Life insurance is an agreement between an insurer and a policy payer in which the policy payer, which is usually the insured, is ensured to have his beneficiary or beneficiaries paid a death benefit by the insurer in the event of his death. The policy payer will gradually pay the benefit through payment of premium. This premium is either paid on a monthly basis or on lump sums. Life policies determine the coverage of the insured person’s life. The contract between the policy owner and the insurer limits the events that are covered by life policy. A death of an insured is the usual event covered by insurance. Some other events that are included in the life policy are sickness, accidents, and untimely deaths.
The stipulations of an insurance contract normally limit the obligations and liability of the insurer to the policy payer. Exclusions are written off in the contract to delimit the coverage of the life insurance policy purchased by a policy owner.
Life-based insurance contracts are classified in two: protection insurance and investment insurance. Term life insurance is an example of protection insurance policy. In this insurance, only a specified event and term is covered by the insurance policy. In the occurrence of the specified event, the beneficiaries of the insured will be paid the insurance claims. Whole life insurance is an example of investment insurance. In this policy, the insured will be covered by insurance throughout his lifetime. In the event of his demise, the beneficiaries will be paid death benefit.
The individuals that concern insurance contracts include the insurer, policy owner, the insured, and his beneficiaries. The insurer is the party that will pay death benefits to the beneficiaries of the insured in the event of the insured’s death. The policy owner is most oftentimes also the insured person. However, in certain cases, the policy owner is only the purchaser of the insurance, and the insured is a different person from the policy payer. For example, a wife buys insurance for her husband. The husband is the insured person, while the wife is the policy payer, since she is the person responsible for paying the monthly insurance premiums. The beneficiaries will receive the death benefits only in the demise of the husband – the insured person. Beneficiaries are usually the dependents of the insured who will receive insurance claims at the occurrence of the death of the insured. Beneficiaries may either be individuals or organizations.
Generally, the cost of a life insurance for a policy payer will be based on the insurance company’s calculation of insurance policy prices considering altogether the funding of insurance claims to be paid, the administrative costs, and the profit for insuring a person. The price of the insurance is normally based on mortality tables that are computed by actuaries. These actuaries are the ones responsible for the calculation of these tables with the use of actuarial science that is based on probability and statistics. Life expectancies are also essential to computation of insurance prices.
The occurrence of the insured’s death will have his beneficiaries be able to receive the death benefits upon their presentation of proof of death. Life insurance companies typically require death certificates and insurer’s claims before they pay the beneficiaries the insurance benefit. In some cases, insurers investigate on a suspicious death of the insured to determine if they are obligated to pay the death benefits to beneficiaries.
Tuesday, May 26, 2009
life insurance
Life insurance is an agreement between an insurer and a policy payer in which the policy payer, which is usually the insured, is ensured to have his beneficiary or beneficiaries paid a death benefit by the insurer in the event of his death. The policy payer will gradually pay the benefit through payment of premium. This premium is either paid on a monthly basis or on lump sums. Life policies determine the coverage of the insured person’s life. The contract between the policy owner and the insurer limits the events that are covered by life policy. A death of an insured is the usual event covered by insurance. Some other events that are included in the life policy are sickness, accidents, and untimely deaths.
The stipulations of an insurance contract normally limit the obligations and liability of the insurer to the policy payer. Exclusions are written off in the contract to delimit the coverage of the life insurance policy purchased by a policy owner.
Life-based insurance contracts are classified in two: protection insurance and investment insurance. Term life insurance is an example of protection insurance policy. In this insurance, only a specified event and term is covered by the insurance policy. In the occurrence of the specified event, the beneficiaries of the insured will be paid the insurance claims. Whole life insurance is an example of investment insurance. In this policy, the insured will be covered by insurance throughout his lifetime. In the event of his demise, the beneficiaries will be paid death benefit.
The individuals that concern insurance contracts include the insurer, policy owner, the insured, and his beneficiaries. The insurer is the party that will pay death benefits to the beneficiaries of the insured in the event of the insured’s death. The policy owner is most oftentimes also the insured person. However, in certain cases, the policy owner is only the purchaser of the insurance, and the insured is a different person from the policy payer. For example, a wife buys insurance for her husband. The husband is the insured person, while the wife is the policy payer, since she is the person responsible for paying the monthly insurance premiums. The beneficiaries will receive the death benefits only in the demise of the husband – the insured person. Beneficiaries are usually the dependents of the insured who will receive insurance claims at the occurrence of the death of the insured. Beneficiaries may either be individuals or organizations.
