ADVANTAGES OF LIFE INSURANCE

Life insurance has no competition from any other business. Many people think that life insurance is an investment or a means of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past, plus interest. This is so in a fixed deposit in the bank, in national savings certificates, in mutual funds and all other savings instruments. If the money is invested in buying shares and stocks, there is the risk of the money being lost in the fluctuations of the stock market. Even if there is no loss, the available money at any time is the amount invested in not the total of the savings already made, but the amount one wished to have at the end of the savings period. The final fund is secured from the very beginning. One is paying for it over the years, out of the savings. One has to pay for it only as long as one life or for a lesser period, if so chosen. The assured fund is not affected. There is no other scheme which provides this kind of benefit. Therefore life insurance has no business.

This is not similar to a hire purchase scheme. In a hire purchase scheme, the instead purchase is effected immediately, but the price is paid in installments later. However, in the event of death, the balance installments are not excused. They have to be paid by the surviving family. In the case of life insurance, the premiums cease on death. There are no outstanding installments. There is no financial arrangement that can equal the benefits of life insurance.

A comparison with other forms of savings will show that life insurance has the following advantages.
In the event of death, the settlement is easy. The heirs can collect the moneys quicker, because of the facility of nomination and assignment. The facility of nomination is now available for some bank accounts, provident fund etc.
There is a certain amount of compulsion to go through the plan of savings. In other forms, if one changes the original plan of savings, there is no loss. In insurance, there is a loss.
Creditors cannot claim the life insurance moneys. They can be protected against attachments by courts.
There are tax benefits, both in income tax and in capital gains.
Marketability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loans can be raised against the policy.
It is possible to protect a life insurance policy from being attached by debtors. The beneficiary’s interests will remain secure.

The following tenets help agents to believe in the benefits of life insurance. Such faith will enhance their determination to sell and their perseverance.
Life insurance is not only the best possible way for family protection. There is no other way.
Insurance is the only way to safeguard against the unpredictable risks of the future. It is unavoidable.
The terms of life are hard. The terms of insurance are easy.
The value of human life is far greater than the value of property. Only insurance can preserve it.

Life insurance is not surpassed by any other savings or investment instrument, in terms of security, marketability, stability of value or liquidity.
Insurance, including life insurance, is essential for the conservation of many businesses, just as it is in the preservation of homes.
Life insurance enhances the existing standards of living.
Life insurance helps people life financially solvent lives
Life insurance perpetuates life, liberty and the pursuit of happiness.
Life insurance is a way of life

ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

For economic development, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth. The Insurance Act has strict provisions to ensure that insurance funds are invested in safe avenues, like Government bonds, companies with record of profits and so on.

As on 31.3.2006, the total investment of the LIC exceeded Rs.520, 000 crores, of which nearly Rs.300, 000 crores were directly in Government related securities, nearly Rs.16, 000 crores in the State Electricity Boards, nearly Rs.22, 000 crores in housing loans, Rs.19, 000 crores in the power generation sector and Rs.10, 000 crores in water supply and sewerage systems. Other investments included road transport, settling up of industrial estates and directly financing industry. Investments in the corporate sector exceeded Rs.30, 000 crores. These directly affect the lives of the people and their economic well-being.

The LIC is not an exception. All good life insurance companies have huge funds, accumulated through the payments of small amounts of premia of individuals. These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business. The private insures in India are new and have accumulated funds equal to about one-eight of the LIC’s. But even their investments in the various sectors and contributing directly and indirectly to the country’s economic development, would be of similar proportions.

A life insurance company’s funds are collected by way of premiums. Every premium represents a risk that is covered by that premium. In effect, therefore, these vast amounts represent pooling of risks. The funds are collected and held in trust for the benefit of the policyholders. The management of life insurance companies is required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investments. That is why successful insurance companies would not be found investing in speculative ventures. Their investments, as in the case of the LIC, benefit the society at large.

Apart from investments, business and trade benefit through insurance. Without insurance, trade and commerce will find it difficult to face the impact of major perils like fire, earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers, if their debtors default.

THE BUSINESS OF INSURANCE

Insurance companies are called insures. The business of insurance is to (a)bring together persons with common insurance interests (sharing the same risks), (b) collect the share or contribution (called premium) from all of them, and (c) pay out compensations (called claims) to those who suffer from the risks. The premium is determined on the same lines as indicated in the examples above, but with some further refinements.

In India, insurance business is classified primarily as life and non-life or general. Life insurance includes all risks related to the lives of human beings and general insurance covers the rest. General insurance has three classifications viz., Fire (dealing with all fire related risks), Marine (dealing with all transport related risks and ships) and Miscellaneous (dealing all others like liability, fidelity, motor, crop, engineering, construction, aviation, personal accident, etc). Personal accident and sickness insurance, which are related to human beings, is classified as ‘non-life’ in India, but is classified ad ‘life’, in many other countries. What is ‘non-life’ in India is termed ‘Property and Casualty’ in some other countries.

In India, the, IRDA has, in 2005, issued Regulations enabling micro insurance (broadly meaning insurance for small Sums Assured, like 5 to 50 thousands) to be done by both life and general insurers on the basis of mutual tie-ups. A policy may be issued by a life insurer covering both life and non-life risks, but premium on account of the non-life on account of the non-life business will be passed on to a general insurer and the claim amount collected from the latter.

