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Thread ID: 90624	2008-06-10 08:13:00	General insurance question	Nomad (952)	PC World Chat

Post ID	Timestamp	Content	User
677221	2008-06-10 08:13:00	Hi, just been thinking of properties .. if the house is old like the villas in NZ, and they need a valuation report done etc.. can the insurer even thou you had the house for some yrs and had insurance .. can they review it each year and one year say too risky we won't renew your policy? Or can they say you have to rerwire the electricity and the plumbing before we will insure it .. and redo the structure etc? The other is that life insurance tend to be up to a certain age, after that age some just don't insure you, some will sky rocket the premiums to 5 digit per year, so I am taking that is allowed?	Nomad (952)
677222	2008-06-10 08:55:00	Yes an insurance company can review the cover when a general insurance policy comes up for renewal,(you cannot expect to be paid out for more than the market value of the goods insured) and, if they learn of some factor that has a detrimental influence on the risk insured then the insurer can either insist that the matter be remedied, or decline to renew the insurance. An example of exclusions applied by insurers, is refusing to accept the risk of covering flood damage in an area regularly prone to flooding. Also of note is that renewal may be declined if by some action of the insured, they consider the policy holder has broken faith. ie made a fraudulent insurance claim with some other insurer, that has now come to their attention, or they find some falsehood in the personal details stated by the insured at the time the policy was taken out. The insurer can also decline to meet a claim, if they discover that a professional such as a building inspector, engineer, electrician etc has advised you of defects that constitute a serious risk and you have failed to have them remedied. With respect to life insurance, the modern policies are term insurance, and whilst they will be automatically renewed each year the premium increases with age. The cover on these policies is relatively cheap, certainly initially, but there is no future repayment of the money unless there is a death claim. Put bluntly you are having a bet with the insurance company on your own mortality, where the only way you can win is by losing. The insurance risk is assessed at the time the insurance contract is first entered taking into account the health questionnaire, and the lifestyle questionnaire in the proposal document, as well as a medical examination if required. The policy holder is given a classification, and this classification will hold so long as the policy is in force - ie For the particular policy you will not get a loading for subsequent medical conditions that develop during your life, or for lifestyle activities you subsequently take on. The old whole of life policies had a fixed premium for the cover, which did not increase with age, but these policies are considerably more expensive and have an investment element. ie they have a maturity value.	KenESmith (6287)
677223	2008-06-10 10:39:00	Thanks :) For the life, I had to go via like many policies to get the one I liked that was fixed premiums to I am 100yrs old and if I am not dead yet they will pay me back the premiums without interests. The next best was locked fixed premiums to 80yrs old and then you had the option of carrying on but when you are 80yrs old the premiums suddenly become $8,000 or such for a year and later it could even climb to $30,000. Many of the others were stepped ie, each 3 or 5yrs the premiums increased. My one was locked, but I pay a higher premium but in like 10yrs or 15yrs its sorta breakeven with the floating stepped ones and then it becomes cheaper.	Nomad (952)
677224	2008-06-10 21:49:00	Hi, just been thinking of properties . . if the house is old like the villas in NZ, and they need a valuation report done etc . . can the insurer even thou you had the house for some yrs and had insurance . . can they review it each year and one year say too risky we won't renew your policy? The other is that life insurance tend to be up to a certain age, after that age some just don't insure you, some will sky rocket the premiums to 5 digit per year, so I am taking that is allowed? Well I have an old villa . They came out to have a look - although only from the outside before insuring it fully . They didn't aks for a valuation, although they can if its a bit of a ruin . My best friend has a bit of a ruin and its not insured for replacement - only a fixed value . Its reviewed same as all insurance, premiums may go up but they are unlikely to change status from full to partial . Life insurance is a rip-off . I looked up how much to insure husband for $150,000 and it was going to be $450 a month . I hate to think what they would change to if I then added in all his medical conditions .	pctek (84)
