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How does an auto insurance company make money with a no-cancellation policy?
Lawren5
Simple. There really is no such thing as a no-cancellation policy. Read the fine print and you will see that there are many reasons that the company can and will cancel the policy. Such as not paying the premium, too many claims, suspended license, etc. This was a marketing gimmick devised by AARP to scare older drivers into thinking their insurance company would cancel them because of their age then coming up with a solution in a "no-cancel" policy. AARP is terrible about trying to keep retired persons scared of everything they can come up with then misrepresenting themselves as a solution while in reality just making money off of them. Scams.
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∙ 12y ago
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How does an insurance company benefit from insurance?
When an insured purchases an insurance policy they pay the insurance company money for the insurance coverage. This money the insurance company collects is called insurance "premiums". The insurance company, using the law of large numbers, collects more money in premiums than it pays out in claims. The insurance also makes alot of its money by taking the money earned from premiums and then investing it. As we all know that Life insurance policy cash values are accessed through withdrawals and policy loans. However, withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender before the insured's death will cause immediate taxation to the extent of gain in the policy and hence benefits the company.
Can money be pulled out of a life insurance policy prior to death?
You must direct your question to the insurance company that holds the policy.
What happens if someone dies and has no beneficiary on his life insurance policy?
In that case, the money will be kept deposited with the insurance company as unclaimed amount. In absence of the beneficiary, the insurance company can pay the money to the legal heir of the policy holder, but that has to be sufficiently proved in the Court of Law.
How do you get insurance money?
Insurance money is paid when you make a valid claim against the policy and can prove why the situation falls under the terms of the policy---whether it is Life Insurance, Car Insurance, Accident Insurance, Travel Insurance, etc. Call the Insurance Company for exact details.
Does insurance company owe money to family members in 2010 if policy holder purchased policy in 1953?
If the policy was still in force and the insured has died, then yes, the insurance company would owe the death benefit. If the policy was cancelled or surrendered, the company would not owe anything.
My wife got into an accident in her car and insurance policy under both of us can the insurance company come after me for additional money if my insurance company does not cover all damage?
If the automobile policy contract is in both names (husband and wife) then the insurance company will look to both of you for compensation of any losses that are not covered under your own policy.
What company gives the most affordable insurance?
Try Allstate, Geico or Farmers Insurance if you have a policy with them. They will bundle plans and save you money.
How insurance companies make money?
Insurance companies make money by collecting premiums and deductibles from customers. Not everyone will ever use their insurance policy, so the company profits from those cases.
Who gets the claim money car owner or policy holder?
The car owner and the policy holder better be the same person. If not nobody will be able to get the money. You cannot insure a vehicle that you do not own. If you do the insurance company cannot pay the policy holder because they don't own the vehicle. They can't pay the vehicle owner because they don't have a contract of insurance with the insurance company.
Are life insurance benefits part of a will?
It will state on the life insurance policy the name of the person or persons who are to receive the death benefit. Since a life insurance contract is a legal document, the insurance company is required to carry it out exactly as stated in the policy. The money may be argued over from that point, but the will cannot dictate where the money from a life insurance policy goes.
What do you do with your auto insurance when you sell the auto?
You need to call your insurance company to remove the vehicle from your policy. If you are getting a new vehicle, you need to add that vehicle on. If you are not getting a new vehicle, the insurance company will send you a check for whatever amount of money you had left on the policy that was not earned because you did not have the policy for the full term.
Is there a statute of limitation on collecting monies from a life insurance policy?
no there is not. If you can prove who you are and that you are the beneficiary, the Insurance company sometimes pays interest on the money owed.