The premium for insurance is based on expectations of the losses. These expectations are based on studies of occurrences in the past and the use of statistical principles. There is, in statistics, a “law of large numbers”. When you toss a coin, the chance, or probability, of a head or tail coming up is half. If the coin is tossed 10 times, one cannot be sure that the head will come up 5 times. If the coin is tossed 1 million times, the number of heads will be closer to half a million proportionately than in the case of 10. The variation will be less as a percentage. So also, the larger the numbers (of risks) included in the pool, the better the chances that the assumptions regarding the probability of the risk occurring will be realized in practice. In order to be amenable to statistical predictions, insurers have to insure large numbers of risks. The larger the spread of the business, the better the experience in relation to expectations. The probability of risk being the basis of premium calculation, large numbers are necessary to ensure that the premium charged is viable or adequate.

The business of insurance is one of sharing. It spreads losses of an individual over the group of individuals who are exposed to similar risks. People who suffer loss get relief because at least part of their loss is made good. People who do not suffer loss are relieved because they were spread the loss.

HOW INSURANCE WORKS

The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any of them suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ships are exposed to the same risks, which are related to water damage, sinking of the vessel, piracy, etc. Those owning factories are not exposed to these risks, but they are exposed to different kinds of risks, fire, hailstorms, earthquakes, lightning, burglary, etc. Like this, different kinds of risks can be identified and separate groups made, including those exposed to such risks. By this method, the heavy loss that any one of them in the group may suffer (all of them may not suffer such losses at the same time) is divided into bearable small losses by all the others in the group. In other words, the risk is spread among he community and the likely big impact on one is reduce to smaller manageable impacts on all. Insurance helps to spread the costs or risks.

If a Jumbo Jet with more than 350 passenger’s crashes, the loss would run into several crores of rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo Jets will crash at the same time. If 100 airline companies flying Jumbo Jets, come together into an insurance pool, whenever one of the Jumbo Jets in the pool crashes, the loss to be borne by each airline would come down to a few lakhs of rupees. Thus, insurance is a business of ‘sharing’. It makes an unbearable loss, bearable…

There are certain principles, which make it possible for insurance to remain a preferred and fair arrangement. The first is that it is difficult for any one individual to bear the consequences of the risks that he is exposed to. It will become bearable when the community shares the burden. The second is that the peril should occur in an accidental manner. Nobody should be in a position to make the risk happen. In other words, none in the group should set fire to his assets and ask others to share the loss. This would be taking unfair advantage of an arrangement put into place to protect people from the accidental risks they are exposed to. The consequence has to be random, accidental, and not the deliberate creation of the insured person.

The manner in which the loss is to be shared can be determined beforehand. It can be equal among all. It can also be proportional to the risk that each person is exposed to. The trader who has sent Rs 100 lakhs worth of goods on a ship will bear double the loss to be borne by another trader who has got Rs 50 lakhs worth of goods on the same ship. Current practice is to make the sharing proportional to the loss has occurred or the likely shares may be collected in advance, at the time of admission to the group. Insurance companies collect in advance and create a fund from which the losses are paid.

The collection to be made from each person in advance is determined on the basis of assumptions. While it may not be possible to tell beforehand, which person will suffer, it may be possible to tell, on the basis of past experience, how many persons, on an average, may suffer losses.

CLASSIFICATION OF RISKS

Risks are classified in various ways. One classification is based on the extent of the damage likely to be caused. Critical or Catastrophic risks are those which may lead to the bankruptcy of the owner. It would happen if the loss is total, like in a tsunami, wiping out everything. It can also happen if the deceased person was heavily in debt. Important risks may not spell doom, but may upset family or business finances badly, requiring a lot of time to recover. The adverse effect of an economic recession is one such. Less damaging are unimportant risks, like temporary illness or accidents.

Another classification is between financial and non-financial risks. Referred to in an earlier paragraph is concerned with only financial risks.

A third classification is between Dynamic and Static risks. Dynamic risks are caused by perils which have national consequence, like inflation, calamities, technology, political upheavals, etc. Static risks are caused by theft or misappropriation. Dynamic risks are less likely to occur than static risks, but are also less predictable... Static risks are more suited to management through insurance.

Fundamental risks are those that affect large populations while Particular risks affect only specific persons. A train crash is a fundamental risk while a theft is a particular risk. Life Insurance business deals with experience, as many persons will be affected at the same time, when there is an. Earthquake, flood or riot.

Another classification is between pure risks and speculative risks. The latter are in the nature of betting or gambling where the risk is, to some extent, under the control of the person concerned, while a pure risk is not so. It is more in the nature of an Act of God. Insurance deals with only pure risks and not speculative risks.

PURPOSE & NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed or made non-functional before the expected life time, through accidental occurrences. Such possible occurrences are called perils. Fire, floods, breakdown, lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that asset is exposed to the risk. Perils are the events. Risks are the consequential losses or damages. The risk to a owner of a building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees, depending on the cost of the building, the contents in it and the extent to damage.

