Wednesday, December 19, 2012

5 Facts About Life Insurance in South Africa

5 Facts About Life Insurance in South Africa

The importance of having life insurance to provide for families has reached almost all parts of the world. In fact, it has even reached South Africa and has been given equal value as it is from other countries. Whether it is for education, health care, or food, life insurance has been proven to be an instrument of salvation for families who experience the hardships of financial strains.

South Africans that decided to purchase a good insurance plan from a financially stable insurance company are taking steps which would help in the future of their families. When choosing a good insurance company, one should always remember to choose a policy which caters to his particular needs. He should take time to study the premiums, policies, and even the application procedures.

For a start, here are 5 facts about life insurance in South Africa.

1. South Africa is considered the largest market for insurance in Africa

It is not difficult to find insurance companies as the country is full of insurance companies here and there. In fact, the region has been dominated by insurance companies with 80% of the direct total premium on both the non-life and life segments.

2. The life insurance segment in South Africa has been unaffected by the global economic crisis

Surprisingly, the past economic crises had little or no effect at all on the country'slife insurance segment. This is because of a mixture of circumstantial, fundamental, and historical factors. In addition, the different financial institutions were not affected by the global economic crisis because of their limited exposure to foreign financial institutions.

3. Expansion paved the way for growth in the sales of the insurance industry

The growth sales of the insurance industry were due to the rapid rate of expansion of the distribution channels across the rural areas in the region.

4. By 2015, new regulatory regimes for the South African insurance industry will be implemented

By the year 2015, a new regulatory regime called the "Solvency Assessment and Management (SAM)" is expected to be implemented for the South African insurance industry. Although still a framework, it is still currently being developed to be able to have a risk-based regime which would effectively supervise the regulation of both short-term and long-term insurers in the region.

5. Four large competitors and a number of smaller competitors dominate the South African life insurance industry

The South African life insurance industry is said to be dominated by four large competitors leading insurance companies are Life Insurance Today, Discover Life, Liberty Life, Momentum, Old Mutual, PPS, and Altrisk.

If you are interested in purchasing a life insurance plan, then the first place you can rely on to be able to find good insurance companies is on the Internet. You will also be able to find reviews and quotes from these insurance companies and you will be able to assess whether the insurance company will be able to cater to your particular needs.

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Friday, November 2, 2012

What You Need to Know About Title Insurance Fees

What You Need to Know About Title Insurance Fees

If you are a property owner who is looking to sell or refinance your home, then you need to make sure that you are aware of some things regarding your title insurance policy. If you are not familiar with what that policy is, it is a document that helps to protect your interest in your property.

This protection helps to cover the cost of potential problems, defects or claims that are related to the title of the property in question. These policies are usually taken care of at the same time you finish closing on your home.

This type of policy is very important for you to have. Since most properties have had several owners during the course of its life, if any problems arise where there are claims being made against the deed to your home, you have a situation that can't be ignored.

If you sell your home and the buyer discovers a major problem that was not disclosed or made available when they did a property title search, you could be held legally liable if you never purchased this type of policy when you purchased the home.

When you take everything into consideration when it comes to purchasing a home, these fees only amount to a very small percentage of all other costs that need to be paid. This is one investment you shouldn't ignore.

It is much easier and far cheaper to pay the title insurance fee rather than suffer the legal costs that would incur if there were any claims made against you and the property that you might be held responsible for.

Keep in mind that if you are taking out a mortgage, your lender will require you to purchase this type of policy before you can close on the house. It doesn't matter how many times a search was performed to make sure that there weren't any errors over the course of the home's history each time the title was transferred.

In order to protect you and the lender from any potential missed errors, it is in your best interest to purchase a policy. Some lenders will help you with the title insurance fees if you are in the process of closing.

Be aware that the amount of policy varies according to which state you live in. There are also some other factors that will be used to determine how much you should pay. In most cases it is only a small percentage, generally three to five percent of what the total purchase price is for your home.

