Insurance – Basics

March 31, 2012 Posted by insu3244

Insurance – Basics

Insurance is a promise of compensation for specific potential future loss in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss.

We all know about insurance but many times we ignore some basic features of insurance policy.

Here we will try to explain some of the words which your agent normally use while explaining any insurance policy.

By explaining the below terms we want to make you familiar with your insurance policy.

Sum assured (also known as Cover) – This refers to the amount paid out on a policy if you die within the Term of insurance plan. In case of an endowment policy Sum Assured can be paid out on maturity along with the bonus and in case of Money back policies a part of Sum Assured is paid out on regular intervals and on maturity along with the bonus.on regular intervals.

Endowment policy It is the guaranteed amount to be paid out at maturity with or without Bonus (Depend upon the policy).

Premium – The owner usually pays a fixed premium amount in exchange for the insurance company’s guarantee to cover any economic losses incurred under the scope of the agreement of insurance.

Bonus – It is the amount added to the basic sum assured under a with-profit life insurance policy.
Surrender value – The amount payable by the insurer to the owner of an investment-based plan in case he opts to terminate the policy after three years (the mandatory lock-in period) but before its maturity date. The surrender value will be the premium paid till date minus surrender charges and any outstanding loans due.

Endowment Policy – In this plan the amount is paid to a policyholder if he lives survives the term even after the tenure of the insurance contract or to the beneficiary if the insured person dies before the date on which the policy matures.

Term Insurance – Term life insurance is a life insurance plan in which person can get the huge insurance coverage with fewer lower premium. In this plan beneficiary will get the cover amount only if the insured person dies within the policy term. Unlike Endowment policy policyholder don’t get any amount if insured person lives even after the policy expires. One should have atleast one Term Insurance policy. One can consult a financial planner for the best possible insurance solution.

Whole Life Insurance – A life insurance policy where benefits are payable to a beneficiary on death of the insured, whenever that occurs. The premium payment can happen for a specified number of years or throughout life.

ULIP – It is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of risk cover and investment. Some part of the amount invested in ULIP is used to provide the insurance cover and the remaining is invested in equity and debt investments and denoted as units.
Money Back Plan – A plan in which part of the sum assured is paid back to the policyholder at regular intervals and a part of sum assured is paid at maturity along with bonuses.

Rider – An add-on benefit available at the option of the policyholders that may alter certain features of a policy by increasing or restricting benefits.

Survival benefits – The amount payable to a policyholder under an investment-based plan if he survives the policy term. Typically, it is the sum assured plus returns (guaranteed additions / bonus) accrued.

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Question by ddrorangeman: What happens to your insurance if you have a lifelong disease, and you change insurance providers?
I was curious about how that would play through. Most insurance companies will not take you on as a customer if you have a pre-existing condition. (since it’s hard to make money off say, a diabetic.) If your insurance is through your work and you change jobs, what happens? Since most of the time your insurance is dropped when you leave a job, i imagine it would be VERY tough for someone with AIDS, Cancer etc. to find another insurance provider.

Best answer:

Answer by ranjankar
It is always better to have an individual policy early in life , even if you are fully covered in office under group scheme. You do not know when your job will go. So take a policy early when you have no pre existing conditions like diabetes.

Know better? Leave your own answer in the comments!
Washington DC Spends More on Health Insurance than Any Other City, New Study Shows
New study by health insurance quote provider SelfHealthInsurance.com shows that Washington, DC spends the most on healthcare out of any city in the United States. Ogden, UT, the study shows, spends the least. New York, NY (PRWEB) March 30, …
Read more on San Francisco Chronicle (press release)

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Health care changes in america

March 31, 2012 Posted by insu3244

Health care changes in america

Article by Igoradiya

The House approves the Senate bill. Not a single Republican voted for it, but 219 Democrats did – and by a vote of 219-212, the House of Representatives sent the Senate’s version of landmark healthcare legislation toward President Obama’s desk. The President could sign the bill into law as early as March 23.But the fight is not over. The House of Representatives also passed a collection of amendments to the Senate bill by a 220-211 margin, but the Senate must also approve this reconciliation bill – exactly as it is worded. If that doesn’t happen, then guess what … there will be another vote on the Senate version of the bill in the House.”If those people think they’re only going to vote on this once, they’re nuts,” Sen. Orrin Hatch (R-UT) said on Bloomberg Television March 20. Hatch claims that Senate Republicans have the votes to force a modification of the bill passed on March 21 and boot it back to the House for a second vote.Will the reforms be overturned? Twelve state attorney generals have indicated that they will contest the bill on these grounds the moment President Obama signs it.What are the odds the Supreme Court will throw the reforms out? Probably pretty slim. Look at the precedents of Medicare and Medicaid. When both those federal programs were enacted, the Court twice upheld a broad federal role in health care. The big reforms will take effect in 2014. If you are looking forward to health insurance reform, you will have to wait a while before many of the big changes occur.

