Who is a Broker :
An insurance broker is a specialist in insurance and risk management. Brokers act on behalf of their clients and provide advice in the interests of their clients. The insurance Company is not responsible for because the brokerrepresents the insurance client, not the company. Insurance brokers can be best described as a kind of super-independent agent.What is Annuity :
A long-term contract sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirement. The goal of annuities is to provide a steady stream of income during retirement.What are Insurable and Uninsurable Risks :
The various life risks cannot be treated individually, so they are put under a few broad categories based on the degree of each risk. There are two main classes of risk:(i) Insurable Risks
A risk that conforms to the norms and specifications of the insurance policy in such a way that the criterion for insurance is fulfilled is called insurable risk. Here the insurance company has enough statistics to work out the probability of the risk.E.g. Fire insurance
(ii) Uninsurable Risks
In case of a scenario where the loss is too huge that no insurer would want to pay for it, the risk is said to be uninsurable. A risk is uninsurable when an insurance company cannot calculate the probability of the risk and therefore cannot work out a premium that the business must pay.
What is AD&D in Insurance :
AD&D in Insurance refers to Accidental Death and Dismemberment Insurance. “Accidental death” under the policy means a death caused by an unforeseen circumstance unrelated to the body. In other words, thedeath cannot be caused in any way by illness or the insured’s physical condition.
It is a policy that pays benefits to the beneficiary if the cause of death is an accident. This is a limited form of life insurance which is generally less expensive.
Lapse in Insurance :
The policy for which all benefits to the policy holder cease and is terminated due to nonpayment of premium amount on the due date or even after the grace period is called a lapsed policy.Excessive delay in payments and servicing of the policy leads to the policy being dead or lapsed. However, a lapsed policy may be revived by fulfilling the terms and conditions as per the policy statement.
What is Surrender Value :
Surrender Value is the amount the policy holder will get from the insurance company if he decides to exit the policy before maturity. And also all the benefits associated with that policy along with protection coverwill cease to exist in case of surrender.
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