Risk Management – How Commercial Insurance Brokers Can Help

Commercial insurance brokers are among the most prominent and relevant players in the modern insurance panorama. As the entities most often called upon to deal with business insurance, these types of offices tend to deal with a variety of aspects within their field of expertise, and are often crucial in ensuring an office, business of company retains or regains its financial health and is protected against any costly eventuality.

One of the many fields these companies are often requested to look at in the context of corporate and commercial insurance, as well as one of the least understood by layman business owners, is risk management. This article will seek to provide a little more insight into what exactly is meant by that term, and how commercial insurance brokers can help companies and businesses deal with this aspect of their insurance.

What is Risk Management?

As the name indicates, risk management deals with assessing and managing potentially risky situations in everyday life. In the context of a business or company, this may involve identifying potential loss situations, devising solution meant to prevent said situations from occurring, and drawing up a plan to implement those solutions. The task commercial insurance brokers are usually entrusted with involves ensuring the client’s risk-benefit ratio remains as consistently positive as possible, and that any potential risks are dealt with quickly and efficiently.

Risk management is usually carried out in a three-step process. The first step involves understanding the risk, and the consequences it might bring about if allowed to occur. The next step is to assess and analyse the risk, and to come up with potential solutions to prevent or minimise its impact. Finally, action must be taken to implement or apply the solution or solutions thought to be more effective in taking care of the issue. This three-step process is applicable to any area of human life, and remains unchanged when transposed to the context of corporate and business finance. The only difference is that, rather than be carried out by the business owner or its board, it is usually up to commercial insurance brokers to take care of this three-step plan and ensure any risks to the business are dealt with.

How Can Commercial Insurance Brokers Help?

As noted above, the main way in which commercial insurance brokers can help companies with risk management is by carrying out the three-step process described in the first section of this article, while transposing and adapting its structure to fit a corporate or business context.

This is usually done with the help of a series of internationally recognised standards and procedures, put in place to standardise and streamline the risk management process for commercial insurance brokers worldwide. This is the template most commercial insurance companies start from when undertaking risk management, and it is flexible enough that each broker can adapt it to fit the situation at hand. As such, it is no surprise that this is the mould followed by most insurance companies the world over when dealing with a request of this type. There are, however, exceptions to this rule. Certain companies prefer to set their own individual standards and practices, or come up with techniques not accounted for by the international rules.

Whichever way they choose to go about it, however, commercial insurance brokers tend to have a common goal when dealing with risk assessment: to help companies pinpoint, prepare for and eventually deal with potentially dangerous or financially harmful situations brought about by their circumstances. It is the variety of measures and ways through which this is achieved that is commonly understood as ‘risk management’.

3 Tips To Find The Best Senior Life Insurance Plans

Senior life insurance comes in very handy when planning for funeral expenses and final life expenses. There are many insurance plans available but unfortunately, many of them do not have good payouts. There has been a lot of misinformation and misleading marketing efforts and many families find themselves with insurance products that do not offer the promised protection. It is important to do your homework so that you can find the best senior life insurance plans. The following tips will help you in your search.

1. Consider the options

It is important to learn everything you can about the policies available so that you can make the best decision. If you are looking for an affordable policy, no exam life insurance is not the best option. With the no exam insurance, you are not required to provide medical records and you can get a cover even when you are not in perfect health. When you opt for this cover, you will end up paying high premiums. Insurance is based on risk factors and the insurer offers better deals to those in good health. You have a better chance of getting a good plan if you go through a medical examination.

2. Look out for marketing ploys

You need to be aware that there is a lot of misinformation out there as companies compete to get customers. Make sure that you carry out research and if the price seems too low, you need to be wary. Make sure that you read the fine print before you buy any coverage. Some policies offer rates that go up after one or two years and you need to know this before you invest. Understand the long-term costs and make sure that you are actually getting a good deal. Compare rates from different companies and if you are in doubt, talk to an insurance broker.

3. Do online research

The internet has made it easy to get any information that you need. You can get online quotes and compare rates from different companies with ease. It is important to carry out thorough research so that you can make an informed decision. Read reviews and find out what other customers have to say about the service.

