Insurance is something that almost all of us will need sometime, and it is worth understanding it before buying it.
Various types of insurance include vehicle insurance, which includes auto, motorcycle, and boat insurance, health insurance, life insurance, home insurance, travel insurance, personal property insurance, keyman insurance, dental insurance, rental insurance, and more.
Often, insurance is required - especially in the cases of motor insurance. Other times, it is a safeguard.
Insurance is a form of risk-management which spreads risk of many people in exchange for small payments from each. Specifically, insurance transfers some type of risk (accident, theft, natural disaster, illness, etc) from one person or group to a more financially-sound entity in exchange for a payment (also known as an insurance premium). Premiums are often annual or monthly, but depending on the type of insurance they can be at other intervals.
For example, a consumer can pay a certain amount to an insurer such as Motley Fool each year to insure that person's car. This sum represents the insurance company's assessment of the likelihood that the car will be damaged or wrecked. These data are normally taken from historical figures relating to the age, sex, profession, driving record, and accident history of the insured, as well as statistics concerning make and model of the car and its accident record, as well as the engine size, number of passengers, and even color of the vehicle.
Statistically, if the make and model of the vehicle in question, and/or its driver have been in numerous accidents, the insurance company will charge a higher premium in order to hedge expected losses. As the risk increases, so too do the premiums. In fact, sometimes, insurance companies will not even insure certain people and/or vehicles as the chance of them having to make a payout (in the event of an accident) will be almost guaranteed.
Types of Insurance
1.Motor insurance
This includes automobile, truck, motorcycle, aircraft, boat, or any other form of motorized transportation. It is perhaps the most common type of insurance, and is required by law in many countries.
Motor insurance covers the insured party against financial loss that he may incur to repair his vehicle or a third party’s in the event of an accident. In return for annual or semi-annual premiums, the insurance company is bound to pay any losses as described in the policy. Such a policy may include property, liability or third party, and medical coverage.
Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a result of the insured’s actions, and medical coverage pays any fees necessary for bodily injuries, rehabilitation and in some cases foregone wages and funeral costs.
In many countries, all of these types of automovile insurance are required of vehicle owners. In some countries, or states, only third party is required. However, in the case of new vehicles, any banks which may be financing the vehicle may require full insurance as a condition of financing.
2.Health insurance
Most developed nations have government-funded health care which means that most or all citizens have access to medical facilities and treatment, as well as health insurance.
For example, the National health Service (NHS) in the United Kingdom pays for citizens’ medical needs. However, in the US, there is no government-funded health policy - whether for insurance or treatment. As a result, US citizens and residents must be insured or risk facing astronomical medical bills, garnishing of wages, and bankruptcy. Often, medical insurance (both health and dental) is included in employee benefit packages in the US and other countries. Nevertheless, the issue of affordable health insurance and treatment in the US is one of the most controversial and heated topics, as many cannot afford either. If you live in a country without comprehensive national health care, then low cost health insurance is a vital requirement.
3.Disability insurance
This form of insurance protects workers from injuries and illnesses which prevent them from doing their jobs. It can pay for existing commitments the policyholders may have such as outstanding bills, mortgages, utilities, and more.
Workers’ compensation is common in the US, and pays a worker his wages and medical expenses in the event of an injury on the job.
Permanent disability which prevents a worker from ever working again is covered by total permanent disability insurance. This provides the disabled employee with benefits for the rest of his or her life, or according to the terms specified in the policy. Companies can purchase a similar type of insurance, called, disability overhead insurance. This pays for ongoing overhead costs of a business while the owners are not able to work.
4.Property insurance
This type of insurance typically covers things like homes, machinery, crops, valuable goods, shipped cargo, rented property (homes or apartments), and more.
It can cover damages as a result of various activities including acts of God (earthquakes, floods, storms, hurricanes, etc), vandalism, terrorism, fraud, and more.
5.Liability insurance
This covers negligent acts of an insured party with reference to a vehicle or a home. It protects the insured against legal claims and indemnification.
There are various types of liability insurance such as professional indemnity insurance Environmental liability insurance and Prize indemnity insurance .
Professional indemnity insurance protects employees from malpractice suits (as in the medical profession), errors and omissions (by appraisers, home inspectors, realtors, insurance agents, notaries, and others), and other acts of unintentional workplace negligence.
6.Credit insurance
This is taken by lenders who need coverage against the people that have credit with them (borrow money). In the event of their inability to pay it back (usually due to unemployment, disability, or death), this insurance protects the lender.
