BeNew Insurance

Material Duty (or Duties) The set of tasks or skills required in your specific occupation. These are duties that cannot be reasonably omitted or changed without hindering your ability to perform your occupation. A material duty in insurance is a duty that is essential to the performance of a particular occupation. If an individual is unable to perform their material duties, they may be considered disabled under the terms of their insurance policy. Material duties are used to help the insurance adjuster determine whether you are disabled under the contract. Small differences, such as “a,” “the,” “some,” and “all” material duties, can greatly impact whether you qualify for disability benefits. Material duties vary depending on the occupation. For example, a surgeon's material duties may include performing surgery and providing patient care. A lawyer's material duties may include researching and writing legal documents and representing clients in court. To determine whet

Lump-Sum Payment A lump-sum payment in insurance is a one-time payment of the full benefit amount. It is a common payout option for life insurance policies, but it may also be available for other types of insurance, such as critical illness insurance and disability insurance. To receive a lump-sum payment, the policyholder must first file a claim with their insurance company. Once the claim is approved, the insurance company will pay the benefit amount to the policyholder or beneficiary, depending on the terms of the policy. Lump-sum payments can be used for a variety of purposes, such as: *Paying off debts *Covering funeral and burial expenses *Providing financial support for loved ones *Investing for the future Here are some things to consider when deciding whether to receive a lump-sum payment: -Your financial literacy: If you are not comfortable managing a large sum of money, a lump-sum payment may not be the best option for you. -Your financial needs: Consider how you w

Affinity Insurance Affinity insurance is a type of insurance that is offered to members of a group, such as an association, employer, or union. Affinity insurance policies are typically designed to meet the specific needs of the group, and they may offer exclusive discounts and benefits to members. Affinity Insurance started with an Affinity Health Plan (originally known as the Bronx Health Plan) in 1987. Maura Bluestone had one goal in mind: to offer affordable, high quality health care coverage to needy New Yorkers by working closely with community health centers and other primary care practices. Affinity insurance can be offered for a variety of different types of coverage, including: Auto insurance Home insurance Life insurance Health insurance Business insurance Travel insurance Pet insurance Here are some of the benefits of affinity insurance: -Discounted premiums: Affinity insurance policies often offer discounted premiums to members. This is because insurance companies

Non-Exertional Limitations Non-exertional limitations in insurance are limitations that do not impact your ability to perform the exertional demands of an occupation, such as sitting, standing, walking, lifting, carrying, pushing, or pulling. Instead, they limit your ability to perform other aspects of a job, such as: Cognitive functions: This includes difficulty concentrating, understanding instructions, or remembering information. Sensory functions: This includes difficulty seeing, hearing, or tolerating noise or other environmental stimuli. Mental health: This includes difficulty managing stress, anxiety, or depression. Social functions: This includes difficulty interacting with others or working in a team environment. Non-exertional limitations can be caused by a variety of factors, including: Physical conditions: Certain physical conditions, such as arthritis, chronic pain, or neurological disorders, can cause non-exertional limitations. Mental health conditions: Mental h

Underwriting Capacity Remember underwriting is the process insurers use to determine the risks of insuring you or business. It involves the insurance company determining whether you or your business poses an acceptable risk and, if it does, the insurance company calculates a fair price for your coverage. Underwriting capacity is the maximum liability that an insurance company is willing to assume from its underwriting activities. When an insurer accepts additional hazards through the issuance of policies, the possibility increases that it may become insolvent. It is determined by a number of factors, including: 1) Financial resources: An insurance company's financial resources, such as its capital and surplus, are a major factor in determining its underwriting capacity. 2) Regulatory requirements: Insurance companies are subject to regulatory requirements that limit the amount of risk they can assume. For example, regulators may require insurance companies to maintain a ce

Disability Income - Short-Term & Disability Income - Long-Term Disability Income - Short-Term A policy that provides a weekly or monthly income benefit for up to five years for individual coverage and up to one year for group coverage for full or partial disability arising from accident and/or sickness. An employee to qualify for this benefits he/she must be unable to do their job, as deemed by a medical professional but has a medical conditions that prevent an employee from working for several weeks to months, such as pregnancy, surgery rehabilitation, or severe illness. Pre-existing conditions are not covered by short-term disability insurance in many cases, also won’t provide medical care or long-term care. Disability Income - Long-Term Policies that provide a weekly or monthly income benefit for more than five years for individual coverage and more than one year for group coverage for full or partial disability arising from accident and/or sickness. Examples include