Generally, the cost of a life insurance for a policy payer will be based on the insurance company’s calculation of insurance policy prices considering altogether the funding of insurance claims to be paid, the administrative costs, and the profit for insuring a person. The price of the insurance is normally based on mortality tables that are computed by actuaries. These actuaries are the ones responsible for the calculation of these tables with the use of actuarial science that is based on probability and statistics. Life expectancies are also essential to computation of insurance prices.
The occurrence of the insured’s death will have his beneficiaries be able to receive the death benefits upon their presentation of proof of death. Life insurance companies typically require death certificates and insurer’s claims before they pay the beneficiaries the insurance benefit. In some cases, insurers investigate on a suspicious death of the insured to determine if they are obligated to pay the death benefits to beneficiaries.
The stipulations of an insurance contract normally limit the obligations and liability of the insurer to the policy payer. Exclusions are written off in the contract to delimit the coverage of the life insurance policy purchased by a policy owner.
Life-based insurance contracts are classified in two: protection insurance and investment insurance. Term life insurance is an example of protection insurance policy. In this insurance, only a specified event and term is covered by the insurance policy. In the occurrence of the specified event, the beneficiaries of the insured will be paid the insurance claims. Whole life insurance is an example of investment insurance. In this policy, the insured will be covered by insurance throughout his lifetime. In the event of his demise, the beneficiaries will be paid death benefit.
The individuals that concern insurance contracts include the insurer, policy owner, the insured, and his beneficiaries. The insurer is the party that will pay death benefits to the beneficiaries of the insured in the event of the insured’s death. The policy owner is most oftentimes also the insured person. However, in certain cases, the policy owner is only the purchaser of the insurance, and the insured is a different person from the policy payer. For example, a wife buys insurance for her husband. The husband is the insured person, while the wife is the policy payer, since she is the person responsible for paying the monthly insurance premiums. The beneficiaries will receive the death benefits only in the demise of the husband – the insured person. Beneficiaries are usually the dependents of the insured who will receive insurance claims at the occurrence of the death of the insured. Beneficiaries may either be individuals or organizations.
Generally, the cost of a life insurance for a policy payer will be based on the insurance company’s calculation of insurance policy prices considering altogether the funding of insurance claims to be paid, the administrative costs, and the profit for insuring a person. The price of the insurance is normally based on mortality tables that are computed by actuaries. These actuaries are the ones responsible for the calculation of these tables with the use of actuarial science that is based on probability and statistics. Life expectancies are also essential to computation of insurance prices.
The occurrence of the insured’s death will have his beneficiaries be able to receive the death benefits upon their presentation of proof of death. Life insurance companies typically require death certificates and insurer’s claims before they pay the beneficiaries the insurance benefit. In some cases, insurers investigate on a suspicious death of the insured to determine if they are obligated to pay the death benefits to beneficiaries.
Monday, May 25, 2009
Why Insurance Company Websites are So Popular
Brand-name advertising is one of the key performance drivers that explains why so much web traffic targets GEICO and other large auto insurer sites. GEICO has the best growth record among major auto insurers in part because annual advertising expenditures had mushroomed to US$631 million in 2007.
GEICO spends more on ads than any of its competitors. This may explain why so many American consumers use search engines to find GEICO as the low-cost auto insurance company of choice.
Other large auto insurers also invest hundreds of millions of dollars into brand advertising. Millions of drivers put a high priority on how well-established and financially secure their auto insurance company is. Multi-million dollar marketing campaigns condition those consumers to think of big carriers like State Farm and Nationwide when searching online for auto insurance quotes.
Yet the largest and most profitable auto insurance companies don’t necessarily offer the lowest rates.
Even after an 8% premium discount for GEICO-defined affinity groups, Warren Buffett recently admitted that GEICO rates might not lower the premiums for up to 50% of Berkshire Hathaway shareholders with existing coverage.
