Life Insurance References

ERM is a risk-focused, proactive process for managing an organization that combines strategic planning, operational decision-making, asset-liability management, and audit/control. All companies operate under the same profit/loss constraints. However, insurance companies operate under a unique set of economics, which can make managing the insurance business a challenge. The focus of insurance executives is beginning to shift to pricing management rather than premium growth, and overall risk control rather than cost containment. ERM has at last formalized the essential connection between a company’s business operations and its overall risk management program. Risk management is more than compliance, and leading companies will harness ERM as a strategic tool to help them boost shareholder value 

Life settlements are a hot topic in life insurance circles. The connections between the settlement industry and other financial services is the contrasting perspectives on the impact of potential regulation and public policy on settlement markets, issues surrounding stranger-originated life insurance, and the future of settlements. Life settlements are an option for high-net-worth policy owners age 65 or older. While many policy owners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents. A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial advisor. 

The life insurance industry has been going global for many years. As the economies in emerging regions and countries evolve and prosper, so does the need and means to purchase life insurance products. With literally billions of people in up-and coming markets, these areas should be considered when looking to expand globally. This trend alone will result in a rising dependency ratio and is already severely testing both public and private pension schemes in the developed world. The global Life insurance industry is now beginning to use technologies to reach new customer groups, analyze greater amounts of information and develop more targeted products. All this activity is conducted faster and more inexpensively than it had been in the past.

by: Christine Zafra

Since money is not that easy to earn, people who are planning to avail life insurance in the future should be wise. Getting a life insurance is not like buying a candy in a store. It will involve a lot of money and for that an individual should know the credibility of the company. Not all life insurance companies are able to deliver the services they promised their clients. There are even some who eventually close due to lack of funds. Before entering a deal, the person should know the company well and how it is performing for the past years. The client should do his/her part and know the important facts about a particular life insurance company. If you will get involved in the wrong life insurance company in the future, chances are, you might end up in the hospital because of the stress you will experience.

Photo taken from http://www.insurancefraudbureau.org

Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products.

Insurance companies are now offering  a wide variety of products to suit virtually everyone’s needs.

• Permanent Plans – Policy lasts as long as you live, premium stays the same.
• Term Plans – Policy ends at end of specified term: renewable or convertible.
• Annuities – Provides an income that is guaranteed for life.
• Long Term Care – Provides funds for long-term, out-of-hospital care.

by: Christine Zafra

It is sometimes hard to identify whether insurance, specifically health insurance, is beneficial or not to the beneficiary. Maybe it is beneficial for the fact that they can have free check ups or laboratory tests. But is it really for free? Or is it post paid by the payments the beneficiary gave to the insurance company? Are they getting back what they have invested? Health insurance are sometimes stressful. The patient needs to get letters of approval from the insurance company before having himself/herself checked. Health insurance may be useful in providing health services but it is not completely advantageous for other individuals who are experiencing a tough time with their insurances.

Photo taken from http://fonzation.com

Joint life insurance is a single insurance policy taken out on 2 people, typically husband and wife. These enables two individuals to be protected, but the full value of the policy is paid only once at the time of either insurer’s death. This is also referred to as the joint first to die clause. Policies can be either first-to-die or second-to-die. In first-to-die, the benefit is paid to the surviving spouse; in second-to-die policies, the benefit is paid to a estate beneficiaries. Joint life insurance policies do not only help families. It can be beneficial to business partners as well. Insurance joint life policy in a business setup has two types, the single life annuity and the last to die annuity. The first one corresponds to the clause that the value of the policy is payable until the first partner dies. The second one, on the other hand, says that the policy is in force until the last partner dies.

III enumerated the two principal types of life insurance:

<TERM and WHOLE LIFE>

WHOLE LIFE >  Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 100! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.

In the case of traditional whole life, both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company could charge a premium that increases each year, but that would make it very hard for most people to afford life insurance at advanced ages. So the company keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.

When I recently opened a savings account at the nearest bank in our area, I was amazed that the product I got already includes a life insurance. Though I already have my own policy, I still availed this service since. Bank companies, credit cards and lending institutions are now offering life insurance to pay off your outstanding loans in the event of your death. For each life insurance benefit on your life dedicated to paying off a loan, you should record,

• The full name of the lending institution through which you obtained the life insurance
• The loan number and issue date of the loan
• The name of the person or office to contact when it’s time to file a claim
• The policy number of the life insurance policy that pays off the loan

Thus, this service is a good deal for each and everyone.

You should always keep a record of the following details regarding your life insurance policy. This will enable you and your beneficiaries to claim easily when unfortunate events happen.

• The full name of the life insurance company that issued the policy
• The city and state of the home office of the company that issued the policy
• The name and U.S. headquarters of the group, if the issuing company belongs to a group of companies
• The policy number
• The date the policy was issued
• The amount of the death benefit
• The name and address of the agent/broker who sold you the policy
• The type of policy (e.g., term, whole life, etc.)
• The location of the original life insurance policy