Policy Period The policy period is the time frame during which an insurance policy is active and provides coverage to the policyholder. It is the period between the policy's start date and end date. Most insurance providers offer policies with a policy period of one or more years. Since this can vary from insurer to insurer, make sure you check the policy documents or confirm the same with the insurance provider. The policy period is an important concept to understand, as it determines the timeframe in which insurance coverage is active and defines the terms and conditions of the policy. For example, if you have health insurance with a policy period of one year, the policy will lapse after one year unless you renew it within the grace period. Some may also offer month-to-month policies. Most insurance companies offer six-month and year or longer insurance policies. Policy periods are also important in determining your payment due date. It's always a good idea to know y

Accidental Death and Dismemberment (AD&D) Accidental Death and Dismemberment (AD&D) insurance is a type of insurance that provides financial protection to the policyholder's beneficiaries in the event of the policyholder's accidental death or dismemberment. AD&D insurance can be purchased as a stand-alone policy or as part of a life insurance policy. AD&D insurance typically covers the following: -Accidental death: If the policyholder dies as a result of an accident, the beneficiaries will receive a payout. -Dismemberment: If the policyholder loses a limb or limbs in an accident, the beneficiaries will receive a payout. -Paralysis: If the policyholder is paralyzed in an accident, the beneficiaries will receive a payou One main difference between AD&D and life insurance is that an AD&D policy offers financial security if you were, for example, to lose a limb, an eye, ear or in an accident whereas life insurance would not, in other words, a major lif

Split Limit Coverage Split Limit liability coverage provides a specific limit per person for bodily injury and a total amount the insurance company will pay for all injury as a result of one accident. Split limit divides liability coverage into three separate limits: Bodily injury per person Bodily injury per accident Property damage per accident. These limits are typically written as three separate numbers, such as 50/100/25. This means that the policy will pay up to $50,000 per person for bodily injury, up to $100,000 per accident for bodily injury, and up to $25,000 per accident for property damage. Split limit coverage is often the cheapest type of liability coverage available, but it can also leave you financially vulnerable if you are involved in an accident with serious injuries or property damage. For example, if you have a 50/100/25 policy and you cause an accident that injures two people, each of whom requires $50,000 in medical care, your insurance company will only pa

Grace Period A grace period in insurance is a period of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing. This gives policyholders a little extra time to get their payment in order, if needed. Grace periods vary by insurer, policy, and jurisdictions. They can range from 24 hours to three months. Some insurance policies have no grace periods at all. For example, health insurance policies typically have a 30-day grace period, while auto insurance policies may have a 15-day grace period. Grace periods are important because they give policyholders a little extra time to get their premium payments in order without having to worry about losing their coverage. This can be especially helpful for policyholders who experience unexpected financial difficulties. If a policyholder misses a premium payment, their coverage will not immediately lapse. Instead, the policy will enter into a grace period. During the grace period, the policyh

REVIVAL PERIOD If you do not pay premium during the grace period, your policy gets lapsed. However, if you wish to continue the policy, you are given an option of re-activating your lapsed policy. However, the re-activation process must be completed within a specific period of time after the grace period ends. This period is known as a revival period. The revival period in insurance is the time frame after a policy lapses during which the policyholder can reinstate it. The length of the revival period varies from insurer to insurer, but it is typically one to two years. To revive a lapsed policy, the policyholder must pay all of the missed premiums, plus interest. The insurer may also require the policyholder to undergo a medical exam, depending on the type of policy and how long it has been lapsed. There are several reasons why a policyholder might want to revive a lapsed policy. For example, they may have experienced financial hardship and were unable to make their premium paym

Pre-existing Condition Exclusionary Period A pre-existing condition exclusion period is a time period during which a health insurance plan will not cover care related to a pre-existing condition. A pre-existing condition is a medical condition that you had before you enrolled in a health insurance plan. To determine if a condition is pre-existing, the insurance company will look back a certain period of time, known as the look-back period. The look-back period is typically 6 months, but it can be longer in some cases. If you have a pre-existing condition, you may still be able to get coverage, but you may have to pay a higher premium or deductible. You may also have to wait until the end of the pre-existing condition exclusion period before your insurance company will cover care related to your pre-existing condition. A pre-existing condition is any health problem or ailment that was previously diagnosed at the time of applying for coverage. A pre-existing condition exclusion

