Insurance Information

The extent to which the value of property, possessions, securities, health or life is protected from potential loss through contractual insurance coverage. Adequacy of coverage may be measured economically, structurally or attitudinally, depending on the situation. If policy limits are set high enough, adequacy of coverage isn’t an issue. However, when a person is underinsured, … Read more

Highly trained insurance professionals who evaluate claims risk and determine, through careful analysis, the types of events that could potentially cause policyholders to file claims. They then assess the likelihood those events will occur, the costs that could occur from such claims, and the amount of money the insurance company would need to cover those … Read more

A method of loss reimbursement for damage caused by an item covered by insurance. Sometimes interpreted as fair market value, actual cash value represents the cost to replace the damaged item with new property of like kind and quality, minus depreciation. This method of payment dictates only partial reimbursement due to use, age or wear … Read more

Routine, daily activities, such as feeding, dressing, bathing and grooming, that you would normally perform yourself without assistance. The ability to perform ADLs is an important consideration for determining what type of long term care insurance coverage you may need. Nearly half of all Americans who turn 65 during any given year will eventually enter … Read more

Also called “Double Indemnity,” accidental death benefit is a life insurance policy feature that triggers a double payout to the beneficiary when the insured dies from accident or dismemberment. Following death, the insurance company that issued the policy will conduct a thorough investigation to determine whether or not death actually occurred due to accident. If … Read more

A clause used in your insurance contract that gives your insurer the right to demand payment for your policy in full, under specific circumstances outlined there. Some events that could cause your insurer to invoke the acceleration clause include non-payment of premiums by a certain date or destruction of property. « insurance glossary

Life insurance benefits made available to policyholders before death actually occurs. In the event of catastrophic or long term illness, some individuals may choose to apply these funds to medical bills, living expenses or other situations requiring financial resources. How much money a person can extract in accelerated benefits from a life insurance policy, and … Read more

Cash value which is transferred from one life insurance policy to another without paying tax on the original contract. This kind of transaction is governed by Section 1035 of the Internal Revenue Service Code; hence its name. The IRS allows you to exchange one life insurance policy you own for a new one. As long … Read more

Asked by Julia from El Paso, TX Excellent question, Julia. You’re certainly not the only one seeking clarity on this subject. Long-term care insurance (LTC) is a relatively new product (the first policies were sold in the 1970s) that pays for nursing home and at-home care. More specifically, LTC provides financial help to individuals who … Read more