Archive for September, 2011
Life Insurance Types
Posted by in Insurance Agreements on September 18, 2011
It is widely recommended that people should get their life insured to protect their families in case of any untoward incident. Here are the different life insurance types for you to choose from.
A life insurance contract is a serious bit of business. It is a kind of financial protection that an earning member of the family buys so that in case of that person’s death, his/her family will not be financially in any trouble. Some people also use a life insurance to reduce their tax burden as some types of insurance premiums are non-taxable.
What is Insurance?
To put it quite simply and bluntly, a life insurance agreement ensures that on the death of the insured, his/her nominees will receive a financial lump sum. For availing this facility, the insured has to pay a certain amount of money as premium periodically to the life insurance company. A life insurance agreement is therefore a contract between two parties – the insurer and the insured, where the insured pays regular insurance premiums and the insurer, in case of the death of the insured, provides financial compensation to the nominees of the insured. An insurance contract also contains various details regarding the duration of the insurance, the premium to be paid, etc. One of the most important factors that an insurance agreement covers is that all reasons for death are covered by the insurance agreement. Insurance agreements differ based on whether they include accidental death, murder, suicide, etc.
Life Insurance Types
The types of life insurance can be grouped into two broad categories:
Term Life Insurance
A term insurance is a life insurance policy for a relatively shorter period of time. The terms and conditions of this type of life insurance policies are that the insurance amount will be paid only on the death of the insured. In case the insured does not die during the term of the insurance, the insurance amount does not get carried over. Thus there is no penalty as such for not renewing a term insurance and the renewal is completely at the discretion of the insured. Insurance premiums of term insurance increase with the age of the insured as the chances of his illness and death also increase. A term policy is generally tax free.
Permanent Life Insurance
A permanent life insurance is what the name suggests: a life insurance cover that lasts for as long as you live. What a permanent life insurance policy does is that, along with insurance, it also provides a savings element which builds a cash value. The premiums of a whole life insurance for most insurance providers remain the same and are understandably higher than term life insurance premiums. A whole life policy lapses if the insured defaults on a payment and does not reinstate it. There are various sub types of permanent life insurance, namely whole life, universal life and variable life insurance:
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Finding a Lost Life Insurance Policy
Posted by in Insurance Policy on September 18, 2011
Have you ever tried finding a lost life insurance policy? It’s like trying to find a needle, in a haystack. But, if you know the right sources to check up on, then you will be able to find it.
What can you do to protect your dependents, from facing financial instability, in case of your early demise? A life insurance policy comes as a good option, as it is cheap, easily obtainable, and can be customized to individual needs. Life insurance policy is a guarantee to pay a specific sum of money, to a beneficiary upon the death of the insured. In case, the insured outlives the maturity period of the insurance policy, the insured is guaranteed a fixed amount, which is paid to him when the policy matures. A life insurance policy is taken by a policyholder, to protect the policy holder’s dependents, from facing financial debts after his or her death.
Lost life insurance policy
This may sound absurd, but the case of searching for a lost life insurance policy, is not uncommon. The policy holder, sometimes fails to inform the beneficiary, about the existence of the policy. They usually keep it confidential from the beneficiary, till after the policy holder’s death. Insurance companies are ethically bound to distribute the insurance, as and when its due, to the beneficiaries. But they are helpless, as the responsibility to claim the benefits lies with the beneficiary, and without any knowledge of the policy, a beneficiary will not be able to file a claim. Until, a claim is filed with the insurance company, the company will never distribute the benefit. The life insurance policy thus remains unclaimed.
How to find a lost life insurance policy
The benefits from a life insurance policy could make a big difference, to the financial status of the beneficiary. Without a common database of all the insurance companies, statewide or nationwide, it becomes very difficult to know how to find a lost life insurance policy. There is no specific process or a product that guides you as to how to locate a life insurance policy. But with a little patience and hard work, you can always try. There is no time limit for claiming a benefit, if you are a beneficiary, and the time limit on the policy was still remain unaffected even after the death of the insured. So, the claim can be made even years later, whenever you come by the information about the policy. The following sources can help with your inquiries, in reference to finding a life insurance policy that’s lost.
They are as follows:
Personal records: Personal records should be checked very thoroughly, as we might find a record, a copy, a contract or even an old policy, that could lead to any information regarding the policy. We might also find a bill or receipts of payments made towards the same.
Legal representatives: Legal representatives, such as lawyers or accountants should be contacted, as they might possess information related to investments made by the deceased, including any insurance policy. We can always check up with them, whether they were ever conferred upon in matters concerned with the policy.
Banking records and safe deposits: Past banking records should be checked, for any payments made towards premiums, or any other payments related to the policy. We can also check, if the deceased may have had any safe deposit vaults, wherein he or she might have stored any document or proof related to the policy.
Credit card companies: Credit card companies should be checked to see whether the person may have made any credit payments, relating to any insurance policy such as opening fee, premium or any back dated payments.
Previous employers: Previous employers should be contacted, to know if the person was a part of any group insurance plan or scheme. We can also check if the policy holder’s previous employer may have underwritten or have been a witness to any of the policy plans.
Professional acquaintances: Professional acquaintances should be contacted, on the chance that the policy holder may have spent majority of time with them, during which he might have discussed his investments, including insurance policies. We can also check with them about insurance companies or financial brokers who might have acted on behalf of the policy holder. Read the rest of this entry »
Accident Insurance Claims
Posted by in Accident Insurance on September 18, 2011
Nobody likes to be involved in an untoward incident, such as an accident. And if that has happened, filling for accident insurance claims can be equally daunting. The following article offers some suggestions on how to deal with insurance companies while making accident insurance claims.
Deciding on which insurance policy to purchase is not easy, as it involves going through numerous documents with umpteen inbuilt clauses in each of them . Most of us buy insurance policies based upon all frivolous reasons, such as if our friends have bought this policy so it must be good, or if the insurance advisor seems nice and friendly, we buy the policy. The problem arises when we are in an accident situation and have no clue about how to go about filing accident insurance claims. If you find yourself in such a situation, do not get disheartened. Here are some suggestions regarding insurance policies and claims, which are sure to help you.
Understand the Policy
When undertaking a car insurance policy, make sure that you have fully understood the extent of coverage your policy provides, in the case of an accident. Thoroughly read the insurance policy and ask either of your insurance broker and insurance agent, to explain to you any clause which you might not have been able to understand. This will ensure that if any untoward incident, like a car accident or injury happens, you know what and how much to claim for.
Things to Remember at the Accident Site
If you have had an accident, immediately contact your insurance agent. If possible, take the pictures of the accident or related injuries, as they might be handy for the accident insurance claims. Try to collect as many details about the accident as possible, such as taking down the contact details of the eyewitness, as all these things will help you when making car accident insurance claims. If there are other people or vehicles involved in the accident, make sure of taking down their insurance details too. Read more on cheap auto insurance.
Things to do Post the Accident
File for the accident insurance claims as soon as possible, without any delay after the accident. This is because of the fact that the insurance companies have a particular time period within which the insurer has to file the claims. If that time period expires, for any reason, the insurer will not be eligible for making any accident insurance claims.
Once the accident insurance claim procedure has begun, remember to make written notes of all the dealings that you might have with the insurance company in the future. Be very honest in your dealings with the insurance agents, as lying when making accident insurance claims can be considered very negative and you may be even denied the claims. Also, retain all the bills of expenses incurred on account of the accident, such as bills pertaining to the repair of the damaged vehicle or bills of the various medical treatments that have been undertaken on account of accident injuries.
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