The risk only means that there is a possibility of loss or damage. The damage may or may not happen. The earthquake may occur, but the building may not have been affected at all. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word ‘possibility’ implies uncertainty. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain. The person is insured, because of the uncertainty about the time of his death.. In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. It would be ‘soon’. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The risk can sometimes be avoided, through better safety and damage control measures. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. They are the ones who benefit from the asset and therefore, would lose, when the asset is damaged. Insurance only compensates for the losses – and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non-economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc.

BREIF HISTORY OF INSURANCE

Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders, traveling treacherous river rapids would distribute their goods among several vessels, so that the loss from any one vessel being lost would be partial and shared, and not total. The Babylonian traders would agree to pay additional sums to lenders, as the price for within off the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the principle of 'general average', whereby, if goods are shipped together, the owners would bear the losses in proportion, if loss occurs, due to jettisoning during distress.(Captains of ships caught in storms, would throw away some of the cargo to reduce the weight and restore balance. Such throwing away is called jettisoning) The Greeks had started benevolent societies in the late 7th century AD, to take care of the funeral and families of members who died. The friendly societies of England were similarly constituted. The Great Fire of London in 1666, in which more than 13000 houses were lost, gave a boost to insurance and the first fire insurance company, called the Fire Office, was started in 1680.

The origins of insurance business as in vogue at present, is traced to the Lloyd’s Coffee House in London. Traders, who used to gather in the Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. In India, insurance began in 1818 with life insurance being transacted by an English company was the Bombay Mutual Assurance Society Ltd, formed in 1870 in Mumbai. This was followed by the Bharat Insurance Co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai, the United India in Chennai, the National, the National Indian and the Hindustan Cooperative in Kolkata.

Later, were established the Cooperative Assurance in Lahore, the Bombay Life(originally called the Swadeshi Life),the Indian Mercantile, the New India and the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies started as a result of the swadeshi movement in the early 1900s.By the year 1956, when the life insurance business was nationalised and the Life Insurance Corporation of India (LIC) was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transacting life insurance business in India. After the amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing life insurance business in India. By 31.8.2007, sixteen life insurers had been registered and were transacting life insurance business in India.

Low Cost Health Insurance

For those who do not know, health insurance coverage is simply the medical demands of an individual, against medical costs.

Like many others can not afford expensive insurance – but you can delete all the trimmings are not necessary and obtain health insurance low cost that you want and still adequately covered.

Health insurance, as with any type of insurance today, whether individual, personal, commercial or health insurance, family is always a gamble. You are the game takes you more than you are paying and your health insurance company is the game you will pay less.
Want to know what to look any good insurance. If you’ve always had a health insurance benefit where I worked and especially if you were a state or federal employee and now find they have to buy their own, may not be able to reach the level of I used to have coverage. Finding good low cost health insurance is now easier than most people think.

To begin with, the purchase of free health insurance quotes online is the easiest and best way to find low cost health insurance coverage. If you have permanent health problems like diabetes, or have had cancer at any time in their family history, your monthly cost could easily be more than your house and car payment combined, but certainly there are many different plans available Currently in the U.S.

The cold hard facts are the older the more important your health insurance policy becomes, which does not mean you should not worry about your insurance when you’re young. If your doctor decides that something is an absolute medical need and is not covered by your current policy, the insurance company may exercise its discretion to pay for it, but do not hold your breath. Many report that were covered over time however, many more people are rejected.

One of the best ways to find low cost insurance is to get a free health insurance quotes online. In general, you can get quotes quickly and you want to compare several companies as they all have different criteria. This will be the fastest way to find low cost insurance.

Most importantly, you want a health insurance provider or company that has a good payment history of the struggle but in every little detail. Your local agents may only be able to offer what we have available today and not be able to offer the best both for your pocketbook and your health.

The mortality rate in a given year for someone without insurance is twenty-five percent higher than for someone with a sure what you want to make sure you get the best coverage you can get the lowest cost as soon as possible. Victims of heart attack who are uninsured are less likely to be able to get an angioplasty, which is often the treatment of choice. People with pneumonia who are uninsured are less likely to receive initial or follow-up X-rays and consultations as necessary.

In general because people who are uninsured are sicker than the rest of us because they can not afford proper medical care can not get better jobs, and because they can get better jobs they can not afford insurance and because they can not afford insurance to get sicker.

Although increasing the risk, a way to lower your insurance costs is to establish a higher deductible, if you are in good health you like to get ahead, unless an unexpected like an accident, etc. Keep in improving health will help with fewer health insurance claims. All insurance companies have to be very competitive because it is very quick and easy to compare with other online companies competing.

Uninsured children are less likely to receive adequate medical attention for serious injuries, for recurrent ear infections or asthma, for example, and want to avoid having to face open-heart surgery $ 100 000 without having any insurance .

So taking out insurance with higher deductibles and spending a little time online comparing at least five or more firms become more likely that you will find the best low-cost insurance. There are different health plans to make sure you get an understanding of all policies of low cost health insurance available in each company. cheap insurance and low cost means a lower price and in some cases lower quality, but the price may be more important to some that the quality of health plan. You do not want to pay more than they need, but want to consider possible future health events that may occur as well.

Finding good, hopefully cheap, low-cost insurance without sacrificing quality means not just looking for the lowest premium but it means fully understanding all the costs that will be involved in policy. And finding the best health insurance is easy to do online, if you are shopping for health insurance long term or short term in California, Texas or Florida.

