Personal Insurance

Name: Surugiu Alecsandru Horia

Orudjov Rashad

Group: 135

Year: 3

2014
Table of Contents

Description....................................................................
..............................3

Brief History of
Insurance......................................................................
......4

Types of Personal
Insurance......................................................................
..5
1. Life
insurance.........................................................
............5
2. Total & Permanent Disabillity
Insurance.............................6
3. Critical Illness
Insurance.....................................................6
4. Income Protection
Insurance..............................................7
Contract and
Policy............................................................................
.........8

Inclusions and
Exclusions.....................................................................
.......9

Claim
Process.........................................................................
.....................10

Case Study: The Staniszewski

Family...........................................................11

Description

What is personal insurance?

Well, in the dictionary, personal insurance represents the
insurance of human life values against the risks of death, injury,
illness or against expenses incidental to the latter, the

insurance purchased for personal or family protection purposes

as contrasted with insurance of business property or interests

Personal Insurance is all about providing cover for your life and
your family's. Types of Personal Insurance include life
insurance, total and permanent disability, critical
illness and income protection.
The amount of personal insurance you need depends on your
personal circumstance - particularly your financial commitments
and lifestyle expectations. Set out in this web site, for each type
of personal insurance, are some of the issues you should
consider when deciding the level of insurance you require. This
information is provided as a guide only; a Financial Planner can
provide you with a needs analysis, specific to your personal
needs, objectives and circumstances.

Brief History of Insurance

The first historical reference to insurance dates from 1760BC in

the Babylonian Code of Hammurabi. The codification of
personal and commercial law includes references to loans that a
trader could secure on his ship. For an additional cost, it was
possible to arrange a loan so that if the ship sank the loan was
not repayable. This was effectively a form of marine insurance
with insurance not as a separate industry to banking, but as
an optional add-on to lending. This state of affairs existed for

3000 years. The eventual impetus for the separation of

insurance from banking and lending came from the church.
The strong growth in commerce and lending as Europe emerged
from the Dark Ages led to the church re-emphasising its view
that usury, lending at interest, was immoral and heretical. In a
series of clarifications Pope Gregory IX proclaimed situations
when the taking of interest was allowable, including when risk,
in particular cargo insurance risk, was involved in the loan. He
who loans a sum of money to one sailing or going to market,
since he has assumed upon himself a risk, is not to be
considered a usurer who will receive something beyond his lot,
he said.
This appears to have led to the separation of insurance as a
distinct, religiously acceptable activity and to a wave of
innovation. Just over 100 years later, we have the first evidence
of a reinsurance transaction. One merchant insuring goods
being transported from Genoa to Sluys effectively bought
facultative war cover, the war in question being the Hundred
Years War, for the hazardous part of the voyage after Cadiz.
Insurance at this stage was still a private transaction between
individual merchants, and reinsurance a form of arbitrage.

Types of Personal Insurance

As is said, personal insurance include life insurance, total

and permanent disability, critical illness and income
protection.

1. Life Insurance

If you have a spouse, children or others who are financially

dependent upon you, or you run the household, who will pay
the bills or help look after the children if you're no longer
around?
Life Insurance can help by paying a cash lump sum if you die.
The lump sum is generally not taxable* and is payable to your
estate or, alternatively, to the beneficiaries you list in your
policy, and can be used for any purpose.
* Tax may be payable on certain life insurance benefits, for example, where the
life insurance was taken out for business purposes or certain payments from
superannuation funds. You should discuss your specific taxation circumstances
with your accountant or taxation adviser.

How much cover should you have?

The younger your children and the greater your debt, generally
the more cover you will need to protect them. The ideal
outcome would be to have at least sufficient cover so that your
debts can be paid and your dependants can invest the balance
and live on the income it generates.
Remember that this income will normally be subject to tax. Your
insurance cover should be enough to enable your surviving
partner to pay for necessary services such as childcare and
housekeeping where required.
If you are single, or live with a partner and have no children and
neither of you relies on the other's income, you should have at
least enough insurance cover to pay out your debts plus any
additional costs such as burial expenses.

2. Total & Permanent Disabillity Insurance

Unfortunately, accidents do happen. And while you may

survive, what if you can never work again?
If an accident or illness leaves you unable to earn an income in
the future, TPD Insurance will pay you a lump sum to help
relieve the financial pressure. It can also be useful for people
who are not in the workforce and are unable to take out Income
Protection Insurance.
How much cover should you have?
Ideally, you should have at least sufficient insurance cover to
pay out your debts and replace your income, with enough left to
pay for any home modifications or ongoing medical expenses if
required.

3. Critical Illness Insurance

We all know someone who has suffered the effects of cancer,

heart disease or stroke.
One in four women and one in three men are likely to suffer
some form of cancer before turning 75^, while there's a 50%
chance of a 40-year-old man, and a 33% chance of a 40-yearold woman, developing coronary heart disease.*
The chance that major illness may strike you is very real. Don't
let it be financially critical. Critical Illness Insurance can provide
a lump sum payment if you suffer a critical illness such as a
heart attack, stroke or malignant cancer.
^ Australian Institute of Health and Welfare, Australia's Health 2002.
* National Heart Foundation Statistics, Australian Facts 2001 Highlights.

