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Insurance FAQs

Life Insurance

Q. What is the meaning of Term life insurance?

Term life insurance stands for a life insurance plan that is active for a mentioned time period. After the period has ended this life insurance plan will expire and then you will have to get it renewed or get a new one at different terms and rates. Most of the term life insurance plans are available for a term of 10, 15, 20 to 30 years lifetime. The premium rates are usually lower in term life insurance as compared to whole life insurance.

Q. What is the meaning of whole life insurance?

Whole life insurance is the most popular form of life insurance plan. It is the life insurance plan that provides the coverage for entire life. If you get a whole life insurance plan then you will have to pay high premium rates as compared to term life insurance but the benefits are really great and this plan is going to secure the future of your loved ones while covering the unexpected expenses that will occur in the future.

Q. What is the meaning of permanent life insurance?

Permanent life insurance in the life insurance plan that will last till the last breath in the insured person. You need to pay the premiums and at the end the cash benefit will be provided to your family. Whole life insurance, single premium life insurance, universal life insurance and variable life insurance are the famous forms of permanent life insurance policies.

Q. What is the meaning of universal life insurance plan?

Universal life insurance also requires you to pay the premiums over lifetime and gather the cash benefits at the end. The difference here is that you will be offered with the benefit of flexible premiums in this policy. This policy is great for all those people who are searching for suitable, easy-to-bear retirement plan.

Q. What is the meaning of variable universal life insurance plan?

Variable universal life insurance plan is the life insurance policy that will treat your investment as a security. The benefit your loved ones will receive after your death and the cash value of the policy will fluctuate with the investment value.

Q. What does long-term care coverage stands for?

These are the long-term care coverage that takes care of the health and social needs of those who are facing some serious illness. The services included in the coverage are nursing care at home; getting care while staying at home, respite care, etc.

Q. What is the meaning of Disability Insurance?

Disability insurance is yet another most beneficial form of insurance. It will provide you the income support if you lose the source of income due to critical illness or any sort of sudden disability. If you are the only bread-winner of your family then this type of insurance is very suitable for you.

Q. What is the meaning of a policy rider?

Policy rider basically stands for the additional benefit that stands under the insurance policy you possess. Nowadays policy riders are sold in a separate form and are not included inside the policy.

Q. Is there any sort of cash value involved in Term life insurance policy?

No there isn’t any sort of cash value involved in a term life insurance policy.

Q. What sort of life insurance policy is suitable for me? (Term life or whole life)

The type of life insurance depends on the needs of a person. If you are thinking about getting a life insurance then you must analyze your needs and financial situation first. Term life insurance plans are cheaper but they have lesser benefits while the whole life insurance plans are expensive but the benefits they provide are much greater than term life.

Health Insurance

Q. What is the meaning of health insurance?

Health insurance is the coverage that you get from the insurance company for your health expenses. Health insurance is mostly about insurance company paying all or half of your medical bills. The medical coverage is granted on the basis of the value of the policy.

Q. What is the need for health insurance?

Through the health insurance you tend to accumulate your money in your health insurance plan and when the sudden need for any health treatment arises, your health insurance is there to protect you. Arranging such money in an emergency situation gets a little difficult so health insurance protects you from all the difficult times.

Q. What if I’m not able to afford health insurance?

If you are not able to purchase private health insurance then its best to go for low-cost health insurance plans started by the In USA you can get coverage under Obamacare health insurance plans.

Q. What sort of health insurance plans are usually offered by each health insurance company?

Different types of health insurance plans are available including Indemnity plans, HMO plans, POS plans, and PPO plans.

Q. What are limited benefit plans?

These are the plans that provide a limited coverage for any particular type of disease, or health issue.

Q. How many types of limited benefit plans are offered by the insurance companies?

Usually five or six types of limited benefit plans are offered including Basic hospital expense plan, basic surgical expense plan, Hospital confinement indemnity plan, accident coverage plan, and specified disease plan.

Q. What are additional coverage plans?

Additional coverage plans offer additional protection in the case of long-term illness, disability, etc.

Q. What types of plans are included in additional coverage plans?

Three types of plans are available including disability income plan, long-term care plan, and Medicare coverage plan.

Q. What is the meaning of a pre-existing condition?

It is basically a condition that has affected the physical or mental health of the person and before the acquisition of the health insurance the concerned person has been receiving medical treatment for such condition.

Q. Is my employer allowed to change my health insurance plan or health benefits during the year of employment?

Yes the employer has the complete authority to change or even nullify the health insurance plan. If he is not interested in getting a health insurance plan for his employees then he also has the right to this.