Even though your lender will be able to recommend several good insurance businesses, you may want to shop around to see who will give you the best deal. Take your time and make sure you understand that there are different levels of coverage before you pay any title insurance fees.

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Monday, August 27, 2012

Travel Insurance for Family Holidays

Travel Insurance for Family Holidays

The economy may be tough and holiday budgets stretched more than ever before but families still need, and will take, their holidays. Getting away as a family is very important for maintaining the family bond. However, the organisation of a family holiday can be daunting. There is so much to do and think about before you leave home - and family holiday insurance is just one of them.

A checklist is vital so that you don't forget anything important. Holiday checklist examples are available online and you can tailor them to suit your family's needs. Keep a copy on your home computer, if possible, so that you can edit it as the family's needs change.

Print out copies for all family members and ask them to add anything they think is important to them. (Be prepared for suggestions to include a tattered teddy bear or computer game; better to have all this on board - and contented kids - rather than deal with the alternative... )

One aspect of a family holiday that is easy to solve and tick off that 'to do' list is family travel insurance. It is best to take care of this as soon as you book your holiday so that coverage begins immediately, in case of any unexpected events that may cause cancellation of your trip.

Families can save money on family holiday insurance because kids are very often included free of charge. Let's face it, you don't get much for free these days - and there is no trick involved. This is something offered free that is actually worth having! (Remember to check the policy terms and conditions).

If you think you might take two of more holidays in a year it is wise to save money by choosing an Annual Multi-trip policy for your family holiday. This is a no-brainer if you consider how much it would cost for multiple trips or holidays if you were to take out a single-trip policy for each family member each time you travel. Before purchasing holiday insurance always check carefully to ensure that it provides adequate cover for the needs of your family, as well as all your planned activities. Medical cover is the most important concern for most families. No one wants to think about possible accidents, sickness, or health emergencies when going on holiday. However, imagine how you would feel if the worst should happen and you are faced with an astronomical hospital bill. Remember to check that your insurance policy includes air ambulance and medical repatriation to your homeland - as this can be extremely expensive.

Wouldn't it be nice to know you have an emergency number to call 24/7 when you are far away from home, perhaps in a country where you do not speak the language? A friendly voice at the end of the phone would be welcome to help with medical emergencies, and other problems such as replacing stolen or lost travel documents or credit cards, tracing lost luggage, or handling arrangements in the event of a delay in your travel schedule.

Do you like to gamble? Because travelling without insurance is taking a real risk. Travel insurance is just as important for solo travellers as for families. When the kids are grown and it is time for them to venture out into the world without you, it's no use trying to stop them. (You may have been responsible for infecting them with the travel bug in the first place).

The best you can do is make sure they have insurance - or purchase travel insurance for them as a farewell gift and send them on their way. Insurance not only provides needed protection for them, but also gives a worried parent or parents some peace of mind while the kids are out of sight. Tip: a Backpacker policy is great value and a cheap option for young travellers who don't have a lot of luggage. There's no point in paying for cover that you don't need.

The kids will be grown up and gone before you know it and family holidays are precious times to be cherished. One day you will look back through family holiday photo albums and 'ooh and aah' at the cute snapshots of the kids. Don't risk spoiling those holiday memories because you thought travel insurance was an unnecessary expense!

Jean Andrews is an employee of Travel Insurance Agencies Ltd. She regularly contributes informative articles about travel insurance and travel related matters.To find out more and to obtain a quote for cheap travel insurance from this well-established company, visit their UK website at Travel Insurance Direct or Travel Insurance Direct-Ireland for residents of Ireland.

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Friday, June 8, 2012

Choosing Your Nail Salon Insurance

Choosing Your Nail Salon Insurance 

If you have a nail salon, then you may want to ensure that you have nail salon insurance behind you to fall back on. 

Even if you run your nail salon from home then you need to realise that your residential household insurance will not protect you for working from home. 

