The FT reported this week on a life insurance contract written by the French insurer L’Abeille Vie back in 1987. Known as a “Fixed Price Arbitrage Life Insurance Contract”, the product was sold to wealthy individuals and offered them the special flexibility to switch at any time between different investment funds at the listed fund price, which back in 1987 was set each Friday. The catch was that a smart (or not even so smart) investor could watch the markets go up or down during the week and would have a whole week to switch in and out of the funds at the previous Friday’s trading price, thereby using hindsight to lock in profits. These products were sold by...
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The life insurance industry in SA continues to evolve. Regulatory changes coupled with technological innovation and disruption, as well as an increase in the one-stop-shop concept, means the industry remains vibrant and dynamic. Still, there are a few misconceptions when it comes to long-term insurance. Many consumers view paying for disability or dread-disease cover as a grudge purchase and would rather invest their money elsewhere. But it’s important to realise that these “grudge” long-term insurance offerings are an essential aspect of financial planning. While investing is about growing your wealth ahead of inflation, insurance is about protection against those events that can have a...
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Recently the investment trend has changed drastically. Nowadays people get married in a later age, have kids even later. On the top of it, there are long-term home loans that completely roll over the retirement age. However, the liabilities and responsibilities towards your dependents do not necessarily end once you are 60 years old or retired. For this reason, most of the people these days opt for longer-term insurance plans. However, the choice of policy duration rests with you. You can opt for any policy term as per your requirement. Considering the fact that term insurance plans provide death benefit post the death of the policyholder during the policy term, that’s why it makes sense...
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Long-term insurance complaints on the rise Ombud says funeral policy claims are most in dispute, while refusal of life insurance claims increase sharply. Complaints by funeral policy buyers have been growing steadily over the years, with more than 40% of all complaints to the Ombudsman for Long-term Insurance relating to the growing industry of funeral insurance products. In more than 42% of the cases, the ombud resolved complaints in favour of the complainant or, at least partially, in favour of policyholders. The ombud’s latest annual report, published on Wednesday, shows that it adjudicated 1 482 disputes between insurance companies and their clients relating to funeral policies. In...
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What Are Life Insurance Riders? Life insurance riders are also known as an endorsement, it is an addition to a life insurance policy that typically expands the benefits provided by the contract. Riders give you the ability to customize your coverage and add more flexibility to your policy. Accidental Death Benefit Rider Accidents happen anywhere, at any age. An Accidental Death Benefit rider provides additional coverage if you were to die in a covered accident. It may even double the amount of the original death benefit (Double Indemnity). In some cases, this rider will also allow for Compensation Payment for loss of a limb or dismemberment. Having this rider attached to your life...
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If you are concerned about the high costs of long-term care but don’t want to purchase traditional long-term care (LTC) insurance, you might consider two strategies that combine permanent life insurance coverage with long-term care benefits. Keep in mind that any payouts for covered LTC expenses reduce (and are usually limited to) the life insurance death benefit that would go to your heirs, and benefits can be much less than those of a traditional long-term care policy. Accelerated death benefit (ADB) rider An ADB rider attached to a permanent life insurance policy allows the insured to begin receiving benefits while he or she is still living, under specific circumstances. In the...
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Life insurance has many uses, including income replacement, business continuation, and estate preservation. Long-term care insurance provides financial protection against the potentially high cost of long-term care. If you find yourself in need of both types of insurance, a life insurance policy that combines a death benefit with a long-term care benefit may appeal to you. Here's how it works Some life insurance issuers offer life insurance with a long-term care rider available for an additional charge. If you buy this type of policy, you can pay the premium in a single lump sum or by making periodic payments. In any case, the policy provides you with a death benefit that you can also use...
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Long-term care insurance is supposed to ease fears about long-term health care, but advisors warn that it can do the opposite. Long-term care insurance can increase rather than reduce risk in retirement, according to financial planner Melinda Kibler of Palisades Hudson Financial Group in Fort Lauderdale, Fla. "Mathematics work against [long-term care insurance] because most people will need long-term care eventually," Kibler says. "For insurance to make economic sense, the risk must be spread across a pool of participants." With other types of insurance, only a portion of the population collects, while the others continue to pay their premiums. That covers expenses paid out and keeps...
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PNB MetLife Term Plan PNB MetLife is one of the leading insurance companies in India today. Launched in the year 2001, it is headquartered in Mumbai and is spread across 7000 different locations in the nation. Their insurance products and services range from health to life and retirement etc. and have been consistently providing beneficial plans to their strong base of customers over the years. PNB MetLife Term Plan is one of the best ways to financially secure yourself and your family from an untoward scenario. These insurances are commonly referred to as “pure life insurances” and are curated to provide adequate monetary coverage for a timeframe. Term Life insurances are bound to the time...
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Is Long Term Care insurance on life support? There are new insurance products now available that might offer better long term care benefits than a traditional LTC policy. Did you know that 70 PERCENT of people over age 65 will need long term care? And there’s a 91 PERCENT chance that either you or your spouse will need long term care…at some point. That’s why there is Long Term Care Insurance. Long Term Care (LTC) is defined as needing assistance with the basic Activities of Daily Living (ADL), which include: Eating, Dressing, Bathing, Toileting, Continence, and Transferring. Since the early 1970s, Long Term Care insurance has helped many families financially deal the high cost...
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