Be Aware of Insurance Fraud

Photo courtesy of www.autobezel.com

As more and more insurance companies are operating nowadays, there are fraudulent companies claiming to sell insurance, as well. Thus, it is important that you need to be aware of suspicious companies that are possibly committing insurance fraud.

Insurance fraud does not mean only seller fraud. It can also refer to buyer fraud. As there are bogus companies that sell insurance, there are also bogus buyers that “buy” insurance. Seller fraud happens when the policy seller, or insurance company, takes control of the process in a way that maximizes profit. Buyer fraud happens when an insurance buyer “bends” the usual process in order to get more coverage or benefits.

Seller fraud has several variations, however they are all based on four basic types. A ghost company is a basic type of seller fraud where insurance policies are issued and the company accepts premiums from the policyholders. However, the company guaranteeing this policy is either illegal or does not exist at all. A ghost company is usually operated by scam artists who put high pressure on unsuspecting victims until they finally give in and get an insurance policy.

Another basic type of seller fraud is premium theft. Premium theft happens when an insurance agent accepts premiums from policyholders but does not submit it to the insurance company that underwrites the policy. With the insurance company not receiving any premiums from the policyholder, the insurance policy will then be considered invalid.

The other two basic types of seller fraud are churning and under or over-coverage. Churning happens when the insurance agent convinces a policyholder to renew, cancel or open a new policy in a manner that the agent benefits more rather than the policyholder. Under coverage or over coverage is similar to churning wherein the insurance agent manipulates the situation so that he ends up benefiting more.

 

Towergate public liability insurance offers a high level of cover to ensure your business is in safe hands.

Life Insurers Step Up When Commercial Mortgages Go Down

Photo courtesy of www.whatisthetrend.net

Since commercial mortgages have weakened, insurance companies have taken the role of lenders. In fact, in last year’s second quarter, $15.7 billion was underwritten by the industry of life insurance in commercial mortgages that are new. This is the largest volume recorded by the American Council of Life Insurers, and basically doubles the mortgage volume that has been underwritten in last year’s first quarter.

This opportunity for insurance companies came about because of the absence of activity coming from investment institutions and banks. Many banks on Wall Street were hit hard by the weak economy, which is the main reason why these major mortgage lenders have become quiet.

The reason most life insurance companies were able to continue business operations despite the weak economy is because they are normally conservative companies. Insurers normally favour high-quality borrowers and those who have trophy properties, and keep the volume of their loans on the balance sheets. On the other hand, investment banks group a majority of their issue bonds and mortgages against the loans. This in turn allows the investment banks to transfer the risks off the balance sheets and allow them to continue to underwrite, even those that are considered riskier loans.

Normally, investment banks would dwarf life insurers. However, with the economy’s weak, unstable state, it seems that life insurers have upped their game one level. With the lack of activity from investment banks, life insurers have less competition. This allows life insurance companies to offer a number of great loans for those properties that meet the companies’ guidelines.

Oveview of professional indemnity insurance and who would need it

Professional liability insurance, or professional indemnity insurance as it is also known, is designed to cover the costs of legal fees or compensation following claims of professional negligence.

In the current economic climate very few businesses have cash to spare and if they are hit with a lawsuit it could prove very costly for any business. However, with professional indemnity (PI) insurance a firm should be covered if the worst were to happen.

A lawsuit could result from any number of business practices including providing poor advice to clients, a breach of copyright or even something as simple as loosing data or important documents. The costs of these claims could cripple many firms but added to that is also the fallout of a damaged reputation so by taking out PI businesses would at least be covered. While every business strives to have the best service possible it is always best to have safety net in place.
What’s more for many professions professional indemnity insurance is a legal requirement and without it they could be in breach of their regulatory rules. These include solicitors, mortgage advisers, insurance brokers, financial advisors, accountants and architects. However, if a business provides any kind of advice or professional service then it is a good idea to get some kind of professional indemnity insurance. For example a lot of PR firms, designers and consultants choose to take out PI insurance so that they know they are covered.

It is also important to note that a lot of professional indemnity policies only claims that are made when the policy is live so if a business is closing for whatever reason it is a good idea to get run off cover to make sure that any claims made after the firm has ceased trading are covered. It is also advisable to get run off cover when you change insurers.

The Benefits of Getting Life Insurance Quotes Online

Photo credits to economictimes.indiatimes.com

Undoubtedly, a life insurance is one of the most important, and the most costly, priorities a person has to have nowadays. It is always important to have a kind of protection financially, especially nowadays, were life can sometimes become financially difficult.

