Recent press coverage has again lambasted the insurance industry over critical illness insurance. The underlying problem is that a critical illness claim is not as straightforward as, for example, a claim under car or life insurance. With car insurance it’s patently clear whether or not you’ve had an accident – the damage is there to be seen and repaired. And with life insurance it’s going to be hard for the insurer to argue that you’re not dead!

By their very nature, critical illness claims are far more complicated. The insurers will need to satisfy itself that the claim is valid in three primary areas before it pays out: -

Is the medical diagnosis correct?

Is the diagnosed illness included in the schedule of insured critical illnesses listed within the policy documents?

Did the policyholder fully disclose their state of health and medical history on their original application form?

It’s clearly in the policyholder’s interest to check that the medical diagnosis is correct – so there’s rarely ever any conflict between the policyholder and the insurance company on that issue. It’s the other two areas which require validation where conflicts sometimes arise.

With constant research and development in the medical field there can sometimes be some illnesses where validation falls into a grey area ? it can be argued that an illness is insured and it can be argued that it isn’t. Insurance companies are aware of these problems and they frequently revise the wording on policies in an attempt to clarify the extent of the cover and eliminate scope for dispute. Nevertheless, disputes are relatively common and sparks fly when the policyholder thinks he is insured but the insurer disagrees. This is illustrated by a case that comes before the Courts shortly. Mr Hawkins from Staffordshire is suing Scottish Provident under the terms of his ?400,000 critical illness policy. Basically, his medical advisers believe his illness is insured whereas Scottish Providents’ medical advisers disagree. If Mr Hawkins wins his case, the press will have a field day and the critical illness insurers will suffer further bad press it can ill afford.

Another summons, filed recently in the High Court, highlights the problem when an insurance company believes that the claimant mislead them on his or her original application form. Our understanding is that if an applicant misleads or leaves out relevant information, this amounts to obtaining insurance cover on false pretences. The High Court summons relates to Thomas Welch from north London who is suing Scottish Provident for ?206,800 which includes interest. The problem goes back to 2000 when, a few years after starting his critical illness policy, it was confirmed that Mr Welch had testicular cancer. The insurer refused the claim because of ?non-disclosure saying that Mr Welch had not been honest about his smoking habit. He admits that he did smoke earlier in his life but is insistent that he had long since stopped when he applied for the insurance. As such, Mr Welch claims that he did honestly complete the application. We suppose that the case will centre upon whether Mr Welch accurately answered the questions about smoking. Most insurance companies define ?a smoker? as a person who has smoked or otherwise taken nicotine products within the previous 5 years. If Mr Welch had smoked during those years, he would have had to answer ?yes? to that sort of question and his insurance premium would have been as much as 65% more than he would have been charged as a non-smoker. We speculate that his lawyers may argue that either he did not smoke during the period in question or he omitted the smoking information by simple oversight and that his past smoking was not relevant to his testicular cancer. Interesting issues. We shall follow the case and let you know the outcome.

Mr Hawkins case illustrates the problems that can arise if insurance documents imprecisely define an illness or when the technical diagnosis of an illness leaves scope for medical experts to disagree. Both issues are entirely outside the policyholders control at a most difficult time for them and their families and we can well appreciate their anguish. The long-term answer must lie in improving the medical definitions within the policy. The probability is that this will lead to increasing the technical medical jargon which the man in the street would find difficult to understand – but that must be preferable compared to what Mr Hawkins is going through.

The other court case must stand as a clear reminder to all that insurance applications must always be 100% accurate and completed in good faith. We recognise that this may still leave room for dispute (and Mr Welch’s case may be a case in point), but if an applicant fails to accurately complete the forms, they are taking the significant risk that any subsequent claim will be rejected.

