Insurance is a mechanism to transfer risk from an individual to a bigger entity for a fee. Insurance companies assess the probability of an event occurring and use this information to work out premium costs.
Insurance policies typically have per-occurrence, per-person and aggregate limits on claims. They also have deductibles that affect monthly costs.
A life insurance policy is a way of financially protecting your loved ones against the unfortunate event of your death. It provides a lump sum payment, called a death benefit or maturity benefit, which your Nominee will receive after your death, as per the terms and conditions of your policy. It also enables you to accumulate cash value in your policy, which is the amount over and above your premium payments. This cash value can be withdrawn or used to reduce your future premium payments. At ICICI Prudential, we offer two types of policies – term life and protection + savings – with a range of features to meet your unique needs.
We may use various underwriting methods to assess your application, including a health check-up and questions about your family medical history and financial situation.
Health insurance is a form of risk management that covers medical expenses. It is regulated at the state and federal level. The states regulate small group and individual/family coverage, while the Department of Health and Human Services/Centers for Medicare and Medicaid Services oversee regulations pertaining to Medicare and self-insured group insurance. Some products, such as direct primary care, health care sharing ministries, and farm bureau plans in certain states are exempt from insurance rules.
Choosing the right health insurance plan requires you to review the benefits, coverage, premium costs and terms and conditions. You can compare health policies online and select the one that matches your needs and budget. Once you’ve selected a policy, ensure that you understand its terms and conditions and make any necessary adjustments.
When selecting a health insurance policy, look for a comprehensive scope of coverage to minimize your out-of-pocket expenses. Also, look for add-ons that provide flexibility to customize your coverage as per your requirements. Also, ensure that the premium charged is competitive vis-a-vis the coverage offered. Also, check whether there is any free-look period, waiting periods, co-payment clause or sub-limits mentioned in the policy document. This will help you avoid any surprises during claims.
Property insurance (or homeowners’ insurance, renters’ insurance or condo owners’ insurance) helps protect your house, other structures and personal belongings from damage or theft. It also provides liability coverage for people who are hurt on your property (such as visitors) so you don’t get stuck paying their medical bills or legal costs.
The type of property covered varies depending on the policy. It can include a wide range of items, from furniture to expensive artwork to sports equipment and clothing. Some policies will even cover the cost to replace your valuables if they are stolen.
Most property insurance policies contain a Declarations section that contains summary information, including the name and address of the insured, the property description and coverage amounts. The policy also typically lists the company that will underwrite the policy and its contact information.
Underwriting is the process that an insurance company uses to examine, accept or reject an application for coverage and determines the rate it will charge if it does agree to provide the coverage. The underwriting criteria may include a review of the size and location of your home, whether there are pools or trampolines, the distance to the nearest fire department and hydrant and other factors that could increase the risk of loss. The policies may also include a Definitions and Exclusions sections that explain the coverage provided, including what is not covered. controversial
Liability insurance provides protection against lawsuits alleging that you or your business caused injury or damage to a third party. It’s one of the sub-lines of commercial insurance, along with directors and officers (D&O) insurance, errors and omissions liability (E&O), and property insurance.
The type of liability coverage you need depends on the nature of your business and the risk exposures it faces. Your insurer will assess your risk for a particular product and policy by reviewing the probability of a claim in the area covered, state laws and case law on negligence and strict liability torts; the financial stability of your company; your business products and operations; your business practices and safety procedures; and industry statistics.
In 2013 the largest segment of liability insurance in USD terms was public and product liability followed by professional indemnity and employers’ liability. These cover injuries and illness to employees. Other types of liability covers include public and directors’ and officers’ liability. These provide protection for companies from litigation arising from decisions or mistakes that lead to financial harm such as erroneous investments, failure to maintain property, releasing confidential information, and conflicts of interest.
Liability policies usually pay out only if they are triggered by an event that you or an authorized employee comes to know about during the policy period. A backdated liability policy, however, offers protection for claims that arise from an occurrence that occurred before you took out your policy. worlds