With rising health insurance costs today, most people look for premiums on health insurance costs to ensure quality medical care when necessary, but at a price you can afford simply. Be sure to keep in mind that low-cost options of insurance, you will jeopardize in the variety of services covered. Proceed without doubt, but with care.

Travel Insurance

Today in the world journey cover will be mandatory because it allows the traveler to many emergency situations, but unfortunately, all passengers cannot ride safety for the instant. Travelers should have travel insurance foreign travel unluckily. Some travelers are insured. Significant advantage in having taken a trip cover is to take care of your travel and protects you against possible disasters that happen during the trip.
Many types of expedition cover are available as a single tour journey assurance, insurance multi-trip, annual journey cover, business insurance and student travel policy. Choosing the wrong journey assurance can result in loss of time and money to plan your trip assurance accordingly.

Compensation for losses from delayed flight will be paid by the insurance company. Money will be delayed by time and distance traveled. For example, however, losing the connection due to flight delay is not included in earnings. Company paid the money lost due to lack of flight to unavoidable circumstances.

Journey cover, mostly for the benefit of families in the box. Option for the whole process. There are a variety of options for cheap trip cover that are offered low-cost journey assurance. These options provide a variety of different possibilities. Low cost journey cover it is understandable why the depression and that will help you get clear of the particular insurance, which may be a surround around you. Here are some options that are easily accessible through the one you prefer. Travel cover can be arranged at the time of booking of a trip to cover accurately the duration of that trip or a more extensive. Travel insurance company is responsible for your safe return from a foreign nation due to any emergency situations or any sudden death of your relatives. If you died during the trip, travel insurance takes the entire responsibility to repatriation of the body to home town.

Commercial Insurance

If you are new to the Business? Or maybe you have been running for years? Whether a new or existing, be sure you know how to protect it. If an accident happens, are you ready? Are you protected?
Commercial insurance is an important protection against damage of theft and liability. It is your protection against large out of pocket expenses. It also provides coverage for business interruption and employee injuries.

There are lots of types of insurance; however, here are the most popular: property insurance, liability and workers compensation. Learn more about these common types to ensure that the business has begun to grow will be protected.

Property insurance pays for loss or damage to movable or immovable. Protect against physical damage or loss in case of theft or other disasters. An example, property insurance that covers fire damage to your office or business space. It also covers damage from floods or earthquakes demolition.

Although not limited to these damages, you can also get additional coverage that meets their growing business needs. This is additional coverage for business property, boiler and machinery insurance, insurance for debris removal, builders risk insurance, glass insurance, coverage for business interruption, ordinance or law insurance, coverage of the tenant, crime insurance and bonds of loyalty.

Sure the boiler and machinery is also known as equipment breakdown or mechanical breakdown coverage. Coverage of accidental rupture of boilers, machinery and equipment. With this type of coverage you can get a refund for material damage and consequential losses.

Debris removal insurance is exactly what you think it is. It covers for the cost of removing debris after a fire, flood, earthquake or hurricane. Your regular homeowner’s insurance may cover all the costs of reconstruction, but not for debris removal.

Builder’s risk insurance covers buildings, while in the construction phase. Glass insurance covers broken windows and store plate glass windows.

Coverage for business interruption covers losses resulting from damage or loss. This insurance pays for salaries, taxes, rents and net profits that would have earned during the time it was closed.

Ordinance or law insurance covers the demolition and reconstruction costs if your business into a code violation when the building (around 50%) has been destroyed. tenant’s coverage would cover the negligence of its employees on their property.

Insurance Crime on the contrary, it covers theft, burglary and theft of money, securities, stocks and devices for employees and outsiders. Fidelity bonds to cover losses due to theft from an employee of the business property and money.

We also have liability insurance. This covers the damage they cause to third parties. If someone sues you for personal injury or property damage, this insurance will cover the cost of defending and resolving claims that may arise.

There are 4 specialized types of liability insurance. They are: Errors and omissions insurance, malpractice insurance or professional liability insurance, car insurance and directors and officer’s liability insurance.

Errors and omissions insurance are covered when the act is an accidental error, not just the lack of trial or intentional acts. Malpractice insurance is known as professional liability insurance will pay for losses resulting from injuries to third parties when a professional treatment falls below the professional standard of care.

Commercial auto insurance covers cars, vans, trucks and trailers or [deleted] [deleted] sed in your business. This covers damage, theft or if the driver injures a person or damage property. Directors and officers liability insurance covers any lawsuit against directors and officers of a company.

Finally, there is workers ‘compensation insurance. This will cover for their employees in workplace accidents or even death. Some state laws require that companies with employees to carry some form of workers’ compensation insurance. Most of the time, workers’ compensation prohibit the employee from filing a malpractice suit against an employer for work-related injuries.

If you would like to take care of your business, make sure you’re covered. If your property, liability and workers compensation insurance. Business and commercial insurance go together, because it is a necessary investment for you and your company. It is also important to know the agent or broker you can trust in these difficult times when they arise. Like any business transaction, purchase commercial insurance must be done carefully. Check the insurance company or broker if they are registered with the Better Business Bureau. If you are rated A +, the best I can trust them.

Motorcycle Theft Insurance

Motorcycle theft is becoming a huge problem and will remain so. If a bike is stolen is often never recovered. After the thieves strip the bike moving quickly to use these parts to build another bike.

There are multiple ways you can prevent your bike being stolen. A very effective way is to keep the bike in a garage. Although this is not always possible, should be your first priority. A thief may be deterred by security systems that can be installed on your bike. A solid safety lock associated with a large stationary object is often most effective.

There are multiple ways you can prevent your bike being stolen. A very effective way is to keep the bike in a garage. Although this is not always possible, should be your first priority. A thief may be deterred by security systems that can be installed on your bike. A solid safety lock associated with a large stationary object is often most effective.

Looking at the motorcycle insurance policy to ensure that review procedures the insurance company in processing claims. Insurance companies always pay close attention to detail to reduce the risk of errors. You will recall that this is not nice if you’ve ever had to file a claim with an insurance company motorcycle. Apparently, a process that never ends and always wants to know as much information as possible.

It is described in the policy of how to perform this procedure. Know what the motorcycle insurance company is definitely required to accelerate the process. Often the call takes longer because the necessary information is not successful or absence of additional documents. Having the right documents set from the beginning will avoid delays in processing the claim.

Life Insurance Premiums & Taxes

Life insurance policies are paid using premiums. A premium is the total of all of the expenses plus the amount required for investment purposes so that the insurance company can meet its promises outlined in the contract. Insurance premiums are not normally tax deductible, except in rare circumstances.

1. Personal Insurance

   • Life insurance purchased for personal reasons is not allowed as a deduction. All premiums are paid with after-tax dollars. This money is considered a cost of doing business. Even if you itemize deductions on your tax return, you are not allowed a deduction for the policy's premiums.

   Group Life Insurance

   • Group life insurance is life insurance taken out by a business for the benefit of its employees. The IRS allows premiums to be paid on a pre-tax basis as long as the premiums are not used to support more that $50,000 of death benefit. Any death benefit amount in excess of this is paid for with after-tax, non-deductible dollars. Death benefits are income tax-free.

   Key Person

   • Key person life insurance is insurance taken out on the life of important executives of a corporation. The business buys the policy on the executive's life. If the executive dies, then the corporation uses this money to find, hire and train a new executive. In general, premiums paid on this policy are not tax deductible. Death benefits are income tax-free.

   Executive Bonus

   • Corporations may reward employees on an individual basis through a bonus program. If permanent life insurance is used, the employee receives a savings component with his life insurance. These bonus payments go toward the payment of life insurance premiums and are tax deductible to the corporation. The bonus is treated as income to the employee and subject to income tax. The employee does not deduct the bonus, but the death benefit is payable to his family and is income tax-free.

Read more: Life Insurance Premiums & Taxes | eHow.com http://www.ehow.com/info_8146090_life-insurance-premiums-taxes.html#ixzz1JQNy9U3l

What Is the Need For Landlords Insurance?

It is very essential to have a landlords insurance policy for every property owner in order to ensure the safety of one's asset, it may be a building, house or any property which generates a rental income. It is very necessary to buy such policy so that the damage caused to the property due to any particular reason can be recovered by claiming the amount the insurance company.

Before purchasing any type of landlords insurance policy, it should be considered by a person that how much coverage is required, it should be decided that how much is the worth of the property and its contents, how much it will cost to repair the whole building if in case it gets destroyed and last but not the least to be assessed by the landlord is that how much rental income will be lost if one is not able to rent the property for an extended period. All these considerations will be very helpful to assess the approximate coverage required by a person.

Vandalism damages, the dangers associated with letting, legal cover and lost earnings can also be some of the reasons why one requires the landlord insurance policy. These types of damages are not covered by regular home insurance policies. There are a number of other reasons also to purchase landlord insurance policy.
It protects the person from personal injury claims - This insurance policy covers the claims for the injuries caused to any tenant in the property. Landlord won't have to face any type of the liability in such cases.

To protect the property from any type of the damages - If a building is required to be repaired due to damage caused by a tenant, storm or being vandalized, then the insurance will cover all expenses for repairing a building.

Liability protection is provided - There can be any other type of claims also that can be charged against the landlord apart from any personal injury claims. This type of general liability is also provided by the insurance policy.

The court and other legal costs are also covered - If a person wants to defend himself against any liability claims, it can be very expensive. For such cases, if a person has already purchased a landlords insurance policy that covers all the legal and court costs then it is very easy for an individual to defend himself from any kind of the liability claims and one can effectively deal the claims filed without paying anything.

Strategies to Choose a Health Insurance Plan

Every person has the right to insure oneself. Whether you have an employer who is happy to give you a choice of insurance plans or that you may need to purchase one for yourself, it is crucial that you understand and have considered the type of insurance that is best for your situation.

The following are a few strategic questions that insurance policy seekers should know while in the process to choose a health insurance plan.

Affordability of the care expense

• How much is the monthly insurance bill?
• Are there penalties in cases of delays in the payment?
• How can I track my payments?
• Should I include in the health insurance all the medical needs even the simple basic ones (cough, fever, medical check-ups, etc) or just the serious conditions only?
• How much is my insurance limit?
• Which medical services should I include in the health insurance?
• Only the expensive medical services should be taken into the plan?
• What deductibles do I have to pay before I get reimbursed?
• After meeting the deductibles, how much of the medical expenses are reimbursed?
• How much will be reimbursed if I go to doctors outside of the insurance company's network?

Services covered

• Which medical facilities and services are covered by the insurance?
• Will the insurance take part in the payment if I use medical services and facilities outside of the insurance company's network?
• How easy and fast can it be if I change primary physicians?
• Is permission needed every time I see a medical specialist?
• Will the plan cover my pre-existing medical condition?
• Are the prescription medicines covered by the plan?
• Are my maintenance medications covered by the plan?
• Are certain diagnostic procedures included in the insurance plan?
• Does the plan consider and reimburse on alternative medical therapies like chiropractic treatment and other conventional or innovated methods?
• Will chronic conditions be catered by the health insurance plan?
• Does the plan consider delivering a baby and maternity care?
• Does the plan consider disability or hospice care?
• Does the plan consider health emergency situations?

There are many questions that a policy insurance seeker should throw before finally landing on a certain insurance plan. To choose a health insurance plan is not that easy. You are investing on something which will make a difference later on. It is your responsibility to make sure that the insurance you are choosing is the right one for you and your family. Certain considerations are to be followed and should be bear in mind.

Protecting Your Life Cover Premiums

Life insurance offers peace of mind for those planning to protect the financial future of their families and loved ones, should the worst happen. Anyone taking out a life cover policy should consider whether they could afford to continue paying the premiums if they were unable to work due to long-term illness or injury.

Life cover will pay out a lump sum on death or diagnosis of a terminal illness, provided the policy terms and conditions are met. This cover becomes even more valuable to those who are incapable of working as the result of illness or injury. Unfortunately, this will have a big impact on their income and they may have to rely on State benefits or even be forced to dip into their savings. They could decide that they can't afford to continue paying for their life cover and cancel the policies.

If someone cancels a policy, they may find that they are unable to get replacement cover in the future. Even if they can take out another policy, the cover may cost more or be subject to exclusions. The cost of life cover increases with age and a history of serious illness or injury may also require a higher premium. It therefore makes very good sense not to cancel a life cover policy during a period of long-term illness or injury.

It is possible to add, for an extra charge, a benefit that will keep the premiums going during a period of long-term illness or accidental injury. This benefit must be added from the start of the policy and is available to those below a certain age, set by the provider, who are in good health and don't work in a high-risk occupation. The insured person can claim the benefit if the illness or injury has stopped them from working for more than a certain period, typically six months. The provider will keep the premiums going until the person recovers.

But what about those who suffer illness or injury when they aren't in full-time employment? Well, this benefit can also apply to them. They can usually claim the benefit if they are ill or injured and are unable, six months after the start of the illness or injury, to perform a number of basic, everyday tasks.

So, anyone considering taking out a life cover policy, will need to decide whether to include this valuable benefit. It is comforting to know that no premiums will be collected at a time of long-term incapacity and that the policy can continue to provide financial peace of mind.

It's always sensible to read the terms and conditions, before starting a policy, to ensure that the cover meets all requirements.

Insurance patents

New assurance products can now be protected from copying with a business method patent in the United States.

A recent example of a new insurance product that is patented is Usage Based auto insurance. Early versions were independently invented and patented by a major U.S. auto insurance company, Progressive Auto Insurance and a Spanish independent inventor, Salvador Minguijon Perez.

Many independent inventors are in favor of patenting new insurance products since it gives them protection from big companies when they bring their new insurance products to market. Independent inventors account for 70% of the new U.S. patent applications in this area.

Many insurance executives are opposed to patenting insurance products because it creates a new risk for them. The Hartford insurance company, for example, recently had to pay $80 million to an independent inventor, Bancorp Services, in order to settle a patent infringement and theft of trade secret lawsuit for a type of corporate owned life insurance product invented and patented by Bancorp.

There are currently about 150 new patent applications on insurance inventions filed per year in the United States. The rate at which patents have issued has steadily risen from 15 in 2002 to 44 in 2006.

Inventors can now have their insurance U.S. patent applications reviewed by the public in the Peer to Patent program. The first insurance patent application to be posted was US2009005522 “Risk assessment company”. It was posted on March 6, 2009. This patent application describes a method for increasing the ease of changing insurance companies.

Home insurance

Home insurance, also commonly called hazard insurance or homeowner's insurance (often abbreviated in the real estate industry asHOI), is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory. It requires that at least one of the named insureds occupies the home. The dwelling policy (DP) is similar, but used for residences which don't qualify for various reasons, such as vacancy/non-occupancy, seasonal/secondary residence, or age.

It is a multiple-line insurance, meaning that it includes both property and liability coverage, with an indivisible premium, meaning that a single premium is paid for all risks. Standard forms divide coverage into several categories, and the coverage provided is typically a percentage of Coverage A, which is coverage for the main dwelling.^[1]

The cost of homeowner's insurance often depends on what it would cost to replace the house and which additional riders—additional items to be insured—are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims due to floods or war (whose definition typically includes a nuclear explosion from any source), amongst other standard exclusions (like termites), are excluded. Special insurance can be purchased for these possibilities, including flood insurance. Insurance should be adjusted to reflect replacement cost, usually upon application of an inflation factor or a cost index.

The home insurance policy is usually a term contract—a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station; if the house is equipped with fire sprinklers and fire alarms; or if the house exhibits wind mitigation measures, such as hurricane shutters. Perpetual insurance, which is a type of home insurance without a fixed term, can also be obtained in certain areas.

Common law of insurance - Basic Principles

Common law jurisdictions in former members of the British empire, including the United States, Canada, India, South Africa, and Australia ultimately originate with the law of England and Wales. What distinguishes common law jurisdictions from their civil law counterparts is the concept of judge-made law and the principle of stare decisis - the idea, at its simplest, that courts are bound by the previous decisions of courts of the same or higher status. In the insurance law context, this meant that the decisions of early commercial judges such as Mansfield, Lord Eldon and Buller bound, or, outside England and Wales, were at the least highly persuasive to, their successors considering similar questions of law.

At common law, the defining concept of a contract of commercial insurance is of a transfer of risk freely negotiated between counterparties of similar bargaining power, equally deserving (or not) of the courts' protection. The underwriter has the advantage, by dint of drafting the policy terms, of delineating the precise boundaries of cover. The prospective insured has the equal and opposite advantage of knowing the precise risk proposed to be insured in better detail than the underwriter can ever achieve. Central to English commercial insurance decisions, therefore, are the linked principles that the underwriter is bound to the terms of his policy; and that the risk is as it has been described to him, and that nothing material to his decision to insure it has been concealed or misrepresented to him.

In civil law countries insurance has typically been more closely linked to the protection of the vulnerable, rather than as a device to encourage entrepreneurialism by the spreading of risk. Civil law jurisdictions - in very general terms - tend to regulate the content of the insurance agreement more closely, and more in the favour of the insured, than in common law jurisdictions, where the insurer is rather better protected from the possibility that the risk for which it has accepted a premium may be greater than that for which it had bargained. As a result, most legal systems worldwide apply common-law principles to the adjudication of commercial insurance disputes, whereby it is accepted that the insurer and the insured are more-or-less equal partners in the division of the economic burden of risk.

Automobile insurance

The Insurance Research Council estimated that in 1996, 21 to 36 percent of auto-insurance claims contained elements of suspected fraud.There is a wide variety of schemes used to defraud automobile insurance providers. These ploys can differ greatly in complexity and severity. Richard A. Derrig, vice president of research for the Insurance Fraud Bureau of Massachusetts, lists several ways that auto-insurance fraud can occur.

Examples of soft auto-insurance fraud can include filing more than one claim for a single injury, filing claims for injuries not related to anautomobile accident, misreporting wage losses due to injuries, or reporting higher costs for car repairs than those that were actually paid.Hard auto-insurance fraud can include activities such as staging automobile collisions, filing claims when the claimant was not actually involved in the accident, submitting claims for medical treatments that were not received, or inventing injuries. Hard fraud can also occur when claimants falsely report their vehicle as stolen. Soft fraud accounts for the majority of fraudulent auto-insurance claims.

Another example is that a person may illegally register their car to a location that would net them cheaper insurance rates than where they actually live, sometimes called "rate evasion". For example, some drivers in Brooklyn drive with Pennsylvania license plates because registering their car in a rural part of Pennsylvania will cost a lot less than registering it in Brooklyn. Another form of automobile insurance fraud, known as "fronting," involves registering someone other than the real primary driver of a car as the primary driver of the car. For example, parents might list themselves as the primary driver of their children's vehicles to avoid young driver premiums.

"Crash for cash" scams may involve random unaware strangers, set to appear as the perpetrators of the orchestrated crashes. Such techniques are the classic rear-end shunt (the driver in front suddenly slams on the brakes, eventually with brake lights disabled), the decoy rear-end shunt (when following one car, another one pulls in front of it, causing it to brake sharply, then the first car drives off) or the helpful wave shunt (the driver is waved in to a line of queuing traffic by the scammer who promptly crashes, then denies waving)

Organized crime rings can also be involved in auto-insurance fraud, sometimes carrying out schemes that are very complex. An example of one such ploy is given by Ken Dornstein, author of Accidentally, on Purpose: The Making of a Personal Injury Underworld in America. In this scheme, known as a “swoop-and-squat,” one or more drivers in “swoop” cars force an unsuspecting driver into position behind a “squat” car. This squat car, which is usually filled with several passengers, then slows abruptly, forcing the driver of the chosen car to collide with the squat car. he passengers in the squat car then file a claim with the other driver’s insurance company. This claim often includes bills for medical treatments that were not necessary or not received.

An incident that took place on Golden State Freeway June 17, 1992, brought public attention to the existence of organized crime rings that stage auto accidents for insurance fraud. These schemes generally consist of three different levels. At the top, there are the professionals--doctors or lawyers who diagnose false injuries and/or file fraudulent claims and these earn the bulk of the profits from the fraud. Next are the "cappers" or "runners", the middlemen who obtain the cars to crash, farm out the claims to the professionals at the top, and recruit participants. These participants at the bottom-rung of the scheme are desperate people (poor immigrants or others in need of quick cash) who are paid around $1000 USD to place their bodies in the paths of cars and trucks, playing a kind of Russian roulette with their lives and those of unsuspecting motorists around them. According to investigators, cappers usually hire within their own ethnic groups. What makes busting these staged-accident crime rings difficult is how quickly they move into jurisdictions with lesser enforcement, after a crackdown in a particular region. As a result, in the US several levels of police and the insurance industry have cooperated in forming task forces and sharing databases to track claim histories.

