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Burial Insurance (Final Expense Insurance) A type of guaranteed issue policy that can be term or whole life, with a low death benefit that covers covers end-of-life expenses including funeral/burial arrangements and any remaining medical or legal expenses that will need to be settled by your beneficiary. While death is most certainly guaranteed for all of us, the cost of dying is not necessarily cheap. Final expense insurance can be ideal for someone who only needs a small death benefit to cover their final expenses when they pass. As its name implies, people buy this type of policy to provide money for funeral and burial costs for themselves and/or family members. Burial insurance is easy to get and does not require a medical exam. Death benefit is burial insurance it gives your loved ones money typically, tax-free that they may use to pay your final expenses in the event of your death. This benefit is often referred to as 'burial insurance' or 'funeral insurance. T

Kidnap and Ransom Insurance (KR) Kidnap and ransom insurance or K&R insurance is designed to protect individuals and corporations operating in high-risk areas around the world. Kidnap and ransom coverage is often provided as part of a corporate insurance portfolio. A basic K&R policy typically covers ransom payment, loss of income, interest on bank loans, and medical care. Companies often use it when they have employees who frequently travel to areas where kidnapping is a problem. K&R insurance can include coverage for spouses, relatives, guests, nannies, housekeepers, or just a single individual. The kidnap and ransom insurance does not pay the money directly. The family or employer pays the ransom - either out of pocket or by taking out a loan. Once the crisis is resolved, the insurer will reimburse the money to the policyholder, including any interest on money that has been borrowed. Certain entities are more vulnerable to hostile incidents than the average citize

Liquor Liability Insurance Coverage for the liability of an entity involved in the retail or wholesale sales of alcoholic beverages, or it helps cover claims of bodily injury or property damage that an intoxicated customer causes after a company served them alcohol. Liquor Liability is excluded from General Liability and must be purchased as a separate policy. It protects against bodily injury and property damage claims for companies that are in the business of manufacturing, distributing, selling, or serving liquor. The policy provides coverage for legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person, who was served or sold liquor by the policyholder. Liquor Liability Insurance does NOT Cover: -Patrons who are underaged and drinking. -Offenses outside of property damage and bodily harm ex: libel & slander. -Damages to your own property. For example, a financial firm serves alcohol at their annual comp

Nuclear Energy Liability Insurance Operators of nuclear power plants are liable for any damage caused by them, regardless of fault. They therefore normally take out insurance for third party liability, and in most countries they are required to do so. These operators of nuclear installations bear unlimited liability for nuclear damage arising from the operation of their installations or the related transport of nuclear material. Coverage for bodily injury and property damage liability resulting from the nuclear energy material (whether or not radioactive) on the insured business's premises or in transit. Currently, owners of nuclear power plants pay an annual premium for XX amount in private insurance for offsite liability coverage for each reactor site (not per reactor). This primary, or first tier, insurance is supplemented by a second tier. Standard homeowners insurance and renters insurance policies exclude damages due to a nuclear meltdown or radiation leak. If you're

Simplified Issue Simplified issue is a type of life insurance that doesn't require a medical exam, so coverage amounts are limited. If you are in your 40s and have delayed getting life insurance, simplified issue is an option. This type of insurance is typically geared towards people who need to obtain life insurance right away and/or those who don't wish to submit to a medical exam. Simplified issue whole life insurance is a type of permanent final expense life insurance that provides a small amount of coverage if you don not qualify for traditional life insurance. No medical exam is required, but you still have to complete a health questionnaire and provide access to medical records. If you fail to disclose a condition and die, the insurance company can deny death benefits to your beneficiaries. A simplified issue policy can be beneficial if you're healthy and need a policy quickly or want to skip the life insurance medical exam. It’s important to note that not ev

