What is insurance and how does it work? | You have LIFE insurance, MEDICAL insurance, and NON-LIFE insurance.

What is Insurance?

Insurance is a process that combines the risks of individuals into a group, using funds contributed by members of the group to pay for losses. Insurance is a contract between the insurance company and an individual(insured). 

The insurance company promises to pay a specified amount to the insured in return for consideration or the premium on the happening of a certain event. Though insurance cannot prevent unwanted events or causes of loss from happening, it protects the policyholder by compensating him for the promised amount of loss.

What is insurance and how does it work?

We have had a lot of questions asking us how insurance works. So here is a short video that might explain it better

EmployeePaidInsurance.com can help you choose the right benefits at the right time of your life can be critical. 

That's why we are committed to making the benefits count by helping people better understand their options. Our menu of personal insurance products offers a choice for individuals to better protect themselves and their family members from life's unexpected turns.

Insurance, it’s the annoying necessity that we all pay for to make sure we don’t end up in massive amounts of debt if our house burns down, if we crash our car, or if something tragic happens.

Insurance helps us maintain peace of mind, knowing that even if something bad does happen, someone else is going to pay for what it costs to fix it. Though, to an untrained eye, this can be a little perplexing. I mean, if you pay $200 a month for home insurance and after only 6 months your home burns down, the insurance company will buy you a new home, likely in the manner of hundreds of thousands of dollars. But, you would’ve only given them $1200. Why would they do that? That’s the power of insurance, baby.

Become an Insurance POSP

well we are talking about posp what is posv figure not we will tell you posp stands for point of salesperson which basically means an insurance agent who can sell a range of insurance products offered by different companies directly to the customer.

posp comes up with simple yet effective insurance plans as per the needs of the customer offering full protection and tax benefits digital technology helps posps in offering insurance plans without any paperwork anyone anywhere can become a posp.

if you are a part-time a full-time working professional a housewife or homemaker self-employed a retired professional operating a small or mid-level business or a college student then you can easily connect with pd partners a brand of policy bazaar to become a posp and sell a wide range of insurance products to your customersdirectly from home all you need to be is above 18 years of age 10th pass out and have your pan and address proof with you for kyc verification.

How Do Insurance Companies Make Money and How Do They Work

Well some of us may think that there’s nothing more boring than attending an insurance conference on a wet Tuesday night in Boston. And we may well be right, but if we look back to see how the industry began, it isn’t as dull as it might first appear.

From swashbuckling pirates to a ferocious fire that ravaged the world’s greatest city, insurance has had a colorful past. But how do those grey suits who sell insurance really make money, and how do the inner workings of one of the most complicated fiscal models really work?.

If these questions whet your curiosity, then stay tuned to today’s episode of The Infographics Show – Why do insurance companies make money and how do they work?

Insurance | Financial Planning Process

What Is Insurance? To answer that, we first need to talk about RISK and REWARD. Insurance means transferring risk to a third party that would compensate you for losses. 

So, what are the different types of insurance?

Many insurers can be categorized into three categories. You have LIFE insurance, MEDICAL insurance, and NON-LIFE insurance.

• LIFE INSURANCE: Whole life, term, universal, unit-linked, variable universal
• MEDICAL INSURANCE: Critical illness, long term care, disability
• NON-LIFE INSURANCE: Car insurances, property insurances, travel, home, business risk, liability insurances.

How Health Insurance Works

When I consider purchasing an individual health insurance plan for myself or my family, do I have any financial obligations beyond the monthly premium and annual deductible?

Answers: It depends on the plan, but some plans have the following cost-sharing elements that you should be aware of.  

Co-Payments: Some plans include a co-payment, which is typically a specific flat fee you pay for each medical service, such as $30 for an office visit. After the co-payment is made, the insurance company typically pays the remainder of the covered medical charges.

Deductibles: Some plans include a deductible, which typically refers to the amount of money you must pay each year before your health insurance plan starts to pay for covered medical expenses.

