Canadian life insurance companies urged to reduce risks

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The Canadian insurance companies have advertised segregated funds as an investment vehicle that is similar to mutual funds and one with a life insurance security. It may be mentioned here that segregated fund is an investment type and is under the administration of Canadian insurance companies and are made available in the form variable or individual life insurance contracts.

The Office of the Superintendent of Financial Institutions or OSFI has urged life insurance companies in Canada to slow down the sale of segregated funds as they are associated with a number of risks. Quoting the OSFI head Julie Dickson “Selling more segregated fund policies does not reduce risk, it actually increases it, because when the markets decline all segregated fund policies get hit at the same time”.

The head of OSFI suggested that the Canadian insurance companies selling life insurance policies and dealing with segregated funds should take few steps to reduce the risk associated with these funds. The measures suggested by her include “changes to product features, slowing growth in the product line, making sure that valuation assumption are consistent with the intent of capital rules, and hedging or other types of risk mitigation, including reinsurance”.

The value of the segregated funds is influenced by the prevailing market conditions that include the “value of underlying securities”. This makes the segregated fund risky and is more susceptible to a market collapse. The head of the Office of the Superintendent of Financial Institutions stated that there are 2 risks associated with the segregated funds. The first includes the liabilities that depend on the movement of the market and the second one includes funding the liabilities.

The segregated funds are also known as “mutual funds with an insurance policy wrapper”. They are usually sold by insurance representatives having license for the same. Segregated funds combine the benefit of a mutual fund along with life insurance coverage.

Contributed by Ampminsure Community Member.

How To Plan And Choose Home Insurance

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With life being so uncertain today, insurance is like the best way to prepare you for good and bad things ahead in life. Insurance gives you a sense of security as you know that there is someone to help you in your bad times. Like all insurances, home insurance is also very important as it protects your house from any kind of damage, theft and other accidents. It's like a monthly savings so that you can use them in future when you really need them. Just the difference is that you are giving this sum to a company that in return will cover your expenses when there is some kind of loss.

There are many companies in market that are selling some very good insurance policies, you can approach anyone and make a deal. You can also go online, search quotes from various companies, compare the rates, set a meeting with the company that you think is affordable, negotiate your deal, add all the terms and conditions and your deal is set. It is as simple as it looks with all quotes available online. You can choose the company that offers you best deals for your home insurance through internet, without bugging calls from the agents. Also you can do the job as and when it suits you, there is no pressure on you.

Make sure the company you go for is reliable, has a reputation in market and most importantly, it covers all your needs. All your terms and conditions should be agreed by the company within of course limits of its policy. They might not cover certain things that you are asking for, so policy should be by agreement of both the parties.

People buy home insurance to protect their house but this doesn't mean that you won't take safety measures from your side. The premium of your policy is low if your house is fully protected and there are less chances of danger. If all the lock and door systems of your house are perfect and you have a security alarm installed, you happen to get some discounts and your policy becomes more affordable. But then the locality of your house is a very important factor. This clause is defined by the government of the state and is not changeable and hence it can make a difference in terms of your home insurance. So take your time and plan your policy nicely.


Purchasing Health Insurance: Basic Facts You Need To Know

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With the costs of medicines and hospitalization increasing, health care has become extremely expensive for most people to tolerate. As important as it is to buy health insurance, it is also important to save money, especially in these times of economic difficulties. The only way to save money and to get a good deal is by researching. Before committing to a specific health care insurance, one must study the variety of health plans that are being offered by conducting some online research.

It can be overwhelming to research and not understand a word of what is being read. That is why prior to researching, one must learn there are two different types of health insurances. One type is called indemnity plans, also known as reimbursement plans, and the second type is the managed care plans, which include health maintenance organizations, preferred provider organizations, and point of service plans.

With indemnity plans, offered by most traditional insurers, a person is allowed to choose their own doctor and is entitled to either completely pay for the medical expenses, pay part of it, or up to a specified amount per day for a specific period of time. Then the medical expenses are reimbursed, however, in some cases the reimbursement may be limited.

The managed care plans provide wider coverage and make an arrangement between the insurer and a selected network of health care providers like doctors, hospitals etc. Policyholders are offered major financial motivation to use the providers in that network. However, a health maintenance organization may require that a primary care physician in the network will coordinate the entire health care of the patient and refer to specialists, also in the network.

One must be aware of what managed care plans consists of and their differences. Health maintenance organizations (HMOs) are prepaid policies; members pay a monthly fee despite of how much medical care is needed in a specific month. By being a member, this grants you and your family complete care including doctors' visits, hospital stays, emergency care, surgery, lab tests, x-rays and therapy.

Preferred provider organizations (PPOs) are made up of doctors and/or hospitals and the insurer pays for services as they are rendered and then it is reimbursed. With point of service plans (POS) one pays no deductible and usually only a minimal co-payment when they use a healthcare provider within their network.

POS plans are a mix between an HMO and a PPO where you have a primary care doctor and you get most of your health care from but you also have the option to choose to see doctors outside of the network at your own cost.

One should also examine the type of coverage offered by each health insurance organization and understand that it may vary. If one were to be hospitalized, hospital expense insurance pays for the room, board and incidental service costs. Surgical expense insurance covers surgeon's fees and related costs associated with surgery. Physicians' expense insurance pays for visits to a doctor's office or for a doctor's hospital visits.