Tittle Insurance Title insurance is a policy that covers third-party claims on a property that don’t show up in the initial title search and arise after a real estate closing. A third party is someone other than the property’s owner, such as a construction company that didn’t get paid for its work on the home under a previous owner. The term “title” refers to someone’s legal ownership of the property. An owner’s title insurance policy can cover the costs of paying off a previously undiscovered lien or defending against a lawsuit filed against you by someone claiming a right to the property. It can also provide a cash settlement to a new owner who unwittingly purchases a property with a forged deed from a fraudulent seller who did not actually own the home. Further, owner’s title insurance protects your ability to sell the home one day if a problem turns up during a later title search. These are some of the issues an owner’s title policy can protect you against: -Property surv

Umbrella and Excess Insurance (Commercial) Excess liability insurance provides additional coverage for one of your liability insurance policies, typically general liability insurance. It activates when that policy reaches its limit. Commercial umbrella insurance provides additional coverage for several of your liability insurance policies. It kicks in when one of the underlying policies reaches its limit. An excess liability insurance policy, also known as excess liability coverage, offers financial protection and higher policy limits if a claim is made that exceeds the limit of an underlying liability policy. It's similar to having an additional insurance policy on top of your existing coverage. It activates when that policy reaches its limit. How do commercial umbrella and excess liability coverage work? Say you have an excess liability policy that extends the coverage of your general liability insurance. If you’re found liable for 2.5 million in damages, and your general

Return to Invoice (RTI) Cover (An add-on or Extension to comprehensive car insurance) Return to invoice or RTI cover provides coverage to the policyholder in case the car is stolen or when it is beyond repair. Under this cover, the insured is eligible to get the full compensation from the insurer that is the last invoice amount of the car when it was purchased under the above-mentioned conditions. This includes road tax and registration charges. If the policyholder has not purchased Return to Invoice cover for the vehicle, he/she will only receive the Insured Declared Value (IDV) of the car as claim payout. IDV is calculated as the manufacturer's listed ex-showroom price minus depreciation. In a normal car insurance cover, the maximum amount of claim you can get is restricted to its IDV of the car. Return To Invoice is an add-on option which covers the gap between the Insured Declared Value (IDV) and the invoice value of the car. For context, the IDV is lesser than the invoi

Cash Surrender Value Cash surrender value is the amount left over after fees when you cancel a permanent life insurance policy (or annuity). Simply put, the actual amount of money you will receive if you choose to terminate a permanent life insurance policy before its maturity date, or before you die. When a policy is surrendered, the policy owner will receive all of the remaining cash value in the policy, known as the cash surrender value. This amount will generally be slightly less than the total amount of cash value in the policy because of surrender charges assessed by the policy. It should be noted that not all types of life insurance provide cash value. Paying premiums could build the cash value and help increase your financial security. The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. In most cases, the difference between your policy's cash value and surrender value are the charges associated wit

Accident only The term accident is defined as an event that occurs unintentionally, which is unexpected and unforeseen. The event may, further, have caused damage or harm, but is accidental. Accident only is an insurance contract that provides coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accident. Accident-only cover offers a fixed sum per injury that occurs. Some policies cover emergency treatment of illnesses due to injury too, but it's pretty rare so check the cover details to make sure. It should be noted that accident only coverage is not health insurance. It is supplemental insurance that pays a specific amount for certain types of health care that's needed after an accident, car crash, or fire. It's sold separately from health insurance and often from companies that specialize in accident, disability, or life insurance. Accident only

Pure Premium or Loss Cost Pure Premium or Loss Cost is the total amount of money an insurer must pay to cover claims, including costs to administer and investigate such claims. It is that portion of the premium equal to expected losses void of insurance company expenses, premium taxes, contingencies, or profit margin. In other words (it is the loss cost per unit of exposure plus the loss adjustment expense directly allocated to the settlement of specific losses). When determining what insurance premium to charge a policyholder, insurance companies factor in the Pure Premium or Loss Cost. Insurance companies make a profit when collected premiums are greater than Pure Premium or Loss Cost. In calculating the Pure Premium or Loss Cost, insurance underwriters use statistical models and historical data from their business and the entire industry. The Pure Premium or Loss Cost multiplier is an adjustment to the Pure Premium or Loss Cost that takes into consideration business expenses a