With the existence of the Internet and the constantly improving online community, it has become convenient for people to do most of their transactions online. Because most businesses already have their own online sites, more and more people are finding it hassle-free to do their research online.

An example of this would be insurance companies offering free quotations to prospective customers. Before, what a person did in order to know more about a life insurance policy was to call an insurance agent or contact any of the more reputable insurance companies in the area. This method of inquiring can tend to be time-consuming, plus it only offers a limited number of options, as a prospective insurance customer will tend to do his research within the local community only.

With an online quote, it would not be necessary for you, as a prospective customer, to make a lot of calls and spend a lot of time just to speak to someone that can provide the necessary information. Also, there would be no need for an insurance agent to visit your home just to talk about insurance. You would then not feel pressured to get the insurance plan immediately. Also with online insurance quotes, your options as a possible policyholder are widened because there are a lot of reputable insurance companies that offer online quoting. These companies also process insurance applications online.

Top 3 Life Insurance Providers

Of all the many types of insurance policy available, life insurance is one of the most significant of all – perhaps the single most significant one for anyone with a family. This type of policy ensures that your family are protected financially in the event of the loss of your life, which is something any responsible parent will want to make sure of. However with so many companies offering life insurance it can be hard for consumers to find the right company and policy to suit them. These are three of the top life insurance providers, all of whom offer a range of comprehensive cover, along with all of the information you could possibly need to make an informed choice.

Endsleigh

Comprehensive life insurance cover is just one of the forms of insurance offered by Endsleigh, making them one of the UK’s top insurance providers. In addition the company also provides all of the possible information you could need regarding the ins and outs of the different life insurance policies available – to make sure that you get the coverage that best suits your situation and financial circumstances. Furthermore the company is regulated by the Financial Services Authority and their customer service is simple and straightforward, with quotes available by telephone or via the website at http://endsleigh.co.uk.

Aviva

Again this company offers a range of comprehensive life insurance policies at competitive prices, with a guarantee of no rise in the levels of the life insurance premiums. Again quotations for the different policies can be secured through the company website or over the telephone.

Standard Life

This company specialises in life insurance, offering regular policies and ones catering specifically for the over-50s. Again you can secure any of the main types of life insurance policy from them at reasonable rates, with a free gift for those who sign up for a policy. A quote for any of their life insurance policies can be secured over the telephone.

The Good and Bad Side of a Whole Life Insurance

Photo credits to financialplanningph.com

Before deciding to get whole life insurance, or permanent life insurance, it is always wise to know the good and bad side of it. Even knowing just one advantage and disadvantage of this kind of insurance policy will be helpful in deciding whether you should proceed to getting one.

First, a permanent life insurance policy will definitely have higher premiums as compared to non-permanent policies. This is because the money that you will be paying as premiums goes into a kind of “savings” program. In other words, the length of time that the policyholder pays his insurance premiums is proportional to how large a sum he has saved in his permanent life policy.

Another fact about permanent life insurance policies is that it has fixed policies. For instance, the premiums are fixed at a set amount for the whole duration of the life of the policy. This means that whether there are economic troubles or not, whether there is an increase in mortality or not, the premium that will be paid by the policyholder remains the same. Another aspect that is fixed in permanent life insurance is the death benefit. Knowing this, it would be wise to consider carefully how big a death benefit you want in the permanent life insurance policy.

Whole life insurance policies also allow you, to earn interest that is tax-deferred, and you have the ability to borrow against it. These earnings come from the total amount of money that you have invested in the life policy. However, it sometimes takes decades for the full benefit of this feature to show. This is why some people say a permanent life insurance is not a very good way to make short-term investments.

Insurance you do need and insurance that you don’t!

Assessing which insurance policies you need and which you don’t can be a confusing business. www.endsleigh.co.uk is a great source of information in finding which policies are most relevant to your needs.

To summarise, when it comes to Business Insurance there are three main areas: Public Liability, Employer Liability and Professional Indemnity. Whether you need these or not is dependent on the nature of your business, so I will quickly outline their attributes:

Public Liability: This form of insurance isn’t a legal requirement but many would suggest it would be irresponsible not to have it. Your business is very much a public arena, with a constant flow of people passing through and surveying your product. If a member of the public is injured in your environment, you will be liable to a big compensation claim if you are found negligent. This could ruin your business and render all of your work worthless. If you work with government contracts or local authorities, you may find Public Liability is compulsory. Find prices and further details at www.endsleigh.co.uk.

