Question

Briefly explain the basic characteristics of long-term care insurance.

4. Explain the various definitions of disability that are found in disability-income insurance.

5. Explain the renewal provisions that may appear in individual health insurance policies.

Answer 1

1. Basic characteristics of long-term care insurance are:-

• Services are covered
• Excluded coverage
• Triggering event for coverage
• Elimination period
• Maximum daily benefit

2. Disability insurance is a kind of protection that will give pay in the occasion a worker can't play out their work and gain cash because of a disability. There are numerous kinds of associations that give various sorts of inability protection. Every association and inability protection type have explicit standards with respect to what establishes an incapacity and how an individual may meet all requirements to get the disability advantage.

There are two kinds of disability protection: short term and long term

Short term disability insurance policies offer a worker a segment of their compensation on the off chance that they can't work for a brief period—commonly three to a six months.

Long term disability insurance offers a specialist a part of their compensation in the event that they can't work for a more extended period—commonly a time of more than a half year.

Both short term and long term disability policies have a period that an individual must be debilitated for before that individual can begin accepting incapacity benefits. That timeframe is called an end period. On the off chance that an individual gets incapacitated, they should hold up until the end time frame is over before they begin accepting advantages. On the off chance that they can work before the end time frame is finished, the individual won't get an advantage.

3. Renewal provisions that may appear in individual health insurance policies:-

1.) Guaranteed renewable:

Regardless with the change in the health of the insurer, he has to renew the insurance policy for a specied time period. The guaranteed renewable agreement includes the insurer to pay the premium on time and the insurer shouldn’t make any changes in the policy except if there is a change in the premium for total policyholders.

2.) Noncancelable: It is an insurance policy which the insurance company cannot cancel. The examples of these policies are life or disability insurance policies. The companies may increase the premiums or reduce the benets to the customers. It’s one of the best insurance policy as the policy holder will know the cost amount of coverage of the policy so that he can have peace of mind and he need not have to requalify for the policy in future.

3.) Conditionally Renewable: In this type of insurance policies renew of the policy is possible only after meeting out certain conditions put by the insurer. That means the insurance provisions will not allow the insurer to renew the policy under certain conditions.