How does a lapse affect my ability to buy a new policy?

A lapsed policy can make it harder to buy new insurance, especially for life and health insurance. Insurers may require new medical evaluations, charge higher premiums, or impose stricter terms due to perceived increased risk.

---

What should an employer do after a workplace injury occurs?

Employers should provide immediate medical assistance, document the incident, report it to the insurance provider, comply with state laws, and support the employee's recovery process.

---

What are the benefits of whole life insurance?

Whole life insurance provides lifelong coverage, a guaranteed death benefit, and a cash value that grows over time. It also offers tax advantages, as the death benefit is usually tax-free, and the cash value grows on a tax-deferred basis. Additionally, it can serve as an asset for future financial planning.

---

What is the difference between personal and commercial insurance?

Personal insurance covers individuals and their property, such as auto, home, and health insurance. Commercial insurance protects businesses from financial losses due to liability, property damage, employee-related risks, and operational disruptions.

---

How does co-payment work in health insurance policies?

Co-payment requires the insured to pay a fixed percentage or amount of medical expenses, reducing the insurer's liability and potentially lowering the policyholder's premium.

---

How are withdrawals from a life insurance policy taxed?

Withdrawals from a life insurance policy are taxed based on whether they exceed the policy's cost basis (the amount you paid in premiums). Withdrawals up to the cost basis are tax-free, while amounts exceeding the cost basis may be taxed as income.

---

What happens if my product causes injury years after being sold?

Product liability insurance typically covers claims as long as the policy was active when the product was sold. Some policies include "tail coverage" to protect against delayed claims.

---

How do premiums work in a variable life insurance policy?

Premiums are flexible, with part going toward insurance costs and the rest allocated to investment accounts chosen by the policyholder.

---