crime Bureau (NICB) is launching another free service to help protect the nations consumers.
Over one million vehicles have been stolen annually in the United States since 1986. With an annual average recovery rate of just 63 percent, several million vehicles remain unaccounted for and could possibly end up being purchased by unsuspecting consumers.
To help prevent innocent people from buying a stolen vehicle and to help recover stolen vehicles that may enter the commerce stream in the future, NICB today is activating the nations first Unrecovered Stolen Vehicle Database as a free service to the public.
Anyone anywhere can now run a Vehicle Identification Number (VIN) through this database and determine if it has been reported stolen by one of NICBs over 1000 member insurance companies.
To check a vehicle simply visit the NICB web site, and follow the on-screen directions for the VINCheck search feature which is located on the home page.
In recent months, NICB Special Agents have identified numerous stolen vehicles that were in the process of being sold by auto dealers or restored by collectors. These examples demonstrate how even car-savvy people can be duped into unknowingly buying a stolen vehicle. If it happens to experts then the risks are even greater for ordinary consumers.
Seeing a way to help mitigate that risk and to provide another free service to help protect the nations drivers, NICB sought and received the cooperation of its member companies to make this feature possible.
It was in this same spirit of cooperation and assistance that NICBs member companies provided their Hurricane Katrina-related auto claims information to create the flood vehicle database. This unprecedented effort was launched on October 17, 2005, and amassed over 300,000 vehicle and boat records which gave prospective buyers critical information to prevent the fraudulent sale of potentially flood-damaged vehicles.
The National Insurance Crime Bureau is the nations leading non-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training and public awareness.
Anyone with information concerning auto theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422).
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