Fun Facts About Insurance

Formal insurance coverage has been arguably there for individuals and business since the late 1800’s. For the layman, though, not everything in a homeowner, auto, property and commercial policy is what it may seem.

On a practical level, it’s important to meet with an experienced independent agent to review your needs, explain options and plans and shop the network for tailored coverage at a competitive quote, while being there at your hour of a claim need.
This article serves to present the other view on insurance – fun facts that will tickle your interest and ease the seriousness of life while perhaps offering opportunities you never thought existed.

Guess what?

• While most people realize that a good driver will have a better insurance score, leading to cheaper premium rates, certain professionals, like teachers, accountants, engineers and nurses are also placed in a ‘high probability’ category to drive carefully and avoid accidents.

• There is a form of insurance for (of all things) alien abduction!

• Some coffee company executives wanted to be sure that their official taster would retain his excellent sense of taste so they bought a $10 million policy to that effect!

• Presenting the bride with an expensive diamond engagement ring is a tradition that is based on protection. A form of insurance – so to speak – the costly ring would be hers to keep as compensation in the event the groom got cold feet about tying the knot!

• Golfing in Japan becomes an expensive endeavor if you happen to be the winner – obligating you to host a celebration and sponsoring pricey alcoholic beverages for your admirers. Golfing pros often opt to buy insurance in case they win to cover the ‘damages’.

• If you wish, you can purchase a life insurance policy if you fall into a fit of laughter that kills you!

• A famous circus insured their performing rhino and elephant so that they could cushion the damages in the event of illness or death.

• Question: Who insures traveling international athletes? Answer: They get coverage from insurance companies in their home country as well as in their hosting country.

• When one avid sportsman chose to swim across the English Channel in a bathtub, he acquired insurance from a company that undertook the risk with one stipulation: the tub needed a stopper that would prevent water from seeping in!

• If you are in the market for a new vehicle, keep in mind that statistically, there are more collision claims associated with a 2-door car.

 

How To Claim Insurance

Your insurance company provides this application to you so you can apply for benefits on your insurance policy whether it is a life, auto, or health insurance. You must file a claim before any money can be paid to any contracted service like a hospital or repair shop for your car. When you file insurance claims the company, based on their evaluation of the situation, may pay the claim or they may not.

When you take out an insurance policy, you must continue making monthly payments to the insurance company. These are called premiums. Generally, these premiums are used to increase the available assets of the company or to settle another person’s claim. Occasionally an accident will happen that can cause financial damage like a tornado, automobile wreck, or work-related accident. When this happens, the injured policyholder can file an insurance claim to receive money from that company.

When filing an insurance claim you will file it with a local agent that works for the company and they have the responsibility to instigate the specific details of the claim. Then the agent negotiates the payment from the main insurance company. Many times a recognized authority such as a repair shop, building contractor, or medical professional can file the necessary forms with the insurance company directly. If another party has agreed to pay for their mistake out-of-pocket or the damage is minor, the policyholder may not want to file an insurance claim.

Once an insurance claim is filed the insurance company usually has an appraiser or adjustor without bias evaluate the damage and determine if the estimates for repair the policy holder got are realistic. This can help prevent fraud by companies who inflate their estimates so they can get additional compensation. Most insurance companies will accept the appraiser or adjustor’s valuation as the last word. There are some insurance claims may not be paid for many reasons. Some of these reasons can include:

• The claimant’s premiums have not been paid each month and they are behind
• Policy may be inactive
• Another insurance company may have agreed to pay for the damages that were listed in the insurance claim. This happens often in car accidents where one of the parties is held responsible for the accident.
• Failure to not be under the conditions that are covered because most insurance policies specify specific areas that qualify for benefits
• If the damage or accident claim was an unavoidable “Act of God” or caused by carelessness your insurance company has the right to withhold payment.

The only way to apply officially for benefits is to file a claim. Until your insurance company has assessed the claim, it will remain as that and not a payout.

Article Source: http://EzineArticles.com/9614148

Tips To Choose Insurance Plan

We all need Insurance at some point of time in our lives. Choosing the best insurance plan which best fits your requirements is an important decision not just for you but also for your family and it can be complicated. Be it Life Insurance, Health, Motor, Personal Accident, Retirement Plans, Travel, Home Insurance, etc.With more than 30 insurance companies, offering over 300 products, the challenge customers face today is not that of buying a policy but purchasing the right policy, that best suits their needs.

