Florida life insurance industry, just like other type of industry, is governed by some principles. It is significant that a person understands these principles before rushing to obtain the cover policy. It is also essential to note that there are differences between such coverage and other forms of insurances.
Insurable interest is the first principle in this cover. This usually dictates that an individual can only obtain a policy in a situation where he has direct interest in that person. It implies that one can insure his own life. This is so since someone certainly has an interest in his own life. He can also obtain a policy on his parents. Their death will spell financial loss to that individual and so he has insurable interest in them
The second type is the principle of utmost good faith. This provides that: while applying for the cover policy, an individual shall disclose as much information as he knows which will be relevant to such policy. He will be required to disclose matters such as previous and current health conditions or even any inheritable diseases in the family of that person. This helps in coming to a conclusion about the right amount of premiums that needs to be paid.
The third principle of this cover is that of the proximate cause. In this case, compensation will only be made when death is caused by the risk which an individual was insured against. One can insure against death caused by illnesses or other health complications. If such a person dies by drowning, the company will not be liable to pay compensation since he died of a different cause other than that which he was insured against.
The insured person should try as much as possible to minimize the losses insured against. For instance, if he has obtained a cover that will enable him to receive compensation after death by a motor accident, he should ensure that he avoids such things as recklessly driving. This is called the principle of loss mitigation.
Compensation to the beneficiaries is usually not made until there is sufficient proof of death to the providers. This proof can be given in form of death certificate. This is normally obtained from death registrar. The principle behind all this is referred to as the proof of death.
There is quite a difference between life assurance and insurance. The main difference between the two is that in the case of insurance, the risk insured against may or may not happen. In the case of assurance, there is a certainty that the risk that has been insured against which in most cases in death will occur.
Once one has decided to get a Florida life insurance policy, the next thing is to find the right company. Some providers are not very liable hence such should be avoided. Friends, neighbors and family members who have sought these policies before are the best people to consult as far as the issue of recommendations is concerned. Such people will always pin point the right organizations available to work with.
Insurable interest is the first principle in this cover. This usually dictates that an individual can only obtain a policy in a situation where he has direct interest in that person. It implies that one can insure his own life. This is so since someone certainly has an interest in his own life. He can also obtain a policy on his parents. Their death will spell financial loss to that individual and so he has insurable interest in them
The second type is the principle of utmost good faith. This provides that: while applying for the cover policy, an individual shall disclose as much information as he knows which will be relevant to such policy. He will be required to disclose matters such as previous and current health conditions or even any inheritable diseases in the family of that person. This helps in coming to a conclusion about the right amount of premiums that needs to be paid.
The third principle of this cover is that of the proximate cause. In this case, compensation will only be made when death is caused by the risk which an individual was insured against. One can insure against death caused by illnesses or other health complications. If such a person dies by drowning, the company will not be liable to pay compensation since he died of a different cause other than that which he was insured against.
The insured person should try as much as possible to minimize the losses insured against. For instance, if he has obtained a cover that will enable him to receive compensation after death by a motor accident, he should ensure that he avoids such things as recklessly driving. This is called the principle of loss mitigation.
Compensation to the beneficiaries is usually not made until there is sufficient proof of death to the providers. This proof can be given in form of death certificate. This is normally obtained from death registrar. The principle behind all this is referred to as the proof of death.
There is quite a difference between life assurance and insurance. The main difference between the two is that in the case of insurance, the risk insured against may or may not happen. In the case of assurance, there is a certainty that the risk that has been insured against which in most cases in death will occur.
Once one has decided to get a Florida life insurance policy, the next thing is to find the right company. Some providers are not very liable hence such should be avoided. Friends, neighbors and family members who have sought these policies before are the best people to consult as far as the issue of recommendations is concerned. Such people will always pin point the right organizations available to work with.
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