You also need to tell your household insurer of you do run a business from your home, as failure to do so could render this policy invalid. 

If you own separate premises for your nail salon then you need to ensure that you have adequate cover for your business. 

 When running your nail salon from home your normal household insurance will typically not cover your business. 

If clients are coming into your home then your normal cover will often become invalid and without adequate business insurance, things such as your business equipment, may not be covered. 

If anything were to happen to your stock and equipment, you may lose a great deal of money. Similarly, if someone was injured on your premises and made a claim against you, without business public liability insurance, you could potentially sloe everything if you had to pay out a lot in compensation and legal costs.

Here is how you may benefit from taking out nail salon insurance: 

 · Your contents and stock are usually covered against loss or damage so that you are able to replace them at no cost to you

 · Your insurance policy usually covers any legal expenses that may occur if a client gets hurt or dies whilst on your business premises

 · Treatment liability insurance protects you against claims for damages that have resulted due to a treatment that you have performed on a client. Legal costs may add up to a great deal and without insurance, you may lose your business.

 · Goods in transit cover usually protects any stock or contents that are lost or damaged whilst they are on their way to you. As stock may cost a great deal of money without cover, you have to find the money to replace it yourself. 

 · Your stock and contents are covered in your policy in the event that they were to become destroyed or stolen whilst on your premises. 

 · If you business is interrupted for reasons such as fire that causes extensive damage to the property your policy may cover you. 

 · If you have employees, it is usually a legal requirement to have employers' liability insurance. 

If a member of your staff suffered injury as the result of an accident or were to die whilst working for you and a claim was made, the policy typically pays out towards your legal costs. 

You may want to compare the cost of nail salon insurance premiums as well as the product features and benefits, as they may vary considerably. 

The key to getting the most suitable cover for you is to compare what is offer and then select the cover that most matches your needs. 

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Monday, June 4, 2012

Group Health Insurance Premiums

Group Health Insurance Premiums

If you are a small business owner or operator and want to get an explanation of the way premiums are priced for the company, then please read on. There are basically two ways these premiums can be calculated.
Group Insurance Pricing
The pricing (rate making) process in group insurance is essentially the same as pricing in other industries. The insurance company must generate enough revenue to cover the cost of its claims and expenses and contribute to the surplus of the company. It differs in that the price of a group insurance product is initially determined on the basis of expected future events and may also be subject to experience rating so that the final price to the contract holder can be determined only after the coverage period has ended. Group insurance pricing consist of two steps.
(1) The determination of a unit price, referred to as a rate or premium rate for each unit of benefit (e.g., $1,000.00 of life insurance, $1 of daily hospital benefit, or $1 of monthly income disability benefit)
(2) The determination of the total price or premium that will be paid by the contract holder for all of the coverage purchased. 
The approach to group insurance rate making differs depending on whether manual rating or experience rating is used. In the case of manual rating, the premium rate is determined independently of a particular groups claim experience. When experience rating is used, the past claims experience of a group is considered in determining future premiums for the group and/or adjusting past premiums after a coverage period has ended. As in all rate making, the primary objective for all types of group insurance is to develop premium rates that are adequate, reasonable, and equitable.

