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With insurance the insured agrees to pay a specific premium each year until death?
Wiki User
∙ 10y ago
Whole life
Wiki User
∙ 10y ago
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Can you explain life insurance in very simple terms?
Very basically, insurance is a contract (called an insurance policy) between one party (the insurance company) and another (the insured). In the case of life insurance, it is a life that is being insured. In return for the periodic payment of money (called a premium) to the insurance company, the insurance company agrees to pay a sum of money when the insured (whose life is insured) dies. The money is generally paid to the person (or sometimes an entity, such as a charity) that is designated in the insurance policy as the beneficiary. The beneficiary is designated by the insured when the insured buys the insurance but can usually be changed up until the time of death.
What does excess clause mean?
sometimes an insurer will offer the insured a lower premium if the insured agrees not to seek compensation for amount under lets say 200 euro.
What is a description of an annuity?
the insured agrees to make a lum-sum payment or series of payments to an insurance company
Which of the following is a description of an annuity?
the insured agrees to make a lump-sum payment or series of payments to an insurance company...
Differences between mutual fund and insurance?
A Mutual fund is a common pool of money collected from many people and invested in stocks or any other investment instruments by a fund manager. The profit or loss is shared with the investors Insurance is an agreement between the insurer and insured where the insurer agrees to bear the risk of some event after accepting a small premium from the insured. For ex: you can get a life insurance policy for Rs. 10 lakhs by paying a nominal premium of around Rs. 15000/- per year. In case of our unexpected demise, our family would get Rs. 10 lakhs from the insurance company.
What is significant regarding premiums and benefits of private commercial insurance companies?
In any insurance scenario, a premium is the periodic payment made to the insurer by the insured. Essentially, it is the price paid to the insurer in return for which the insurer agrees to assume a certain bundle of risks of loss that the insured wishes to transfer. That "bundle" is set forth in the terms of the written insurance policy. Insurance premiums, and insurance generally, is regulated by the States in which the insurer transacts business. One the primary factors with which the regulator is concerned is that the premium charged is sufficient to offset the risk. It cannot, however, be either excessive or unfairly discriminatory. This means that insurance rates, from which premiums derive, must be the same for all insureds of the same risk class. Those risk classes vary greatly in commercial insurance due to the many and varied kinds of risks that can be insured.
Just what exactly is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Why do insurance companies ask so many medical questions when you purchase medical insurance?
The health questions are asked in applications for life insurance and medical insurance. The reason for it is that insurers are required to have "underwriting guidelines". These define the types of risks that they are willing to accept. An insurer accepts a risk of paying a claim according the terms of the policy. That is, a life insurer agrees to pay a stated amount of money upon the death of the person who is insured. A medical insurer agrees to pay all or a portion of medical expenses incurred by the person insured. In return for the agreement to pay ("to assume the risk"), the insurer collects a sum of money called a "premium". The amount of the premium has to be commensurate with the risk being assumed, and the medical questions help to determine the extent of the risk assumed. The amount of premium is determined by complex mathematical calculations done by actuaries. If an insufficient premium is charged, when extrapolated over the large number of people that the insurer insures, there may be insufficient money with which to pay all claims.
How do you make an insurance claim when you are not insured?
Insurance is a contract in which you, the insured, pay a premium to the insurance company. In return, the insurance company agrees to pay you money-or to pay someone else money on your behalf (in the case of liability insurance) if a covered event occurs. Covered events are outlined in the policy and vary depending upon the kind of insurance involved. In answer to your question, you cannot make a "first-party" insurance claim if you have no insurance. A first-party claim is one against your own insurance company for property that you insured for your own protection. However, regardless of whether or not you had insurance, you may be able to make a "third-party" insurance claim against a party that damaged or destroyed your property, if that party had insurance. Even if they did not, you can make a claim against the party individually if you can prove fault. However, collecting damages from an uninsured third-party is often difficult.
How do you cancel car insurance on a car that you own and insured that your spouse is driving in another state?
As long as the insurance is in your name only you just call the insurance companyBUTThis may be illegal unless the person driving the vehicle knows and agrees
Can an ex-husband be insured to protect a 14 year alimony payment in case of his death before the 14 years are up?
Yes. If he agrees to it and someone pays the premium. It's an excellent procedure (opinion).
What prohibits an insurance company from denying a claim?
Nothing prohibits an insurance company from denying a claim. An insurance policy is a legal contract binding on both parties. One party agrees to certain obligations such as telling the truth on the application for insurance and paying the premiums and the other party agrees to pay covered claims on a timely basis. As long as the insured meets their obligations under the policy the insurance company will meet their obligations.