Broker An insurance broker is a licensed professional who helps individuals and businesses find the right insurance policies for their needs. They represent the client, not the insurance company, and work to find the best possible coverage at the best possible price. An insurance broker can be direct broker, reinsurance broker or composite broker. These individuals/entities work on behalf of the customer and are not restricted to selling policies for a specific company but commissions are paid by the company with which the sale was made. Insurance brokers are typically paid a commission by the insurance companies that they place policies with. This commission is usually a percentage of the premiums that you pay. The reason we need a broker: the Broker will help you identify your individual and/or business risks to help you decide what to insure, and how to manage those risks in other ways. Insurance brokers can give you technical advice that can be very useful if you need to ma

Long Term Disability Insurance Long term disability (LTD) insurance is purchased to provide monthly benefits (income replacement) if a person becomes ill or injured and is unable to work for a period extending beyond a sustain period of time. You may buy it directly from the insurance provider, or it may be part of your employer-sponsored group disability plan. Each individual insurance policy defines the terms “long-term” and “disability.”Yet, a common misconception about disability income insurance is that its sole purpose is to cover against catastrophic events resulting from accidents. LTD essentially covers -essential living expenses: can help pay for food, clothing, utilities, your mortgage, car payments and more -Direct monthly payments: receive a portion of your salary paid directly to you each month if you’re unable to work (after initial waiting period) -Rehab incentives: coverage may include financial incentives designed to help you transition back to work The r

Rescission In insurance, rescission is the cancellation of an insurance policy by the insurer, retroactively making the policy as if it never existed. This can happen if the insurer discovers that the policyholder made material misrepresentations or omissions on the insurance application. A material misrepresentation is a false statement that is important to the insurer's decision to issue the policy. An omission is the failure to disclose a material fact. The right to rescind an insurance policy is based on the principle of uberrimae fides, which Latin for "utmost good faith." This means that both the insurer and the policyholder have a duty to be honest with each other during the insurance application process. If the policyholder makes a material misrepresentation or omission, the insurer can rescind the policy to avoid being placed at an unfair disadvantage. There are two reasons why an insurance policy may be rescinded: -First, the policy may be rescinded when

Private and Public Health Insurance Private health insurance and public health insurance are two different types of health insurance that provide financial protection against the cost of medical care. Public health care is usually provided by the government through national healthcare systems (NHS). Private health care can be provided through “for profit” hospitals and self-employed practitioners, and “not for profit” non-government providers, including faith-based organizations. Private health insurance is purchased from a private insurance company. The premiums are paid by the individual or employer, and the coverage and benefits vary depending on the plan. Public health insurance is provided by the government and is for low-income individuals and families. Public health insurance is typically less expensive than private health insurance, but it may have more restrictions on coverage and benefits. Private health insurance plans are generally more expensive, but potentially mor

Face Amount In insurance, the face amount is the amount of money that will be paid out to the beneficiaries of a life insurance policy when the insured person dies. It is also known as the death benefit, coverage amount, or face value. The face amount is typically equal to the insured person's annual income, but it can be higher or lower depending on the individual's needs and financial situation. Face value is calculated by adding the death benefit with any rider benefits, and subtracting any loans you've taken on the policy. Face value is the primary factor in determining the monthly premiums that will be owed. The face amount of a life insurance policy is determined by a number of factors, including the insured person's age, health, and occupation. The insurance company will also consider the amount of coverage that the insured person needs to protect their loved ones financially. A 20- or 30-year-old might be able to get a policy with a face value that’s roug

Accident Insurance Accident insurance is a type of insurance that provides financial assistance to people who are injured in an accident. The policy typically pays a lump sum benefit to the policyholder, which can be used to cover medical expenses, lost wages, and other costs associated with the accident. Accident insurance is not a replacement for health insurance, but it can be a helpful supplement. Health insurance typically covers the cost of medical treatment for accidents, but it may not cover lost wages or other expenses. Accident insurance can help to fill in these gaps and provide financial peace of mind in the event of an accident. Since nobody can predict an accident, which is why accident insurance is a good add-on for people who already have health and disability insurance coverage through their employer or individually. With health coverage becoming more expensive with higher co-pays, premiums, and deductibles, accident insurance can be a great, affordable way to s