The leading cause of death in people 45 and younger is by accident and complications from injury caused by an accident. In fact, most insurers include AD&D coverage with group life insurance plans and are offering it at extremely low rates. Do you have an employee population of mostly young people? Have you considered the increased risk of accident for this group? 4A's Benefits can provide the answer to your questions. For more information or a group life insurance proposal, please contact Elyse Congdon at econgdon@aaaabenefits.com or Tom Kennedy at tkennedy@aaaabenefits.com.
Tuesday, May 5, 2009
Monday, May 4, 2009
Eight years after woman’s death, husband to receive dealth insurance claim
The Punjab State Consumer Disputes Redressal Commission has directed the Life Insurance Corporation of India to pay Rs 1 lakh as insurance claim to a man, whose wife died following a caesarian operation in 2001.
The complainant, Harbans Lal, resident of Tarn Taran, said in his complaint that his wife, Sharanjit Kaur, had taken two life insurance policies — in 1996 and 1999 — with her husband named as nominee in both.
When Sharanjit Kaur died in October, 2001, the company repudiated the insurance claim on grounds that Sharanjit Kaur had undergone caesarian earlier too, and that she died due to pregnancy-related complications.
The complainant, Harbans Lal, resident of Tarn Taran, said in his complaint that his wife, Sharanjit Kaur, had taken two life insurance policies — in 1996 and 1999 — with her husband named as nominee in both.
When Sharanjit Kaur died in October, 2001, the company repudiated the insurance claim on grounds that Sharanjit Kaur had undergone caesarian earlier too, and that she died due to pregnancy-related complications.
The company alleged that she had hidden this fact while filling the proposal form and therefore the complainant was not entitled to any claim.
After the Amritsar district forum dismissed the complaint, Lal filed an appeal in the Punjab State Headed by Justice S N Aggarwal, the commission held: “The caesarian operation was not a material fact, the suppression of which would have entitled the company to repudiate the claim. In every 100 delivery cases, nearly 40 per cent are caesarian. It cannot be equated with a serious or fatal disease. It was by chance that Sharanjit Kaur died while undergoing the second delivery.”
Failing to pay accident claim, consumer forum pulls up insurance companyThe District Consumer Disputes Redressal Forum has directed the United Insurance Company to pay Rs 26,534 as insurance claim to a car owner, whose vehicle was completely damaged in an accident.
After the Amritsar district forum dismissed the complaint, Lal filed an appeal in the Punjab State Headed by Justice S N Aggarwal, the commission held: “The caesarian operation was not a material fact, the suppression of which would have entitled the company to repudiate the claim. In every 100 delivery cases, nearly 40 per cent are caesarian. It cannot be equated with a serious or fatal disease. It was by chance that Sharanjit Kaur died while undergoing the second delivery.”
Failing to pay accident claim, consumer forum pulls up insurance companyThe District Consumer Disputes Redressal Forum has directed the United Insurance Company to pay Rs 26,534 as insurance claim to a car owner, whose vehicle was completely damaged in an accident.
Thursday, April 30, 2009
Loan payment protection/Dealth insurance
If you are planning to take out a large loan, you may want to inquire about loan protection insurance. This insurance, usually offered by financial institutions, guarantees that your loan payments will continue to be made if you become disabled or otherwise unable to make payments. The loan protection insurance will continue to pay your loan until you are able to resume payment. In the case of death, some plans will automatically repay your loan, releasing your family from this financial responsibility. Like other types of insurance, there are certain guidelines that must be met for coverage to be offered. Fees and types of coverage vary among financial institutions, so compare rates and benefits when looking for loan protection insurance. For more information, contact your bank or a financial advisor.
Monday, April 27, 2009
Age-based pricing for Dealth insurance has some consumers cutting back on coverage
Sue Rummel was determined to keep the custom drapery business she built over two decades afloat in a bum economy, so when her health insurance premiums jumped 16 percent last year, she scaled back her coverage and used the savings to balance her books.
Graphic Boomers pay price by economizing
Then she tore cartilage in her right knee, and her downsized health safety net failed to protect her pocketbook.
Surgery left her with $2,400 in unpaid bills.
"It's Russian roulette," Rummel said.
"You pay the lower premium and hope you don't need healthcare."
