We have so many things to worry about when we get older. As time flies by quickly, the pressure of keeping up to enjoy the future gets harder and harder. Some of us even tend to live by day, not thinking much of the future because what we have in the present seems hard enough to carry.
The question thrown: Why do I need insurance when I retire?
The answer is simple: do you have any loved ones? Of course you do.
Now, let us review to the basics and details of it.
Axis Capital, with a group of insurance and reinsurance companies based in Bermuda and offices in Australia, the United Kingdom, Singapore and over 10 states in the United States emphasizes the importance of insurance for retirees, even when you think you don’t need it anymore.
1.Source of Income
We all know that even if you retire, you would still have to take care of your own needs. You don’t want to depend entirely on your children, do you? Some children and grandchildren may be the ones to depend on you even if you retire. And of course, you can’t just turn your back from them. Life insurance can provide funds that you need.
2.Something to Leave Behind
We cannot deny that we will all be gone from this world. Do you have something to leave behind for your children or their education?
Many retirees from close family-knit cities like Jakarta, Indonesia and Singapore turn to insurance in fear that their children would not be able to survive after they pass away. Life insurance is mostly important children with special needs as well to get them by when you are already gone.
3.You have a pension that dies with you.
If you have a pension with no survivorship option, how do you replace that income stream for your spouse? Once again, life insurance can replace the lost pension income by creating the assets that can be turned into an income stream.
4.Pay your debts
During the times that you are still working and active, there may been debts that you were not able to pay. According to some reports, most retirees have installment and education debts which remain unpaid. Some also have vehicle loans. Many retirees still have mortgage debt. You wouldn’t want to face files of complaints, would you? Life insurance can make sure these debts are paid off at the debtor’s death
5.You’d like to leave a legacy.
Life insurance is a very efficient tool to use for estate planning and the equalization of assets being left to heirs and for charitable planning. A small premium for life insurance can create the money at death to accomplish these goals.
Another option is to get insurance while you are still young. Be smart enough and enjoy a tax-free income stream in retirement from the cash-value of your policy.
Last May, 2015, one of the clients of Axis Capital, with a group of insurance and reinsurance companies based in Bermuda and has branches all over the United Kingdom, Singapore, Australia and in almost ten states in North America, complained of the change of her physical address registered with the company.
Upon rechecking, it was confirmed that a person had called her agent requesting to change the address. The person, who happened to be a fraud, was able to verify the identity information of the client and was able to provide confidential information therefore, the request, was permitted. The client, who personally came to the head office, was then adamant that she had never authorized anyone to change her location nor did she make any phone calls with the agent. She was reviewing her accounts and policies when she saw the change of address. Fortunately, no loans were transacted and no significant cash value lost. After a long negotiation, both parties agreed to continue their partnership while the client didn’t accept any compensation the company tried to offer, insisting that there is no loss. In response, Axis has now fully installed a new security system and an overhaul and rechecking of other accounts to prevent any other possible scam to happen in the future.
Reports similar to identity theft using information included in insurance policies also exist not only in developed countries. In Jakarta, Indonesia, a man was put to prison when he claimed a policy for accident insurance which never happened. It turned out that he was also not the real client but a theft.
Question is, how can a client know he is safe with his insurance company? Review your policies more often than you have been. This is a new and troubling direction for fraud, which may have delays from the date of occurrence until you are notified in writing or email—or at all.
Car accidents are the least desirable thing that could happen to a motorist. No one ever wants to happen it to them. But this seems to be not the case to everyone. There are those who would risk their lives – and the lives of others- in desperate plea for an insurance claim.
Axis Capital, with a group of insurance and reinsurance companies from its main branch in Bermuda to its branches in the United Kingdom, United States, Singapore and Australia, has these warning signs for you to avoid being scammed by staged car accidents:
Types of Accident Scams
1. The T-Bone Accident
In this scenario, a scam artist will wait for your car to proceed through an intersection and then jam the gas pedal and T-bone your vehicle. When the police arrive, phony witnesses, also known as “shady helpers,” will then claim you were the one who ran the stop sign or traffic signal. This kind of scam mostly happens in traffic-congested areas such as the central Jakarta, Indonesia or Tokyo, Japan.
2. The Wave
In this scam, the other driver will notice your attempt to switch lanes and subsequently wave you ahead. As you attempt to maneuver into the lane, he will accelerate, causing a collision with your car. When the police arrive, he will deny ever providing a courtesy wave, placing you at fault.
3. Dual Turn Sideswipe
A driver in the outer lane of the dual turn rams into you if you go even the slightest bit out of the inner lane as the two of you are making your turns. They may also drive a bit into your lane and swipe your car and then blame you.
“Witnesses” working with the con artist may corroborate his story.
4. Brake Slam
This simple scam involves the driver in front of you slamming on their brakes for no reason so that you cannot avoid rear-ending her vehicle.
5. Swoop and Stop
In this scenario, a car will suddenly pull in front of yours and stop. Another vehicle will simultaneously pull up alongside your car, preventing you from swerving to avoid an accident.
6. Phony Injuries
In any fraudulent accident, you may find yourself on the hook for injuries you didn’t cause. The con artists and their passengers may collaborate with a shady physician or chiropractor and file personal injury claims for phony injuries.
Some may even visit legitimate doctors and claim whiplash or other “soft tissue injuries,” which are difficult to detect.
Staged car accident scam artists are vulnerable to facts. The more information you provide, the more equipped you are to fight an insurance scam.