Rightly or wrongly, the press have a track record of giving the insurance industry a hard time, casting them as heartless big business. This reinforces the public’s impression that insurance companies are not to be trusted and especially it seems, with regard to critical illness insurance. This view is bolstered by the fact that around 20-25% of critical illness claims are rejected (the rejection rate does vary between insurers). This issue is something that insurance companies must get to grips with ? it is bad for their clients and bad for the development of their business.

This is a crying shame. 1 in 6 women and 1 in 5 men will be diagnosed with a critical illness before their normal retirement age* and as such, critical illness insurance can greatly protect the finances of those unfortunate enough to be diagnosed.

(* Source: Munich Re.)

About The Author
Michael Challiner writes for Express Life Insurance ( http://www.express-life-insurance.co.uk ) who offer life insurance quotes and critical illness insurance. Click here for more life insurance topics ( http://www.express-life-insurance.co.uk/life-insurance-news-articles.htm )

If you’re wondering how to apply for health insurance, be aware that application is the second step of the process — after you’ve researched different policies and compared prices and benefits. Whether you apply online or off will depend on your comfort level with the computer, and also whether you’re applying via a group plan.

Before you sit down to fill out an application, you should gather information you will likely need when filling out an application. The names and addresses of doctors for yourself and your family members, the dates of the most recent visits, and information about your most recent insurance policy,

Through Your Employer

If you’re enrolling in a health insurance plan through your employer, you probably won’t need a medical examination, but you may have to wait for the company’s next enrollment period before you can apply. However, if you’re a new hire, you likely can apply immediately. The application process for enrolling in a group plan is quite simple, because most plans will enroll everybody, regardless of pre-existing conditions and current state of health.

Just fill out an enrollment form, which includes personal information like: name, address, social security number, designation of the primary insured and all dependents (including the names, ages, dates of birth and social security numbers for all dependents), employment information including date of hire, and the type of health insurance coverage you select. You’ll probably have to provide information about your prior health insurance coverage, including the insurance company name and policy number.

The completed application goes back to the benefits coordinator, who will process your form, and you’re finished.

On Your Own

If you’re not applying for group coverage, the steps are similar, except you’ll be handling all the paper work yourself. Some insurance companies will send an insurance agent to discuss the application process with you. In these cases, the agent will often work with you to gather the necessary documentation, coordinate an in-home medical examination, and collect your pre-payment check.

The whole process is so simple that some people decide to apply for health insurance online. To do so, just visit the health insurance company’s web site where you’ll find an online application form. You’ll have to provide the same type of personal and employment information as above, and you’ll just enter it onto an online application form. When you’re finished, click the submit button and the system takes over.

Applying for health insurance online really is painless, reliable and fast. However, if you are not comfortable providing that amount of personal information over the internet, it’s probably a good idea to apply for health insurance offline.

Either way, don’t wait until you need it. Because then it might be too late.

Ron King is a full-time researcher, writer, and web developer. Visit healthinsuring to learn more about this subject.

Copyright 2005 Ron King. This article may be reprinted only if the resource box is left intact.

Auto Insurance rates are a complicated business. Have you ever wondered who sets your auto insurance rates and how the rates are actually derived?

Many factors determine how much you will pay. Most of these are common sense and you probably already know but let?s go over them just in case.

The very first thing that occurs is that the insurance company determines all its costs for the previous year. This includes all claims, the cost of operations, and what ever costs they incur. They then take those costs and divide them among all the drivers insured with them. This sets a base line for them but it doesn?t mean that?s what you will pay.

Your driving record plays a major role in how much your premiums will be and whether you earn a discount. The better your driving record the lower your total cost to insure your auto is going to be. Your driving record includes auto accidents and speeding tickets. If you haven?t insured a vehicle for a few years they will also penalize you. This sounds crazy but it?s because they have no way of following up on your driving habits so they consider you a bad risk.

What coverage you purchase will be reflected on your premiums. Deductibles are a good way to save money. Check with your insurance company and find out what effect raising and lowering your deductibles does to your policy. Remember to never take a deductible that is more than you are willing or able to pay in the event of a claim. Your insurance company will not divvy up their share until you do.