Manual Rating
In the manual rating process, premium rates are established for broad classes of group insurance business. Manual rating is used with small groups for which no credible individual loss experience is available. This lack of credibility exist because the size of the group is such that it is impossible to determine whether the experience is due to random chance or is truly reflective of the risk exposure. Manual rating is also used to establish the initial premiums for larger groups that are subject to experience rating, particularly when a group is being written for the first time. In all but the largest groups, experience rating is used to combine manual rates and the actual experience of a given group to determine the final premium. The relative weights depend on the credibility of the groups own experience. Manual premium rates (also called tabular rates) are quoted in a company's rate manual. As pointed out earlier, these manual rates are applied to a specific group insurance case in order to determine the average premium rate for the case that will then be multiplied by the number of benefit units to obtain a premium for the group. The rating process involves the determination of the net premium rate, which is the amount necessary to meet the cost of expected claims. For any given classification, this is calculated by multiplying the probability (frequency) of a claim occurring by the expected amount (severity) of the claim.
The second step in the development of manual premium rates is the adjustment of the net premium rates for expenses, a risk charge, and a contribution to profit or surplus. The term retention, frequently used in connection with group insurance, usually is defined as the excess of premiums over claim payments and dividends. It consists of charges for (1) the stop-loss coverage, (2) expenses, (3) a risk charge, and (4) a contribution to the insurer's surplus. The sum of these changes usually is reduced by the interest credited to certain reserves (e.g., the claim reserve and any contingency reserves) the insurer holds to pay future claims under the group contract. For large groups, a formula is usually applied that is based on the insurers average claim experience. The formula varies by the size of a group and the type of coverage involved. Insurance companies that write a large volume of any given type of group insurance rely on their own experience in determining the frequency and severity of future claims. Where the benefit is a fixed sum, as in life insurance, the expected claim is the amount of insurance. For most group health benefits, the expected claim is a variable that depends on such factors as the expected length of disability, the expected duration of a hospital confinement, or the expected amount of reimbursable expenses. Companies that do not have enough past data for reliable future projections can use industry wide sources. The major source for such U.S. industry wide data is the Society of Actuaries. Insurers must also consider whether to establish a single manual rate level or develop select or substandard rate classifications on objective standards related to risk characteristics of the group such as occupation and type of industry. These standards are largely independent of the groups past experience.
The adjustment of the net premium rate to provide reasonable equity is complex. Some factors such as premium taxes and commissions vary with the premium charge. At the same time, the premium tax rate is not affected by the size of the group, whereas commission rates decrease as the size of a group increases. Claim expenses tend to vary with the number, not the size of claims. Allocating indirect expenses is always a difficult process as is the determination of the risk charge. Community-rating systems, developed originally by Blue Cross Blue Shield, are often defined to limit the demographic and other risk factors being recognized. They typically ignore most or all of the factors necessary for rate equity and may be as simple as one rate applicable to those with families. There is little actuarial rationale for charging all groups the same rate regardless of the expected morbidity. Community rating has been mandated in some jurisdictions. This makes it a matter of public policy rather than an actuarial pricing question.
Experience Rating
Experience rating is the process whereby a contract holder is given the financial benefit or held financially accountable for its past claims experience in insurance-rating calculations. Probably the major reason for using experience rating is competition. Charging identical rates for all groups regardless of their experience would lead to adverse selection with employers with good experience seeking out insurance companies that offered lower rates, or they would turn to self funding as a way to reduce cost. The insurance company that did not consider claims experience would, therefore, be left with only the poor risk. This is why Blue Cross Blue Shield had to abandon community rating for group insurance cases above a certain size. The starting point for prospective experience rating is the past claim experience for a group. The incurred claims for a given period include those claims that have been paid and those in process of being paid. In evaluating the amount of incurred claims, provision is usually made for catastrophic claim pooling. Both individual and aggregate stop loss limits are established in which exceptionally large claims (above these limits) are not charged to the group's experience. The "excess" portions of claims are pooled for all groups and an average charge is accounted for in the pricing process. The approach is to give weight to the individual groups own experience to the extent that it is credible. In determining the claims charge, a credibility factor, usually based on the size of the group (determined by the number of insured lives insured) and the type of coverage involved, is used. This factor can vary from zero to one depending on the actuarial estimates of experience credibility and other considerations such as the adequacy of the contingency reserve developed by the group.
In effect, the claims charge is a weighted average of (1) the incurred claims subject to experience rating and (2) the expected claims, with the incurred claims being assigned a weight equal to the credibility factor and the expected claims being assigned to a weight equal to one minus the credibility factor. The incurred claims subject to experience rating are after consideration of any stop loss provisions. Where the credibility factor is one, the incurred claims subject to experience rating will be the same as the claims charge. In such cases, the expected claims underlying the prospective rates will not be considered. Thus, when companies insure a group of substantial size, experience rating reflects the claim levels resulting from that group's own unique risk characteristics. It has become common practice to give to the group the financial benefit of good experience and hold them financially responsible for bad experience at the end of each policy period. When experience turns out to be better than was expected in prospective rating assumptions, the excess can either be accumulated in an account called a premium stabilization reserve, claim fluctuation reserve, or contingency reserve or the excess can simply be refunded. The refund is either called a dividend (mutual company) or an experience rating refund (stock company).
The net result of the experience rating process is usually called the contract holder account balance, representing the final balance attributed to the individual contract holder. As pointed out earlier this balance or a portion of the balance can be refunded to the contract holder. The adequacy of the group's premium stabilization reserve influences dividend or rate adjustment decisions.
This article serves as a basic explanation of how the premiums for a group health plan is calculated, for a more detailed explanation please visit our website at for a no hassle free one on one consultation and quote. Carlos Diez is a senior benefits consultant for Health Insurance Buyer a referral service that refers consumers to the insurance carriers that can best fit their wants and needs. He holds life, health, and annuity licenses in 48 states and is appointed with over 88 carriers. For contact information please reach him at
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Friday, May 25, 2012

