Can I use my cash value to pay off debt?

Yes, you can take a loan from your cash value to pay off debt. This can be beneficial since policy loans often have lower interest rates than traditional loans. However, unpaid loans reduce the death benefit and could cause the policy to lapse if interest accrues significantly.

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What is the difference between Solvency I and Solvency II?

Solvency I used simple capital requirements based on premiums and claims, while Solvency II introduced a risk-based approach, incorporating risk management, governance, and stricter capital adequacy rules.

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Does cyber insurance cover ransom payments to hackers?

Many policies cover ransom payments, but insurers may require consultation with cybersecurity experts before approving payments to cybercriminals.

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What is stacked vs. non-stacked uninsured motorist coverage?

Stacked UM coverage allows you to combine coverage limits across multiple vehicles on your policy, increasing your total protection. Non-stacked coverage applies only to the vehicle involved in the accident. Stacking is available only in some states.

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Are insurance premiums tax-deductible?

Some insurance premiums, such as health insurance for self-employed individuals or certain business-related policies, may be tax-deductible, but eligibility depends on tax laws and individual circumstances.

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What information do I need to file an insurance claim?

You’ll need your policy number, details of the incident, receipts or estimates of the damage, and any supporting documents like photos or police reports.

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How does big data help insurers comply with regulations?

Big data helps insurers track compliance with industry regulations by automating reporting processes, monitoring risk exposure, and ensuring adherence to data protection laws. It also assists in anti-money laundering (AML) and fraud prevention efforts.

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How do insurers use actuarial science to determine premiums?

Insurers use actuarial science to analyze statistical data, assess risk probabilities, and set premiums that balance profitability with competitive pricing and policyholder fairness.

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