Like the 62-year-old self-employed Danvers seamstress, thousands of other baby boomers are finding themselves in this bind - having to choose between expensive monthly premiums that rise with age, and cheaper plans with skimpier coverage and high out-of-pocket costs for doctors and prescriptions.
Consumer advocates had hoped that regulators overseeing the state's pioneering health insurance overhaul would start to address this issue, by making it easier for self-employed people and retirees who are 50 to 64 to be exempted from a stiff tax penalty if they can't afford insurance. Connector Authority board members recently postponed tackling the issue, however, saying they needed to further study it.
"There's no apparent easy path here, and there have been so many other things on our plate," Rick Lord, a board member and chief executive of the state's largest business lobbying group, said in an interview.
Meanwhile, AARP Massachusetts, which has more than 800,000 members 50 and over, is hearing a growing number of complaints about age-based pricing in insurance, said its director, Deborah Banda.
"We have been maintaining a drumbeat on this for the last couple of years," she said, "and now is the time to start pounding that drum harder."
State law allows insurers to charge older people up to twice as much as younger people for the same coverage. In other states, the disparities can be even greater. One result is that more older people choose less comprehensive plans. Data from the Commonwealth Choice program, which offers state-approved private insurance, show that as enrollees grow older, more choose cheaper and less comprehensive coverage. Rummel, for example, would have had to pay $567 a month for comprehensive coverage, but opted for a more basic plan that cost $376.
Nearly everyone in Massachusetts is required to have health insurance or face a tax penalty, but regulators can waive the penalty if a person's monthly premium is deemed unaffordable.
The AARP and a coalition of other consumer groups want state regulators to count out-of-pocket costs, such as deductibles and copayments, in addition to premiums when determining whether insurance is affordable. And they want the maximum percentage of a resident's income spent on healthcare costs to be lowered to 8 percent. Some older residents, such as Rummel, now spend more than 12 percent of their income. These changes would allow more older people to avoid the penalty. But they would do nothing to make insurance more affordable, so AARP also wants lawmakers to tackle the larger issue of age-based pricing.
Graphic Boomers pay price by economizing
Then she tore cartilage in her right knee, and her downsized health safety net failed to protect her pocketbook.
Surgery left her with $2,400 in unpaid bills.
"It's Russian roulette," Rummel said.
"You pay the lower premium and hope you don't need healthcare."
Like the 62-year-old self-employed Danvers seamstress, thousands of other baby boomers are finding themselves in this bind - having to choose between expensive monthly premiums that rise with age, and cheaper plans with skimpier coverage and high out-of-pocket costs for doctors and prescriptions.
Consumer advocates had hoped that regulators overseeing the state's pioneering health insurance overhaul would start to address this issue, by making it easier for self-employed people and retirees who are 50 to 64 to be exempted from a stiff tax penalty if they can't afford insurance. Connector Authority board members recently postponed tackling the issue, however, saying they needed to further study it.
"There's no apparent easy path here, and there have been so many other things on our plate," Rick Lord, a board member and chief executive of the state's largest business lobbying group, said in an interview.
Meanwhile, AARP Massachusetts, which has more than 800,000 members 50 and over, is hearing a growing number of complaints about age-based pricing in insurance, said its director, Deborah Banda.
"We have been maintaining a drumbeat on this for the last couple of years," she said, "and now is the time to start pounding that drum harder."
State law allows insurers to charge older people up to twice as much as younger people for the same coverage. In other states, the disparities can be even greater. One result is that more older people choose less comprehensive plans. Data from the Commonwealth Choice program, which offers state-approved private insurance, show that as enrollees grow older, more choose cheaper and less comprehensive coverage. Rummel, for example, would have had to pay $567 a month for comprehensive coverage, but opted for a more basic plan that cost $376.
Nearly everyone in Massachusetts is required to have health insurance or face a tax penalty, but regulators can waive the penalty if a person's monthly premium is deemed unaffordable.
The AARP and a coalition of other consumer groups want state regulators to count out-of-pocket costs, such as deductibles and copayments, in addition to premiums when determining whether insurance is affordable. And they want the maximum percentage of a resident's income spent on healthcare costs to be lowered to 8 percent. Some older residents, such as Rummel, now spend more than 12 percent of their income. These changes would allow more older people to avoid the penalty. But they would do nothing to make insurance more affordable, so AARP also wants lawmakers to tackle the larger issue of age-based pricing.
