Whole life policy signifies that the insurer promises to pay the beneficiaries a lump sum of money upon insured’s death as long as the insured pays the premiums. The whole life policy cannot be canceled after the policy has been issued, unless non-payment or fraud occurs. Whole life policy is attractive as the claims are a certainty and hence, the insurer must collect enough premiums to pay them.
There are a number of distinct pros to purchase a whole life policy. The major benefit that whole life policy is over other policies is it provides protection for a man to last a lifetime. Since whole life policy is deemed as a permanent insurance, it guarantees the entire lifetime of the insured. In exchange, premiums must be paid from the insured to the insurer. The amount of coverage will always be the same regardless of insured’s age, health, or how much he drinks and smoke. Besides, as long as the payment is made, the policy will not expire even after a specific number of years. Moreover, the premium also cannot be revoked due to illness or disease. However, in order to keep the policy in force, the insured must pay the insurer premium at a timely fashion.
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To illustrate, an insured bought a 20-year term policy at the age of 30 and now he is age 50, the term policy comes to the end because it is only a temporary insurance. The insured then can consider to purchase another life insurance policy however the premium will vary and might become higher based on the new rates. In other words, when a term life policy expires, an insured’s life protection is no longer covered. The insured has no choice but to let the policy to expire or opt for another life insurance policy depending on his age and health condition. In short, if the insured does not die within a specified period, there are no proceeds
Social security was designed to assist constituents during financial hardship. The program insured non-Negroes who needed unemployment compensation, met retirement age requirements, or child welfare prevention programs. Despite its forward objective, critics’ perception of the social security program was depicted as legal thievery. M.A.’s candid retort to the government’s evasive program was simply to rape the pocket’s of the people. M.A. as well as others primarily prepared for retirement or a rainy day from stock returns. Contrarily, the social security program stimulated other economic restructures, which included limited full-time workers. The shift in the economy and Roosevelt’s failed promises created a wedge between the people and the government. For instance, Mrs. OM voices her views of President Roosevelt’s campaign as a misleading trick. She further explained
The original intention for creating social security was to act as a safety net for retirees, but as time past, there seems to be a great deal of economic issues relating to the program. Social security was created to help benefit retired workers, spouse and children of deceased workers, as well as workers who have become disabled before retirement. This insurance program provides retirees with a steady income once they retire. President Roosevelt signed the program into law on August 14,1935. Since then, social security has been beneficial for many workers and retirees. In fact, social security has become the main source of income for many retirees.
In most states, insurers may deny applicants coverage. They often try to impose either a permanent or temporary condition that puts a limitation on your coverage. Some may even charge a higher premium based on your health status, your occupation, and other personal characteristics. Institute 2009). For those people who consider themselves self-employed who want to buy their own private health insurance, it can be twice as expensive as that that is being offered through employers.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
CDHP can be defined narrowly as health care aimed for customers, and refers to insurance plans in health that give members opportunity to use their health savings accounts , health reimbursement accounts, or similar medical payment plans to pay routine healthcare expenses directly. Health plan that are highly deductable cushion individuals from disastrious medical costs. The highly deductible health care plan is cheaper but is characterized by routine payment of medical premium using prefunded account by a debit card or insurance payment plan (Buntin, Damberg, Haviland & Kapur, 2006).
Later, another panel member argued that the purpose of health insurance is not to insure everyone. It should be provided to only cover catastrophic health conditions. Today, not only does health insurance cover catastrophic events, but also there are limits on the amount of out-of-pocket health care costs for essential health care (The White House, 2016). Also, most out-of-pocket costs have been eliminated for preventative care (The White House,
Universal health coverage allows citizens of a particular country access to health care of all kinds, should they so need it, without exposing the user to financial hardship from medical expenses. The World Health Organization has created three objectives for universal health coverage: (1) equity in access to health services – those who need the services should get them, not just those who can pay for them; (2) that the quality of health services is good enough to improve the health of those receiving services; and (3) there is financial risk protection to ensure that the cost of using care does not put people at risk of financial hardship (WHO, 2013). While virtually every developed country besides the United States has some form of universal
Although the insurance market should offer more attainable health insurance for everyone, with the healthcare reform act insurance companies have increased their rates to levels that many people cannot even pay. However, because the government is requiring people to get insurance and keep insurance from year to year, they have no other choice but continue to pay insurance premiums to at least have the bare minimum coverage as required to prevent being subjected to penalties (Health Reform Database: Explanation of
Many people with terminal illnesses rely on their health insurance to help with paying for the many surgeries and treatments, but some insurance companies refuse to pay for the medical bills because the treatments weren't covered in the contract the customer signed. Well, that's what they claim. If clients started costing the insurance company too much, they decide that the client did not need to stay in the hospital anymore and they stop paying for the doctors and the bills. According to Bonnie Drew, a victim of a rare disease, the insurance companies can dictate what the doctors can and cannot do. She says Blue Cross Blue Shield insurance company sent her home from the hospital to die.
Ans 1) To mandate the insurance or not is a big question to be answered and still there are a lot of problems associated with mandating the Health Insurance in United States. A lot of views have been given by people regarding whether there is need of mandating the Health Insurance or not.
The implementation of a universal health care system in the United States is an important challenge that needs to be overcome. There are numerous amount of editorial that argue on both sides of the debate. Some people argue that a universal health care system would bring costs down and increase access to care while others argue that a universal health care system would be too expensive and reduce the quality of care. The correct answer requires intensive understanding and economics to overcome, the arguments must be examined for a proper answer.
The patient has to be completely free to make this decision, with absolutely no power whatsoeverin the insurance company's hand to force it. On the other hand, giving the opportunity to the patient to consider the expenses against the advantages and them make this decision about their own health care would be morally incorrect.. Indeed, only the patient can justify the morality in the situation which makes this hard decision for himself or herself, instead of some third party government or insurance company bureaucracy. Also, basic economic logic tells people that somebody should be making this decision.
- Health plans can not charge higher rates according to the person's sex or refusing to meet anyone who has pre-existing health problems. Moreover, they have to justify large price increases;
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.
Retirement comes early for most people. Early meaning that we are not ready for what comes with it. Most people would love to retire today, but unfortunately it is nearly impossible. It takes a lifetime for a person to become financial stable and adequately equip with assets that have been gained throughout someone’s life. Everyone must start young, in fact the sooner the better. Any money, or savings that can be applied today will always come with an enhanced future. So is it worth it to work harder and save now in order to possibly access a pleasant retirement? With out effort now we will be dependent on other sources in our retirement years, sources that may not come through for everyone who needs it. There are three ways to help Americans be better prepared now. These methods include saving money now, and investing in sources with returns. Do not become one of the millions of Americans who fall into government assisted retirement plans by lack of preparation and planning.