Age is also a determining factor. Studies have shown that younger drivers are involved in more accidents then older drivers. Some of this is due to their lack of experience. Most insurance companies charge you more until you reach the age of 25. Although some will offer some discounting for every year you drive accident free and without driving infractions.

The type of vehicle you drive and how far you drive affect your rates. That fabulous sports car you?ve been eyeing could cost you a bundle. You should check rates on any vehicle before you purchase to make sure you are willing to pay the rates. Some cars get better discounts than others because they more safety devices such as anti theft immobilizers. Some cars also rate list because thieves don?t like them and so they don?t steel them.

Your insurance company also charges you more if you drive lots. The less you drive the cheaper your premiums will be. Most insurance companies use an average of 10,000 miles in a year. If you exceed this you can expect your premiums to go up.

Where you live also affects your rates. Big city drivers will pay a lot more than some one lives in a rural area or small village. That?s because cities have more thefts, more accidents, and more trouble over all.

Follow this information to help save on premiums. Don?t forget to shop on line. Rates can vary dramatically from one company to another. With a few clicks of the mouse you can have several quotes and get low cost insurance.

Sher from The Auto Insurance Center has been serving customers for over 20 years. To find out how to save on your auto insurance Please visit us at http://www.all-auto-insurance.com/

There are two different types of life insurance, term life insurance and permanent life insurance. Term life insurance is the easier of the two plans. This plan supplies you with death protection for a pre-determined amount of time, anywhere from one to 30 years. If you happen to die while paying on this type of policy your beneficiary will be paid the amount of money you specified when purchasing the policy. If at the end of the term you are still living your death protection coverage will cease unless of course you renew the policy. You can purchase this policy on a minimum budget and it is particularly perfect for providing coverage while your children are still in the home or while paying off a mortgage or other large loans.

This plan is merely a ?quick fix.? It is similar to leasing a vehicle. You pay a lower cost for the privilege of driving the car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy. If you are purchasing term life insurance because you need protection now but can?t afford the higher payments of permanent protection in most cases you can switch your plan over to permanent protection when your situation changes (be sure to verify this before purchasing any policy). You can also look at term life insurance as an efficient means of protecting your family while using your remaining finances for savings or other investments.

Although this type of coverage is less expensive than permanent life insurance your premiums will increase at renewal periods as you grow older. Normally at renewal periods you will also be required to obtain a physical in order to qualify for the lowest rates.

There are four different types of term life insurance policies one of which is renewable term insurance. This policy will delete your need to submit to a physical when renewing your policy. The company agrees to renew your policy even if your health has declined however, be prepared to pay higher premiums with each renewal when purchasing this plan.

Convertible term insurance will allow you to switch from term to permanent life insurance without succumbing to a health exam first. Of course this convenience will more often than not come with the expense of higher premiums. On the bright side once you convert to permanent your premiums will not increase as with the renewal of the term plan.

Level term insurance presents a permanent premium for a pre-determined number of years, usually 10 or 20, and the death benefit remains the same. With this policy you will lock in a particular price for the duration of the policy. The down side to this plan is that the rate will rise significantly if you decide to renew with subsequent level policies.

The remaining plan is the decreasing term insurance policy. Throughout the term of this policy the death benefit will decrease. You may start out with $250,000 worth of coverage however for the first 10 years each year your benefit will be reduced by $10,000. The premiums on this policy will also vary over the term of the policy, it is for these reasons that this policy is not highly recommended nor sold very often.

Timothy Gorman is a successful Webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers free money saving auto, home, health and life insurance quotes that you can research in your pajamas on his website.

Insurance. What would we do without it? Though it seems impossible, there was a time when insurance on anything didn’t even exist. Unfortunately, the early beginnings of insurance are unclear. Over the centuries there have been key writings uncovered that give us some ideas of it’s beginning s. But as to an actual moment in time when the first item was insured, no one really knows.