Friday, April 24, 2009
What is Death insurance?
Death insurance is more commonly referred to as life insurance. It is insurance that provides a cash benefit to survivors upon the death of the insured person. Choosing life insurance can be confusing, as there are many different types and features available. Death insurance can be used for whatever purposes the beneficiary sees fit.
Significance
Surviving spouses and children of adults who die without any kind of life insurance can be hit hard by both the costs of final expenses and the loss of income. According to JD Powers and Associates, studies indicate that fully 40 percent of the adult population of the U.S. has absolutely no life insurance. Of those who are insured, it is estimated that more than 50 million have policies that are inadequate, and which force the surviving spouse to make drastic lifestyle changes to stay current with the family's financial obligations. This can force the family to change residences, sell possessions or switch jobs.
Function
In the past, life insurance was called "death insurance" because its primary function was thought to be simply to pay for funeral expenses. Now, however, life insurance has become important in helping the surviving family members maintain their regular lifestyle and place of residence. This is particularly important if one spouse is a stay-at-home parent or may not be prepared to immediately enter the workforce after the death of her partner. In the case of cash value life insurance, it can also be used as a form of investment and turned in for cash at a later date.
Types
There are two primary types of life insurance: term life insurance and whole life insurance. Both types of insurance pay a lump sum of money to the beneficiary upon the death of the policy holder. Term life is the least expensive insurance option, as it accrues no cash value. With a term policy, the premiums (the amount paid for the policy) are locked in only for a specific amount of time, after which the rates for renewal can be higher. Whole life insurance, in contrast, is more expensive, but builds cash value over time. The premiums for a whole life policy remain the same throughout the lifetime of the insured, provided that he maintains coverage.
Considerations
Determining how much life insurance to buy can be difficult. State Farm's insurance website explains that although there are many different methods of calculating how much life insurance a family needs, the best way to get adequate insurance is to sit down with a qualified agent and discuss your family's finances in depth. He can help you choose the proper benefit amount for all adults in your household. Ideally, there should be enough money for the family to pay off any existing mortgage and debt, as well as providing the amount that the deceased's income contributed for a period of two years. This amount will generally fall somewhere between six and 10 times the insured's gross yearly salary.
Expert Insight
Consumer expert Clarke Howard offers many tips for getting the most out of your life-insurance premium. He notes that one common mistake that many consumers make is buying more than one policy per person--for example, purchasing a policy as part of an employee benefit package and then buying additional individual insurance. Because each policy has some fees attached, the price of two policies that add up to $100,000 will be more than that of one policy worth the same amount. Howard also notes that the most efficient way to find the best life-insurance policy is to go to a reliable insurance comparison website. As long as the company is financially stable, there is very little difference from policy to policy. Rates between different companies can vary greatly, so it pays to shop around.
Thursday, April 23, 2009
AvSuper revamps death insurance
The $1 billion aviation industry super fund AvSuper has introduced anti-detriment provisions to members' death benefits.
Launched at the start of this year, AvSuper announced anti-detriment provisions will now apply to the death benefits paid to a spouse and children of deceased members of the fund.
According to Michelle Griffiths, chief executive of AvSuper, the changes came into place January this year.
"The provisions allow for the effective reimbursement of contributions tax paid throughout the member's lifetime… paid out as a death benefits to generally the spouse or children of a deceased member," said Griffiths.
AvSuper said anti-detriment provisions aim to restore members' accumulation benefit to what it would have been if contributions tax had not been deducted from each concessional contribution made during your period of membership.
This applies to contributions made by an employer or on a salary sacrifice basis.
The provision is calculated based on an ATO formula, said Griffiths.
"We've decided to do it because it's in the best interest of members and their beneficiaries in the event of a death.
"Sometimes it's only a small amount - but it's a tax entitlement that they're entitled to and we felt that it was appropriate we deal with it in the fund," said Griffiths.
Ruth Liew
Launched at the start of this year, AvSuper announced anti-detriment provisions will now apply to the death benefits paid to a spouse and children of deceased members of the fund.
According to Michelle Griffiths, chief executive of AvSuper, the changes came into place January this year.
