How does lapse affect health insurance coverage?

If health insurance lapses, policyholders may lose coverage until the next open enrollment period or a qualifying life event. Some insurers allow reinstatement within a short period, but gaps in coverage may leave individuals unprotected.

Does business interruption insurance cover pandemics?

Most standard policies exclude coverage for pandemics unless specific endorsements or riders were purchased before the outbreak. Always review policy terms carefully.

What happens if I stop paying premiums on my whole life policy?

If you stop paying premiums, the policy may lapse unless you use the accumulated cash value to cover payments. Some policies offer a reduced paid-up option, allowing you to maintain a smaller amount of coverage without making further payments.

Who is considered the insured in an insurance policy?

The insured is the person or entity covered under an insurance policy. They receive financial protection from the insurer against specific risks or losses, as defined in the policy terms and conditions. The insured can be an individual, business, or organization.

How does a no-claim bonus (NCB) work in insurance?

A no-claim bonus rewards policyholders with discounts on premiums for claim-free years, encouraging responsible usage and reducing long-term insurance costs.

How are life insurance policy loans taxed?

Loans taken against the cash value of a life insurance policy are typically not taxable as long as the policy remains in force. However, if the policy lapses or is surrendered with an outstanding loan balance, the loan may become taxable.

What is employer liability insurance?

Employer liability insurance provides financial protection to businesses against claims made by employees for work-related injuries, illnesses, or damages not covered by workers' compensation insurance.

What happens if I stop paying premiums on a variable life policy?

If cash value is insufficient to cover costs, the policy may lapse unless the owner makes additional payments or reduces coverage.