Excess Buy Back Excess in insurance is the amount you have to pay towards the overall cost of an insurance claim. It's usually a pre-agreed amount. Your insurer will then contribute the rest up to the limit of the cover. You'll see insurance excess on insurance products like travel, motor, home and health. Remember insurance excess is the out-of-pocket amount you have to pay when making a claim with your Insurer. For example, if your standard excess is 500 and your repair claim is 2000, that means you'll have to pay 500, while your insurance company pays the remaining 1500. Excess Buy Back reduces or remove the amount of your excess for an additional premium. Therefore it is an amount you pay to cover up for the excess charge at the inception of a policy. With EBB you do away with the policy excess contribution on your private insurance claim. For example, if your car worth is 1,000,000 Million and your charge a rate of 3.5% as the premium, it will be 350,000 ; hence th

Irrevocable & Revocable Beneficiaries A beneficiary is the person or organization that will receive your policy's death benefit. Your beneficiary can be a person, a charity, a trust, or your estate. When you buy a life insurance policy, you also have the option to name two or more people as a beneficiary on your policy. This could be a spouse and a child, for example. You can also add a contingent beneficiary to your policy, who would receive your death benefit if the primary beneficiary were to pass away before they can claim the money. An irrevocable beneficiary is a life insurance policy beneficiary who has a vested interest in the policy proceeds even during the insured's lifetime because the policy owner has the right to change the beneficiary designation only after obtaining the beneficiary's consent. A revocable beneficiary on the other hand is someone who does not have full access to the funds from your life insurance policy. You can remove them from your

Valued Policy A valued policy is an insurance policy in which the amount payable for a claim is agreed upon when the policy is issued, and is not related to the actual value of a loss. With a valued policy, the insurer pays a specified amount of money to or on behalf of the insured upon the occurrence of a defined loss. For example, homeowners insurance would help someone rebuild a home which was destroyed by a fire. Under a valued policy, a face value is agreed upon, and in the event of total destruction, the insurance company pays out this face value. An unvalued policy is a policy which does not specify the value of the subject matter insured, but is subject to the limit of the sum insured. The purpose of the valued policy law is to protect the insured when the subject matter insured is wholly damaged in a covered peril. The law requires that the monetary amount paid to the policyholder should be the monetary amount stated in the policy declaration. Valued policy laws preven

Securitization of Insurance Risk Securitization, a phenomenon well-known by the banking sector since the 1970s, has extended to the insurance sector for thirty years now. It has ever since continued to grow steadily with more experience in the non-life sector than in the life sector on which it has embarked recently. A method for insurance companies to access capital and hedge risks by converting policies or underwriting risk into securities that can be sold in financial markets. Today, these complex techniques are accessible only to large insurance groups. Therefore rather than an insurer transferring its underwriting risk to a reinsurer within the insurance industry, the risk is transferred to the broader capital markets. The general concept of insurance securitization, therefore, includes two elements: -the transformation of liquidity generated by the underwriting into notes on the financial market. -the transfer of the risks underwritten toward financial markets through not

Personal Accident Cover Car insurance that provides complete financial coverage to policyholders in case of accidental death, bodily injuries and physical disabilities (temporary and permanent). In case of the unfortunate death of the policyholder, the nominee gets 100% compensation. The cover provide the peace of mind that you'll have a financial safety net should you need specialist medical treatment or are unable to work due to a car accident. Personal accident cover differ from ordinary life insurance in that the incapacity (or death) must be the result of an accident, not illness or old age If the burns, broken bones, permanent partial disability, permanent total disability, dismemberment, temporary partial disability, temporary total disability, death, hospitalization, etc comes from a civil or foreign war personal accident cover will not cover. It is important to know that accident insurance is different from health insurance, a health insurance policy covers the insu

