BeNew Insurance

Medical Examination A medical examination and report are often part of the application process for disability insurance policies. The information becomes part of the contract and is attached to the policy. A life insurance health exam is a simple physical. It is part of the underwriting process, or the process your insurer ask you to go through in order to determine your specific characteristics and risks. Using this information helps them determine how much they will charge you for your insurance policy. A health check usually lasts around 20-30 minutes and is usually carried out by a nurse, but it could be another healthcare professional. You do not need to prepare anything in advance, but it’s always worth asking the health centre you are booked in with. During the check-up, you may be asked: -If close relatives have had the illnesses you’re being assessed for -If you smoke and how much -If you drink alcohol and how much -What your typical diet is like -How much exercise yo

Individual Health Individual health insurance is a type of health insurance that is purchased by an individual, as opposed to through an employer or government program. It can provide coverage for a variety of medical expenses, including doctor visits, hospital stays, prescription drugs, and other healthcare services. Individual health insurance is for anyone who doesn’t have access to employer-sponsored or government-run health coverage. This includes people who are employed by a small business that doesn’t provide health benefits, people who are self-employed, and people who retire before they’re eligible for national health program and have to get their own personal health coverage until they reach the age of retirement. The cost of individual health insurance varies depending on a number of factors, including your age, health status, and the type of plan you choose. You can use a health insurance marketplace like HealthCare.gov to compare plans and find one that fits your ne

Mortgage Insurance Mortgage insurance is form of life insurance coverage payable to a third party lender/mortgagee that protects a mortgage lender or titleholder if the borrower defaults on payments, passes away, or is otherwise unable to meet the contractual obligations of the mortgage. Mortgage insurance helps people to become homeowners who might not otherwise qualify because they don't have the xx% to put down on a home hire purchase payment. It should be noted that mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get. But, it increases the cost of your loan. If you are required to pay mortgage insurance, it will be included in your total monthly payment that you make to your lender, your costs at closing, or both. There are two main types of mortgage insurance: -Private mortgage insurance (PMI) is typically required for conventional loans with a down payment of less than XX%

Reinsurance Reinsurance is a type of insurance that insurance companies buy to protect themselves from large losses. When an insurance company sells a policy, it is essentially agreeing to pay out a certain amount of money if the insured event occurs. However, if the insured event is very large, such as a natural disaster, the insurance company could be wiped out financially. Reinsurance helps to protect insurance companies from these large losses by spreading the risk among multiple reinsurers. A transaction between a primary insurer and another licensed (re) insurer where the reinsurer agrees to cover all or part of the losses and/or loss adjustment expenses of the primary insurer. The assumption is in exchange for a premium. Indemnification is on a proportional or non-proportional basis. With non-proportional reinsurance, the reinsurer agrees to pay a certain amount for each claim that exceeds a certain threshold. For example, a ceding company might buy a non-proportional rei

Occurrence An accident , including injurious exposure to conditions, which results, during the policy period in bodily injury or property damage neither expected or intended from the standpoint of the insured. The difference between accident and occurrence is that, an accident is a sudden and unexpected event that results in bodily injury or property damage. However, the definition of an occurrence also includes continuous or repeated exposure to substantially the same general harmful conditions. N/B: This should not be confused with occurrence in property insurance which is: an accident, including continuous or repeated exposure to substantially the same general harmful conditions. Example break-ins, fires, burst pipes, or even a dog bite that leads to a liability claim. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

Loss of Use Insurance Loss of use insurance, also known as additional living expenses (ALE) insurance, is a type of homeowners insurance coverage that pays for the additional costs you incur if your home is temporarily uninhabitable due to a covered loss. This could include things like hotel stays, restaurant meals, and storage fees. Additional Living Expenses is the most common loss of use coverage when it comes to home insurance. Policy providing protection against loss of use due to damage or destruction of property. It covers you against those extra expenses you incur because you can't make use of your property. What qualifies for a loss of use for example a replacement vehicle or reimburses you for your transportation costs, while your vehicle is being repaired or replaced after being damaged by an insured peril. You can prove Loss by: 1) The rental value or the amount which could have been realized by renting out the article during the period; 2) The cost of hiring a su

Residual Market Plan A method devised for coverage of greater than average risk individuals who cannot obtain insurance through normal market channels. I'm simpler terms a residual market plan is a type of insurance plan that provides coverage to individuals or businesses that have been unable to obtain coverage through the voluntary market. The voluntary market is the regular market for insurance, where insurers can choose to underwrite or not underwrite a particular risk. The residual market is a last resort for people who have been rejected by the voluntary market. The residual market exists to ensure coverage is available when insurance companies in the regular market reject an applicant as too risky. Residual Market Plans are used when you are unable to obtain conventional insurance coverage through standard markets. Residual market plans are considered “Markets of last resort”. Therefore residual market plan works with many different programs in place across the countr

