How much does term life insurance cost?

The cost of term life insurance varies based on factors like age, health, coverage amount, and policy length. Younger and healthier individuals typically pay lower premiums. For example, a healthy 30-year-old might pay around $20 per month for a $500,000, 20-year policy, while older individuals may pay more.

What is insurance and how does it work?

Insurance is a contract between a policyholder and an insurer that provides financial protection against specific risks. The policyholder pays premiums, and in return, the insurer compensates for covered losses, damages, or liabilities, based on the policy terms.

What is the importance of compliance in risk and claims management?

Compliance ensures that insurers follow legal regulations, ethical guidelines, and industry standards to avoid penalties and maintain trust with policyholders.

What is the difference between a unilateral and a bilateral insurance contract?

A unilateral insurance contract is one where only one party, the insurer, makes a promise (to pay claims), while the insured is not required to make any promises beyond paying premiums. On the other hand, a bilateral contract involves mutual promises where both parties make commitments. Most insurance contracts are unilateral, as the insurer promises to cover losses while the insured pays premiums.

What is product liability insurance?

Product liability insurance protects businesses against legal claims arising from injuries or property damage caused by defective or unsafe products they manufacture, distribute, or sell. It covers legal fees, settlements, and damages.

What happens if I stop making premium payments?

If there is enough cash value, the policy remains active. Otherwise, it may lapse unless the policyholder resumes payments or adjusts coverage.

Are natural disasters considered perils in insurance?

Yes, natural disasters like hurricanes, tornadoes, and wildfires are considered perils. However, not all are covered by standard policies. For example, earthquakes and floods usually require separate insurance policies, while windstorms and fires are typically covered under standard homeowners insurance.

What is captive insurance?

Captive insurance is a form of self-insurance where a subsidiary company is created to provide coverage for the parent company’s risks. It allows for more control over insurance costs and risk management.

What innovations emerged in life insurance in the 20th century?

Products like term life, whole life, and universal life insurance provided flexible options to meet diverse financial needs.