BeNew Insurance

Life Expectancy The average number of years of life remaining for a group of people of a given age according to a particular mortality table. However, it remains a valuable tool for insurance companies to assess risk, price products competitively, and maintain financial stability. It is important to note that individual lifespans can vary significantly and this is how its important to insurance. 1. Pricing: Life insurance premiums are directly linked to life expectancy. The longer your expected lifespan, the lower the risk of the insurance company needing to pay out the death benefit, therefore, lower premiums. Conversely, a shorter life expectancy translates to higher premiums due to the increased risk of payout. 2. Product Design: Life insurance products vary in terms of coverage period, payout options, and premiums. Life expectancy data helps insurers design products that cater to different customer needs and risk profiles. Products like whole life insurance, with potentially

PERSONAL ARTICLES FLOATER A personal articles floater is an optional add-on insurance policy that provides broader coverage for your valuable personal belongings compared to your standard homeowners or renters insurance. It acts like a safety net for your most cherished and portable items, protecting them against loss or damage even when they are outside your home. For example Jewelry, Fine art, Cameras, Electronics, Musical instruments, Sports equipment, Furs and collectibles, Luggage and its contents. The items are generally listed by description and value. This can be contrasted to the personal effects floater. A personal articles floater can also cover your belongings against a wider range of perils than your standard policy, such as: -Mysterious disappearance -War and terrorism -Accidental breakage -Computer fraud Remember a personal articles floater will increase the cost your overall insurance cost. Also it is important you carefully review the policy's exclusions and

Trade Credit Insurance (Business credit insurance, Export credit insurance, or Credit insurance) Insurance coverage that repays the outstanding balance on loans in default beyond a specified period, regardless of the cause of default. Also called "credit insurance" but not to be confused with outstanding balance life insurance. Loan Insurance OR Credit Insurance can be either; A)Borrower Protection Insurance that protects the borrower and their family from the financial burden of repaying debt in case of death, disability, or involuntary unemployment. B)Trade Credit Insurance that protects businesses from potential losses due to unpaid invoices from customers, therefore covers risks like customer bankruptcy, insolvency, or refusal to pay. Here are some common types of loan insurance; Credit life insurance: Covers outstanding loan balance if the borrower dies. Mortgage protection insurance (MPI): Covers mortgage payments if the borrower dies or becomes disabled. Priva

Who Determines Your Deductible Amount? Setting your deductible amount is often a joint decision between you and your insurer. With some insurance types, the company will set a minimum deductible and then give you optional higher deductibles from which to choose. When you choose a higher deductible, your total premium will typically be lower. However, you will pay more out of pocket before your insurance coverage is activated. For example, with errors and omissions insurance, the minimum deductible might be $500. However, to save money, you might agree to select a $1,000, $2,000, $3,000, or up to a $10,000 deductible. The higher you go, the greater the risk you will assume personally and the less you will pay as premium for your policy. Deductible is determined by a couple of factors: 1)Type of Insurance; -Individual policies: For some types of insurance, like auto or homeowners insurance, the insurance company sets the base deductible for different levels of coverage. -Employer-

PERSONAL EFFECTS FLOATER A personal effects floater is an optional insurance policy that provides additional coverage for your personal belongings, such as jewelry, cameras, laptops, and sports equipment, against loss, damage, or theft. It's essentially an extension of your homeowners or renters insurance that offers broader protection for valuable items that might not be adequately covered under your standard policy. Is an inland Marine policy covering world-wide coverage except in the insured’s domicile, and personal effects floater is usually carried by a tourist. In two forms, “All Risk” (or Broad Form) and “Specified Perils” form. The specific coverage provided by a personal effects floater will vary depending on the insurance company and the policy you choose. However, it typically covers: -Loss: This includes coverage for your belongings if they are lost or stolen, whether at home or while you are traveling. -Damage: This covers accidental damage to your belongings, s

Flat Schedule A type of group insurance schedule under which everyone is insured for the same benefits regardless of salary, position, or other circumstances. This is in contrast to a rated schedule, where the premium is based on factors such as the insured's age, location, driving record, health history, or credit score. Flat schedules are more common in certain types of insurance, such as life insurance and property insurance for older homes. Flat Schedule is: -Simple and easy to understand: Since the premium is the same for everyone, it's easier for policyholders to compare rates and understand what they're paying for. -Fair for low-risk individuals: Low-risk individuals might pay more than they would under a rated schedule, where their lower risk would be reflected in a lower premium. -May not be competitive for high-risk individuals: High-risk individuals might pay less than they would under a rated schedule, where their higher risk would be reflected in a higher