Every country has their own requirement in insurance policies just as individual insurance provider has their own terms and agreements and different individuals have different premiums to review. Factors like geography, economy and need are being considered in every transaction. Axis Capital, with a group of insurance and reinsurance companies across the global starting from its main office in Bermuda to its branches in Australia, United Kingdom, over 10 states in the United States and Singapore knows the pressure of registering different insurance policies in each country. For those who would want to know the policyholder’s protection in each nation, here are the general guidelines:
Life insurer – Life insurers are required to maintain statutory funds, which act as a mechanism for quarantining the life insurance business of the company from any other business of the company.
General insurer – APRA administers the Financial Claims Scheme (FCS), which makes payments to certain policyholders with valid claims on an insolvent general insurer. The Government funds the payments made under the scheme and then seeks recovery from the general insurer in the winding up process. Any shortfall may be recovered through a levy on the general insurance sector.
In the event of insolvency or revocation of license of a nonlife insurer whose assets are insufficient to pay benefits, a non-life policyholder protection fund covers 100 per cent of losses up to RMB50,000 and thereafter, 90 per cent of losses for individual policyholders and 80 per cent for corporate policyholders.
In the event of insolvency or revocation of license of a life insurer, the policies are required to be transferred to a new insurer and the policyholder protection fund will make up the shortfall in supporting assets to 90 per cent of individual policyholder liabilities and 80 per cent of corporate policyholder liabilities.
With most of its insurance companies located in the country’s capital, Jakarta, each insurance company must form its own protection fund as a means of ‘last resort’ to protect the interests of policyholders. The protection fund must constitute at least 20 per cent of the insurer’s capital plus 20 per cent of annual premiums. The funds representing the protection fund must be deposited with a bank.
The insurance law gives policyholders preferential rights in a liquidation procedure ahead of secured and unsecured creditors but behind preferred creditors (tax liabilities and employee compensation).
The Financial Services Authority, Otoritas Jasa Keuangan or OJK Regulation No. 1 of 2013 gives a policyholder the right to report a complaint to the OJK with an indication of a dispute between an insurance company with a policyholder and/or an alleged violation of the financial laws and regulations. Further, it also requires insurance companies to have annual program on customers and/or public education to promote financial (insurance) literacy.
Scams can already be done online in today’s generation. A lot of hackers, and computer specialists exist and are continuously growing in number that the Federal Bureau of Investigation has already deployed a department specifically for this field of fraudulent acts. Computer tactics has already been included in the curriculum of criminology classes.
The biggest sector involved in cyber hacking are private companies and government institutions. Companies that have suffered a data breach look to their insurance policies for coverage to help mitigate some of the enormous costs. The application of standard form commercial general liability (CGL) policies to data breach incidents has led to various legal actions and differing opinions.
Insurance companies like Axis Capital, with a group of insurance and reinsurance companies all from its main branch in Bermuda, Singapore, Australia, Europe and on more than 10 states in United States of America has also developed their system to meet the demands on cyber insurance.
Hackers are traced back to developing cities like Beijing, China, Jakarta, Indonesia and Bangkok, Thailand. Illegal acts are being done in internet cafes, a good public place from which the IP address is not traceable
Cyber Security and Insurance
While traditional insurance policies typically have not handled these emerging risks, limited coverage under traditional policies may be available. For example, in general there would be coverage under a traditional property insurance policy if a cyber incident resulted in a covered cause of loss such as a fire that caused property damage.
Traditional property insurance policies often contain express provisions covering damage or disruption to electronic data. The package policy known as the Business Owners Policy (BOP) that is often purchased by medium and smaller-sized businesses includes coverage for electronic data loss.
This means that in the event electronic data is destroyed or damaged as the result of a covered cause of loss, the insurer will pay the cost to replace or restore it. Causes of loss that apply to this coverage include a computer virus, harmful code or other harmful instructions entered into a computer system or network to which it is connected. There is no coverage, however, for loss or damage caused by the actions of any employee.
Reliance on traditional insurance policies is not enough, however, so specialized cyber insurance policies have been developed by insurers to help businesses and individuals protect themselves from an ever-evolving range of risks. Recent market intelligence suggests that the types of specialized cyber coverage being offered by insurers are expanding in response to this fast-growing market need.
Specialized cyber risk coverage is available primarily as a stand-alone policy. Each policy is tailored to the specific needs of a company, depending on the technology being used and the level of risk involved. Both first- and third-party coverage is available.
Axis Capital, with a group of insurance and reinsurance companies from its main branch in Bermuda to its branches in Singapore, United Kingdom, America, Europe and Australia gives you reasons to consider life plans as gift:1. It can last a lifetime—and then some. Permanent life insurance provides death benefit protection, creates a living legacy that will accumulate cash value with each passing year, and may help your child or grandchild get a head start on their financial future.2. It won’t wear out or fall apart. The life insurance policy you purchase for your kids or grandkids today can still be there years from now—something those material things can’t provide. It doesn’t matter if you are in Brunei or Jakarta, Indonesia as long as you continue paying your premiums. Just as I stated earlier, it is a lifetime gift.
3. It has accumulation potential. Most gifts lose value over time. A permanent life insurance policy, on the other hand, has the potential to accumulate cash value each year. Cash values can be borrowed for any purpose—to provide a down payment on a first home, to help pay for college, to start a business or even to help fund a comfortable retirement years down the road. Keep in mind: Loans against your policy will accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest, withdrawals reduce the available death benefit.
4. There are tax advantages. Under current law, cash values that accumulate in a life insurance policy are tax deferred. Even when cash values are borrowed, there may be no tax consequences in many instances. Also, proceeds received by beneficiaries are generally not taxable as income. Talk with your tax advisor for more details.
5. Premium rates may never be lower. Premiums generally increase with age, but with permanent life insurance, it’s possible to lock in the premium at the insured person’s current age – for life.