Banks offer a variety of ways to save money. Annuities have been one of the most popular investment alternatives for a variety of reasons. This page offers essential annuity information and explains why banks offer annuities.
Annuities - Advantages and Disadvantages of Annuities
An annuity is a contract between the buyer and an insurance company. In general, the insurance company promises to do something with the buyer’s money. This page should serve as a general overview of annuities. After you understand the concept you can look into the various annuity types.
The Variable Annuity
A variable annuity is an annuity with exposure to investments. If a fixed annuity pays a fixed rate of return, a variable annuity pays a variable rate of return. Before making a final decision for or against a variable annuity, you should understand how they work.
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Thursday, October 15, 2009
Annuities & Pensions Insurance Center
What is an annuity?
Basically, an annuity is just a series or stream of payments. “Annuity” comes from the Latin for “year”. In the context of life insurance, it is a contract between you and an insurance company under which the insurance company pays you money for a stipulated period — often for life. The payments are frequently monthly. The person receiving the payments is referred to as an “annuitant.”
Risk and annuities
In a sense, an annuity is the reverse of a life insurance policy. Life insurance insures you against the risk of your dying too soon, but an annuity protects you against the risk of your living too long (which could result in your money running out while you are still alive). In a life insurance contract, there is a risk to the insurance company that the insured person may die earlier than expected; thus requiring the company to pay out money sooner than it planned. In the case of an annuity, the major risk to the insurance company is that the person may live a very long life — requiring more payments than the insurance company expected. Another risk is that the company may not be able to earn as great a return on its investments as planned, and so it may have less money to make payments when they are due. It is wise to buy an annuity only from a financially strong insurance company. Such a company is more likely to be able to pay its obligations. As with life insurance, the risk of annuities is spread over many people who have such contracts. This makes it easier for the insurance company to predict its risk.
Why have annuities become so popular as an investment in recent years?
Primarily, because of the possibility of tax deferral. After the tax law changes of recent years eliminated some other options, annuities are one of the few remaining ways to defer income tax on the growth of your investments.
Basically, an annuity is just a series or stream of payments. “Annuity” comes from the Latin for “year”. In the context of life insurance, it is a contract between you and an insurance company under which the insurance company pays you money for a stipulated period — often for life. The payments are frequently monthly. The person receiving the payments is referred to as an “annuitant.”
Risk and annuities
In a sense, an annuity is the reverse of a life insurance policy. Life insurance insures you against the risk of your dying too soon, but an annuity protects you against the risk of your living too long (which could result in your money running out while you are still alive). In a life insurance contract, there is a risk to the insurance company that the insured person may die earlier than expected; thus requiring the company to pay out money sooner than it planned. In the case of an annuity, the major risk to the insurance company is that the person may live a very long life — requiring more payments than the insurance company expected. Another risk is that the company may not be able to earn as great a return on its investments as planned, and so it may have less money to make payments when they are due. It is wise to buy an annuity only from a financially strong insurance company. Such a company is more likely to be able to pay its obligations. As with life insurance, the risk of annuities is spread over many people who have such contracts. This makes it easier for the insurance company to predict its risk.
Why have annuities become so popular as an investment in recent years?
Primarily, because of the possibility of tax deferral. After the tax law changes of recent years eliminated some other options, annuities are one of the few remaining ways to defer income tax on the growth of your investments.
Insurance Agency
Agency is an area of commercial law dealing with a contractual or quasi-contractual tripartite, or non-contractual set of relationships when an agent is authorized to act on behalf of another (called the Principal) to create a legal relationship with a Third Party. Succinctly, it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or impliedly, authorizes the agent to work under his control and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between:
• Agents and Principals;
• Agents and the Third Parties with whom they deal on their Principals' behalf; and
• Principals and the Third Parties when the Agents purport to deal on their behalf.
The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in Criminal law or Tort for the acts or omissions of another.
• Agents and Principals;
• Agents and the Third Parties with whom they deal on their Principals' behalf; and
• Principals and the Third Parties when the Agents purport to deal on their behalf.