Why Online Lead Aggregators are Becoming Unpopular
While the online lead aggregators in our study generated 12.5% of total online visitors, that number understates the vast number of websites that this category of auto quote websites represents.
Consumers who request a rate proposal from the likes of US Insurance Online, CAR Insurance or Online Auto Insurance can expect up to 8 phone calls from local agents from direct carriers. These salespersons will ask more detailed questions and try to sell one of their company’s policies to whoever requested the online quote.
Comparison Raters
Scoring 5.9% of the total number of visitors looking for online quotes, Insurance.com represents a fast-growing segment in the auto insurance marketplace.
Once a single request form is completed, a comparison rater website will quote the lowest car insurance rates from a select group of insurance companies. For example, Insurance.com compares and then extracts the most economical premiums from more than a dozen partner insurance companies such as Progressive, Travelers, 21st Century, Hartford, Liberty Mutual, Met Life and Safeco. Each of the participating carriers at Insurance.com is rated Excellent or Superior by A.M. Best Company, the leading provider of insurance industry ratings.
Consumers immediately see the 4 best-of-breed quotes from the pool of participating direct insurance companies, then can make a decision to purchase one of those policies via Insurance.com as part of a single website visit.
In addition, comparison raters focus on developing user-friendly blogs that educate consumers on topics that help explain how auto insurance works.
Auto Insurance Website Study Findings
Regardless of high web traffic scores, none of the websites in this analysis can guarantee the lowest possible premiums for an individual consumer on any given day.
GEICO, State Farm or Nationwide might offer lower rates than any of Insurance.com’s partner insurance companies. Or vice versa.
Therefore, a prudent consumer will selectively research quotes from one or more individual auto insurance companies as well as a comparison rater.
GEICO spends more on ads than any of its competitors. This may explain why so many American consumers use search engines to find GEICO as the low-cost auto insurance company of choice.
Other large auto insurers also invest hundreds of millions of dollars into brand advertising. Millions of drivers put a high priority on how well-established and financially secure their auto insurance company is. Multi-million dollar marketing campaigns condition those consumers to think of big carriers like State Farm and Nationwide when searching online for auto insurance quotes.
Yet the largest and most profitable auto insurance companies don’t necessarily offer the lowest rates.
Even after an 8% premium discount for GEICO-defined affinity groups, Warren Buffett recently admitted that GEICO rates might not lower the premiums for up to 50% of Berkshire Hathaway shareholders with existing coverage.
Why Online Lead Aggregators are Becoming Unpopular
While the online lead aggregators in our study generated 12.5% of total online visitors, that number understates the vast number of websites that this category of auto quote websites represents.
Consumers who request a rate proposal from the likes of US Insurance Online, CAR Insurance or Online Auto Insurance can expect up to 8 phone calls from local agents from direct carriers. These salespersons will ask more detailed questions and try to sell one of their company’s policies to whoever requested the online quote.
Comparison Raters
Scoring 5.9% of the total number of visitors looking for online quotes, Insurance.com represents a fast-growing segment in the auto insurance marketplace.
Once a single request form is completed, a comparison rater website will quote the lowest car insurance rates from a select group of insurance companies. For example, Insurance.com compares and then extracts the most economical premiums from more than a dozen partner insurance companies such as Progressive, Travelers, 21st Century, Hartford, Liberty Mutual, Met Life and Safeco. Each of the participating carriers at Insurance.com is rated Excellent or Superior by A.M. Best Company, the leading provider of insurance industry ratings.
Consumers immediately see the 4 best-of-breed quotes from the pool of participating direct insurance companies, then can make a decision to purchase one of those policies via Insurance.com as part of a single website visit.
In addition, comparison raters focus on developing user-friendly blogs that educate consumers on topics that help explain how auto insurance works.
Auto Insurance Website Study Findings
Regardless of high web traffic scores, none of the websites in this analysis can guarantee the lowest possible premiums for an individual consumer on any given day.
GEICO, State Farm or Nationwide might offer lower rates than any of Insurance.com’s partner insurance companies. Or vice versa.
Therefore, a prudent consumer will selectively research quotes from one or more individual auto insurance companies as well as a comparison rater.
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