NO-FAULT INSURANCE No-fault insurance is designed to speed up claims payments to accident victims, and to lower the cost of auto insurance by reducing the number of lawsuits for minor claims. Under no-fault insurance, a person’s own insurance company pays for financial losses such as medical expenses and lost wages due to an accident, regardless of who caused it. (In a fault system, your expenses won’t be paid by the other party’s insurance company until he or she has been proved negligent.) In exchange, the right to sue may be restricted in some cases. Automobile No-Fault Insurance applies to car accidents. Its key feature is that drivers involved in an accident receive compensation for their medical expenses and lost wages from their own insurance company, regardless of who was at fault. This eliminates the need to determine fault and simplifies the claims process. However, it may also limit the amount of compensation available for pain and suffering compared to a traditional

Vehicle Theft Protection Although you can never ensure that your vehicle will not be stolen, there are several preventative measures you can adopt to protect your vehicle and its contents. -Always lock your vehicle -Remove the keys from the vehicle -Turn off your ignition whenever you leave your car -Avoid parking on the street -When leaving your vehicle take steps to conceal its contents. Place contents in the trunk and refrain from leaving money or compact disks in view -Whenever possible, park your vehicle in a well-lit, well-guarded, highly visible area. You can also ask your neighbours to watch out for your vehicle when you are not present -Install an anti-theft device such as a car alarm or an ignition disabler To obtain more preventative measures for the potential theft of your vehicle and its contents, you may contact the appropriate industry organization in the area. To shift the burden to insurers you should purchase; 1)Comprehensive Coverage: The most likely in

Variable-universal life Insurance Variable-universal life insurance (VUL) is a type of permanent life insurance that combines the death benefit protection of traditional life insurance with the investment potential of variable investments. This unique combination makes it a versatile option for individuals seeking both financial protection and wealth accumulation. A permanent life insurance policy with the flexibility to change your premium, death benefit, and cash value invested in the stock market. VUL insurance policies are built on traditional universal life insurance policies but have a separate subaccount that invests the cash piece in the market. As a result, the return to the cash component is not guaranteed year after year. VUL insurance policies will have a maximum cap as well as a floor (usually 0%) on the returns that the investment part receives. Key Features of VUL: -Death benefit: VUL provides a guaranteed death benefit that will be paid to your beneficiaries in

Group Annuities - Immediate Variable Group Annuities – Deferred Variable Group Annuities – Immediate Non-Variable and Variable Group Annuities - Immediate Variable An annuity contract that provides for the first payment of the annuity at the end of the fixed interval of payment after purchase. The interval may vary, however the annuity payouts must begin within 13 months. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies. Group Annuities – Deferred Variable An annuity contract that provides an accumulation based fund where the accumulation varies in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. It must include at least one option to have the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder and may include at least one option to have the series of payments vary in accordance with the

Personal Property Insurance Personal property insurance, also known as contents insurance, is an essential part of protecting your belongings against unexpected damage or loss. It can provide financial peace of mind knowing that your valuables are covered in case of unfortunate events. Whether you own a home or rent an apartment, insurance policies typically include personal property coverage. This type of coverage helps pay to repair or replace your belongings after a covered loss, such as theft or fire. Personal property insurance covers: -Damage: The most common protection is against damage caused by covered perils, which usually include fire, theft, vandalism, windstorms, hail, and water damage. -Loss: The insurance can also cover your belongings if they're lost due to covered perils, like theft or accidental misplacement. -Specific categories: Depending on your policy, it might also cover specific categories of personal property, like jewelry, electronics, or fine art.

Joint-Life Annuity An annuity contract that ceases upon the death of the first of two or more annuitants. A joint and survivor annuity is an annuity that pays out for the remainder of two people's lives. 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. A joint-life annuity, also known as a joint and survivor annuity, is a type of annuity that provides income payments to two or more people for as long as any of them are alive. This makes it a popular choice for retirees who want to ensure that their spouse or partner will be financially secure if they die first. When you purchase a joint-life annuity, you make a lump sum payment to the insurance company. In exchange, the insurance company agrees to make regular payments to you and your beneficiaries for as long as any of you are alive. The specific amount of the payments will depend on several factors, such as the size

Health Plan A written promise of coverage given to an individual, family, or group of covered individuals, where a beneficiary is entitled to receive a defined set of health care benefits in exchange for a defined consideration, such as a premium. The insurer agrees to pay a portion of your eligible healthcare costs, such as: Doctor visits Hospital stays Prescription drugs Diagnostic tests Preventive care Here are some of the most common types health plan: 1. Health Maintenance Organization (HMO) 2. Preferred Provider Organization (PPO) 3. Point-of-Service (POS) Plan 4. High-Deductible Health Plan (HDHP) 5. Catastrophic Health Plan: Factors to Consider when Choosing a Health Plan: -Your budget: Consider your monthly premium and out-of-pocket costs. -Your health needs: Choose a plan that covers the services you need most. -Your healthcare providers: Choose a plan that includes your preferred doctors and hospitals. -Your lifestyle: Consider how often you see a doctor and how likely