How much cover should you have?

Ideally, your insurance cover should be enough to pay off your
debts so you can concentrate on getting better, without
worrying about your finances. You should also make sure you
have enough to cover ongoing specialist care requirements, a
lengthy period off work to recuperate, and maybe even
modifications to your home or car.

4. Income Protection Insurance

Have you ever considered your income-earning ability may be

your most valuable asset? After all, your entire lifestyle depends
on your income - where you live, what you choose to spend and
what you do.
As a consequence, Income Protection Insurance could be your
most important form of insurance. Income Protection Insurance
provides you with a monthly payment if you are unable to work
due to sickness or injury.
As with all personal insurance, Income Protection Insurance
helps protect you from financial disaster. It's particularly
important if you have obligations such as a mortgage or other
debts that you would struggle to repay without your income. It
is also important for self-employed people who do not have the
protection of an employer to provide any sickness benefits

Contract and Policy

Most of Personal Insurances covers not only major accident
resulting in death or permanent disablement but also minor
injury happening in your daily life such as getting burnt while
cooking or kids getting injured at school or slipping down from
stairs.
Personal insurance covers:

Medical expenses for treatment of everyday injury as an

in-patient or out-patient at recognized hospitals (on 20 lakhs
and 30 lakhs plan)

Hospital daily cash

Accidental death

Legal expenses

Permanent total and partial disablement

Temporary total disablement

Transportation of mortal remains

Funeral expenses

Education grant

World-wide cover

Terrorism cover included

Double indemnity for death or permanent

disablement while travelling in public transport

How to get Personal Insurance?

Well, is not that hard, mostly you dont need:

No documentation

total

No medical tests

Available for ages 18 to 65 years

Inclusions and Exclusions

Inclusions:
Accidental Death
Permanent Total Disablement
Permanent Partial Disablement
Accidental Medical Expenses
Double Indemnity for Accidental Death or Permanent
Total Disability while travelling as a passenger in a public
conveyance
Hospital Daily Cash

Exclusions:
Any pre-existing disability/accidental injury
Pregnancy or child birth

 Self-injury,suicide or attempted suicide

Influence of Liquor or drugs
Venereal Disease, AIDS or insanity
War and nuclear risk, terrorism, criminal acts etc.

Claim Process

Claim form. death/disability certificate, admission/discharge

summary are the basic documents required for claim
settlement.
Depending upon the coverage opted for, benefit under the
policy will be calculated and the claim will be settled within 10
days of receipt of all documents.

While registering the claim, the insured should provide, in the

most cases, this information:
1. Name of insured
2. Policy number
3. Contact details
4. Date & time of loss
5. Location of loss
6. Nature & extent of loss

Case Study: The Staniszewski Family

Brian and Gina Staniszewski Personal Lines Clients

CHALLENGE:
Brian and Gina Staniszewskis brand new home and both of their vehicles
were swept away in the tornado that struck Washington, Illinois on November
17, 2013. The insureds took cover in the finished basement of their home,
along with their four year-old daughter, unborn twins and Ginas mother. It took
less than 30 seconds for the tornado to completely destroy their 2,500 square
foot home, its contents and their vehicles. Once the tornado ripped through
their neighborhood, the family emerged from their basement to see daylight
shining down the stairway. Their home wasnt in pieces and it hadnt been
knocked off of the foundation it was completely gone.
ACTION PLAN:
Kuhl Insurance responded to the Staniszewskis immediately and made sure
they had appropriated accommodations for temporary living space, reserved
two rental cars and started the claims process and helped them to understand
how the process would work. The next day, Kuhl Insurance delivered an initial

claim payment so that they could purchase basic necessities. Within a week,
Kuhl Insurance negotiated a total loss settlement on both vehicles and just two
weeks after the tornado, Brian and Gina were driving brand new vehicles.
IMPLEMENTATION:
In the weeks following the devastating tornado, Kuhl Insurance met with the
Staniszewskis weekly or bi-weekly to clarify coverage and collect damage
estimates from contractors while keeping the claims process moving forward
so that the family could feel whole again as soon as possible.
RESULTS:
While other families in Washington were still waiting on the status of their
claim, Brian and Gina had already received their insurance payment and
began rebuilding their dream home.
IMPACT:
One of the first calls I made after the devastating tornado was to my Kuhl
Insurance agent. I told her that our house and cars were completely gone, and
she was relieved to hear that my family was safe. I received a call from my
insurance adjuster that very same day to explain the next steps. My Kuhl
Insurance agent was by my side throughout the entire process. She took care
of the small details so we could focus on rebuilding our lives. Kuhl Insurance
employees even volunteered to help us clean up after the storm. We will be
forever grateful for their service and support during this tragedy.
Gina Staniszewski