"The provisions allow for the effective reimbursement of contributions tax paid throughout the member's lifetime… paid out as a death benefits to generally the spouse or children of a deceased member," said Griffiths.
AvSuper said anti-detriment provisions aim to restore members' accumulation benefit to what it would have been if contributions tax had not been deducted from each concessional contribution made during your period of membership.
This applies to contributions made by an employer or on a salary sacrifice basis.
The provision is calculated based on an ATO formula, said Griffiths.
"We've decided to do it because it's in the best interest of members and their beneficiaries in the event of a death.
"Sometimes it's only a small amount - but it's a tax entitlement that they're entitled to and we felt that it was appropriate we deal with it in the fund," said Griffiths.
Ruth Liew
Monday, April 20, 2009
DEATH CLAIMS DISAPPEARANCE
After a person has been missing for seven years or more, by common law, he or she is presumed dead. This presents a problem with life insurance companies in the payment of life insurance claims. Almost every life insurance company will have a number of claims presented each year do to the absence of an insured for seven years or more. Often a suit has been filed againest the insurance company for the collection of the claim. The issue for the insurance company and the investigator becomes: IS THE INSURED DEAD OR ALIVE.
A presumption of death by common law will not hold up when it can be proven that a strong motive can be found for the insured's disappearance. Thus, the investigation can be centered around various motives on the part of the insured. The basic objective of the investigation should be the location of the subject. However, secondary objectives could be:
1) Various situations which might have caused the insured to want to disappear.
2) Other leads or rumors for further investigation.
3) Proof of the insured being alive at a later date from the time claimed. Such proof could be documents, contracts or letters signed by the insured.
STATEMENT FROM CLAIMANT OR RELATIVES: A signed statement from the relatives of the subject can be helpful in the investigation. Such statements can be obtained from brothers, sisters, parents and/or other relatives. In obtaining such statements, special attention should be paid to dates and any type of difficulties the subject might have had.
POLICE RECORDS: Special attention should be given to the local police missing persons bureau and rather or not the family reported the subject missing. A copy of the police reports might be helpful. Criminal records should also be checked as a pending criminal charge or arrest makes a good motive for one to dissappear.
OTHER RECORDS: Various civil records should be checked as pending suits and judgements and or divorce is another good reason to disappear. Also consider checking the death records of the unknown or unidentified dead.
NEIGHBORHOOD AND BUSINESS INVESTIGATION: A background type investigation is needed in order to determine details concerning the subject's background. Special attention should be paid to finanical asepcts and domestic aspects as these could be strong motives for a disappearance.
IF SUBJECT IS LOCATED: The investigator will need to use kid gloves in approaching the insured. Be careful not to frighten him or her which could cause another disappearance. Make a postive I.D. before a direct approach. Tactfully explain to the subject that the insurance company is interested only in the claim with no actual interest in attempting to get him or her to go home. A signed statement from the subject along with his photograph should be obtained. A sample statement might be something like:
I hereby state that I am John Jones born March 28th, 1949 at Miami Florida and formerly residing at 185 Arrow Street, Clearwater, Florida. I took out a life insurance policy with XYZ Life INsurance Company sometime in April of 1963 which I believe had a face value of $50,000. I left Clearwater Florida May 2nd, 1982 and I'm now living in the state of New York.
Signed:____________________________
Witness:___________________________
Date:____________
A very good method of identification is to obtain a photograph of the insured holding something with a date on it such as a current newspaper or magazine. Sometimes, you will find that the subject will refuse to give a statement but consent to such a photograph. The trick will be to obtain both details of the subject for a proper identifcation along with a date from a newspaper or magazine.
SPECIAL CIRCUMSTANCES
Death claims investigation cover a wide range of different types of policies and provisions. At times, it is important for the investigator to point his investigation to certain specific aspects that have a direct relationship to the type of insurance policy and claim under investigation. This is often refered to as special circumstances in a life insurance claim.
DOUBLE INDEMNITY PROVISION: Often refered to as accidential death provisions, this simply has to do with the insurance company paying two times the face amount of the policy in the event of an acidential death. Most standard insurance policies rider out certain types of accidential deaths such as:
HOMICIDE: When the insured was involved in any violation of the law.
ACTS OF WAR
SELF-DESTRUCTION: Even when the insured was deamed insane.