677225	2008-06-10 23:11:00	Thanks :) For the life, I had to go via like many policies to get the one I liked that was fixed premiums to I am 100yrs old and if I am not dead yet they will pay me back the premiums without interests . The next best was locked fixed premiums to 80yrs old and then you had the option of carrying on but when you are 80yrs old the premiums suddenly become $8,000 or such for a year and later it could even climb to $30,000 . Many of the others were stepped ie, each 3 or 5yrs the premiums increased . My one was locked, but I pay a higher premium but in like 10yrs or 15yrs its sorta breakeven with the floating stepped ones and then it becomes cheaper . The idea of life insurance is firstly to eliminate the burden of your family having to pay your funeral expences and secondly to make provision for your surviving dependents . If you have no dependents ie wife/children and are not likly to for a long time then you are much better off having just the minimal amount of life insurance to cover your funeral costs . later on, if you get married and have a family you can increase the sum insured to a higher level . there is no point in wasting money on insurance that u dont need .	smokey (13809)
677226	2008-06-11 03:28:00	The idea of life insurance is firstly to eliminate the burden of your family having to pay your funeral expences . cardboard coffins have a solid wooden base, and the canvas handles are 3 strong straps which go underneath the base . They are extremely strong . A body has to be embalmed only in the presence of infectious disease . Anyone can arrange a funeral, and the legal disposal of a dead body, with or without a funeral director . You also don't need a priest or minister or celebrant unless you choose to . Provided you know what you legally have to do - and not do - you can do it all within the family . Private crematorium $400, transport included . Voila .	pctek (84)
677227	2008-06-11 05:12:00	cardboard coffins have a solid wooden base, and the canvas handles are 3 strong straps which go underneath the base . They are extremely strong . A body has to be embalmed only in the presence of infectious disease . Anyone can arrange a funeral, and the legal disposal of a dead body, with or without a funeral director . You also don't need a priest or minister or celebrant unless you choose to . Provided you know what you legally have to do - and not do - you can do it all within the family . Private crematorium $400, transport included . Voila . I need to re-write my will . :thumbs:	smokey (13809)
677228	2008-06-11 08:59:00	The thing to keep in mind is that you can only get it when you don't need it. There is no point in expecting to be able to buy insurance after the doctor has given you the bad news Insurance companies don't buy into statistical uncertainties - that is they work on statistically calculated risks. The basic idea of all Insurance is that if a sufficiently large enough group pool their resources, the each individual's risk in relation to the group is sufficiently low to be an acceptable risk. If you have liabilities, you need sufficient assets to cover these and final costs, or else a modest insurance policy to meet the same - that is unless you believe you shouldn't take responsibility for yourself, and your demise and and the clearing up your affairs should be paid by friends and family. If you are married with a young family, there is a simple question - in the event of your untimely death do you want to leave them destitute? If not protect them with insurance - ie at least clear the mortgage and all debts and final costs. We are all going to die, and it may surprise many to realise that the risk of mortality among young males between 20 and 25, is approximately the same as for males between 55 - 60 - in the youngsters it is lifestyle ( if thats what one calls it) - while in the late middle aged it is failing health - usually attributable to earlier lifestyle.	KenESmith (6287)
677229	2008-06-11 11:51:00	Well I have an old villa . They came out to have a look - although only from the outside before insuring it fully . They didn't aks for a valuation, although they can if its a bit of a ruin . My best friend has a bit of a ruin and its not insured for replacement - only a fixed value . Its reviewed same as all insurance, premiums may go up but they are unlikely to change status from full to partial . Life insurance is a rip-off . I looked up how much to insure husband for $150,000 and it was going to be $450 a month . I hate to think what they would change to if I then added in all his medical conditions . Depends on the ages . I was quite cheap relatively like $500 a year for 300k cover locked premiums . My parents looked at it, I cannot remember the plan but yeah it was expensive and it was so expensive, the affordable ones they could only get like 40k cover per person . Their response was it was just too expensive and they just to cover the funeral and a bit of money left aside etc . .	Nomad (952)
677230	2008-06-11 20:57:00	I would think it's very rare, that if you don't have any premium loadings for health or past times, that 40 years of premiums paid would be greater than the death value paid out. Edit: maybe 40 years was a bit optimistic, if you're taking the cover out in your late 40s...	the_bogan (9949)
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