There are many other kinds of insuance, and even each of the major categories mentioned above has dozens of variations and types. They differ depending on the markets, the understanding of risk and availability of historical data, government regulation and law, cultural perceptions and expectations, and more.
7.Travel insurance
Travel insurance covers financial losses caused by trips abroad. Depending on the policy in question, in may cover lost luggage, theft of personal possessions, medical costs and delayed flights.
The internet has become an extremely popular means to find cheap holiday insurance.
If you have a larger vehicle, take a look at Autonet Van Insurance
Thursday, June 24, 2010
Monday, June 21, 2010
Types of Insurance in INDIA
(A) LIFE INSURANCE :
Term Life Insurance
Permanent Life Insurance
(B) GENERAL INSURANCE
Fire Insurance
Marine Insurance
Accident Insurance
(A)Life Insurance
Life Insurance is a contract providing for payment of a sum of money to the person assured or, following him to the person entitled to receive the same, on the happening of a certain event. It is a good method to protect your family financially, in case of death, by providing funds for the loss of income.
A1. TERM LIFE INSURANCE : Under a Term Life contract, the insurance company pays a specific lump sum to the designated beneficiary in case of the death of the insured. These policies are usually for 5, 10, 15, 20 or 30 years.
Term life insurance are the most popular in advance countries but were not so popular in India. However, after the entry of the private operators and aggressive marketing by few players this kind of policies are becoming popular. The premium on such type of policies is comparatively quite low when compared with other types of life insurance policies, mainly due to the fact that these policies do not carry cash value.
PLUS OF TERM LIFE INSURANCE MINUSES OF TERM LIFE INSURANCE
- The premium payable on these policies is low as they do not carry any cash value.
- One can afford for quite high value insurance policies - If one survives the period of the policy, he / she does not get any money at the end of the policy.
The premium on such policies keeps on increasing with age mainly because the risk of death of older people is more. Over the page of 60, these policies become difficult to afford.
A2. PERMANENT LIFE INSURANCE :
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. Thus, over a period of time, this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy.
Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard of living you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect. This type of policy not only provides protection for your dependents by paying a death benefit to your designated beneficiary upon your death, but it also allows you to use some part of the money while you are alive or at the end of the policy. Some examples of such policies are :- Whole Life, Universal Life and Variable-Universal Life.
A2. PERMANENT LIFE INSURANCE :
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. Thus, over a period of time, this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy.
Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard of living you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect. This type of policy not only provides protection for your dependents by paying a death benefit to your designated beneficiary upon your death, but it also allows you to use some part of the money while you are alive or at the end of the policy. Some examples of such policies are :- Whole Life, Universal Life and Variable-Universal Life.
ENDOWMENT POLICIES
These policies provide for period payment of premiums and a lump sum amount either in the event of death of the insured or on the date of expiry of the policy, whichever occurs earlier.
MONEY BACK POLICIES
These policies provide for periodic payments of partial survival benefits during the term of the policy itself. A unique feature associated with this type of policies is that in the event of death of the insured during the policy term, the designated beneficiary will get the full sum assured without deducting any of the survival benefit amounts, which have already been paid as money-back components. Moreover, the bonus on such policies is also calculated on the full sum assured.
ANNUITY / PENSION POLICIES / FUNDS
This policies / funds require the insured to pay the premium as a single lump sum or through installments paid over a certain number of years. The insured in return will receive back a specific sum periodically from a specified date onwards (the returns can can be monthly, half yearly or annually), either for life or for a fixed number of years. In case of the death of the insured, or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, usually with some additional amounts as per the terms of the policy.
Annuities / Pension funds are different from from all other forms of life insurance as an annuity policy / fund does not provide any life insurance cover but merely offers a guaranteed income either for life or a certain period. Therefore, this type of insurance is taken so as to get income after the retirement.
Term Life Insurance
Permanent Life Insurance
(B) GENERAL INSURANCE
Fire Insurance
Marine Insurance
Accident Insurance
(A)Life Insurance
Life Insurance is a contract providing for payment of a sum of money to the person assured or, following him to the person entitled to receive the same, on the happening of a certain event. It is a good method to protect your family financially, in case of death, by providing funds for the loss of income.
A1. TERM LIFE INSURANCE : Under a Term Life contract, the insurance company pays a specific lump sum to the designated beneficiary in case of the death of the insured. These policies are usually for 5, 10, 15, 20 or 30 years.
