Can I take out a loan against my Universal Life Insurance policy?

Yes, UL policies allow policyholders to borrow against the cash value. Loans typically have interest charges and must be repaid, or they will reduce the death benefit. If the loan balance grows too large, it may cause the policy to lapse.

What are the main types of hazards in insurance?

Hazards are classified into three main types: physical hazards (tangible risks), moral hazards (dishonest behavior), and morale hazards (carelessness or neglect). Each type affects risk differently.

How can gig workers protect themselves from financial risks?

They can secure health, disability, liability, and business insurance, save for emergencies, and set up retirement plans.

What is the role of IRDAI in resolving insurance disputes?

IRDAI provides a structured grievance redressal mechanism through the Integrated Grievance Management System (IGMS) and the Insurance Ombudsman. It ensures policyholders can file complaints against insurers for unfair claim denials, policy misrepresentation, or delayed settlements.

Is prescription medication covered for accident-related injuries?

Yes, medications required to treat injuries, such as antibiotics, pain relievers, or anti-inflammatories, are generally covered under accident insurance.

Does Medicare cover nursing home care?

Medicare only covers skilled nursing facility (SNF) care for a limited time after a hospital stay. It does not cover long-term custodial care in a nursing home. Medicaid or private long-term care insurance may be needed for extended stays.

How does co-insurance help mitigate moral hazard?

Co-insurance requires policyholders to share a percentage of the claim cost, ensuring they have a financial stake in avoiding excessive claims. This discourages unnecessary medical treatments, property damage claims, or other avoidable expenses.

What are the benefits of AI in underwriting?

Benefits include increased efficiency, faster decision-making, improved risk assessment accuracy, cost reduction, fraud detection, personalized pricing, and enhanced customer experience.