Advice On Getting Car Insurance

Advice On Getting Car Insurance

If you own a car, you are obliged to obtain car insurance, but the number of car insurance companies causes confusion, especially to someone who knows little about these policies. One common problem of car owners who want to obtain insurance is lack of decisiveness.

They often do not know where they should begin their search, and the number of car insurance advertisements is not helping really.

More than looking for car insurance companies, you should look for the right coverage. In other words, you should understand what your requirements for an insurance policy and what your needs are.

Then you can look for the right insurance policy—not the right company. Many companies may provide an insurance product that matches your needs. You, then, should make comparison based on auto insurance reviews, features, and price.

Now, keep in mind that while you have your own needs, the state you live in also has its own legislative mandate as to the type of insurance to get.

State requirements for car insurance vary, but most include $40,000 of insurance per accident. You must read car insurance requirements in the state you live in.

Also, take note of the different types of coverage. Generally, they fall into three categories.
1. Liability: This coverage only covers you in the event that you have bumped into a car or a property and caused damage to it.

It also includes the cost incurred by injury sustained by the injured party. The insurance firm shall reimburse or pay for the damages you have caused. But you will handle the expenses of having your car repaired.

2. Collision: This coverage provides reimbursement for repair expenses you incur after collision. Most insurance firms would require you to go to auto repair shops they approve.

3. Comprehensive: Complete car insurance coverage is expensive, but it provides complete coverage for all sorts of damage to your car. But comprehensive insurance policies are not necessarily that all-inclusive. You have to read the details on exclusions.

Car insurance requirements become complicated when you do not fully own your car. If you obtained your automobile through car lending terms, then you are subject to the car lender’s restrictions when it comes to auto insurance. Commonly, car lenders would ask you to get comprehensive insurance.

There are a lot of things that you have to consider when finding out the car insurance coverage that is practical for you.

If you use our car mostly to go to the office and send kids to school, you probably do not need comprehensive insurance. It would be impractical to buy an expensive insurance policy that you may not even benefit from in the future.

However, if you drive to far places and high risk areas and pass along difficult road, a comprehensive insurance may be appropriate. Car owners should also consider their driving habits. If your car stays in the garage much of the time, basic insurance may be enough.

Shopping for car insurance is tricky. To find the ideal insurance product for you, read car insurance reviews. Do not shop in a hurry. Take time to look into details and compare quotes.

