All types of Life Insurance fall into one of the four groups explained below, which type you use depends on the type of risk you wish to protect and the funds you have available.

Term Assurance

Cash lump sum paid out in the event of death

Straight term assurance is still a very cost-effective way of providing financial protection for the family or business. A lump sum is normally provided when a claim is made which is paid into the estate of the policyholder.

In order to avoid complications with delays in probate or inheritance tax, an appropriate trust can be used so that any payment is made direct to the beneficiaries.

It is also possible to have the cover indexed according to inflation, so that the level of cover remains the same in real terms. Since there is no element of saving, the plans do not acquire a surrender value. If you wish to include this option, you could opt for convertible term assurance.

Family Income Benefit

A regular income paid following death during the term of the plan

This type of plan provides for a regular income to be paid out in the event of the death of the life assured during the term of the policy. With each month that passes, the liability which the insurance companies is taking on decreases by a set amount. This enables the costs to be kept down to a minimum and is often the least expensive plan available.

The benefits can be written in trust to avoid legal delays and any possible
liability to inheritance tax.

Mortgage Protection.

This type of plan is also a term policy which covers the declining balance of a repayment mortgage. This enables the cost to be kept to a minimum but make sure that the interest rate figure is high enough for any possible increases in the mortgage rate.

Whole of Life Cover

Provides cover for the rest of your life

The main disadvantage of term cover is that at the end of the term, cover ceases and any new policy has to be underwritten according to the age and health of the policyholder at that time. When a whole of life policy is taken out, the policyholder has guaranteed insurability for the rest of their lives, regardless of any change in their health.

This means that initial premiums are likely to be higher than term assurance cover, but the plan has far more flexibility. It therefore depends on your personal circumstances as to which plan is likely to best suit your requirements.

Critical Illness Cover

Cash lump sum for those who die or have a critical illness

In recent years, the need for protection for those who actually survive serious illness or accident has become more apparent. It has been described as ‘life cover for the living’.

Most plans cover the common conditions such as heart attack, stroke and most forms of cancer, but there is variation on more rare conditions. In addition to specific illnesses, it is quite common to have permanent disability cover. If you become permanently disabled and unable to return to work, the plan pays out. There is however, a wide variation in the definition of ‘return to work. Some plans would only cover you if you were totally unable to work. Others have an own occupation? clause so that if you were unable to return to your normal occupation, a claim could be made. This is an extremely important fact to bear in mind when selecting your insurer.

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There are many companies that provide identity theft insurance. This type of insurance provides reimbursement of the cost for restoring identity and repairing any credit reports.

You might also want to check your homeowner’s insurance policy first, as some are providing identity theft insurance as part of the homeowner’s coverage. Some insurers offer this as a separate policy or it can be included as an endorsement to a homeowners or renters insurance policy.

You’ll find that the cost should be around $50 for $25,000 worth of coverage. The expenses covered would be things like your phone bills, wages lost from the time you spent in fixing the problem, notary and certified mailing costs and maybe attorney fees if you check first with your insurer.

These are different than the credit monitoring services, as credit monitoring services watch for changes (hopefully suspicious ones) on your credit report and then inform you that something is happening to your credit.

Here’s reputable companies that offer insurance for identity theft

AIG

www.aig.com

Farmer’s

www.farmers.com

Fierman’s Fund

www.firemansfund.com

Liberty Mutual

www.libertymutual.com

Travelers Insurance

www.travelers.com

Keep in mind that insurance for identity theft will not protect you from identity theft. It will only reimburse you for the costs encountered in restoring your credit to where it was before the problem started.

Copyright (c) 2006

Jessica Deets researches the internet and has a passion for writing about credit. For more news about identity theft, see the website at http://www.BestIDTheftNews.com

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Definition

Remuneration is the payment of a service rendered. This includes any bonuses and salaries. Remuneration is typically in monetary terms but sometimes the compensation is in replacement of the loss.
A recompense for a loss; compensation

In the context of insurance

In the context of insurance, remuneration or compensation means been paid out when the act you are insured for happens.
It is often hard to see insurance as a service, but that is exactly what it is.
And you need to confirm beforehand how your insurance company will be remunerating you.

Often you can assume that because you are insured for $xx.xx that you will receive that amount. But that is not always the case. The insurance company might offer a monthly remuneration, or to remunerate only when a certain event occurs.

Insurance remuneration

In some cases the remuneration might not as you expect it. Some examples would be:

• Auto Insurance, (Accident). The insurance company will only remunerate the ’scrap’ value of the vehicle.
• Auto Insurance, (Theft). The insurance company will only remunerate you in 3 or 6 months in the hope of the car been recovered.
• Auto Insurance. The insurance company will remunerate what ever is cheaper, (and often less advantageous for you), repair of the vehicle or scrap value or even book value.
• Recreation vehicle insurance. You might have to prove that you used the vehicle within the manufacturer limits. Something that is almost always impossible to achieve.

Remuneration vs Compensation

Remuneration is the payment for a service or to recompense for losses. Insurance can be viewed as a service.
Compensation is the act of compensating, or the act of receiving remuneration.
In the context of insurance both terms are interchangeable. You either get compensated for your losses or the insurance company offers you remuneration for your losses.

Conclusion

When it comes to insurance remuneration you need to make sure that you have all the facts.

• How will the insurance pay you out?
• Are the expectations realistic, (what you need to prove)?
• Is the waiting time before remuneration too long?

Find out more about Insurance remuneration

Insurance Owl gives simple, clear information about insurance. Everything ranging from health insurance to indemnity claims including Auto, Travel, and Life Insurance.

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