Life insurance - Revision history

Quidam65: /* Accidental Death and Dismemberment (AD&D) Policies */

2020-05-20T22:43:07Z

Accidental Death and Dismemberment (AD&D) Policies

Quidam65: /* Accidental Death and Dismemberment (AD&D) Policies */

2020-05-20T22:42:09Z

Accidental Death and Dismemberment (AD&D) Policies

Quidam65: /* Regulation */

2019-02-25T02:03:04Z

Regulation

Quidam65: /* Types of policies */ AD&D subsection

2019-02-25T01:58:35Z

Types of policies: AD&D subsection

Quidam65: /* Types of policies */

2019-02-18T18:39:33Z

Types of policies

DavidB4-bot: /* Types of policies */Spelling/Grammar Check, typos fixed: A example → An example

2016-06-27T18:21:09Z

Types of policies: Spelling/Grammar Check, typos fixed: A example → An example

JDano: clean up

2016-03-06T01:58:36Z

clean up

TheAmericanRedoubt at 08:05, December 10, 2014

2014-12-10T08:05:42Z

TheAmericanRedoubt at 08:02, December 10, 2014

2014-12-10T08:02:45Z

TheAmericanRedoubt: Added hyperlinks and Proof Read and Categories and See Also

2014-12-09T00:33:58Z

Added hyperlinks and Proof Read and Categories and See Also

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 Some companies offer free AD&D only policies to customers as a bonus for doing continued business with them (a common example is a credit union offering such a policy to an account holder).  The initial policy is very small, such as only $1,000 of coverage, and is generally followed by repeated solicitations to increase coverage -- for additional premiums paid.
-It should also be noted that some AD&D policies, or benefits on existing life insurance policies, terminate or decrease significantly at certain ages or events.  A notable example is under the [[Federal Employees Government Life Insurance]] (FEGLI) program, AD&D coverage is double face value of whatever coverage the employee chooses during working years, but at retirement all AD&D benefits terminate completely.
+It should also be noted that some AD&D policies, or benefits on existing life insurance policies, terminate or decrease significantly at certain ages or events.  A notable example is under the [[Federal Employees Group Life Insurance]] (FEGLI) program: AD&D coverage is double face value of whatever coverage the employee chooses during working years, but at retirement (or if the employee no longer works for the government) all AD&D benefits terminate completely.
 [[Category:Insurance]]
 [[Category:Business]]

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 Some companies offer free AD&D only policies to customers as a bonus for doing continued business with them (a common example is a credit union offering such a policy to an account holder).  The initial policy is very small, such as only $1,000 of coverage, and is generally followed by repeated solicitations to increase coverage -- for additional premiums paid.
-It should also be noted that some AD&D policies, or benefits on existing life insurance policies, terminate or decrease significantly at certain ages or events.  A notable example is under the Federal Employees Government Life Insurance (FEGLI) program, AD&D coverage is double face value of whatever coverage the employee chooses during working years, but at retirement all AD&D benefits terminate completely.
+It should also be noted that some AD&D policies, or benefits on existing life insurance policies, terminate or decrease significantly at certain ages or events.  A notable example is under the [[Federal Employees Government Life Insurance]] (FEGLI) program, AD&D coverage is double face value of whatever coverage the employee chooses during working years, but at retirement all AD&D benefits terminate completely.
 [[Category:Insurance]]
 [[Category:Business]]

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 People who study risks (called [[Actuary|actuaries]]) determine the average life span of people and the risk that they will die.  Some people will live longer than the average and others will die sooner than the average.  Life insurance is a way of spreading the risk that the policy holder will die sooner than the average.  The insurance company collects the premiums and invests the money.  Because the insurance company sells policies to a large number of people, it sets the premiums at a level that will have enough money available to pay the death benefits as policy holders die.  The insurance company will lose money if more people die sooner than the actuaries had predicted.  The insurance company can also lose money if it spends too much on sales or administration or if its investments go bad.  The insurance company will make a profit if it earns more money on its investments, if it keeps its costs low, or if people decide to cancel their insurance policies before they die.
 ==Regulation==
-Unlike most contracts, the customer will not be around to see that the deal is honored by the other party. So, life insurance is regulated by states.  Most states will watch how the life insurance companies invest the money.  In general, insurance companies must have "reserves" that they invested very conservatively in safe investments.  Also, most states have laws that say who is allowed to buy a life insurance policy.  (If any person could buy a life insurance policy on any stranger, then crooks could buy a policy, kill the stranger and collect the money.)  Under the law, a person must have a legitimate reason for owning a life insurance policy on another person. This is called an "insurable interest."  States also regulate insurance companies to make sure that they do not charge excessively high premiums or that they fail to pay out the promised benefits.
+Unlike most contracts, the customer will not be around to see that the deal is honored by the other party. So, life insurance is regulated by states.  Most states will watch how the life insurance companies invest the money.  In general, insurance companies must have "reserves" that they invested very conservatively in safe investments.
-Life insurance companies are never legally required underwrite or to provide coverage to anyone, with the exception of [[Civil Rights Act of 1964|Civil Rights Act]] compliance requirements. Insurance companies alone determine whether a person can be insured, and some people, for their own health or lifestyle reasons, are deemed uninsurable. The life insurance company can either decline to write any policy on a person, or can "rate" the policy (increasing the premium amount to compensate for a greater probability of a claim).
+Also, most states have laws that say who is and is not allowed to buy a life insurance policy.  (If any person could buy a life insurance policy on any stranger, then crooks could buy a policy on a total stranger, then kill the stranger and collect the money, and there have been cases where people have tried to do just that.)  Under the law, a person must have a legitimate reason (an "insurable interest") for owning a life insurance policy on another person.  The interest does not have to be family-related, for example partners in a business may have policies on each other, so if one dies the remaining partner(s) will use the proceeds to purchase that partner's interest and continue the business.
 ==Types of policies==

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 ==Types of policies==
 There are two basic types of life insurance:
 * [[Investment]] policies – where the main objective is to facilitate the growth of capital by regular or single premiums. In the United States these are typically: [[Whole life insurance|whole life]], [[Universal life insurance|universal life]] and [[Variable universal life insurance|variable life]] policies.
 [[Category:Insurance]]
 [[Category:Business]]

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 ==Types of policies==
 There are two basic types of life insurance:
-* [[Safety|Protection]] policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. An example is term life insurance.
+* [[Safety|Protection]] policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. An example is term life insurance.  Sometimes these policies have additional "accidental death and dismemberment" (AD&D) benefits, where the policy face value is double if a death is the result of an accident or other benefits are paid due to loss of limb, sight, or hearing from an accident.  AD&D policies (albeit small, such as $1,000) are sometimes offered free by a credit union to members (with repeated solicitations to increase coverage -- for additional premiums paid).  Also, some of these policies will decrease coverage if a person reaches a specified age, such as 65 or 70.
 * [[Investment]] policies – where the main objective is to facilitate the growth of capital by regular or single premiums. In the United States these are typically: [[Whole life insurance|whole life]], [[Universal life insurance|universal life]] and [[Variable universal life insurance|variable life]] policies.
 [[Category:Insurance]]
 [[Category:Business]]

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 [[Category:Insurance]]
 [[Category:Business]]
-[[Category:Investment]]
+[[Category:Investments]]
 [[Category:Retirement]]
 [[Category:Economics]]
 [[Category:Survivalism]]
 [[Category:Banksters]]

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	[[Category:Survivalism]]		[[Category:Survivalism]]
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