There’s not much cool factor in life insurance. Many of the common perceptions of the industry as staid and frightenly conservative have some basis of truth behind them. Finally, something exciting in the world of life insurance. Hybrid term life insurance. Let’s take a look at one of the many shoots of innovation now entering the market much to your benefit.
We have wondered when the life insurance industry might follow health insurance in the transformative change towards better and more user friendly tools and processes. Hybrid life insurance is an indication that it’s finally started. Just to give you some background, I have a great deal of experience in the health insurance and life insurance market. It was always frustrating to watch the sluggish movement that life insurance made in light of health insurance adoption of online applications, instant underwriting in some cases, and a rich plethora of plan options. Let’s face it…life insurance is a conservative industry for a reason…it needs to be in some respects but that shouldn’t stifle innovation. This brings us to hybrid life insurance.
We are quietly excited about this new product. First a quick lay of the term life insurance landscape. In a simplified view, we have underwritten term life plans which is majority of the market and probably what you’re thinking of when shopping for life insurance. A new addition to this traditional life option is no medical life insurance. This address the need for people who may be unable to qualify for standard underwritten life policies. Hybrid is somewhere in the middle. We expect a big push in this direction and in general, we think it’s a great benefit for life insurance shoppers.
Hybrid life insurance combines an almost instant and simplified approval for life insurance associated with accidental death. This is based on a few health questions and no paramedical exam. You then have a period of time in which to get a paramedical exam…say six month to extend this dollar amount to all standard causes of death. The benefit is that the pricing is closer to the traditionally underwritten life insurance plans while the underwriting process is closer to the no medical life insurance plans. Traditional life underwriting is usually cheaper (depending on health) but takes a while to process. No medical is usually more expensive (per dollar of coverage) but process very fast (if not instantly). Hybrid life insurance, as it’s name denotes, is a nice middle ground. Fast underwriting for accidental death with the option to more fully underwrite (via the paramedical exam) in order to get the better rates of a traditional plan.
This is all relatively new so information is coming out all the time. We would be happy to run a hybrid life insurance quote in addition to the other plans on the market through our term life quote request form. It’s hard to get excited about life insurance but for now, this is as close as we come. Let’s hope it’s the beginning of a sea change in life insurance market innovation. As always, we are constantly scouring the market for new and affordable life insurance options for our clients. As your licensed independent broker, that’s our job.
Dennis Jarvis is a licensed insurance agent concentrating on finding the best term life insurance rates. Shop, compare, and instantly quote multiple carriers with professional guidance and resources.
Hybrid Life Insurance Plans
What is not covered in the policy
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between icici bank limited india's second largest bank and fairfax financial holdings limited a Us $ 26 billion diversified financial services corporate engaged in general insurance, re insurance, insurance claims management and investment management.Lombard canada LTd a group of company of fairfax financial holdings limited,is canadas 200 year old property and casualty insurance company.
Some Main Exclusions are:
Mechanical breakdown
Consequential loss
Depreciation
Wear and tear
Any contractual liability
intoxicated driving
Deliberate accidental loss
Damages Due to nuclear weapons material or war
Exclusive Features
Immediate policy issuance through online facility
Traumatowing services available trhough 24/7 call center
Towing charges upto rs.1500 covered
Cashless claim settlement at network dealers
online approval for minor claims through cashless network dealers
At What value do i insure my vehicle?
The indian motor thraffic predetermines the value for every type of vehicle, based on the age of the vehicle. It is caluculated on the basis of todays showroom price of the vehicle, and decreased by the depreciation rate to be applied as per the age. This value is called the IDV or the insured's Declared Value.
How is the premium calculated?
The basic premium is calculated as per indian motor tariff.It depends primary on the following factors.
Type of vehicle
Age of vehicle
Period of Coverage
Discount/loadings
IDV
Discount
Appropriate bonus loading discounts are taken into account while caluculating your premium also past claims experience , security and additional features are considered.
some of the discounts are as below.
If you do not make any claim over a period of them a no claim bonus is offered on renewals. This discount can go as high as 50%. However if there is any claim the discount will be zero for the next renewal.
Therefore, before making small claims, one should be careful. Especially when you have a high ncb.
You will get the full benefit of no claim bonus, even when you shift your motor insurance policy to icici lombard from any other insurance company.
A further discount in the premium is also available if you opt for voluntary excess in addition to compulsory excess. compulsory excess is the amount of the loss, which the insured has to bear in each and every claim.
You can also avail of additional discount if you are a member of a recognized automobile association in india.
There are many good reasons to carry auto insurance
With newer cars you want to protect your investment in case of an accident or a disaster that damages the car. And if your vehicle is financed, the originator of your car loan may require a certain level of insurance until the car is paid off.
Another reason to carry at least a minimum of auto insurance is all states require every car on the road to be covered by bodily injury and property damage insurance. These requirements help ensure all drivers can pay for damages or injury caused by the vehicle they are driving. Each state does have it’s own specific requirements for minimum auto insurance, so do be certain you understand the requirements in your state.
Minimum auto insurance laws have always come with a fine or other penalty. Say you get pulled over for speeding, the police officer who pulled you over will ask for proof of insurance, among other things, during the traffic stop. If you can’t produce proof of insurance in the form of your insurance card you will likely get a citation for lack of insurance on top of any other moving violations you get charged with during the stop. This minimum level of auto insurance now comes with even more incentive to make sure your car is insured in many cities and towns across the United States.
A growing number of municipalities have added another layer to this process. If you can’t prove you are carrying auto insurance on the car you are driving, not only do you get a ticket for lack of insurance but your car is towed to the local pound as well. This requires you to not only pay the towing and impounding fees, but also produce proof of insurance to even get your car back. The idea behind the new law is to get uninsured cars off the roads and to provide additional municipal income.
The number of cities imposing no-insurance tow laws increases every day. Even if your city or town doesn’t have this regulation on the books, if you were to be pulled over in a jurisdiction that does without auto insurance, or even proof of insurance, your car could be towed until you can prove you have insurance on the car. This can cost you greatly in time and money.
It’s also worth keeping in mind cities with these policies can even target your uninsured vehicle by running the car’s license plate to see if the auto has insurance coverage or not.
The lesson? Make sure you have at least the minimum level of auto insurance on any car you drive.
