Can I remove a rider from my insurance policy?

Yes, most insurance providers allow policyholders to remove riders, but this might not lead to a significant reduction in premiums. It’s important to check the terms before removing a rider to avoid losing valuable coverage.

What is workers' compensation insurance?

Workers' compensation insurance is a policy that provides benefits to employees who suffer work-related injuries or illnesses, covering medical expenses, lost wages, and rehabilitation costs.

What happens if I outlive my term life policy?

If you outlive your term life insurance policy, coverage ends, and you do not receive a payout. However, some policies offer renewal options, or you may have the option to convert it into a permanent policy. Some insurers also offer return-of-premium policies, where you get back the premiums paid.

What happens if insurable interest no longer exists?

If insurable interest no longer exists, the policy may become void or need to be canceled. For example, if a person divorces their spouse, they may no longer have an insurable interest in their former partner’s life insurance policy.

What is subrogation in claims management?

Subrogation is the insurer’s legal right to recover claim costs from a third party responsible for the insured’s loss, reducing financial liabilities.

What is the significance of the principle of utmost good faith in insurance contracts?

The principle of utmost good faith (uberrimae fidei) requires both the insurer and the insured to disclose all material facts truthfully. This ensures that both parties are aware of the risks involved and the coverage offered. Any failure to disclose material facts, like health conditions or past accidents, may lead to the contract being voided or claims being denied. This principle is fundamental in ensuring fairness and transparency in the insurance relationship.

Does public liability insurance cover legal defense costs?

Yes, policies typically cover legal defense costs, including attorney fees, court expenses, and settlement negotiations, if your business is sued for third-party injury or property damage claims.

What are the risks associated with universal life insurance?

Risks include fluctuating interest rates, insufficient cash value accumulation, potential policy lapses, and higher costs in later years if premiums are underfunded.