Zero Depreciation Cover (An add-on or Extension) A zero dep cover is an add-on in car insurance under which your insurance company won't charge you for depreciation during the claim settlement. In simple words, you are not required to pay for the depreciation cost while making a claim. A comprehensive policy provides coverage for own damage and damages caused to the third party. Premium. When car parts are replaced following an accident, the insurer deducts the depreciation on these parts and pays the remaining value as claim payout. Remember zero Depreciation only covers the cost of your car's part depreciation during claims and doesn't cover your compulsory deductibles. Zero Depreciation add on cover policy will not be valid once you have claimed for the specified number of times as mentioned in the policy document. If the basic car insurance policy is enhanced with a zero depreciation cover, the insurance company will not deduct any depreciation on car parts. Wi

Renter’s Insurance Renter’s insurance is property insurance that provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event. It is available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft, or townhouse or home. It protects you from unexpected circumstances such as theft, a fire or sewer backup damage and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property. The policy protects against losses to the tenant’s personal property within the rented property. In addition, a renter’s insurance policy protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property. A practical example how rental insurance; if a flood or fire destroys all the personal property within a rented apartment, the structure would be covered u

Credit Life Insurance A policy assigning the creditor as the beneficiary for insurance on a debtor, thereby remitting balance of payment to creditor upon death of debtor. Therefore it pays off your loan if you die before settling the debt. The question is who is the policy owner in credit life insurance? You are the owner of your credit life insurance policy, but the policy's beneficiary is your lender, rather than beneficiaries of your choosing. The beneficiary of a credit life insurance policy is the lender that provided the funds for the debt being insured. The lender is the sole beneficiary, so your heirs will not receive a benefit from this type of policy. Credit insurance coverage protects businesses from non-payment of commercial debt. It makes sure invoices will be paid and allows companies to reliably manage the commercial and political risks of trade that are beyond their control. The face value of a credit life insurance policy decreases proportionately with the out

Convertible Term Insurance Policy A term life insurance policy that can be converted into permanent life insurance without a medical assessment. The insurer is required to renew the policy regardless of the health of the insured subject to policy conditions. Convertible term insurance lets you “trade in” a temporary policy for a permanent one. Converting can make sense if you want the benefits permanent life insurance offers. Converting part of your policy can help you meet your goals and manage your budget. One of the primary benefits of convertible term life insurance is that it can help keep your options open. While a term life policy may be the right fit for you today, years later you may want to switch to permanent life insurance coverage. But your future state of health may prevent this switch. Therefore getting a convertible term life insurance at the initial stage is better. Most convertible policies have a time limit to convert, usually 10 years. Often, when the conversio

Underwriter & Underwriting An underwriter is a person who identifies, examines, and classifies the degree of risk represented to the insurers' business by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate. Professional underwriters review the criteria on your application to see if it's possible to offer you a policy and, if so, how much coverage you're eligible for. Then, they set your monthly premium based on the information. Underwriting is the process by which an insurance company examines risk and determines whether the insurer will accept the risk or not, classifies those accepted and determines the appropriate rate for coverage provided. Underwriting is the process of assessing the amount of risk you present to a potential insurer. It determines how much a client should pay for it and whether or not to offer an insurance policy to the client in the first place. Underwriting helps to set fair rates, e

Types of Health Insurance 1) Health maintenance organizations (HMOs): HMOs give you a local network of participating doctors, hospitals, and other health care professionals and facilities that you are required to choose from. 2) Exclusive provider organizations (EPOs): An EPO offers you a network of participating providers to choose from. Most EPO plans do not include coverage for out-of-network care except in the case of an emergency. 3) Point-of-service (POS) plans: POS plans combine features of HMO and PPO plans. The provider network is typically smaller than a PPO plan and the costs for in-network care are typically lower, like an HMO. 4) Preferred provider organizations (PPOs): PPOs typically offer you a large network of participating providers so you have a lot of doctors, hospitals, and other health care professionals and facilities to choose from. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful