What is the underwriting process for term life insurance?

Underwriting is the process insurers use to determine your eligibility and premium rates. It includes reviewing your age, medical history, lifestyle, occupation, and sometimes requiring a medical exam. A simplified issue policy skips the exam but may have higher premiums, while a fully underwritten policy offers lower rates after a full health evaluation.

How do I file an insurance claim?

To file a claim, contact your insurance provider as soon as possible, provide necessary documentation (such as photos, police reports, or medical records), and follow their claims process. The insurer will assess the claim and determine the payout.

Can an insurance policy be transferred to another person?

Most insurance policies are non-transferable, except in specific cases such as property or business insurance, where ownership changes may allow policy assignment or endorsement.

What is the significance of "policy limits" in insurance?

Policy limits are the maximum amount an insurer will pay out for a covered loss under a policy. They can be set for specific types of coverage, such as liability, property damage, or medical expenses. Understanding policy limits is crucial for both the insured and the insurer, as it dictates the amount of financial protection available and may influence whether the insured needs additional coverage to fully protect against potential risks.

Does product liability insurance cover third-party suppliers?

Some policies extend coverage to third-party suppliers, but businesses should ensure that suppliers also have their own liability insurance to reduce overall risk exposure.

How does the death benefit work in variable life insurance?

The death benefit is paid to beneficiaries, and its value may vary depending on the cash value and policy structure.

What is an "uninsurable peril"?

An uninsurable peril is a risk that insurers generally do not cover due to its high unpredictability or potential for extreme loss. Examples include war, acts of terrorism, government seizure, and certain types of pollution. Some uninsurable risks may require specialized or government-backed insurance programs.

How does captive insurance affect a company’s financial stability?

Captive insurance can improve financial stability by providing more predictable costs, retaining underwriting profits, and offering greater control over insurance claims. However, it also requires sufficient capital to meet claims.