Term life insurance are the most popular in advance countries but were not so popular in India. However, after the entry of the private operators and aggressive marketing by few players this kind of policies are becoming popular. The premium on such type of policies is comparatively quite low when compared with other types of life insurance policies, mainly due to the fact that these policies do not carry cash value.
PLUS OF TERM LIFE INSURANCE MINUSES OF TERM LIFE INSURANCE
- The premium payable on these policies is low as they do not carry any cash value.
- One can afford for quite high value insurance policies - If one survives the period of the policy, he / she does not get any money at the end of the policy.
The premium on such policies keeps on increasing with age mainly because the risk of death of older people is more. Over the page of 60, these policies become difficult to afford.
A2. PERMANENT LIFE INSURANCE :
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. Thus, over a period of time, this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy.
Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard of living you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect. This type of policy not only provides protection for your dependents by paying a death benefit to your designated beneficiary upon your death, but it also allows you to use some part of the money while you are alive or at the end of the policy. Some examples of such policies are :- Whole Life, Universal Life and Variable-Universal Life.
A2. PERMANENT LIFE INSURANCE :
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. Thus, over a period of time, this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy.
Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard of living you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect. This type of policy not only provides protection for your dependents by paying a death benefit to your designated beneficiary upon your death, but it also allows you to use some part of the money while you are alive or at the end of the policy. Some examples of such policies are :- Whole Life, Universal Life and Variable-Universal Life.
ENDOWMENT POLICIES
These policies provide for period payment of premiums and a lump sum amount either in the event of death of the insured or on the date of expiry of the policy, whichever occurs earlier.
MONEY BACK POLICIES
These policies provide for periodic payments of partial survival benefits during the term of the policy itself. A unique feature associated with this type of policies is that in the event of death of the insured during the policy term, the designated beneficiary will get the full sum assured without deducting any of the survival benefit amounts, which have already been paid as money-back components. Moreover, the bonus on such policies is also calculated on the full sum assured.
ANNUITY / PENSION POLICIES / FUNDS
This policies / funds require the insured to pay the premium as a single lump sum or through installments paid over a certain number of years. The insured in return will receive back a specific sum periodically from a specified date onwards (the returns can can be monthly, half yearly or annually), either for life or for a fixed number of years. In case of the death of the insured, or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, usually with some additional amounts as per the terms of the policy.
Annuities / Pension funds are different from from all other forms of life insurance as an annuity policy / fund does not provide any life insurance cover but merely offers a guaranteed income either for life or a certain period. Therefore, this type of insurance is taken so as to get income after the retirement.
Wednesday, June 16, 2010
International Medical and Health Insurance
International Medical Insurance, International Health Insurance
International health insurance provides worldwide coverage for individuals and families living abroad, 24 hours a day and beyond geographical boundaries. In most cases, protection is available without any additional underwriting and provides an accidental death and dismemberment benefit.
International Health Insurance: A Mandatory Requirement
Being a global citizen can be exciting; but while living abroad or maintaining residences in various countries, health care should not be one of the concerns. Traditional home country private health insurance will not meet one's needs beyond geographical frontiers. However, international medical insurance is specifically designed to meet this particular requirement. Such insurance protects individuals and families from extravagant medical expenses. International health insurance is also handy if one loses one's luggage or requires emergency evacuation.
International Health Insurance: Options
A global person has a variety of international medical insurance options and s/he can choose one appropriate to his/her needs. For example, a U.S. citizen living abroad can choose medical coverage worldwide or worldwide excluding the U.S. and Canada. S/he may also wish to share some risk, in which case the cost of insurance is lowered. There are plans for international senior citizens as well.
International Health Insurance: Applicable Exclusions
There are, however, some international health insurance providers that exclude the following treatments/circumstances from coverage:
•Charges that were not incurred during certificate period
•Self inflicted harm
•Weight modification
•Substance abuse
•HIV+ at effective date.
•Sexual dysfunction
•Speech or sleep therapy
•Acupuncture
International medical insurance from a quality service provider gives you access to the latest health benefits as well as peace of mind while abroad.
International health insurance provides worldwide coverage for individuals and families living abroad, 24 hours a day and beyond geographical boundaries. In most cases, protection is available without any additional underwriting and provides an accidental death and dismemberment benefit.
