What is the difference between term and whole life insurance?

Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, and pays out a death benefit if the insured dies within the term. Whole life insurance, on the other hand, lasts a lifetime and includes a cash value component that grows over time.

How does the claims process work?

After filing a claim, an adjuster is assigned to assess damages, review documentation, and determine the payout based on policy coverage and deductibles.

Does employer liability insurance cover subcontractors and freelancers?

Generally, it does not cover independent contractors or freelancers unless specifically included in the policy. Employers should ensure subcontractors have their own insurance or extend coverage to them if necessary.

How does Universal Life Insurance work?

Universal Life Insurance works by offering a death benefit while also accumulating cash value. The premiums you pay cover the cost of insurance and can be adjusted. The policy’s cash value grows at interest rates set by the insurer, typically with a minimum rate guaranteed.

How does Insurtech impact health insurance?

Insurtech uses wearable technology, AI, and big data to offer personalized health insurance plans, incentivize healthy behaviors, and simplify claims processing.

Are cash value withdrawals taxable?

Cash value withdrawals are typically tax-free up to the amount of premiums paid (the policy’s cost basis). However, any amount withdrawn beyond that may be taxed as ordinary income. Policy loans are generally tax-free as long as the policy remains in force.

Why is solvency important for insurance companies?

Solvency is crucial because it guarantees that insurers can honor their commitments to policyholders, maintain financial stability, and withstand economic downturns, preventing potential insolvency or regulatory intervention.

Does cyber insurance cover financial fraud?

Some policies cover financial fraud, such as unauthorized transactions, but may exclude losses from employee negligence or weak security practices.