Major health insurances offer a very broad coverage with maximum benefits that are designed to protect the customer from catastrophic illness or injury. While buying health insurance like these, one must check carefully and read between the lines of the policy to see if the additional benefits include prescription drugs, preventive care, mental health benefits, maternity care, vision care and others.

There may also be some expenses besides the monthly premium expenses that are not covered by some health care insurance organizations which can be really heavy especially if there are small children or members who visit the doctor frequently. Another expense one should be aware about is a co-payment. A co-payment is an amount one has to pay every time a health insurance provider is visited. There are some deductibles which are amounts to be paid towards medical expenses before the insurance company begins to pay the claims. There can be coinsurance also where the percentage on the medical costs has to be borne.

Health insurance is usually offered through a group plan such as at work or through another group affiliation like a club or a school. However, one can also purchase an individual health insurance. Before buying any health insurance, one should get online and find information, compare rates, review plans and options offered by each company and select the one that appeals the most. The best health insurance plan is the one which has the greatest flexibility and the most benefits at the lowest costs. One needs to shop around and get the best quotes before committing to a specific insurance. One must also make sure the reputation of the health insurance broker is good and in case of doubt the state's department of insurance gives the full information.

Sandra Cohen

Tips on Getting an Insurance Estimate

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You can easily get an insurance estimate in two different ways. Initially you can obtain an approximate estimate. The estimation provided will be calculated as a result of several non-identifiable factors: age, location, car make and model, house square footage, and others. This may be sufficient for you to see if you'd like to have a formal quotation from that particular corporation.

Find out your credit score beforehand. Your credit score is used by many, but not all, insurance companies. Next, a quote just for you can be obtained. For this you must be prepared to provide some type of personal identification. Personal data such as your social security number, physical address, automobile information, etc. This will permit you to see which insurance company will actually offer you with the most excellent rate. Most insurance companies are happy to provide quotes to you (or those agents that work for the firm). Independent agents have contracts for many different companies to sell insurance. One agent may be able to figure out which company offers the best deal by weeding through the comparisons for you. Independent Insurance Agents & Brokers of America are one source of finding an independent insurance agent. You can get more knowledge by internet searching. Looking for an independent agent? Look no further than the yellow pages.

Call or check online for an estimate. Based on how familiar you are with using the web, you could save yourself time and trouble. There are two options. First, you can look through all the websites one by one or second, you use a website that does the comparisons for you. Utilize a method with which you are comfortable. No matter what strategy you opt to use, be certain you're not comparing apples to oranges. Be sure you use the same coverage and deductibles from each company if you are seeking insurance on a car. Read the details of the estimates carefully. Comparisons aren't very useful if it isn't nearly identical coverage.

Before that you must search about the insurance company's customer service details. While the original service is significant, perhaps more critical is what could occur in case you need to file a claim. The simplicity of stating your opinion on the Internet these days, seeking customer service reviews of a company of your choice may result in a lot of information.

Don't forget that even though it's so simple to express your opinion these days, you may find out that some people with personal grudges may have a bigger impact than before. You need to study what's out there, yet don't believe every far-fetched claim you hear.

Tiffany Provost

Looking For Cheap Courier Insurance? Where to Find It

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It is important for courier business owners to have the right kind of insurance, so that they are covered in the case of accidents or loss of cargo. This is not the same cover you would get if you were a motor car owner, or a truck owner, but is a different and specialised insurance type that covers goods in transit, and the vehicles used to deliver these. Since you are responsible for the transportation of goods that belong to other people, you need a special cover for your vehicle.

The best way to get cheap courier insurance is to do your research before you contact companies, and find out what kind of insurance cover you need so that when you do meet companies you are able to put across your needs effectively. It is also a good idea to get in touch with online companies so you can compare rates with these as well. Generally, online companies can offer lower rates as they have fewer costs to cover, so be aware of this before you compare with local companies.

When you begin searching for courier insurance you will notice that there are many different kinds of covers available to you. This makes it increasingly important that you get the right cover for your needs and requirements, therefore make sure that you buy a cover that best suits your businesses needs. Haulage insurance, for example, will only cover the goods that belong to other people, whereas "goods in transit" will also cover your personal belongings.

There are also discounts that are available to you when you buy courier insurance. Some companies will offer discounts to new customers to attract them, and some will offer discounts to those customers that have a good driving record. Make sure you are aware of the various discounts that are being offered in the market so you can benefit from them.

Another way to reduce costs, if you have a large fleet of vehicles, is to get them all covered under a fleet insurance policy. This will be cheaper for you than getting every individual vehicle covered separately. Another important factor to consider is the size of your business, and the bargaining power this will give you with the company. The larger the business, the more you will be able to bargain this to get lower rates offered to you.

Be on the lookout for extremely low rates being offered to you, as these could essentially be policies that offer you less coverage, but the fine print confuses you into thinking you have full coverage, only to realise you are not covered after you have filed a claim. It is best to get an agent to help you wade through the different policies and choose one that is best for you.

By using these tips, you can make sure you are properly covered and have bought the cheapest and best insurance policy for your business needs. Being educated about insurance policies is the best way to make a good choice.

Paul Headley