International Health Insurance: A Mandatory Requirement
Being a global citizen can be exciting; but while living abroad or maintaining residences in various countries, health care should not be one of the concerns. Traditional home country private health insurance will not meet one's needs beyond geographical frontiers. However, international medical insurance is specifically designed to meet this particular requirement. Such insurance protects individuals and families from extravagant medical expenses. International health insurance is also handy if one loses one's luggage or requires emergency evacuation.
International Health Insurance: Options
A global person has a variety of international medical insurance options and s/he can choose one appropriate to his/her needs. For example, a U.S. citizen living abroad can choose medical coverage worldwide or worldwide excluding the U.S. and Canada. S/he may also wish to share some risk, in which case the cost of insurance is lowered. There are plans for international senior citizens as well.
International Health Insurance: Applicable Exclusions
There are, however, some international health insurance providers that exclude the following treatments/circumstances from coverage:
•Charges that were not incurred during certificate period
•Self inflicted harm
•Weight modification
•Substance abuse
•HIV+ at effective date.
•Sexual dysfunction
•Speech or sleep therapy
•Acupuncture
International medical insurance from a quality service provider gives you access to the latest health benefits as well as peace of mind while abroad.
World Life and Nonlife Insurance Premium
| Year | Non-Life (1) | Life | Total |
| 1995 | 906,781 | 1,236,627 | 2,143,408 |
| 1996 | 909,100 | 1,196,736 | 2,105,838 |
| 1997 | 896,873 | 1,231,798 | 2,128,671 |
| 1998 | 891,352 | 1,275,053 | 2,166,405 |
| 1999 | 912,749 | 1,424,203 | 2,336,952 |
| 2000 | 926,503 | 1,518,401 | 2,444,904 |
| 2001 | 969,945 | 1,445,776 | 2,415,720 |
| 2002 | 1,098,412 | 1,534,061 | 2,632,473 |
| 2003 | 1,275,616 | 1,682,743 | 2,958,359 |
| 2004 | 1,395,218 | 1,848,688 | 3,243,906 |
Non-Life (1) includes accident and Health Insurance.
Understanding a World Life Insurance PremiumWhen looking at insurance, two primary options exist – life and non-life. In this article, we wanted to help you understand a world life insurance premium, specifically the factors involved that determine how much you pay. However, we also want to address the basics of a non-life insurance premium. Unfortunately, too many people pay the life or nonlife insurance premium because that is what they are to pay but in truth, they have no idea the determining factors, or things they could do to save money.
By understanding what underwriters consider when setting a world life insurance premium, you could make appropriate adjustments to bring the premium down. While you would have the chance to make changes for some factors, of course, some of the factors would be out of your control. However, by becoming educated on a life premium, as well as a non life insurance premium, you have more control as to what comes out of your pocket.
The following are the main factors that determine a world life insurance premium so you can make adjustments in lifestyle wherever possible. Insurance companies look at the level of risk and the more potential for risk the higher the premium you would pay. Keep in mind that differences exist between factors that determine a life and non life insurance premium so these are strictly for a world life insurance premium only.
• Obesity – When a person carries around excessive weight, risk for all types of health problems increase. For instance, when a person is overweight and especially obese, risk is high for diabetes, heart disease, high blood pressure, and some kinds of cancer. If you need to drop weight so you could take out a policy and afford a world life insurance premium, it would be to your benefit to eat healthier, get involved with physical activity, and see your doctor if the weight is related to something else.
• Smoking – Another factor, which can affect both a life and non life insurance premium, is smoking. For the world life insurance premium, even someone who smokes two cigarettes a day would pay much higher and in some cases, not qualify. For the non life insurance policy, smoking can cause health insurance and even car insurance to be more expensive.
• Alcohol Consumption - Now, most insurance companies do not worry about a glass of wine or an occasional cocktail but if a problem of heavy alcohol consumption exists or if you have been drinking over a long period, you would likely be approved for the policy but the premium would be increased.
• Health Problems – In most cases, anytime you have a pre-existing health condition, securing life insurance is tough. However, even when you are approved, the world life insurance premium would be extremely high. Obviously, it would be impossible to wipe out a prior health problem but in this case, the best thing you can do is be honest when trying to get coverage. In fact, for health insurance coverage, you need to be honest about any health issue so you would be offered the best coverage and best life and non life insurance premium available.