Coinsurance: Some plans include coinsurance. Coinsurance is a cost-sharing requirement that makes you responsible for paying a certain percentage of any costs. The insurance company pays the remaining percentage of the covered medical expenses after your insurance deductible is met.

Out-of-pocket limit: Some plans include an out-of-pocket limit. Typically, the out-of-pocket limit is the maximum amount you will pay out of your own pocket for covered medical expenses in a given year. The out-of-pocket limit typically includes deductibles and coinsurance. But, out-of-pocket limits don't typically apply to co-payments. 

Lifetime maximum: Most plans include a lifetime maximum. Typically the lifetime maximum is the amount your insurance plan will pay for covered medical expenses in the course of your lifetime. 

Exclusions & Limitations: Most health insurance carriers disclose exclusions & limitations of their plans. It is always a good idea to know what benefits are limited and which services are excluded from your plan. You will be obligated to pay for 100% of services that are excluded from your policy.

Beginning September 23, 2010, the Patient Protection and Affordable Care Act (health care reform) begins to phase out annual dollar limits. Starting on September 23, 2012, annual limits on health insurance plans must be at least $2 million. By 2014 no new health insurance plan will be permitted to have an annual dollar limit on most covered benefits.

There are five important changes that occurred with individual and family health insurance policies on September 23, 2010. 

Those changes are:

1. Added protection from rate increases: Insurance companies will need to publically disclose any rate increases and provide justification before raising your monthly premiums.
2. Added protection from having insurance canceled: An insurance company cannot cancel your policy except in cases of intentional misrepresentations or fraud.  
3. Coverage for preventive care:  Certain recommended preventive services, immunizations, and screenings will be covered with no cost-sharing requirement.
4. No lifetime maximums on health coverage: No lifetime limits on the dollar value of those health benefits deemed to be essential by the Department of Health and Human Services.
5. No pre-existing condition exclusions for children: If you have children under the age of 19 with pre-existing medical conditions, their application for health insurance cannot be declined due to a pre-existing medical condition. In some states, a child may need to wait for the state's open-enrollment period before their application will be approved.

How to File a Disability Insurance claim Using SDI Online.

- Disability insurance is here for you when you need it most. Before you register online, you'll need your name, Social Security number, driver's license number, most current employer's information, and any workers' compensation claim info.

Be sure to share any wages you expect to receive after you stop working, like paid time off or sick time, plus the last date you worked your regular duties and hours or the date you began working at less than full duty or modified duty. And if you're receiving inpatient treatment in an alcoholic recovery home or drug-free facility, please provide information about the facility. From the Benefit Programs Online login page, select Register to create an account.

Accept the terms and conditions and provide a current email address. Set up a password that is between 8 and 20 characters. The password is case-sensitive. It must contain at least one uppercase letter, one lowercase letter, one number, and one special character. Then create your security profile. Once you submit your registration information, an email with a link will be sent to you. Select the unique link within 48 hours to complete your registration. 

How Do I Apply For Health Insurance?

If you are eligible you may be able to enroll in what's called Marketplace Insurance. And so for Marketplace Insurance if you lose your health coverage, your household income changes, or you experience another qualifying event, you may be eligible for Healthcare coverage through the Affordable Care Act's Marketplace during what's known as a Special Enrollment Period.

So I'm going to pull up www.healthcare.gov which is the federal website for the health insurance marketplace coverage. So here you can see just the start healthcare.gov website and there is a couple of options right at the front here.

Where it says "SEE IF I CAN ENROLL" or "SEE IF I CAN CHANGE" and so if you already have Marketplace coverage you may want to change your type of coverage and that's where you would use that "SEE IF I CAN CHANGE" button.

But if you want to find more information about enrolling in Marketplace coverage you can click this "SEE IF I CAN ENROLL" button which I'll go ahead and do here.