Does the coverage continue during the grace period?

Yes, most insurers continue coverage during the grace period. However, claims may be paid only after premium settlement. Some policies may have restrictions, so it’s important to check specific terms outlined in the insurance contract.

Can an employee sue their employer after receiving workers' compensation benefits?

In most cases, workers' compensation laws prevent employees from suing their employer, except in cases of gross negligence or intentional harm by the employer.

Are term life insurance payouts taxable?

No, term life insurance payouts are generally not taxable for beneficiaries. They receive the death benefit as a lump sum without having to pay income tax. However, if the payout is part of an estate that exceeds the federal estate tax exemption limit, estate taxes may apply.

How does a deductible affect an insurance claim?

A deductible is the amount the policyholder must pay before the insurer covers the remaining cost of a claim. Higher deductibles usually result in lower premiums, but they also mean greater out-of-pocket expenses when filing a claim.

What is the significance of the policy term in insurance?

The policy term defines the duration for which the insurance coverage remains active, determining when benefits can be claimed and when renewal or termination occurs.

How do "co-insurance" and "deductibles" affect insurance contracts?

Co-insurance refers to the percentage of the claim the insured must pay after the deductible is met, typically found in health and property insurance. Deductibles are the amount the insured must pay out-of-pocket before the insurer begins to cover the rest of the claim. Both co-insurance and deductibles are designed to share the risk between the insurer and the insured, encouraging the insured to avoid small claims and to maintain lower premium costs.

Can product liability insurance protect against false claims?

Yes, product liability insurance covers legal defense costs if a business faces a false or frivolous lawsuit. It helps cover attorney fees, court costs, and settlements if needed.

How does variable life insurance work?

Premiums paid go toward insurance coverage and investment accounts, where the cash value fluctuates based on market performance.