Compliance Digest™’s Post

New insurance policy rule to come into effect from Oct 1: Here’s how it will impact people

https://lnkd.in/eVrqsAHA A Deep Dive into Term Insurance Plans: What to Look for in 2024

Did you know most life insurance policies include a contestability period? Typically lasting 2 years, this period is crucial for both insurers and policyholders. Here’s why: What is the Contestability Period? It’s the time after you purchase a life insurance policy—usually 2 years—during which the insurer can investigate and even deny claims if there are discrepancies or misrepresentations in your application. This is why honesty is key when filling out your application. Why Does It Matter? 1. Accuracy is Important: If the insurer discovers you withheld critical information or made an error, they may deny the death benefit claim, even if you’ve paid your premiums faithfully. 2. After 2 Years: Once the contestability period passes, the insurer typically cannot challenge the claim, even if mistakes were made in the application. Why 2 Years? The two-year period balances the need for protection against fraud while still allowing coverage to remain in place if the policyholder is honest. Tip: Always review your application carefully and update your insurer if any details change to avoid complications during the contestability period. Have questions about insurance policies? Drop them below! #LifeInsurance #InsuranceTips #ContestabilityPeriod #FinancialSecurity #InsuranceBasics

To prepare for life's "what ifs," we prioritize insurance reviews to prevent coverage gaps. In his latest blog, TCI Advisor Jerico Maddela, MBA, CFP® AIF® CWS®, shares why insurance is a key to protecting our clients and their loved ones.

💡 Money Minutes: Understanding Guaranteed Surrender Value in Insurance Policies (Episode 62) The Guaranteed Surrender Value is a crucial feature in life insurance policies that offers a predefined amount to the policyholder if they decide to terminate their policy before its maturity. Knowing the guaranteed surrender value can help policyholders make informed decisions about whether or not to continue with their insurance plan. How It Works: Early Termination: If you surrender your policy before it reaches maturity, you’ll receive a percentage of the premiums you’ve paid, minus any applicable charges. The guaranteed surrender value is usually available after a specific period, often after two or three years of continuous premium payments. Formula: The guaranteed surrender value is typically calculated as a fixed percentage (e.g., 30%) of the total premiums paid, excluding any bonuses or additional benefits. Why It Matters: Flexibility: The guaranteed surrender value provides a safety net if you encounter financial difficulties and need to access funds before your policy matures. Policy Comparison: When choosing an insurance plan, comparing the surrender values can help you pick a policy that offers better liquidity and benefits in case of early termination. 🌟 Key Takeaway: Understanding the guaranteed surrender value helps you assess the financial flexibility of your life insurance policy and make more informed decisions about your coverage. #MoneyMinutes #SurrenderValue #LifeInsurance #FinancialFlexibility #CFCP

Episode 62 of Money Minutes: Understanding Guaranteed Surrender Value in Insurance Policies Did you know that the Guaranteed Surrender Value allows you to receive a portion of your premiums if you decide to terminate your life insurance policy early? It provides financial flexibility and ensures you get some value even if you can't continue with the policy. Learn more about how this feature works in today’s episode! #MoneyMinutes #SurrenderValue #LifeInsurance #FinancialFlexibility #CFCP

How to Find the Best Term Insurance Policy There are several ways to find the best term insurance policy. You can ask current customers about their experiences with a particular insurance company. #Bestterminsurancepolicy #onlineterminsurance #insurance #finance #smartplan #business https://lnkd.in/d25iBdgz

📢 Life insurance premium labels are changing across Australia by Dec 2024. Whether you're paying Variable or Fixed Premiums, it’s crucial to understand how these new terms impact your policy. Learn more about the changes and how to maximise your cover. 👉 Read the full blog now: https://lnkd.in/g8VVC4Mn #LifeInsurance #PremiumUpdates #FinancialPlanning #InsuranceAdvisers

Business transitions within the life insurance industry by product type The image presents data on business transitions within the life insurance industry by product type and sum assured band. It highlights shifts in policy distribution from traditional (endowment non-linked) products towards ULIPs (unit-linked insurance plans) and term assurance. The transition data, organized by number of policies, sum assured, and annualized premium, indicates a decline in traditional products’ share in favor of ULIPs and term assurance, particularly for new business. Additionally, a shift is observed from low sum assured policies (up to 2 lakh) to higher sum assured categories, reflecting evolving consumer preferences for greater coverage. The source is the Life Insurance Fact Book 2019-20.

Having been in the life insurance industry since 2016, I've seen firsthand the devastating impact of poorly managed life insurance policies. Families who thought they were protected discovered, too late, that their policies didn't deliver the promised benefits due to incorrect setup or insufficient coverage. These heart-wrenching situations are entirely preventable. By taking a simple yet crucial step, you can safeguard your family's future and ensure their financial stability. 📅 Arrange a Complimentary Consultation to ensure that your policy is set up correctly to avoid denied claims. #LifeInsurance #FinancialStability #ProtectYourFamily #SecureYourLegacy #PeaceOfMind