Insurance fraud

Insurance fraud is any act committed with the intent to fraudulently obtain payment from an insurer.

Insurance fraud has existed ever since the beginning of insurance as a commercial enterprise.^[1]Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Types of insurance fraud are very diverse, and occur in all areas of insurance. Insurance crimes also range in severity, from slightly exaggerating claims to deliberately causing accidents or damage. Fraudulent activities also affect the lives of innocent people, both directly through accidental or purposeful injury or damage, and indirectly as these crimes cause insurance premiums to be higher. Insurance fraud poses a very significant problem, and governments and other organizations are making efforts to deter such activities.

Car Insurance - The One Thing You Should Do Differently When Getting Car Insurance

Let's face it, you haven't spent the past 3 years or more of your life, reading up on insurance policies, rules, regulations or keeping track of what insurers offer. Yet the time has come for you to get car insurance. How do you proceed? You have options. Some better than others. Read this article and find out what one thing done differently saves you the most, both in terms of money and in terms of hassles.

Everybody tells you to shop around, compare car insurance quotes. Everybody is right, if you do your research well, you do save. The problem is that doing the research well takes a lot of time. And you might not ever know if you've uncovered everything you needed to uncover.

So, most people will advise you to search online, Google 'compare auto insurance' or just 'auto insurance' and start sifting through the tons of results. The goal being to locate several reputable insurers and compare auto insurance quotes from them side by side. Basic yet wise advice.

But.

You're not an insurance expert, so it will take time. And even after spending days researching you might not even know all the questions you need to ask.

So, what's the solution?

Instead of searching for a good insurance quote, search for a good independent insurance agent.

Why is that the solution?

Independent insurance agents, unlike regular ones, have access to tons and tons of insurance companies, insurance programs. Unlike you, they know the ins and outs of the insurance business.

The only hiccup - you still have to find a good one. But even an average one can get you the same or better insurance than you can on your own. And in a lot less time. Usually, they are able to find you a cheaper policy. Usually, they make sure you get the right insurance. Because the biggest problem with car insurance is not that people pay too much (I know, it sometimes seems that way) but that they are under-insured.

The one thing that if you did it made the biggest difference with your car insurance, though, is not going to an independent insurance agent. The one thing that if you did it made the biggest difference with your car insurance is going to several of them and have them do your research for you.

They might all come back with the same insurance program, case in which you know for a fact that it is the best, cheapest insurance for you and your car. They might come back with different programs, then you get to ask them to tell you why they think theirs is the best. You end up with a lot of good information. You make a better decision.

If you're search for the best or cheapest car insurance involves you typing Chicago auto insurance in Google's search box, then www.swias.com (Statewide Insurance Agency Of Skokie) is one of the independent insurance agencies you should have work with. They've been in business over 15 years and have helped thousands of Chicago area people get the best car insurance for them.

Family Health Insurance - A Solution for a Lifetime

There are many different types of health insurance that you can get, and it all depends on your lifestyle, your priorities and also the money you are willing to spend for that. Family health insurance is one of the best options you can choose, not only for yourself, but also for your family members. You can find quotes of family insurance even on internet, and more information you gather, more you'll be able to compare the quotes and decide which one suits you. Basic things that family health insurance plans cover are day-patient consultations, treatments, tests and scans, so it's on you see what kind of extra benefits you can get.

The most popular and affordable family health insurance plan is managed care plan, with a network of doctors, hospitals, clinics, specialists, and other health care professionals who provide services at discount rates. There are some different kinds of this plan:

• Preferred Provider Organization (PPO) - a flexible plan that covers even visiting a doctors who don't belong to a network.
• Health Maintenance Organization (HMO) - a plan where you choose your primary care physician and he would be the one to give you a referral, if necessary. This plan covers only service inside the network.
• Point Of Service (POS) - this plan have all the advantages of first two, you can choose your primary care physician, but you will also have a coverage when you visit a doctor outside the network.

There are also two more different types of family health care. The first one gives you the opportunity to get individual plans for every family member. That can be useful if family members have different health needs. The seconds one, and also very affordable is to add family members under your individual coverage.

The most important thing, and usually the reason why people want to consider every option is the child. That's why they must learn how child's health insurance is important. Most of insurance companies offer out-patient consultation with a specialist, out-patient tests, private hospital treatment such as surgery and parent accommodation in the hospital for children under 11. This kind of insurance should cover should cover routine preventive care, as well as sick visits, prescription drugs, emergency care and inpatient and outpatient procedures. Preventive care is important especially for younger children, and it should cover: routine doctor check-ups, immunizations and vaccinations and well-baby care.

The greatest benefit for parents might be chance to stay with their children in hospital. Also, some family health insurance plans offer routine dental and optical cover to your policy for an additional premium. There many other benefits that can be included, but they usually consist of consider from usually consist of homeopathy, oral surgery, home nursing and using a private ambulance. The thing is that whatever plan you choose, you should know that it can be a life savior to your family, so you better choose the good one.