The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in Criminal law or Tort for the acts or omissions of another.
Insurance Affiliate Programs
Insurance affiliates generally do very well. Operators on the insurance market thrive on credibility, and this culture tends to spill over in no-nonsense insurance affiliate programs.
There are a lot of strong operators in the insurance niche, from insurance brokers to big insurance companies selling their own policies.
Insurance affiliates often work with generating requests for insurance quotes, getting paid a CPA for each completed request. Commissions on insurance policy sales are also sometimes available for ambitious affiliates, often coupled with very tempting volume increments!
There are a lot of strong operators in the insurance niche, from insurance brokers to big insurance companies selling their own policies.
Insurance affiliates often work with generating requests for insurance quotes, getting paid a CPA for each completed request. Commissions on insurance policy sales are also sometimes available for ambitious affiliates, often coupled with very tempting volume increments!
Healthcare abroad
Whatever your reasons for going abroad, you may be entitled to medical care at reduced cost or sometimes free. Your entitlement will vary based on whether you're going to an European Economic Area country (EEA) or elsewhere in the world.
If you're going on a holiday or a business trip, you should apply for a free European Health Insurance Card (EHIC), which offers you access to reduced-cost medical treatment.
Go to About the EHIC for more information on how to access healthcare abroad.
We offer a full range of worldwide health insurance plans and whether you are looking for individual, family, group or company cover, we have an international medical insurance plan to suit your requirements. Goodhealth makes sure you have access to the finest medical facilities worldwide, enabling you to obtain the best possible treatment whenever and wherever you need it.
As experienced specialists in international health insurance, we understand that, living abroad, expatriates require comprehensive worldwide medical insurance. Our international travel medical insurance plans ensure you are not faced with large medical bills, and provide a valuable range of additional international healthcare services.
If you're going on a holiday or a business trip, you should apply for a free European Health Insurance Card (EHIC), which offers you access to reduced-cost medical treatment.
Go to About the EHIC for more information on how to access healthcare abroad.
We offer a full range of worldwide health insurance plans and whether you are looking for individual, family, group or company cover, we have an international medical insurance plan to suit your requirements. Goodhealth makes sure you have access to the finest medical facilities worldwide, enabling you to obtain the best possible treatment whenever and wherever you need it.
As experienced specialists in international health insurance, we understand that, living abroad, expatriates require comprehensive worldwide medical insurance. Our international travel medical insurance plans ensure you are not faced with large medical bills, and provide a valuable range of additional international healthcare services.
Sunday, May 31, 2009
Intergovernmental risk pool
To use a simplified example: an insurance company with many policies in hurricane-prone Florida might form a risk pool with an insurance company in tornado-prone Kansas. Should a severe hurricane season occur, the Kansas company will share some of the loss with the Florida company, allowing the Florida company to avoid unbearable deficit; and the Kansas company gets the same benefit if a severe tornado season occurs.
Insurance law
Insurance law is the name given to practices of law surrounding insurance, including insurance policies and claims. It can be broadly broken into two categories - regulation of the business of insurance and regulation of claim handling.
Insurance Hall of Fame
The Insurance Hall of Fame is an international list of business leaders in the insurance field. It was founded in 1957 and now has more than 100 inductees; it is kept by the University of Alabama in the United States. Its first inductee was Benjamin Franklin presumably for his efforts in establishing fire insurance companies in Philadelphia.
Global assets under management
Global asset allocation or Global assets under management consists of pension funds, insurance companies and mutual funds. Other funds under management include private wealth and alternative assets such as hedge funds and private equity. Institutional clients generate the majority of funds.
Assets of the global fund management industry increased 14% in 2007 and doubled from 2002, to reach a record $74.3 trillion [1]. Growth in recent years has largely been due to rising net flow of investment and strong performance of equity markets. Part of the reason for the increase, in dollar terms, has also been the decline in the value of the dollar against a number of currencies.