Employer Liability: If you actively employ people, even if it is a sole employee, this is the insurance that is compulsory under the Employer Liability Regulations Act. You must protect the needs of your employees, and you do that through Employer Liability insurance. Any UK company must have a minimum of £5m worth of cover. There’s no cutting the cost of Employer Liability Insurance.

Professional Indemnity: This type of insurance is specific to a certain type of business: those that give advice, professional services or guidance. It may not apply to all business owners and specifically geared towards Accountants, IT consultants, or anybody in a general advisory role. Many modern businesses come under this banner so do your research at www.endsleigh.co.uk.

It’s easy to think that you can cut costs in avoiding unnecessary insurance policy costs. In some cases this may be not far from the truth but you really need to research which policies your business will require as fundamental to your area of operation. Ask questions like; ‘do I employ staff?’ ‘Am I working closely with the public?’ ‘Am I providing advice that could make me negligent?’

What is private mortgage insurance?

Private mortgage insurance, which is often abbreviated to PMI is extra insurance that lenders must obtain if they wish to invest in a loan that is more than 80% of their new home’s value.

All in all most buyers with less than a 20% down payment on their new property will be expected to pay private mortgage insurance.

Private mortgage insurance plays a great role in the mortgage industry and acts as a safety net to the lender. This safety net will protect them against loss if the mortgage payer is no longer able to pay the loan in question any more.

This could be due to financial difficulties, debt or the loss of a job.

With this type of mortgage insurance, those that wish to lend are able to buy a home with a little as 3% or 5% down payment.

This is great news for first time buyers who wish to get on the property ladder, but due to a lack of deposit thought they would never be able to do so.

This is also great news for those who don’t want to wait year’s to accumulate a larger down payment and would rather invest in property as soon as possible.

With recessions on the cards and many businesses going into administration, more and more lenders are becoming a little choosier about whom they lend to.

This is where private mortgage insurance comes into play. In order to find out more about such a policy it is best to talk to someone within the professional industry. Book an appointment and find out all the ins and outs of such a policy prior to investing in mortgage insurance.

The Different Kinds of Life Insurance Plans

photo credits to life-insurance-types.org

A life insurance plan is probably one of the most worthy investments a person can make in his lifetime. With this kind of insurance, a person will have peace of mind, assured that even if something unfortunate happens to him, he and his loved ones will be taken care of financially. A person can choose to get either of the two basic types of insurance plan: the term life plan and the permanent life plan.

The Term Life Plan

The term life plan is the more affordable option between the two kinds of life insurance. This kind of insurance was designed for meeting temporary needs in life. This kind of insurance provides protection for a limited, or specific, period. For instance, a term life plan, could last for a specified term of 10 or twenty years and then expires, leaving the policyholder with no financial protection for the succeeding years. A term life plan does not have a cash value, however, if the policyholder dies before the term ends, the beneficiary of the insurance will receive what is referred to as the death benefit (a tax-free amount).

The Permanent Life Plan

As the term suggests, a permanent life plan offers protection for as long as the policyholder lives. As long he pays the insurance premiums, his financial protection will continue. Also, a permanent life plan offers a savings benefit that builds up to a certain amount of cash over time.

Types of Permanent Life Plans

There are several types of permanent life plans. With these different kinds of permanent life insurance plans, a prospect policyholder can choose the kind of plan that will fit his situation. Types of permanent life plans include disability insurance, long-term care insurance, and critical illness insurance.

Why It Is Beneficial to Get a Life Insurance

photo credits to financialplanningph.com

A life insurance policy is just one of the things that many people consider whether to get or not. People who decide not to get it may have failed to realize that a life insurance would be a way of protecting their dependents in the case of their death. It is sometimes ironic how people prioritize insuring their car and other properties instead of their own lives. They neglect to think about what will happen to their family in case they pass away.

A life insurance would protect your family in case of your death, especially if your income is the sole source of support for your family. Being able to get the right insurance policy would allow your dependents to still live the way they were living before your death and prevent any drastic changes in their lifestyle.

Another factor that you need to consider on whether or not to get a life insurance is your debt load. Always remember that the debts you incurred in life will not be erased just because you died. This debt load will then be passed to your family and your estate. A life insurance policy will help greatly in easing this burden on your family. Mortgage is a prime example of this kind of debt. If the spouse dies, leaving behind quite a significant amount of mortgage payment, there will be a higher chance that this debt will not be paid in full without any financial aid of some form. With a life insurance however, the rest of the mortgage payments will be covered by the said insurance.

 

Next page »