Top Ten World Insurance Companies by Revenue
Since the recent financial meltdown which began in September 2008, a reshuffling of the market value of the world's largest insurance companies has occured. Here is a list of the top ten insurance companies:
| Rank | Company | Market Value | Country |
| 1 | American Intl Group | $172.24 | United States |
| 2 | AXA Group | $66.12 | France |
| 3 | Allianz Worldwide | $65.55 | Germany |
| 4 | Manulife Financial | $50.52 | Japan |
| 5 | Generali Group | $45.45 | Italy |
| 6 | Prudential Financial | $39.70 | United States |
| 7 | MetLife | $37.94 | United States |
| 8 | Aviva | $33.10 | United Kingdom |
| 9 | Munich Re Group | $30.99 | Germany |
| 10 | Aegon | $26.40 | Netherland |
(1) Based on an analysis of companies in the Forbes Global 2000.
(2) Based on market value in billions. Rankings based on sales, profits, or assets will be different.
The market value of these companies has been in flux due to recent financial crisis and the changes that has brought to capital movements and the changes in risk profiles. Fluctuations in the area of financial services is likely to affect insurance companies considerably. Stock market uncertainty will probably curb expansion of the life insurance market, while the rate demands limit the growth of non-life insurance markets. The report discusses trends, challenges and possible growth areas on a global basis.
Among the top ten insurance companies in the United States are All State Insurance Company, State Farm Insurance Company, Prudential Insurance Company, Travelers Insurance Company, Fidelity Insurance Company, Metlife Insurance Company, Farmers Insurance Company, AIG Insurance Company, MassMutual Insurance Company, and The Hartford Insurance Company. These companies are providers of a wide range of coverage such as property, life, casualty, and health or any combination thereof. The companies are rated based on their financial strengths. These ratings are useful in helping consumers make informed decisions as well.
Wednesday, June 2, 2010
Reinsurance Company
Top Global Reinsurance Companies
| Rank | Company | Net Premiums |
| 1 | Munich Re | 24,218 |
| 2 | Swiss Re | 23,202 |
| 3 | Berkshire Hathaway Re | 11,577 |
| 4 | Hannover Re | 8,907 |
| 5 | Lloyd's of London | 7,950 |
| 6 | SCOR | 6,948 |
| 7 | Everest Re Group | 3,875 |
| 8 | PartnerRe | 3,689 |
| 9 | Transatlantic Holdings | 3,633 |
| 10 | ACE Tempest Reinsurance | 3,405 |
The goal of the reinsurance policy is to transfer the risk of the insurer to the reinsurer. Reinsurance companies basically insure consumer insurance companies who supply coverage for various types of contracts. Most insurance companies have a reinsurance program in place in order to make them more financially secure. Under a reinsurance contract, the reinsurer agrees to pay a portion of the insurer’s losses in return for the premium paid to them by the insurer. Insurers with a reinsurance program in effect are capable of issuing policies with higher limits meaning they can shoulder more risk since a portion of that risk is shifted to the reinsurer.
Due to record losses suffered during recent financial crisis, the top reinsurers fluctuate in their ranks, among them are Swiss Re, Munich Re, and Hannover Re.
While reinsurance aids in making an insurance company’s bottom line more foreseeable by lowering the amount of capital required to supply compensation to policyholders, natural catastrophes are unpredictable and are something that reinsurer’s have to be prepared for, particularly events like earthquakes that can occur any time of the year.
Reinsurance policies fall under the proportional and the non-proportional type. Further proportional reinsurance can be divided in to quota share and surplus reinsurance. Under proportional reinsurance, one or more reinsurers take a percentage share of every policy written by an insurer. What it means is that the reinsurer will receive a percentage on the dollar for premiums paid to the insurer, however they are required to pay that same percentage to compensate losses. Premiums and losses are shared on a pro rata basis under a quota share treaty.
A surplus share treaty is also seen as a variable quota share contract, in this type of policy a retention limit is set for each policy as a specific dollar amount, the reinsurer pays anything above that amount up to a maximum limit. In the event of a loss, the insurer and the reinsurer would compensate based on the same proportion as that policy’s provided coverage.
Only if the losses suffered by an insurer exceed a particular amount, then will the non-proportional reinsurance respond. Among the types of non-proportional insurance coverage are excess of loss and stop loss. Excess of loss reinsurance covers the insurer against all or a part of the loss that exceeds the specified loss retention. Stop loss covers the insurer for the amount the losses they sustain surpass an agreed amount.
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