Kamis, 29 Desember 2011

How Stop Loss Insurance Protects Employees

New innovations in health care industry are creating various new opportunities not only for treatments, but also for specific insurance protection plans. Stop loss insurance is a great and affordable alternative as compared to the traditional indemnity options.

Nowadays companies have the option of 'self-insurance.' Companies take on the liabilities to insure the medical expenses of their employees as well as their families. There is another option available to insure the medical expense as it occurs through business cash flow.

When a company decides to get self-indemnity plan, they are likely to pay a specific intended amount to the insurance company. Subsequently, the indemnity company that the employer has opted to provide the stop expiration insurance agrees to pay the employees' medical bills.

There are several special indemnity policies designed to protect the company to pay all the claims that are made by employees or their family members. As soon as the company agrees to pay the amount to the insurance company, the indemnity company is liable to take care of the subsequent claims against the policy's coverage limit.

Some policies also protect the company when an employee claims an unanticipated huge amount. Although there is a predetermined coverage limit on the policies that apply, the limit and the policies are set by the employer and the indemnity company. Stop expiration insurance offers great financial security.

What kind of stop expiration insurance a company should opt depends mainly on the degree of risk. If the degree of risk is low and most of the employees are healthy and young, company can opt for the options like 'self-insurance-without-stop-expiration insurance' security plan. If the anticipated claims that the company and the insurance firm have calculated to pay the premium to the employees is high, then it is beneficial for the company to opt for group-insurance-plan-with-stop-expiration-insurance that covers the employees as well as their families 
Basically it depends on the company's estimated and expected insurance related requirements. They need to recognize and spend in an insurance firm that makes the stop-expiration insurance accessible along with the specialized products.

There are two types of stop loss insurance available that a company can opt for:

Specific Stop Loss

Specific stop loss provides tragic protection to the self-paid plan. This type of stop loss occurs when the claims reach to the guidelines selected by the company or the employer. Stop expiration policy pays the claims to the lifetime limit on per-employee basis for the self-insurance plan.

Aggregate Stop Loss

Aggregate stop expiration is an insurance policy that offers coverage on all expenses, when another insurance policy is above the projected cost. An aggregate stop loss insurance policy decreases the company's risk to provide employee benefits.

Senin, 12 Desember 2011

How Term Life Insurance Quotes Are The Low-Cost Insurance Option

There is no doubt that insuring oneself against death is one of the biggest concerns that people have. The reason is simply that, for many people, it is a way to ensure some financial security for loved ones. Amongst the most popular options is term life insurance, quotes for which are considered the most cost-effective available.

There are many different types of insurance policies to choose from, but the structure of term policies ensure low cost insurance premiums that can fit practically any budget. Also, the temporary nature of these policies means the insured party is never tied down to a 30-year contract with the insurance company, as is the case with alternative policies.

But as with all financial contracts, there are aspects to this kind of life insurance that should be considered before deciding if it really suits your lifestyle and coverage requirements.

Term Life Insurance Explained

With so many insurance policies to choose from, there can be some confusion over just how low-cost term life insurance quotes are compared to the alternative. In fact, this is the original kind of life insurance policy and is, therefore, quite straightforward.

For a start, payments are made at a fixed rate over what is known as the relevant period of time. What this means is that for an agreed period, the policy will cover the payer, but once that period ends, the coverage ends. And because the risk of a payout within that period is less than with a universal life policy, a low cost insurance premium is charged.

The life insurance term can range from a single year to 10 years to 20 years, and if the insured party dies within that period, the beneficiaries receive payment. At the end of the term, the insured party can opt to extend the coverage. So, the policyholder effectively has maximum control.

Keeping Costs Low

When seeking term life insurance quotes, there is a variety of questions that must be answered that directly affect the premium that the insurance company will set. For the most part, they relate to health and lifestyle, since these are aspects that can directly influence the life expectancy of a person.

For example, smokers and heavy drinkers are considered bigger risks by an insurance company, so the premium is going to be higher for these people. But low cost insurance premiums are available to sports enthusiasts, non-smokers, tea-drinkers, and those who have an active lifestyle.

Other aspects that will affect the size of the premium charged on the life insurance is age, occupation, medical history and even place of residence. Older applicants will be seen as more likely to pass away within the period, while those who have hazardous occupations or who have recently undergone major surgery (like heart surgery), are also seen as high risk.

Disadvantages of Term Insurance Policies

A key attractions term life insurance quotes highlight are that payment and terms can fit into almost any budget, and that the substantial nature of a payout compared to monthly contributions makes it the most rewarding insurance option.

But there are some disadvantages to this kind of insurance policy too. For example, even with low cost insurance premiums, the onus is on the insured party to renew the policy when the term of relevance comes to an end. Should they forget to renew, then they are left with no coverage.

In contrast, a permanent life insurance policy runs through until death, so the coverage is constant. Also, this kind of insurance may end with no payout, meaning the contributions are never returned.