PRIVATE FLYING EVENTS: However, most polcies will cover an event from a regulary scheduled commerical airline.
TAKING OF OR INHALING POISON: Including the inhaling of carbon monoxide.
GROUP LIFE INSURANCE CLAIMS: Group insurance business is ever increasing and will someday takeover a large percentage of the individual insurance business in today's market place. Most group policies in effect have standard qualifications which are usually investigated. They are:
1) MEDICAL HISTORY: Many group plans require a medical history before the actual group policy can be put in force. In such cases a policy can be considered contestable.
2) LENGHT OF EMPLOYMENT: Most group policies state that the employee must have worked between 30 and 90 days before the insurance policy can take effect. Thus, part of the investigation will be to obtain the exact starting date of the employee.
3) MINIMUM NUMBER OF HOURS: Most group polices state that in order to be eligible for insurance benefits, all employees covered must be full time employees working at least 30 to 40 hours per week. The investigation could center around the subject's time cards or other employment records.
4) MINIMUM NUMBER OF POLICY HOLDERS: Most group insurance policies require a minimum number of persons be placed in the group policy. Often times small companies will place spouses of other non-employees onto the policy in order to meet these requirements. In such cases, the investigation centers around rather or not the employee was actually an employee.
CREDIT LIFE: Credit life claims presents special problems to the investigator simply because the policy was usually written by a third or forth party and little information is needed. Often times fraud can be assumed when there are several different types of polices in force making the subject over-insured.
It is important for the investigator to know and understand what type of investigation along with the issues involved are needed by his or her client. Either a telephone contact or detailed written instructions are needed between the two parties in order for the investigation to start out pointed in the right direction. The investigator should never attempt to start a death claims investigation when he or she does not understand what the client wants.
A presumption of death by common law will not hold up when it can be proven that a strong motive can be found for the insured's disappearance. Thus, the investigation can be centered around various motives on the part of the insured. The basic objective of the investigation should be the location of the subject. However, secondary objectives could be:
1) Various situations which might have caused the insured to want to disappear.
2) Other leads or rumors for further investigation.
3) Proof of the insured being alive at a later date from the time claimed. Such proof could be documents, contracts or letters signed by the insured.
STATEMENT FROM CLAIMANT OR RELATIVES: A signed statement from the relatives of the subject can be helpful in the investigation. Such statements can be obtained from brothers, sisters, parents and/or other relatives. In obtaining such statements, special attention should be paid to dates and any type of difficulties the subject might have had.
POLICE RECORDS: Special attention should be given to the local police missing persons bureau and rather or not the family reported the subject missing. A copy of the police reports might be helpful. Criminal records should also be checked as a pending criminal charge or arrest makes a good motive for one to dissappear.
OTHER RECORDS: Various civil records should be checked as pending suits and judgements and or divorce is another good reason to disappear. Also consider checking the death records of the unknown or unidentified dead.
NEIGHBORHOOD AND BUSINESS INVESTIGATION: A background type investigation is needed in order to determine details concerning the subject's background. Special attention should be paid to finanical asepcts and domestic aspects as these could be strong motives for a disappearance.
IF SUBJECT IS LOCATED: The investigator will need to use kid gloves in approaching the insured. Be careful not to frighten him or her which could cause another disappearance. Make a postive I.D. before a direct approach. Tactfully explain to the subject that the insurance company is interested only in the claim with no actual interest in attempting to get him or her to go home. A signed statement from the subject along with his photograph should be obtained. A sample statement might be something like:
I hereby state that I am John Jones born March 28th, 1949 at Miami Florida and formerly residing at 185 Arrow Street, Clearwater, Florida. I took out a life insurance policy with XYZ Life INsurance Company sometime in April of 1963 which I believe had a face value of $50,000. I left Clearwater Florida May 2nd, 1982 and I'm now living in the state of New York.
Signed:____________________________
Witness:___________________________
Date:____________
A very good method of identification is to obtain a photograph of the insured holding something with a date on it such as a current newspaper or magazine. Sometimes, you will find that the subject will refuse to give a statement but consent to such a photograph. The trick will be to obtain both details of the subject for a proper identifcation along with a date from a newspaper or magazine.
SPECIAL CIRCUMSTANCES
Death claims investigation cover a wide range of different types of policies and provisions. At times, it is important for the investigator to point his investigation to certain specific aspects that have a direct relationship to the type of insurance policy and claim under investigation. This is often refered to as special circumstances in a life insurance claim.