There are theories that insurance goes back to the early days of the Babylonian traders at around the 2nd millennium BCE. They created a system which was recorded in the famous Code of Hammurabi around 1750 BC. This system was practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment he would pay the lender an additional sum in exchange for the lender?s guarantee to cancel the loan should the shipment be stolen.

As a business itself, the first recognizable form of insurance started in Great Britain in 1666. This was in reaction to the Great Fire Of London. Because of this incident fire became a growing concern in England. Another major concern in England during the time was marine insurance because of England’s position in the world of sea trade. Some of the early insurance companies of the time were The Sun Fire Office, Royal Exchange Assurance and Hand In Hand.

As was stated above, there were some early writings that point to the first insurance companies and types of insurance. Below are a number of these writings.

From 1680 the following memo was found. Mr. Newbold, London’s Improvement and the Builders’ Security Asserted, by the apparent advantages that will attend their easie charge, in raising such a joint-stock as may assure a Re-Building of those Houses which shall hereafter be Destroyed by the Casualties of Fire. This memo appears to point to the beginnings of fire insurance. There were many other memos found during that same time period from 1680 to 1700 all related to fire insurance companies.

In 1697 writings were found to show the beginnings of an insurance company created to insure the welfare of widows and orphans. This appears to be the early beginnings of life insurance. During the period of 1697 to 1762 many other memos were found relating to the establishment of life insurance. Some of the early known companies are The Society For Equitable Insurances, The Perpetual Assurance Office and The Hampshire Society. It wasn’t however until about 1850 that the first evidence of life expectancy actuary tables were found.

The first evidence of insurance for businessmen was memos found going back to the year 1601. Many different kinds of businesses were mentioned in these memos such as small businessmen, mining companies and ship building companies. Evidence also shows that the British took out insurance on their enemies? ships for the purpose of collecting on them after they were destroyed by the British Navy.

In the next article we’ll go over the various types of insurance that one can purchase today.

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Michael Russell
Your Independent guide to Insurance
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Life insurance provides financial protection for beneficiaries in the event of the insured’s death. Life insurance benefits can serve as a replacement of lost income to your family or to pay bills and final expenses. The best way to find the most affordable insurance is by understanding what types of insurance are available and what they provide for you.

Life insurance may be divided into two basic classes ? Term and Permanent. Term life insurance provides life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered pure insurance, where the premium buys protection in the event of death and nothing else. There are less expensive premiums for younger people, but rates go up with age.

Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time.

The three basic types of permanent insurance are whole life, universal life, and endowment. Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.

The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends.

Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equivalent if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy loans. Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only.

Universal life insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.

A universal life policy addresses the perceived disadvantages of whole life. Premiums are flexible. The internal rate of return is usually higher because it moves with the financial markets. Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options. Option A pays the face amount at death and Option B pays the face amount plus the cash value.

But universal life has its own disadvantages, which stem primarily from its flexibility. The policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums have been paid and cash values are not guaranteed. Endowments are policies, which mature before the normal endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. Annuities are a financial product issued by life insurance companies but are not life insurance policies.

Your insurance needs will change throughout your lifetime and your particular situation.

?Singles: Insurance needs primarily concern final expenses.

?Young parents: Insurance needs focus on family protection, income replacement and final expenses.

?Latter-stage parents: Insurance needs center on preservation of family income and lifestyle, final expenses, as well as funding for college expenses.

?Golden years: Financial and insurance needs focus on income/lifestyle protection for the surviving spouse, preservation of assets, estate distribution and final expenses.

Remember, if your life insurance policy is not doing what you need it to, you are not saving any money. Talk to a financial advisor, do your research and you will find the type of insurance that provides the benefits you need at the lowest cost.

Chris Simons is a freelance writer. You are welcomed to visit http://life-insurance.cyberinformer.com, for more information on Life Insurance.