2. 2: only business, not people:
According to Sarah O’Leary, health insurance executives should not go around kissing toddlers, reassuring caregivers, and playing with puppies. When negotiating with your insurer, maintain objectivity and control your emotions. “The primary function of multibillion-dollar insurance firms is to increase their own and their customers’ wealth,” she explains.
Insurance providers would earn a higher premium income than they paid out in benefits. Profits are needed to grow the insurance company’s surplus and to compensate owners. Underwriters examine particular characteristics of each claimant in order to determine the appropriate price for the policy based on their level of financial risk. Additionally, the carrier must specify the number of customers who will have to pay their premiums for the duration of the contract or before death. Although state legislation varies somewhat, all life insurance plans contain a condition known as the incontestable clause.
The insured was fraudulently impersonated by another party (e.g., anyone who stole the insured’s medical exam). Suicide provisions are provided in life insurance plans, meaning the premiums would be received after the first two years of the contract. Insurance providers make an effort to perform proper due diligence, give a plan, and adhere to their contractual obligations.