DOUBLE INDEMNITY PROVISION: Often refered to as accidential death provisions, this simply has to do with the insurance company paying two times the face amount of the policy in the event of an acidential death. Most standard insurance policies rider out certain types of accidential deaths such as:
HOMICIDE: When the insured was involved in any violation of the law.
ACTS OF WAR
SELF-DESTRUCTION: Even when the insured was deamed insane.
PRIVATE FLYING EVENTS: However, most polcies will cover an event from a regulary scheduled commerical airline.
TAKING OF OR INHALING POISON: Including the inhaling of carbon monoxide.
GROUP LIFE INSURANCE CLAIMS: Group insurance business is ever increasing and will someday takeover a large percentage of the individual insurance business in today's market place. Most group policies in effect have standard qualifications which are usually investigated. They are:
1) MEDICAL HISTORY: Many group plans require a medical history before the actual group policy can be put in force. In such cases a policy can be considered contestable.
2) LENGHT OF EMPLOYMENT: Most group policies state that the employee must have worked between 30 and 90 days before the insurance policy can take effect. Thus, part of the investigation will be to obtain the exact starting date of the employee.
3) MINIMUM NUMBER OF HOURS: Most group polices state that in order to be eligible for insurance benefits, all employees covered must be full time employees working at least 30 to 40 hours per week. The investigation could center around the subject's time cards or other employment records.
4) MINIMUM NUMBER OF POLICY HOLDERS: Most group insurance policies require a minimum number of persons be placed in the group policy. Often times small companies will place spouses of other non-employees onto the policy in order to meet these requirements. In such cases, the investigation centers around rather or not the employee was actually an employee.
CREDIT LIFE: Credit life claims presents special problems to the investigator simply because the policy was usually written by a third or forth party and little information is needed. Often times fraud can be assumed when there are several different types of polices in force making the subject over-insured.
It is important for the investigator to know and understand what type of investigation along with the issues involved are needed by his or her client. Either a telephone contact or detailed written instructions are needed between the two parties in order for the investigation to start out pointed in the right direction. The investigator should never attempt to start a death claims investigation when he or she does not understand what the client wants.
Insurance you can't afford to ignore
HEALTH
Health partners chief executive Byron Gregory said it was a myth that private health cover was only for the wealthy.
He said the latest Australian Bureau of Statistics data showed that almost half the population with hospital cover - about 3.9 million people - lived in households where gross annual income was less than $69,993.
People who plan to wait until they are older before taking out private health cover will suffer financially, with the Federal Government's Lifetime Cover system penalising consumers 2 per cent on top of a base rate payment for every year they delay taking out private health insurance after age 30.
Mr Gregory said younger people needed cover just as much as older people: ``Sporting injuries and appendicitis are two of the more common reasons younger people find themselves in need of hospitalisation''.
LIFE
Savings & Loans Credit Union senior manager financial planning Phil Butterfield said the younger and healthier people were, the easier and cheaper life insurance was.
"Life insurance provides a lump sum in the event of death. In practical terms, it provides financial security for your dependents, should you die prematurely,'' he said.
"Your current income, and more importantly your future income, is funding your debts and your family's lifestyle.''
Pinnacle Wealth Management associate adviser John Menelaou said life insurance was "absolutely essential if you are the sole breadwinner in a family'', and it was not uncommon for people to need 10-15 times their annual salary in life insurance.
"It sounds like a lot but life insurance rates have decreased over the years and are more affordable than ever before,'' he said.
"For example, a 40-year-old male non-smoker could expect to pay $63 a month for $1 million in life insurance. With the ability now to structure life insurance within superannuation, it makes it even more affordable.''
TOTAL AND PERMANENT DISABILITY
Mr Butterfield said TPD cover acted in the same way as life insurance, but provided a lump sum if a person was totally and permanently disabled.
"In other words, you will not recover and you cannot work in your usual occupation,'' he said.
"If you become disabled and your future salary is lost to you, not only will you need cover for your debts and your family's lifestyle, you may also need funds for other new expenses such as a carer or modifications to your home or car.''
