 I ran my car into a bus and I had no insurance.The cops took my car and licence and told me they would arrest |
| The cops gave me a ticket and said they would arrest me if the information I gave them was wrong. I couldn't provided them with an insurance slip because I don't have insurance but I didn�... |
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 Life insurance? Which should I choose? Term or whole life for my family? |
| I have heard whole life sounds good with cash value after awhile but really does not pay and isnt worth it?... |
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 What to do when home owner insurance premium is raised after billed and paid, with no reason given by agent? |
| Received a bill for an additional $106, agent said the mortgage company failed to pay entire premium. But amount paid matched the amount of the renewal letter I had received. Person in office asked ... |
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 Do I need to get tested for smoking to get health insurance? |
| Im not a smoker but I can have the occasional cigarette with ... |
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 Do Different Car Insurance Companies Really Have Different Rates? |
| I keep seeing ads on TV which claim this or that car insurance company is cheapest. Are they really that different, or is this just marketing?... |
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 Health insurance question? |
| i am 27 yrs old and i need to know what is a normal deductable on health insurance is mine is 2500 i dont go to the doctor that much is this to ... |
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| Whole life policy only $6000 after paying for 50 years??? |
| My mom has been paying on a whole life policy for over 50 years. The benefit amount is now only $6000. I think she could have had more than $60,000 had she put this money in a bank instead. Is ... |
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 Can I take my auto insurance to a lawsuit they did't explain that my husband was excluded on the auto ins.? |
| It's been hard to my husband and me because we tought we had coverage but my insurance told us that my husband was excluded and not included in my auto insurance. And I talk to the lady who sell ... |
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 Beneficiary named in will killed my sister? |
| 2003 my sister was murdered in georgia she had a will in place 30% was to go to the killer from the estate he is in prison I am also a heir of the estate,I'm being told that he still gets 30% by ... |
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 I have a car loan and my bank is charging me more money for not having insurance? |
| I have a car loan from my bank and did not purshase insurance on my car for two years later on i found out my loan was ad up $3800 more when I call my bank they say that they had purchase a insurance ... |
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 Is it moral to contribute to mom's life insurance? |
| Mom is in her mid 50's. She asked me to contribute money to her Life insurance so she can increase the amount her family would get in case of her death. Is it moral to do so?... |
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 Why insurance agent do not market term insurance? |
| I am working in an IT company & agent comes to our company for marketing ULIPs. By reading various articals on ULIPs, I now understand the charges & I wonder how these agents hide the charge ... |
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 I am 26 yrs old, single with no children, taking out a mortgage. What insurance do I need? |
| I am taking out a mortgage on my own for a flat. I have a full time job that is temporary for 3 more years but likely to continue beyond that. Apart from buildings and contents insurance, which other ... |
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 What is Paternity Insurance? |
| Heard david lee roth had it and i was ... |
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| Life Insurance, any suggestion? |
I have a stable income now and i wanna to do a little investment to secure my life. i heard life insurance would be good for first step.
There are so many options out there, i have no idea ... |
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 My fiance' recently passed away in a motorcycle accident,? |
| his motorcyle insurance cancelled a month before he passed he was at fault , and the other party insurance company sent me a letter stating that his estate must pay for the damages to other party, ... |
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 What do you think about Insurance Agents? |
| And what do you think about your Insurance Agent, that is if you even know who he or she is?... |
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 A question about an insurance settlement? |
| My wife was hit by another car about a year ago. She broke two fingers quite badly. She had 2 surgeries, temporary pins, and a year of physical therapy. Now the insurance company is ready to settle.<... |
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Haopei | How do Insurance companies make profits? |
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Doing the Right Thing
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Agent sells policy to client. Client pays annual premiums. Company pays agent commission once or twice off the same policy. Clients rarely change their insurance company for another one.
Also, insurance companies put fees into the policy, usually around $100 to $200. |
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60s Chick
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By charging customers for their policies. When companies pay out in accidents, they recoup their costs by all the money they collect from their many policyholders. |
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Annie
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Like previously noted, insurance companies do invest the money they obtain from the premiums you pay. If you never file a claim with your insurance, all of the money you pay them each month ends up being profit. People often feel that insurance companies are fraudulent. But, working for one, I have a good perspective on what insurance does for a person. Imagine if you bought a house and had a $200,000 mortgage that came with it. Then, two months after you move in you have a house fire and everything is lost. Home, personal property, all of it. In those few months you probably would pay about $150 for Home Owners insurance. With your claim, you get the money to pay off your mortgage and replace ALL of your lost belongings. Everyone benefits from being insured. Even if you never need it. You know it's there if the worst happens. |
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President, www.HSAInside.com
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Each Insurance company employers a staff of "Actuaries" these are folks that crunch the numbers, and suppose the future of claims. Example- we I am an insurance company and collect 4billion in premiums in 2006, and total claims are 3 billion, and administrative costs are 10million, the remainder will be profit. The job of the actuary is to presume the future, a fortune teller who makes sure that every plan is profitable.
Here is another example that I think will help:
HMO plans are pre-paid plans, the premiums are high because the client is paying for services if they go in or not. A completely opposite plan to this would be a HSA plan, which is a high deductible plan- if you don't use the plan and are healthy you don't pay out, if you do you will have to pay out a high deductible. Hence you keep "your" money, and don't give it to insurance companies to profit by.
Learn more at www.HSAInside.com |
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Freddie
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It's a beautiful exercise in statistics. People pay regularly for insurance, (monthly, semi-annually, annually), and many of them never make a claim on their policy. The more people you can convince to have insurance, then the more money you make, because again, odds are you will never pay a claim. |
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hardtoy99
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They don't pay claims |
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Oh Boy!
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They invest the money they collect in premiums. If the premiums exactly equal the claims then the gain on invested premiums is the profit remembering that the time between collecting premiums and paying claims may be many months or years.
Read Warren Buffet's annual letter to Berkshire shareholders. He does a great job of explaining this. |
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Babyofmine
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Insurance companies actually take a loss on the premiums to claim payout ratio. They actually make there money by investing your payment in a high risk stock. This is called floating. They can only do this for 30 days and they have to apply your premium to their books, but in the mean time the get the profit from the stock they used. That is why some insurance companies try to get you to pay in full. It gives them a higher return and they can the float the money longer. This is were they really rake in the money. |
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Loollea
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they try to write good risks, meaning policies and people that are less likely to have a claim |
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mbrcatz
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Mostly by investing your premium dollars, and keeping the money it makes.
That's why, when the stock market went down, your insurance premiums generally went up. |
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