Can a person take out a life insurance policy on a stranger?

No, a person cannot insure the life of a stranger because they do not have an insurable interest. Life insurance requires a close relationship, such as family ties or financial dependence, to justify the policy. This prevents insurance from being used as a speculative investment.

What is a waiting period in health insurance?

A waiting period is the time a policyholder must wait before certain benefits become active, commonly applied to pre-existing conditions, maternity cover, or specific treatments.

How does a grace period affect my health insurance coverage?

For health insurance, a grace period allows you to continue coverage while you catch up on missed payments, but if the grace period expires, coverage ends.

How much does routine care coverage cost?

The cost depends on the provider, pet’s age, breed, and location. On average, wellness plans range from $10 to $50 per month. Some insurers offer different tiers of coverage, allowing pet owners to choose based on their budget and pet’s needs.

Is medical underwriting required for term life insurance?

Most term life insurance policies require medical underwriting, including a health questionnaire and possibly a medical exam, to assess risk and determine premium rates.

Are there any exclusions in parametric insurance policies?

Yes, parametric insurance may have exclusions such as certain types of events, locations, or conditions that do not meet the predefined parameters, leading to no payout.

How do I designate a beneficiary on my insurance policy?

Typically, you designate a beneficiary by filling out a specific section in the insurance application or updating your policy documentation through your insurance provider.

How does the principle of contribution work in insurance?

If multiple insurers cover the same risk, the contribution principle ensures each insurer pays only their share of the loss, preventing overcompensation of the policyholder.