a close up of an umbrella: Insurance needs change with changes in age, income, expenses, debt, lifestyle, inflation, etc.; and you need to factor in these changes and top-up your insurance purchases.

© Provided by The Financial Express
Insurance needs change with changes in age, income, expenses, debt, lifestyle, inflation, etc.; and you need to factor in these changes and top-up your insurance purchases.

Having inadequate life insurance protection could be as devastating for your dependent family members as not having a life insurance cover at all. If you don’t have any life insurance cover, you may identify your insurance requirement and get the appropriate product. But if your life insurance size is inadequate, you may not know it until you review it correctly.

Hence, it’s essential to understand why you may still be underinsured, how it may impact your family’s financial future and how much protection would you require for adequate coverage.

How to determine adequate cover size

One of the key purposes of a life insurance policy is to ensure financial support to the insured’s dependent family members after his or her death. There are various ways to ascertain the financial need from the insurance point of view; however, the thumb rule is to have life cover of at least 10 times your current annual income. Meaning, if your current annual income is Rs 10 lakh, you should have a life insurance cover worth at least Rs 1 crore. If your cover is less than Rs 1 crore, you are underinsured. Another method to ascertain your life insurance requirement is using the Human Life Value (HLV) method. Under the HLV method, you need to consider your current income, expenses, expected future responsibilities, and goals to determine the insurance need. You may take the help of any HLV calculator available online.

Why your life cover may be inadequate

There are several reasons why your insurance cover may prove to be inadequate. If you have taken your life insurance several years back

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The Center for Disease Control reports that suicide rates have increased by 35% since 1999 and that suicide is the No. 10 cause of death in America.

Some people might think that life insurance policies don’t cover death is by suicide. However, most life insurance policies have what’s called a suicide clause: If the policyholder dies by suicide within the first two years of the policy, then the insurance will not give beneficiaries the death benefit. If the death occurs after the two-year period, beneficiaries receive the death benefit.

Unfortunately, that doesn’t mean the process is uncomplicated. If the policyholder failed to disclose mental illness on their insurance application, the death benefit might be withheld.

What is life insurance?

Life insurance is a contract between you and the life insurance company, where you pay premiums (monthly or annually) for a payout that your living relatives will receive upon your death, known as the death benefit. Should you die, the insurance company pays the death benefit to your chosen beneficiary.

There are two types of life insurance: whole (permanent) life and term life. Either can require a medical exam as part of the approval process known as underwriting.

People with certain pre-existing health conditions may be ineligible for traditional life insurance. Therefore, they get no medical exam life insurance. Although there is no medical exam, there is usually a health questionnaire. Failure to disclose certain conditions could result in your beneficiaries not receiving the death benefit. 

Mental illness addressed in the suicide clause

Insurance providers will ask if you ever had

Pardon me for being just a little suspicious, but when I see an avalanche of enthusiasm from such reputable institutions as the Morrison government, the Murdoch media and the Australian Banking Association (anyone remember the Hayne royal commission?) about the proposed “reform” of the National Consumer Credit Protection Act, I smell a very large rodent. “Reform” here is effectively code language for repeal. And it means the repeal of major legislation introduced by my government to bring about uniform national laws to protect Australian consumers from unregulated and often predatory lending practices.

Josh Frydenberg, Scott Morrison are posing for a picture: Photograph: Lukas Coch/AAP

© Provided by The Guardian
Photograph: Lukas Coch/AAP

The banks of course have been ecstatic at Morrison’s announcement, chiming in with the government’s political chimeric that allowing the nation’s lenders once again to just let it rip was now essential for national economic recovery. Westpac, whose reputation was shredded during the royal commission, was out of the blocks first in welcoming the changes: CEO Peter King said they would “reduce red tape”, “speed up the process for customers to obtain approval”, and help small businesses access credit to invest and grow.

And right on cue, Westpac shares were catapulted 7.2% to $17.54 just before midday on the day of announcement. National Australia Bank was up more than 6% at $18.26, ANZ up more than 5% at $17.76, and Commonwealth Bank was trading almost 3.5% higher at $66.49. The popping of champagne corks could be heard right around the country as the banks, once again, saw the balance of market power swing in their direction and away from consumers. And that means more profit and less consumer protection.

Related: Frydenberg’s move to dump lending laws ‘shortsighted’, consumer groups say

A little bit of history first. Back in the middle of the global financial crisis, when the banks came on

Milk producers in the State have urged the government to ensure universal insurance coverage for all milch animals. Currently, only 10% of the cattle have coverage, causing farmers to bear the losses if an animal without insurance dies.

“A cow can cost between ₹30,000 and ₹40,000, and if it dies it would be a loss of income and investment. Insurance would help in such a case,” said K.A. Sengottuvelu, president, Tamil Nadu Milk Producers Welfare Association.

A former Aavin official said that some ten years ago, former Chief Minister Jayalalithaa had given funds for insuring milch animals. “However, at present, only about 1.5 lakh cattle of the estimated 14 lakh have been provided coverage through the Tamil Nadu Lifestock Development Agency. Under this, the cost is being borne equally by the Centre, the State government and the milk union,” he said.

M.G. Rajendran of the association said it would take only about ₹50 crore per year to provide coverage for all the milch animals supplying milk to Aavin. “The amount can be divided between the federation, which is Aavin, the unions, the cooperative society and the farmers. Many unions are earning profits since they only buy and sell milk. They don’t convert milk into butter and skimmed milk powder and wait for the prices,” he said.

The milk farmers also want Aavin to provide medicines for the cattle, as is being done by some private dairies. “Earlier, Aavin, too, used to provide medicines for the cattle, but now some unions have kept essential medicines for the sake of showing stock,” said a milk producer.

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By Yasmine Jacobs Time of article published22m ago

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Johannesburg – Indwe Risk Services has announced the launch of BluPixl, an all-in-one car and home insurance app that lets consumers choose and manage insurance cover according to their needs.

The app is powered by one of South Africa’s largest independent insurance brokers, Indwe and integrates insurance expertise and smart tech.

“When it comes to choosing insurance, it is often both a daunting and dull experience”, said Peter Olyott, Indwe CEO. “In launching BluPixl, we want to bring convenience, choice and customisation to the fingertips of South Africans. Not only does the platform enable consumers to shop and experience insurance the same way they do with everyday goods and services, but it also serves to assist them in making informed choices.”

BluPixl users can request quotes and get advice on managing policies and submitting a claim.

Users can also instantly start shopping for insurance solutions on their smartphones after downloading the BluPixl app. Once a user has signed up and entered their preferences, the app will begin to fetch and consolidate insurance quotes from South Africa’s top insurers.

The policy comparison functionality and user-friendly design make it easy to view insurance products side-by-side and compare premiums in detail.

The app enables users to customise their insurance cover by choosing one insurer to insure their assets under separate policies. Users also have the option of easily adding to, or removing assets from, a policy.

When it comes time to claim, the in-app claim functionality ensures an efficient and seamless claims process.

The BluPixl app is available for download for IOS and for Android.