Assets of the global fund management industry increased 14% in 2007 and doubled from 2002, to reach a record $74.3 trillion [1]. Growth in recent years has largely been due to rising net flow of investment and strong performance of equity markets. Part of the reason for the increase, in dollar terms, has also been the decline in the value of the dollar against a number of currencies.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.
Earthquake Loss
Earthquake loss estimation is usually performed in terms of a Damage Ratio (DR) which is a ratio of the earthquake damage dollar amount to total value of a building[1]. For a long time, it was associated with a collection of mass inventory data and was based, mostly, on experts' opinions.
Another method is the use of HAZUS, a computerized procedure for loss estimation.
Another method is the use of HAZUS, a computerized procedure for loss estimation.
ACORD
ACORD, the Association for Cooperative Operations Research and Development, is the insurance industry's nonprofit standards developer, a resource for information about object technology, EDI, XML and electronic commerce in the United States and abroad.
ACORD's most widely known accomplishment is the publication and maintenance of a huge library of standardized forms for the insurance industry. Most claims in the U.S. are recorded or transmitted on ACORD forms.
ACORD's most widely known accomplishment is the publication and maintenance of a huge library of standardized forms for the insurance industry. Most claims in the U.S. are recorded or transmitted on ACORD forms.
Tuesday, April 28, 2009
Travel Insurance
If you are planning to travel outside the country may be for a business trip or just for leisure time, having a travel insurance plan will be an intelligent choice. In the earlier times making a choice for the travel insurance was a costly affair. But now, with the changing times, it has become a necessity. Usually full travel insurance will cost you around a maximum of six to seven percent of your travel cost.
When you are deciding for a travel insurance plan you are looking at two major points:
- Coverage for the abandonment or interrupted of your travel due to some particular reasons.
- Due to some medical reasons.
Coverage for the loss of personal belongings is not a good choice as the medical evacuation in some emergency and a trip interruption. Medical expenses are very high in some country and if you had to make payments by yourself then you can be in serious financial botherations. So it is better to review your insurance policy regarding health again.
Travel insurance plan makes coverage for the unexpected events for example- some natural calamity, the hijacking of the airplane, an accident while you were on the way to the airport, or fire. If you make any alterations in your plans, if you have to make a stay due to your professional reasons, or you don’t have enough monetary funds then the insurance company won’t cover you. The insurance companies don’t accept the injuries made by yourself and if you have used some drugs.
Your travel insurance will cover your damages just incase the travel agency due to some reasons closes their business and if you have made a purchase of the travel insurance plan from the traveling company itself then it is very difficult to get your losses covered. The coverage entirely depends on the policy statement and only some of the companies make a payment if the company is not functional for a maximum number of ten days or more than that if a case of bankruptcy is filed. But there are some travel companies they do not file any bankruptcy case they just flee away. It can really ruin away your plans if your traveling company or agent closes down their business unexpectedly.
Usually the traveling companies charge a maximum amount of seven percent of your travel cost for the following- medical assistance, abandonment of the travel. The cost depends on your age, your travel cost and the medical coverage. There are some travel companies and agents those are engaged in providing you the travel insurance straightway but it is not the best way to own it.
It is always best to review other rates to have a suitable deal. If you are planning to make a purchase from the travel agency then you would be in a loss as you never know when they will be closing their business. So you should always prefer to buy a travel insurance plan from a registered or a famous insurance company or agency.
Like the usual process of insurance you should be definite that you have enough coverage for the fulfillment of your requirements. If you have any valuable item then make sure to get it included in the policy statement. It is unimportant to calculate the price for the travel insurance with the condition where you don’t have travel insurance and might have to face some losses.
If you have planned a trip and looking for cheaper travel insurance plan then Loan Bazaar can help you. Log in to out website and you can have your quote for the cheaper holiday insurance in a short span of time. You can search for the different travel plans according to your suitability and likings. When you visit our website www.loanbazaar.com you get whatever information you need concerning the travel insurance and you can make a comparison for every policy before finalizing with any travel insurance plan.