But Insurance is deemed as a complex subject and not many have the time or inclination to understand the nitty-gritty of the policies. So the need of the hour is to have simple, jargon-free explanation of Terms & Conditions and a step by step guide for customers, to pick the right policy.

Follow these simple steps if you are planning to purchase any insurance policy:

1) Be sure about your requirements- Not all policies are the same. For example, under Life Insurance comes Retirement Plans, Child Plans, Term Insurance, Endowment Plans and ULIP. So it is important you choose a plan that will match your requirements. If you are looking for pure protection plans, then a Term Plan is for you.

But if your goal is to have a combination of savings with protection then your options are Child Plans, Retirement Plans or ULIP’s. Over here your goal would decide what kind of cover you should go for. For instance, if your goal is to save for Child’s future then Child Plan would be ideal but if you want to save for your retirement then Pension Plans is the best bet.

2) Calculate the Cover you need- A lot of factors come into play while deciding the cover you need. For example in Health Insurance, your age, medical history, city of residence, lifestyle habits, etc. is considered while deciding the amount of cover. On the other hand, in Life Insurance factors such as your income, liabilities, number of dependent family members, etc. help to decide the coverage amount. So a 30-year-old person who has a home loan and 2 school going kids should take a higher cover, while a 45-year-old person who has no liabilities and whose kids have started working can opt for a lower cover.

3) Compare Plans- Comparing plans doesn’t mean just comparing the price. Cheapest is not always the best. You should compare the features, benefits, exclusions and select the plan that suits your needs. For example, while selecting a Health plan for your parents, you should go for a plan that has minimum waiting period, as old aged parents could anytime require hospitalization. Besides, comparing Motor insurance every time, during renewal can be very beneficial plans you can get a discounted premium and may even get additional add-on riders.

4) Read, Understand & Familiarize yourself with the terms and conditions of the policy- After you have zeroed in the policy that you need read, understand and familiarize yourself with all the terms and conditions. This is important to avoid any surprises and heartaches later. For example in a Health Insurance, you should know what is the Room Rent Limit, Waiting period, Exclusions, Day care procedures, Network hospitals, etc. Similarly, in a Life Insurance Policy, you should be aware of Maturity benefit, Death Benefit, permanent exclusions etc. For example, death or hospitalization due to taking part in adventure sports or war is not covered by many Health and Life insurance policies.

5) Seek expert advice- If you ever get stuck with any policy then you simply need to seek expert’s help. If you ever fail to understand the policies or if you are not sure which is the best plan, just speak to a specialist who can analyze your needs and suggest the best option.

Just pay attention to these small details you will surely benefit in the long run.

 

Reason You Should Have Insurance to Individuals and Organisations

Insurance is actually an arrangement which a company or a state undertakes to provide the guarantee of a specific amount of compensation to the person or entity for a specified loss, damage, illness or death in return for a specific amount of premium that is paid by the person monthly.

There are mainly four types of insurance policies:

• Life Insurance: it is a type of insurance that is done to provide financial security for the entire family in the event of the policy holder’s death.

• Health Insurance: it is basically a type of insurance where monetary support is provided for any serious health related issues to the policy holder or his family.

• Property insurance: this type of insurance covers the policyholder in the event of damage to his property by fire or any other means.

• Auto Insurance: your car is too precious to you, so if it is stolen or damaged you will need a huge amount of money. This auto insurance will pay the policy holder’s repairing costs.

But before you buy any insurance you must know all the benefits of that insurance. Insurance benefits the individual or any organization in many ways.

Some of them have been discussed below.

• The most important benefit of security is the payment of the losses that one faces. An insurance policy is a contract that is used to minimize the losses faced by the individual.

• It manages the cash flow uncertainty. Insurance provides the payment of for the covered losses. Therefore the problem for paying out of the pocket is resolved.

• Insurance complies with the legal assessments. Insurance meets the contractual requirements and also provides the legal evidence for the organization or the person to claim for the refund or losses.

• A very important benefit of the insurance policies is its measures for promoting risk control activity. Insurance provides all kinds of incentives to implement a loss control program.

• An uncommon benefit of security is the support it provides for the policy holder’s credits. Insurance gives loans to individuals and organizations by guaranteeing that the lender will be paid the whole compensation if the loan amount or the property is destroyed.

• Insurance provides all kinds of the source to the investment funds. All the Insurance collect a specific premium from the policyholder and invest them in various schemes and pay the claims if they occur.

• Insurance also helps in reducing the social burden of the victims by giving them compensation.