By: Cedric Loiselle

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Friday, April 6, 2012

Where Can You Get Affordable Health Insurance

Where Can You Get Affordable Health Insurance

What is health Insurance

The main reason why you need an affordable health insurance is to help you plan ahead in case of unexpected costly emergencies. The only way you can accomplish this is to compare prices from most leading insurance companies and also choosing a health insurance plan that best suits you. Back in the days, getting a cheap health insurance plan was simply unaffordable. But these days, individuals, small groups, families and students can choose a health insurance plan that is best for them, e.g. like acquiring a help insurance plan that ensures that an individual suffering from any previous medical condition is not excluded.

Private health insurance plan is totally an unrestricted open market, so those who do not yet have a health insurance plan should consider taking out a plan. For those who are seeking good medical health insurance program, having one is possible through the help of specific companies which specializes in providing health care insurance for individuals and also meeting their requirements and also staying within your budget.

Also for individuals who do not want to use a company, then they can use the internet. One major way Americans get health insurance coverage is mostly through their employers. Many employers them receive health insurance coverage for their workers for a limited time thus enabling them receive health insurance coverage. The internet provides an option for a cheaper health insurance. There are lots of companies that provide all types of health insurance plans, making it possible for you and your family to have a specific reasonable and affordable health care insurance plan. Finding out what kind of reputation the company has and how long the company has been in business is a smart idea.

Having a kind of ideal they have for you is advisable also making sure they have been licensed in your state, because it is of no use getting an insurance with a form which has no license and cant get the exact health insurance you want, many agents will help work hard for you, so you could have an affordable health insurance plan which you and your family could live with without great cost. Everyone wants the best health insurance both for themselves and for their families, but only the best health care insurance can do this with low premiums and full coverage.

What are the advantages of health insurance?

Having the right and the best health care insurance is difficult. In order not to get confused, one needs to decide which the best is by doing his or her research thoroughly. The first step to take includes checking out the credentials and also their past performances of the very company you are considering. Just as on insurance outfits does a background check of individuals before accepting proposals, one should also review the financial status including the customer care services of the insurer, by so doing; you stand the chance to know which health insurance company's best for you. One major way for you to get ratings of these agencies such as A.M best or Moody's is by using the better business bureau. Many employers use the health insurance scheme to either attract or even retain their quality employers. The health insurance coverage might be a personal scheme or a group scheme organized and sponsored by the employers for employers who work between 20-29 hours per week.

Companies also do not add cost of fringe benefits alongside health insurance, to the price of their product and service. Over the past decades, the cost of health insurance has increased tremendously, surpassing the general rate of inflation in most past years.

The different types of health insurance includes individual health insurance, affordable employee health insurance which is also known as group health insurance, affordable family health insurance, affordable business health insurance etc, your monthly insurance is determined by certain numerous different things. For instance, most premiums based on or according to your age. So your health insurance rates changes accordingly with the type of health policy you have. If your health insurance is basically for yourselves or your entire family, the procedures must surely have an impact on any quote you are young or advanced in age, self employed receiving health insurance companies will adjust your premium based upon your age and this will also affect the cost of your health insurance.

What are the Disadvantages of health insurance?

Since unforeseen occurrences may occur any time, one will never know when an accident is likely to happen, be it the need to be admitted in the hospital for stitches or a broken bone, you may be in the position to receive help quickly without the worry of receiving a huge bill, unlike when you don't have a health insurance your credit rating beers all the cost. But you can prevent all this problems from happening and also protecting your credits for your future health financially. Increasing the amount of your health insurance deduction is another way in which you can help make sure your insurance rates are lowered. This higher monthly premium is necessary for anyone who has an existing health problem that requires an extensive medical treatment getting variety of quotes from insurance companies which meets for your health and budgets standards, is a wise decision when selection an health insurance. Searching can be done online and this will have saved you money as well.

Many people feel that they are healthy enough, so they don't need health insurance because they have never had any major medical problems but one thing to note against the possible health insurance is the protection against the possible health problem that may happen in future. It might happen to you in particular or any member of your family, so why not plan on having an affordable health insurance plan today.

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