When you are deciding for a travel insurance plan you are looking at two major points:
- Coverage for the abandonment or interrupted of your travel due to some particular reasons.
- Due to some medical reasons.
Coverage for the loss of personal belongings is not a good choice as the medical evacuation in some emergency and a trip interruption. Medical expenses are very high in some country and if you had to make payments by yourself then you can be in serious financial botherations. So it is better to review your insurance policy regarding health again.
Travel insurance plan makes coverage for the unexpected events for example- some natural calamity, the hijacking of the airplane, an accident while you were on the way to the airport, or fire. If you make any alterations in your plans, if you have to make a stay due to your professional reasons, or you don’t have enough monetary funds then the insurance company won’t cover you. The insurance companies don’t accept the injuries made by yourself and if you have used some drugs.
Your travel insurance will cover your damages just incase the travel agency due to some reasons closes their business and if you have made a purchase of the travel insurance plan from the traveling company itself then it is very difficult to get your losses covered. The coverage entirely depends on the policy statement and only some of the companies make a payment if the company is not functional for a maximum number of ten days or more than that if a case of bankruptcy is filed. But there are some travel companies they do not file any bankruptcy case they just flee away. It can really ruin away your plans if your traveling company or agent closes down their business unexpectedly.
Usually the traveling companies charge a maximum amount of seven percent of your travel cost for the following- medical assistance, abandonment of the travel. The cost depends on your age, your travel cost and the medical coverage. There are some travel companies and agents those are engaged in providing you the travel insurance straightway but it is not the best way to own it.
It is always best to review other rates to have a suitable deal. If you are planning to make a purchase from the travel agency then you would be in a loss as you never know when they will be closing their business. So you should always prefer to buy a travel insurance plan from a registered or a famous insurance company or agency.
Like the usual process of insurance you should be definite that you have enough coverage for the fulfillment of your requirements. If you have any valuable item then make sure to get it included in the policy statement. It is unimportant to calculate the price for the travel insurance with the condition where you don’t have travel insurance and might have to face some losses.
If you have planned a trip and looking for cheaper travel insurance plan then Loan Bazaar can help you. Log in to out website and you can have your quote for the cheaper holiday insurance in a short span of time. You can search for the different travel plans according to your suitability and likings. When you visit our website www.loanbazaar.com you get whatever information you need concerning the travel insurance and you can make a comparison for every policy before finalizing with any travel insurance plan.
Auto Insurance
Your auto insurance protects you from economic losses if you ever meet with a vehicle accident or some other unforeseen event. Auto insurance is basically an agreement with the insurance company and you. You make a premium payment to the insurance company and in return the company agrees to pay for your losses as promised in the insurance policy.
The main question is that why should someone purchase an auto insurance?
- If you owe a loan for your auto you need to make a purchase of some amount from the auto insurance.
- In case you face some loss of property and have received some physical injuries in some road accident, faced some losses from natural calamity, or experienced burglary then the auto insurance covers the expenses for the above mentioned circumstances.
- You need to make a minimum payment as a legal responsibility and it is applicable in every state. And it entirely depends on the different rules and regulations of the state whether forms of auto insurance coverage has to be put into use or not.
Liability coverage pays for your legal responsibility to others for physical injury or property damage. Insurance is independently regulated by each state. According to the state government you have to purchase some amount from the below given forms of liability coverage:
- If you have an uninsured/underinsured insurance means that if you have met with an accident which is caused by someone else, and they do not have the insurance to cover the damage, you can file a claim with your insurance company asking for the compensation. It entirely depends on the amount of the coverage you have and your insurance company can make out the difference. This can save you from complete financial loss just in case you have a major accident.
- Property damage liability is the coverage for the responsibility to pay the damages of another person for the loss or destruction of the person’s property. It also includes the coverage to reinstate the auto.
- This liability covers your property if you are involved in a case of a death of a person in an accident or for a physical injury to any person.
The main question is that why should someone purchase an auto insurance?