• Starting in 2014, individuals will be required to have health insurance coverage or pay an annual penalty which could climb to $ 750 or 2% of their income (alternately $ 695 or 2.5% of income), whichever is larger. Inmates, Native Americans, and those with religious objections would be exempted.• In 2014, if you aren’t enrolled in an employer-sponsored health care plan, you will have to buy coverage yourself. You could shop for it through a state insurance exchange. The federal government will offer $ 500 billion worth of assistance to help insurance shoppers buy coverage through these state exchanges. Undocumented immigrants would not be able to buy coverage.• After 2014, businesses with more than 50 employees could be fined as much as $ 2,000 per worker for failing to provide the option of coverage.• In 2014, insurers will be required to provide coverage to all Americans regardless of their health status.7• Medicare spending will be cut by about $ 500 billion over the next decade, mostly in reduced government payments to Medicare Advantage plans. Democrats have claimed this will not shortchange Medicare recipients.• Federal money coming from the bill could not be used for abortions, with exceptions made in cases of rape, incest, or danger to a woman’s life.

What changes are about to happen in 2010? These new rules would go into effect presently thanks to the new law.

• Insurers will be barred from revoking existing health insurance coverage on an individual, unless fraud or misrepresentation can be shown. • Insurers will not be able to limit the amount of money that can eventually be paid out on a health care policy, and it will be harder to limit the amount of money that can be paid out annually.• Seniors will get $ 250 payments to help them out if they face a coverage gap in the middle of the Medicare Part D prescription drug coverage plan.• Children will be able to stay on their parents’ health care policies until age 26, and they won’t be denied coverage because of pre-existing health conditions.• Adults with pre-existing health conditions will get a chance to enroll in a national high-risk insurance plan – albeit a temporary one.• Small businesses that sponsor health care plans for their workers could qualify for tax credits of up to 50% of the cost of the premiums they pay.

New taxes? Yes – starting in 2013. Approval of these reforms will also bring a new 3.8% tax on investment income for individuals earning more than $ 200,000 and households earning more than $ 250,000, so the effective capital gains rate will be 23.8% for these taxpayers in 2013. Also, these taxpayers will be able to keep 8.8% less of the income resulting from taxable stock investments. The Medicare tax rate on households with income over $ 250,000 will also rise in 2013, from 1.45% to 2.35%.

A huge savings? Maybe. The non-partisan Congressional Budget Office estimates that the health care reforms will reduce the federal deficit by between $ 65-118 billion over the next decade and by more than $ 1 trillion in the decade after that.

Ishan Goraydiya is passionate writer and loves writing about Retirement and Financial Planning. These days he is writing on Glaxosmithkline Employees Credit Union










Question by James: Liberals if health care passes and the Supreme Court Declares it unconstitutional, will you cry?
Because the government cannot mandate the people to buy anything under the constitution. So liberals will you cry and blame John Roberts?

Best answer:

Answer by James69sk82001
Yes they will. Liberals will say he is being an activist judge

Know better? Leave your own answer in the comments!
Hotsheet Live: What's the Supreme Court's next move in the health care case?
… by CBS News political correspondent Jan Crawford, National Journal's Major Garrett and Politico's Jonathan Allen to discuss this week's historic Supreme Court oral arguments on the constitutionality of President Obama's signature health care law.
Read more on CBS News

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Wonderful Advice For Anybody Looking for Vehicle Insurance Insurance

March 31, 2012 Posted by insu3244

Wonderful Advice For Anybody Looking for Vehicle Insurance Insurance

Article by Edwin Applegate

Fantastic Suggestions For Anyone Searching for Vehicle Insurance Protection

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Give some thought to getting rid of the vehicle rental choice on the coverage to economize. Chances are you are paying for it every day, nevertheless, you seldom use it. Help save further funds on your insurance coverage by getting it removed, just understand that it isn’t there if anything happens to the vehicle.

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Question by love: no health insurance and have a preexisting condition. Can I start work? or is there any insurance available?
I live in GA. We just got an insurance and told them about this condition. It’s very small surgery for my daughter. but now they are denying it. Is there any other insurance I can take? or if I get insurance through work would that help?

Best answer:

Answer by Lo S
Some group policies at work do not care about preexisting conditions.
Some do. It is usually the private ones, not work connected that
up the rates. Probably something to do with—- if you can work, then
you probably are not too sick, or disabled, so you can be insured.
If it is a dependent child, would you need to take insurance for you
as well as the child, and what is the waiting period.
Work insurance takes a while to go into effect. You may have a rider
or whatever it is called, that will exclude treatment, or make you wait
so long to have insurance, or treatment for the preexisting condition.
I don’t know for sure, you could find out some how who the employer
or potential employer uses and check it out on line or by calling the company.

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Changes in Insurance Make ER Visits More Likely: Study
FRIDAY, March 30 (HealthDay News) — People who have experienced recent changes in their health insurance status are more likely to use hospital emergency departments, a new study finds. The use of emergency departments is an important indicator of …
Read more on U.S. News & World Report

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