BeNew Insurance

Contingent Annuitant Annuities are financial products that pay a fixed income stream to an individual and are commonly used by retirees. A contingent annuitant is someone designated by an annuitant to receive the annuitant’s payments when they pass away. A contingent annuitant is included in an annuity contract when you want to provide ongoing financial security to another individual. Annuities with a contingent annuitant do not stop payments until both the annuitant and the contingent annuitant have passed. Essentially, having a contingent annuitant means that the annuity will continue to pay until two people pass away as opposed to just one. If the policy does not allow for a contingent annuitant, the annuity stops making payments when the annuitant dies. For annuities with a contingent annuitant, the payments may be smaller as they are meant to last longer by covering both the annuitant and the contingent annuitant until death. The difference between a contingent annuitant an...

Risk Based Capital (RBC) Ratio Ratio used to identify insurance companies that are poorly capitalized. Calculated by dividing the company's capital by the minimum amount of capital regulatory authorities have deemed necessary to support the insurance operations. For example, a company with a 200% RBC ratio has capital equal to twice its risk based capital. Risk-based capital requirement refers to a rule that establishes minimum regulatory capital for financial institutions. RBC is based on two factors: 1) an insurance company's size; and 2) the inherent riskiness of its financial assets and operations. That is, the company must hold capital in proportion to its risk. Risk-based capital requirements exist to protect financial firms, their investors, their clients, and the economy as a whole. These requirements ensure that each financial institution has enough capital on hand to sustain operating losses while maintaining a safe and efficient market. #benewinsurance #in...

Disability Income A policy designed to compensate insured individuals for a portion of the income they lose because of a disabling injury or illness. Policies pay out benefits for short or long term disability coverage. A disability is any condition of the body or mind (impairment) that makes it more difficult for the person with the condition to do certain activities (activity limitation) and interact with the world around them (participation restrictions). Generally disability results from the interaction between individuals with a health condition, such as cerebral palsy, Down syndrome and depression, with personal and environmental factors including negative attitudes, inaccessible transportation and public buildings, and limited social support. In Africa, one the foremost causes of disability is infectious and communicable disease; the incidence of these diseases have been greatly reduced or eliminated in higher income countries. Other causes include war, trauma, accidents, a...

Workers’ Compensation Class Codes Workers’ comp class codes are numbers that insurers use to classify companies and employees by exposure to risks. Riskier jobs carry higher premiums. That’s why, workers’ class codes are an important part of the formula insurers use to estimate how much a company’s compensation insurance will cost. There are four factors that influence the cost of their workers’ comp coverage: Location, type of work, payroll, claims history. Generally, the more risk a worker faces, the higher the cost of workers’ compensation insurance in the industry. For example, construction workers likely have a higher level of risk than graphic designers. The workers’ compensation codes for both of these jobs would reflect the difference in risk. Workers’ compensation insurance providers use the codes to determine how risky your business is to insure and how much to charge you for your insurance. Each workers’ comp class code includes information on the losses accumulated by ...

Retrospective Rating The process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment. In a sentence it is a rating plan that adjusts the premium during the policy period. A Retro coverage period lasts 12 months and can begin any calendar quarter. An insured entity can benefit or be hurt by a retrospectively rated insurance, as premiums rise and fall depending on how many losses they incur. Companies have an incentive to implement further safety and loss controls to avoid increased premiums. Workers' compensation, general liability, and auto liability are some areas where retrospectively rated insurance applies well. In a nutshell one can say it is a loss control mechanism used by insurers #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

Term Life Insurance Life insurance payable only if death of the insured occurs within a specified time, such as 5, 10, 20, or 30 years, or before a specified age. Importantly, term life insurance policies do not possess monetary unless the holder dies within the term. However, term life insurance may be less costly than other life insurance options, such as whole life insurance. At the end of your term, coverage will end and your payments to the insurance company will be complete. If you outlive your term life insurance policy, the money you have put in, will stay with the insurance company. Term life insurance is not a savings or investment plan. These policies have no value other than the guaranteed death benefit and feature no savings component as found in a whole life insurance product. Upon renewal, term life insurance premiums increase with age and may become cost-prohibitive over time. Term life premiums are based on a person’s age, health, and life expectancy. #benewinsu...

Insurance Insurance is a means of protection from financial loss. Insurance companies sell financial product to safeguard you and / or your property against the risk of loss, damage or theft (such as flooding, burglary or an accident). It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. An economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling. Insured party(ies) covered by an insurance policy. Insurance company is an insurer or reinsurer authorized to write life, and or Non Life (property and/or casualty) insurance under the laws of any jurisdiction. Insurance is govern by six basic principles that should be upheld, ie Insurable interest, Utmost good faith, proximate cause, indemnity, subrogation, contribution and loss of minimi...