Eastwoods Wealth Management wealth protection specialist Phil Burt said TPD insurance was sometimes referred to as ``the living death'' in insurance circles because the effects were often similar to those of the death of a spouse.
"Not only is that person's ability to perform tasks and earn an income almost always diminished completely, the person also needs to be cared for throughout the rest of their life,'' he said.
INCOME PROTECTION
This protects your biggest asset - your ability to earn an income - by paying up to 75 per cent of your wage in the event you are unable to work because of illness or disability.
Statewide Superannuation Trust general manager strategy and business development Bill Watson said doing away with income protection cover because times were tough ``could be a false economy''.
"For the sake of a few dollars a week you could be left without an income in the event you are unable to work'', he said.
Ms French said income protection cover was a ``priority personal finance strategy''.
"We've found referrals and inquiries for income protection insurance have grown significantly since the economic conditions have tightened,'' she said.
"Some people have seen their other assets fall in value in recent months and want to build their financial back-ups''.
TRAUMA
AMP financial planner Dominic Pepicelli said trauma cover provided a lump sum payment for people diagnosed with a specified condition.
"The types of conditions that trauma cover will cover people for include heart attack, multiple sclerosis, motor neurone disease, major organ transplant, severe burns, cancer, dementia, stroke or paralysis,'' he said.
"Trauma cover is designed to help cover increased medical costs and living expenses, providing some financial security during the important recovery process.''
Mr Menelaou said trauma insurance could allow for a relatively stress-free recovery and ``provide funds at a time when you want to spend all your energy on recovering and not on worrying about medical bills and household expenses''.
TRAVEL
This can be surprisingly cheap and easy to obtain, and can cover a range of holiday problems including hospitalisation, lost luggage or travel documents and evacuation.
The director of COTA Insurance and Membership services, Ian Yates, said travel insurance was not just for overseas holidays.
"Lost luggage, cancelled flights and damage to rental cars don't just happen overseas, and it is just as inconvenient to be on the other side of Australia without a change of clothes as in a foreign country,'' he said. Domestic travel insurance is often much cheaper because potential medical costs are not included.
"It can cost hundreds of thousands of dollars to treat someone who becomes ill overseas, particularly if they have to be evacuated back to Australia,'' Mr Yates said.
"Inside Australia, everyone is covered by Medicare or have their own health insurance,'' he said.
LANDLORDS
Landlord's insurance is important for people who own investment properties. Those who do not have the right cover could be risking thousands.
Terri Scheer Insurance general manager insurance services Carolyn Majda said damage done to rental properties was on the increase.
"The most common risks for a landlord are malicious damage by a tenant, theft, accidental damage, legal liability and loss of rental income,'' she said.
"Landlords should choose an insurance policy that has been specifically designed to address these needs.''
Health partners chief executive Byron Gregory said it was a myth that private health cover was only for the wealthy.
He said the latest Australian Bureau of Statistics data showed that almost half the population with hospital cover - about 3.9 million people - lived in households where gross annual income was less than $69,993.
People who plan to wait until they are older before taking out private health cover will suffer financially, with the Federal Government's Lifetime Cover system penalising consumers 2 per cent on top of a base rate payment for every year they delay taking out private health insurance after age 30.
Mr Gregory said younger people needed cover just as much as older people: ``Sporting injuries and appendicitis are two of the more common reasons younger people find themselves in need of hospitalisation''.
LIFE
Savings & Loans Credit Union senior manager financial planning Phil Butterfield said the younger and healthier people were, the easier and cheaper life insurance was.
"Life insurance provides a lump sum in the event of death. In practical terms, it provides financial security for your dependents, should you die prematurely,'' he said.
"Your current income, and more importantly your future income, is funding your debts and your family's lifestyle.''
Pinnacle Wealth Management associate adviser John Menelaou said life insurance was "absolutely essential if you are the sole breadwinner in a family'', and it was not uncommon for people to need 10-15 times their annual salary in life insurance.
"It sounds like a lot but life insurance rates have decreased over the years and are more affordable than ever before,'' he said.
"For example, a 40-year-old male non-smoker could expect to pay $63 a month for $1 million in life insurance. With the ability now to structure life insurance within superannuation, it makes it even more affordable.''
TOTAL AND PERMANENT DISABILITY
Mr Butterfield said TPD cover acted in the same way as life insurance, but provided a lump sum if a person was totally and permanently disabled.