- If you owe a loan for your auto you need to make a purchase of some amount from the auto insurance.
- In case you face some loss of property and have received some physical injuries in some road accident, faced some losses from natural calamity, or experienced burglary then the auto insurance covers the expenses for the above mentioned circumstances.
- You need to make a minimum payment as a legal responsibility and it is applicable in every state. And it entirely depends on the different rules and regulations of the state whether forms of auto insurance coverage has to be put into use or not.
Liability coverage pays for your legal responsibility to others for physical injury or property damage. Insurance is independently regulated by each state. According to the state government you have to purchase some amount from the below given forms of liability coverage:
- If you have an uninsured/underinsured insurance means that if you have met with an accident which is caused by someone else, and they do not have the insurance to cover the damage, you can file a claim with your insurance company asking for the compensation. It entirely depends on the amount of the coverage you have and your insurance company can make out the difference. This can save you from complete financial loss just in case you have a major accident.
- Property damage liability is the coverage for the responsibility to pay the damages of another person for the loss or destruction of the person’s property. It also includes the coverage to reinstate the auto.
- This liability covers your property if you are involved in a case of a death of a person in an accident or for a physical injury to any person.
Saturday, April 11, 2009
Dental Insutrance
Although it is frequently overlooked, dental insurance can be an important part of your health insurance plan. Dental insurance is unfortunately not always covered in health insurance plans, so it's important to purchase additional insurance to cover your oral health needs. Many dentists recommend getting two in-office cleanings a year, so you may want to research the policies of the dental insurance quotes you obtain to find out what sort of coverage you'll get. Dental insurance companies offer many varied plans for different financial situations and family needs, so be sure to obtain insurance quotes for the insurance rate that fits your budget best.
Life Insurance
Although some people don't feel the need to purchase life insurance, it is a serious decision that everyone should consider. If you have a spouse, children, or loved ones that rely on you, getting life insurance may be a good idea in case of an unexpected death. As they say, life insurance isn't for those who have passed away, it is for those who are alive. Your loved ones may have financial difficulties if you were to pass away, making life difficult if you were the primary breadwinner. Term life insurance is a good option for some people, while whole life insurance is a better option for others. It's important to research the different types of life insurance and get several life insurance quotes so that you can find the best coverage for your family.
Car Insurance
As it is required in most states, car insurance is a necessity for drivers. No one plans to be in a car accident, so it's important to be prepared in case something happens. Car insurance quotes are easy to find online with many car insurance companies. If you get several auto insurance quotes, you'll be able to choose the best car insurance rate for your budget. Cheap car insurance is a popular avenue these days, but you should be sure that you're getting all of the coverage you need, as damage to your car or another person's car may cost you money out-of-pocket if you don't have sufficient coverage and your car insurance rate may go up.
Home Insurance
When you buy a home you want to protect your real estate investment and the things inside of it, including your family. With homeowners insurance, your home and your bank account will be protected from any damage or crime against it. Damages can be caused by natural disasters, fires, theft, burglary, and weather. You can shop around and find out what insurance companies want to charge you for your home owners insurance premiums. Home insurance quotes are important so that you know you're getting the best deal you can. Having home owner insurance means that your home will be protected no matter what happens to it.
Health Insurance
Health insurance can be something a lot of people take for granted. If you're healthy you will rarely use it, except to annual checkups. However, if you don't have a job that provides benefits, because you're self-employed, between jobs, working part-time, or are a student, health insurance can become a big worry. Unexpected illnesses or health concerns can pop up at any time and it's a good idea to be protected so that you don't end up with debt. You can get a family health insurance policy to protect you, your spouse, and your dependents, or you can find individual health insurance policies to protect just yourself if you are single. You can get a health insurance quote from several companies so that you can find the best policy for the best price. If you travel a lot or are going on a trip that is outside of your coverage area, such as a foreign country, travel health insurance is a good idea. If you get sick in a foreign country or in any circumstance when you don't have insurance, your bills will be high.
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