Hard Market & Soft Market The insurance industry operates in cycles characterized by periods of high competition (soft markets) and limited competition (hard markets). Hard Market in the insurance industry, is the upswing in a market cycle, when premiums increase and capacity for most types of insurance decreases. Can be caused by a number of factors, including falling investment returns for insurers, increases in frequency or severity of losses, and regulatory intervention deemed to be against the interests of insurers. A soft insurance market is the opposite of a hard one. When the market is soft many insurers are competing for business and premiums are generally low. Insurers relax their underwriting standards and coverage is widely available. Underwriters are generally flexible and willing to negotiate coverage terms. Soft Market Characteristics: -Lower insurance premiums -Broader coverage -Relaxed underwriting criteria -Increases Capacity -Higher available limits of lia

Hospital Indemnity Coverage Hospital indemnity insurance, also known as hospital confinement insuranc. This Coverage provides a pre-determined, fixed benefit or daily indemnity for contingencies based on a stay at a hospital or intensive care facility. hospital indemnity insurance pays a fixed benefit amount regardless of your actual medical bills. Hospital indemnity insurance is a supplemental insurance plan designed to pay for the costs of a hospital admission that may not be covered by other insurance. The plan covers employees who are admitted to a hospital or Intensive care Unit (ICU) for a covered sickness or injury. And it's available for companies with as few as two employees. Some of the most common types of hospital indemnity insurance include: -Hospital admission benefit: Pays a fixed amount for each day you are hospitalized. -Intensive care unit (ICU) benefit: Pays a higher fixed amount for each day you spend in the ICU. -Surgery benefit: Pays a fixed amount for

Clawsbacks Commission paid out to an agent and retrieved by the insurer due to policy cancellation of the original commission resultant policy prior to full payment of the policy by the policyholder. In a second scenario, a clawback also refers to the process of an insurance company recovering money it paid out on a claim after it determines the claim was invalid or fraudulent. This can occur for several reasons, including: Misrepresentation: If the policyholder misrepresented information on their application, the insurance company may claw back the claim payment. Non-disclosure: If the policyholder failed to disclose material information on their application, the insurance company may claw back the claim payment. Fraudulent activity: If the insurance company determines that the claim was fraudulent, they will claw back the payment and may also take legal action against the policyholder. Here are some additional points to consider: -Clawbacks can be a controversial issue, as t

Foreign Insurer foreign insurer is an insurance company that is domiciled in one country but offers insurance products and services in other countries. Foreign insurers play an important role in the global insurance market, providing competition, innovation, and access to capital for policyholders in developing countries. Foreign insurers are very common in health insurance. Insurance companies often become foreign insurers to access a larger market and acquire more clients. Insurers who try to operate as foreign insurers, however, face more challenges since they will have to compete with insurers in the jurisdictionsthey want to expand their operations to. There are two main types of foreign insurers: 1) Branch insurers: These insurers establish a physical presence in the foreign country where they operate. They are subject to the regulations of both their home country and the foreign country. 2) Cross-border insurers: These insurers operate in a foreign country without establish

Incontestability Provision An incontestability provision, also known as an incontestability clause, is a provision in an insurance policy that limits the insurer’s ability to contest the validity of the policy after a certain period of time has elapsed. This means that the insurer cannot deny coverage or rescind the policy based on misstatements or omissions in the application after the contestability period has ended. An incontestability clause is a clause in most life insurance policies that prevent the provider from voiding coverage due to a misstatement by the insured after a specific amount of time has passed. A typical incontestability clause specifies that a contract will not be voidable after two or three years due to a misstatement. Incontestability clauses help protect insured people from firms who may try to avoid paying benefits in the event of a claim. While this provision benefits the insured, it cannot protect against outright fraud. There are a few exceptions to t

Chartered Life Underwriter (CLU) The Chartered Life Underwriter (CLU) designation is a professional designation for individuals who specialize in life insurance and estate planning. It is granted by The American College of Financial Services, a private, non-profit educational institution that offers a variety of programs for financial professionals. The earn the CLU designation, individuals mustearn the CLU designation, individuals must complete five courses, pass two comprehensive exams, and have three years of full-time experience in the life insurance industry. The courses cover a wide range of topics, including: -Life insurance products and underwriting -Estate planning and taxation -Business insurance and planning -Investment planning and retirement strategies -Ethical and legal considerations for financial professionals CLU professionals can help individuals and families develop comprehensive financial plans that meet their unique needs and goals. They can provide advice on

Condos Insurance A condominium, often shortened to condo, is a form of housing ownership in which an individual owns their unit in a multi-unit building. The owner of a condo owns the interior space of their unit, but the common areas of the building, such as the hallways, elevators, and landscaping, are owned by all of the condo owners collectively Condos insurance, also known as homeowners insurance for condos, is a type of property insurance that protects your unit, personal belongings, and personal liability from covered losses. It's important for condo owners because it fills the gaps between your association's master insurance policy and your individual needs. Condo helps protect against losses and repair costs for a condominium unit. Condo insurance often provides protection for theft, vandalism, fire damage, water damage, and more. Condos are a great alternative to renting an apartment or owning a single-family home and they have their own unique insurance needs.