Shopping for life insurance does not have to be difficult. The more information you have, the easier it will be to get the best plan for you. When you are informed, you can benefit from deals that you would otherwise not be aware of. It is very important to read the fine print before buying a policy.

Learning About Life Insurance Plans

For most individuals who opt for a life insurance plan, it is an integral part of making sure they have some financial security in their lives. Insurance is one of the most widely used security tools on the market. The premiums that these individuals have to pay towards these insurance plans are based on a number of factors. They often include the following factors:

1. Gender of the individual
2. Age of the individual
3. Hobbies of the individual
4. Quality of life of the individual
5. Profession of the individual
6. Medical history of the life assured etc.

Hundreds of people all over the world benefit from different insurance plans. Individuals who belong to various age groups and different walks of life will probably buy life insurance at some point during their lives. The various groups that buy insurance fall under these groups:

a) Single parents
b) Couples married or unmarried with a mortgage or other debts
c) Couples married or unmarried with children
d) Single people with a mortgage or debts etc.

Some of the different kinds of insurance are:

1. Variable life – Individuals can select from a wide range of investment products long with stock funds.

2. Term insurance – This insurance policy includes buying coverage for a particular tenure and for a specific amount. If the individual who has bought this plan dies during the insurance tenure, the beneficiary will receive the value of the policy. This type of investment does not include any investment coupon. The term insurance is the simplest form of the different insurance types available to individuals.

3. Universal life – Individuals who opt for this insurance policy get to decide how much the premium should be. The insurance company selects the investment option for the individuals, which might include bonds or mortgages. The amount of investment along with the return on the investment is deposited in a cash value account. The type of universal life insurance where an individual can select his or her own investment tools is known as a universal variable life plan.

4. Whole life insurance – This type of insurance plan is more or less like the term insurance plan. The only difference is that of the tenure. Due to the prolonged tenure, the premiums remain stable throughout the duration of the policy.

There are many benefits for opting for different types of life insurance plans. These advantages include:

a) The insurance policies secure the future of the spouse and children.
b) These plans can be used to pay for estate taxes and other settlement amounts.
c) The cash value policies are tax deferred, which means individuals will not be required to pay tax against this amount until the time they withdraw funds from the policy.

A Life Insurance Plan is a Contract Between the Insurer and the Insured

A life insurance policy is a contract which is entered into between the insured who is the plan holder and an insurance company. The contract is essentially an undertaking by the insurer to pay out the sum assured if an event such as death or a critical illness arises.

To bring the contact into effect the plan holder either makes a single payment on commencement or agrees to make payments to the insurance company on a regular basis for a defined period of time. In both cases the money paid is referred to as the policy premium. In many countries life insurance also means providing for the payment of funeral expenses as well as the payout of the sum assured. However in countries like America policy payouts are usually only for the sum assured on the death or critical illness of the insured.

The sum which is stated in the plan is generally paid to the insured person’s beneficiaries in the case of the death of the insured and therefore the plan holder enjoys peace of mind in knowing that his or her beneficiaries are going to be taken care of after his or her death.

Although at times the sum assured can be paid out before death where the policyholder is diagnosed with an illness that is serious in nature, to ensure that the insurer’s liability is kept within workable limits, cases such as death or serious injury arising out of war, riot, some natural disasters and death from suicide are not insured.

Life insurance policies come different forms and can provide not simply protection but also serve as a form of investment. For example, a lot of term life insurance plans are designed strictly to offer protection for a set period of time and will only pay out if death or serious illness occurs during the specified term. If no such event occurs then the policy simply lapses having no value.

By contrast, many whole life insurance and universal life policies stay in force throughout the life of the plan holder and pay out on death or the diagnosis of critical illness. They do however also acquire a cash value based upon the value of the investment supporting the policy and the policyholder can take some or all of this value from the plan in accordance with the terms and conditions of the contract. This form of policy is frequently used as a savings vehicle for such things as the payment of education fees or to provide a lump sum for retirement.

Life insurance is also commonly used in business, particularly within partnerships, to safeguard the business against the death of someone who has a financial stake in the business. In this case it is common for one person to buy a plan and act as the plan holder and beneficiary with another person being the insured.