Warranties and  Weird Insurance Claims

The Crazy things People Say  at a Time of Claim

The Insurance Term of the Week:
Insurable Interest
You have an "Insurable interest" in something when you would suffer a financial loss in the event of a certain thing happening. For example, if you own property and it were to be damaged by a fire, you would suffer a financial loss. Now, if your neighbors property is damaged by a fire, you would feel sad but would not suffer a financial loss.

For life insurance purposes, parents, a spouse or children all have a financial interest in each other.

Larry's Tip of the Week:
Purchasing life insurance on another persons life is often a smart financial tool.

If you are in a partnership with others you may want to consider a life insurance policy on each others lives. What would the financial loss be to the business if one of the partners were to die.

If you and a buddy went in together and bought a boat. You are each responsible for the other. if one dies the survivor is still responsible for the total balance on the boat. Life insurance can guarantee the survivor will not suffer a financial loss.

Life insurance is often a good financial tool for a key employee. If the death of a key employee would affect your business financially you can purchase life insurance and use the life insurance proceeds to offset the loss of income.

The employee is the named insured and the business should be listed as the owner as well as the beneficiary. Often a cash value policy is written on the inured and is played for by the business.

The business should be the policy owner and the beneficiary.

The business may offer the "Cash equity" of the policy to the employee should the employee stay with the business for x number of years. An incentive for an employee who is agreeing to let the business insure him.