"In other words, you will not recover and you cannot work in your usual occupation,'' he said.
"If you become disabled and your future salary is lost to you, not only will you need cover for your debts and your family's lifestyle, you may also need funds for other new expenses such as a carer or modifications to your home or car.''
Eastwoods Wealth Management wealth protection specialist Phil Burt said TPD insurance was sometimes referred to as ``the living death'' in insurance circles because the effects were often similar to those of the death of a spouse.
"Not only is that person's ability to perform tasks and earn an income almost always diminished completely, the person also needs to be cared for throughout the rest of their life,'' he said.
INCOME PROTECTION
This protects your biggest asset - your ability to earn an income - by paying up to 75 per cent of your wage in the event you are unable to work because of illness or disability.
Statewide Superannuation Trust general manager strategy and business development Bill Watson said doing away with income protection cover because times were tough ``could be a false economy''.
"For the sake of a few dollars a week you could be left without an income in the event you are unable to work'', he said.
Ms French said income protection cover was a ``priority personal finance strategy''.
"We've found referrals and inquiries for income protection insurance have grown significantly since the economic conditions have tightened,'' she said.
"Some people have seen their other assets fall in value in recent months and want to build their financial back-ups''.
TRAUMA
AMP financial planner Dominic Pepicelli said trauma cover provided a lump sum payment for people diagnosed with a specified condition.
"The types of conditions that trauma cover will cover people for include heart attack, multiple sclerosis, motor neurone disease, major organ transplant, severe burns, cancer, dementia, stroke or paralysis,'' he said.
"Trauma cover is designed to help cover increased medical costs and living expenses, providing some financial security during the important recovery process.''
Mr Menelaou said trauma insurance could allow for a relatively stress-free recovery and ``provide funds at a time when you want to spend all your energy on recovering and not on worrying about medical bills and household expenses''.
TRAVEL
This can be surprisingly cheap and easy to obtain, and can cover a range of holiday problems including hospitalisation, lost luggage or travel documents and evacuation.
The director of COTA Insurance and Membership services, Ian Yates, said travel insurance was not just for overseas holidays.
"Lost luggage, cancelled flights and damage to rental cars don't just happen overseas, and it is just as inconvenient to be on the other side of Australia without a change of clothes as in a foreign country,'' he said. Domestic travel insurance is often much cheaper because potential medical costs are not included.
"It can cost hundreds of thousands of dollars to treat someone who becomes ill overseas, particularly if they have to be evacuated back to Australia,'' Mr Yates said.
"Inside Australia, everyone is covered by Medicare or have their own health insurance,'' he said.
LANDLORDS
Landlord's insurance is important for people who own investment properties. Those who do not have the right cover could be risking thousands.
Terri Scheer Insurance general manager insurance services Carolyn Majda said damage done to rental properties was on the increase.
"The most common risks for a landlord are malicious damage by a tenant, theft, accidental damage, legal liability and loss of rental income,'' she said.
"Landlords should choose an insurance policy that has been specifically designed to address these needs.''
Wednesday, April 15, 2009
Business
A business (also called a firm or an enterprise) is a legally recognized organization designed to provide goods and/or services to consumers.[1] Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative businesses and state-owned enterprises. Socialist systems involve either government agencies, public, or worker ownership of most sizable businesses.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.
Business Studies, the study of the management of individuals to maintain collective productivity in order to accomplish particular creative and productive goals (usually to generate profit), is taught as an academic subject in many schools.
Basic forms of ownership
Although forms of business ownership vary by jurisdiction, there are several common forms:
- Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.
- Partnership: A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership. There are three typical classifications of partnerships: general partnerships, limited partnerships, and limited liability partnerships.
- Corporation: A business corporation is a for-profit, limited liability entity that has a separate legal personality from its members. A corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff.
- Cooperative: Often referred to as a "co-op business" or "co-op", a cooperative is a for-profit, limited liability entity that differs from a corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.
For a country-by-country listing of legally recognized business forms, see Types of business entity.
Dental Insurance plan
Dental insurance is offered by insurance brokers to cover routine, and in some cases not so routine, dental work. Dentistry services covered by a typical dental insurance plan include cleaning, filing,crown.
Subscribe to:
Posts (Atom)