Retention Limit in Life Insurance The maximum amount of risk retained by an insurer per life is called retention. Beyond that, the insurer cedes the excess risk to a reinsurer. The point beyond which the insurer cedes the risk to the reinsurer is called retention limit. Retention limits are determined by the insurer and may vary depending on the underwriting criteria. The retention limits for different insurance products will also differ. Retention is computed on the basis of Net Amount at Risk. This metric is computed as the sum assured minus accumulated amount. The higher the retention limit, the lower the reinsurance costs. Lower retention limit may lead to a phenomenon called fronting wherein the insurers will cede the total risk to the reinsurer which is often a captive of the primary insurer. The retention limit is important because it helps to protect the insurance company from financial losses. If the insurance company were to retain all of the risk on a life insurance poli

Life – Flexible Premium Adjustable Life. A group life insurance that provides a face amount that is adjustable to the certificate holder and allows the certificate holder to vary the modal premium that is paid or to skip a payment so long as the certificate value is sufficient to keep the certificate in force, and under which separately identified interest credits (other than in connection with dividend accumulation, premium deposit funds or other supplementary accounts) and mortality and expense charges are made to individual certificates while providing minimum guaranteed values. Adjustable CompLife provides death protection as a means to ensure that the lump sum it pays remains consistent. CompLife includes cash value accumulation. With death protection in place, the cash value is adjusted on the fly. The policy has a cash value component that grows with the insurer's financial performance but has a guaranteed minimum interest. Adjustable life insurance can be a good option

Hold-Harmless Agreement A risk transfer mechanism whereby one party assumes the liability of another party by contract. Therefore, one party agrees to release the other party from any liability for damages that may occur as a result of the activities of the first party. A hold harmless clause is used to protect a party in a contract from liability for damages or losses. Hold harmless agreements are often used in business transactions, such as when a company hires a contractor to perform work on its property. The company may require the contractor to sign a hold harmless agreement in order to protect itself from any liability for injuries or property damage that may occur during the course of the work. In signing such a clause, the other party accepts responsibility for certain risks involved in contracting for the service. In some jurisdictions, the use of a hold harmless clause is prohibited in certain construction jobs. Three types of Hold Harmless agreement: Broad Form: With

Level Term Life Insurance Level term life insurance is a type of life insurance that provides a death benefit for a specific period of time, known as the term. The premiums for level term life insurance are level, meaning they do not increase over time. The death benefit is also level, meaning it will be the same amount regardless of when the insured person dies during the term of the policy. Your beneficiaries will get paid the same amount regardless of whether you die in the third year or 23rd year of your 30-year policy. Level term is the direct opposite of a decreasing term life insurance. Decreasing term life is life insurance with a decreasing death benefit. That means your coverage will drop over time, hopefully in line with a decrease in your need for coverage. Level term life insurance is a good option for people who need coverage for a specific period of time, such as to pay off a mortgage or college loans. It is also a good option for people who want to keep their prem

Retention A mechanism of internal fund allocation for loss exposure used in place of or as a supplement to risk transfer to an insurance company. An application of retention is a declaration commonly included in insurance contracts. It specifies what portion of any potential claims would be covered by the policyholder and the insurance company, respectively. Applicability of retention; for instance, if a car insurance policy has a $1,000 deductible and a loss is valued at $2,500, then the application of retention for that policy would clarify that the policyholder is responsible for payment of the $1,000 deductible first, then insurer’s liability would thus be limited to $1,500. “Retention” and “deductible” are similar concepts, but they have distinct meanings; In Retention once the insured achieves the self-insured insured person or company is responsible for paying out of pocket before, the insurer can then take care of the remaining damage. While in Deductible policy often

Life Settlements A life settlement is the sale of an existing life insurance policy to a third party for a lump sum of cash. The buyer of the policy assumes responsibility for paying the premiums until the insured person dies, at which point the buyer collects the death benefit Payment is more than the surrender value but less than the actual death benefit. After the sale, the purchaser becomes the policy's beneficiary and assumes payment of its premiums. The biggest thing to consider when determining if selling your policy is right for you is whether you need the coverage. Unfortunately due to the high rise of fraudulent activities, life settlement industry has become heavily regulated. Some jurisdictions require a waiting period (say two years) from the time a life insurance policy is issued to when it can be sold. If someone needs their life insurance coverage and can afford it, they shouldn’t sell it. Life settlements are for people who either no longer want or need t

