How does a lapse affect auto insurance?

A lapsed auto insurance policy can lead to fines, license suspension, or higher future premiums. Insurers may classify you as a high-risk driver, making it harder and more expensive to obtain new coverage.

How long does business interruption coverage last?

Coverage lasts for the “restoration period,” which is the time needed to repair damage and resume normal business operations, usually capped at a set number of months.

What is the difference between whole life insurance and universal life insurance?

Whole life insurance has fixed premiums, a guaranteed death benefit, and steady cash value growth. Universal life insurance offers flexible premiums and death benefits, along with investment-linked cash value growth, allowing policyholders more control over their policy structure.

Can there be multiple insured individuals on a single policy?

Yes, an insurance policy can cover multiple insured individuals. For example, a family health insurance policy may cover a spouse and children, and a commercial insurance policy may include business owners, employees, or key personnel.

What factors affect the underwriting of an insurance policy?

Underwriters assess factors like age, medical history, occupation, lifestyle, financial status, and past claims history to determine policy eligibility, coverage limits, and premium rates.

How are term life insurance premiums taxed?

Term life insurance premiums are generally not deductible for individuals, but they may be deductible if the insurance is provided as part of an employee benefit plan. There are no tax implications on the premiums themselves for most personal policies.

Is employer liability insurance legally required?

Requirements vary by country and state. In some places, it is mandatory, especially if workers' compensation does not fully cover all employer liabilities. Always check local labor laws.

Who should consider buying variable life insurance?

Those seeking permanent life coverage with investment opportunities and willing to manage market risk may benefit from variable life insurance.