Joint and Last Survivor Annuity A joint and last survivor annuity is an insurance product that provides an income for life to both partners in a marriage. The payments are guaranteed to continue until the death of the last surviving spouse. Retirement plan that continues to payout so long as at least one, of two or more, annuitants is alive. For example, if there are two persons in a last survivor annuity, each receiving $500 per month, and one of them dies, the remaining annuitant receives $1,000 per month. A 50 percent joint and survivor annuity will pay the surviving annuitant half the payment amount that payees were receiving when both annuitants were alive. Likewise a 75 percent joint and survivor annuity will pay three-quarters of that amount to the surviving annuitant. Annuitant is a person who receives an annuity. Remember an annuity is a long-term investment that is issued by an insurance company and is designed to help protect you from the risk of outliving your income

Covered Lives Covered lives is a term used in the health insurance industry to refer to the total number of people who are enrolled in a particular health insurance plan. Members, subscribers and beneficiaries of the plan are included when determining the total Covered Lives. Covered lives is an important metric for health insurance companies because it helps them to determine their costs and to set premiums. It is also used by government agencies and other organizations to track the overall health of the population. The number of covered lives in some countries is in an increase in recent years. This increase is due to a number of factors, including the Affordable Health Care Acts, which expanded health insurance coverage to millions of its citizens, reducing the rising cost of healthcare, which has made it more difficult for people to pay health care insurance from their pockets. Statistics shows that the number of covered lives market will increase drastically by 2030, this

Key-Persons Insurance A policy purchased by, for the benefit of, a business insuring the life or lives of the most valuable personnel(s) integral or considered critical to the business operations. The company is the beneficiary of the policy and pays the premiums. This type of life insurance is also known as "key man (or "keywoman") insurance," "key person insurance," and "business life insurance." Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business the ones whose absence would sink the company. You need key man insurance on those people! The purpose of key person insurance is to help a small business maintain its financial footing after the death or disability of an owner or a core employee. Investors and lenders often require key person insurance on a business’s manage

Rate It is the unit of cost that is multiplied by an exposure base to determine an insurance premium. Note that an insurance rate is the amount of money necessary to cover losses, cover expenses, and provide a profit to the insurer for a single unit of exposure. It should be noted rate and premium are different. An insurance rate is the price per unit of insurance for each exposure unit, while an insurance premium is the rate multiplied by the number of units of protection purchased. There are basically two rate-making systems: the manual, or class-rating, method and the individual, or merit-rating, method. Sometimes a combination of the two methods is used. The theory of rating in insurance helps an insurance company determine the likelihood that a particular policyholder will file a claim. In this sense, the past loss experience of a policyholder is used to determine future changes to the premium charged for the policy. The rates are determined by a number of factors, inclu

Reserve A portion of the premium retained to pay future claims. Reserves are calculated based on the expected number and size of claims, as well as the company's financial strength. A claims reserve is a reserve of money that is set aside by an insurance company in order to pay policyholders who have filed or are expected to file legitimate claims on their policies. Insurers use the fund to pay out incurred claims that have yet to be settled. There are two main types of reserves: -Policy reserves: they are set aside to pay for claims that have been filed but not yet settled. -Liability reserves: they are set aside to pay for claims that have not yet been filed, but which are expected to be filed in the future. Reserves are an important part of an insurance company's financial stability. Reserve helps the insure to evaluated and calculate its profits. They help to ensure that insurance companies can pay claims, even if there are more claims than expected. Reserve also he

Unearned Premium Amount of premium for which payment has been made by the policyholder but coverage has not yet been provided, or in other words that portion of the policy premium that has not yet been "earned" by the insurance company because the policy still has some time before it expires. For example, if an insurance policy has a one-year term and the premium is $1,000, then the unearned premium after six months would be $500. This is because the insurance company has only assumed risk for six months of the one-year policy term. With unearned premium reserve all premiums (fees) received for coverage extending beyond the statement date; appears as a liability on the balance sheet. In certain circumstances, an insurance company may not have to issue a refund for unearned premium. Unearned premiums are an important part of the insurance industry. They represent a liability for insurance companies, but they can also be a source of income. The amount of unearned premium

Cash Value Life Insurance Cash value life insurance is a type of permanent life insurance that has a savings component. As you pay your premiums, a portion of the money goes towards the death benefit, which is paid out to your beneficiaries when you die. The other portion of the money goes into your cash value account, which grows tax-deferred over time. You can borrow against your cash value or withdraw it, but there may be fees associated with doing so. Cash value life insurance can be a good option for people who want to: -Build up an emergency fund -Save for retirement -Pay for college -Cover long-term care expenses Cash value policies build value as you pay your premiums. Insurer will absorb the cash value of your whole life insurance policy after you die, and your beneficiary will get the death benefit. You can borrow or withdraw money from your life insurance policy. You can also use the money to pay for your premiums. Life insurance companies often offer these cash value