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Our claims expertise: 17 real life Gallagher client case studies and outcomes

16 august 2021.

Making a claim is when the value of your insurance is put to the test ‒ and as an insurance broker Gallagher goes the extra distance to ensure that you get the cover you paid for. These examples in our Claims Advocacy in Action: 17 Real Life Case Studies illustrate why The Gallagher Difference really does make a difference to claims outcomes.

The 17 claims case studies include

• 12 different types of insurance cover
• why the claim in the case was challenging and/or initially denied
• how we applied claims and policy expertise to seek improved claims decisions for our clients The Gallagher Difference of claims service in each case.

"These real life claims case studies demonstrate the depth of our expertise as insurance policy experts, the strength of our relationships with our insurance partners, our ability to translate complex claims into something clients can readily understand and engage with, and our determination and commitment to do the right thing for the client." Adam Squire, Head of Claims, Gallagher Australia

Download the report Claims Advocacy in Action: 17 Real Life Case Studies now.

The scope of these insurance claim case studies

From legal costs involved in a professional indemnity construction case to a fire that destroyed the prestigious home on a wine producer's estate, to an employee being wrongfully detained in an African country, these case studies represent the numerous difficulties that can arise from conditions surrounding a claimable loss: issues with causes, circumstances, required documentation and how the insured party responded to the situation.

The examples help illustrate how insurance cover works, the obstacles that can occur in individual cases or how interpretations can differ and, most importantly, how Gallagher advocates claims for our clients.

Classes of insurance cover represented include

• Commercial property
• Domestic insurance
• Construction
• Marine hull
• Financial lines
• Film and entertainment
• Corporate travel
• Insolvency.

These make interesting reading in their own right but they also show how a deep understanding of insurance cover can be absolutely pivotal to how claims are viewed by the insurers. That value coupled with our dedication to the Gallagher service ethic of putting our clients first is the basis for The Gallagher Difference.

Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

Gallagher publications may contain links to non-Gallagher websites that are created and controlled by other organisations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by Gallagher, as we have no responsibility for information referenced in material owned and controlled by other parties. Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.

Insurance brokerage and related services to be provided by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920). Australian Financial Services License (AFSL) No. 238312

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Life Insurance Case Studies

Read real scenarios below on life insurance cases..

Single and working

Bob is a 25 year old qualified carpenter who is a subcontractor to various builders.

Married, no children and two incomes

Mary and John are aged 30 and are both working in professional occupations earning $80,000 each.

Married with children and one income

Jane and Terry are aged 40. Terry is a highly paid executive earning $170,000 per year. Jane hasn’t worked since having their two children

Older couple approaching retirement with adult children

Travis and Jean are aged 60 and are looking forward to retirement in a couple of years.

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The future of life insurance: Reimagining the industry for the decade ahead

The future of life insurance

The global life insurance industry has seen significant changes over the past decade. Developing economies—predominantly emerging markets in Asia that were formerly small contributors—have become global growth drivers and now account for more than half of global premium growth (Exhibit 1) and 84 percent of individual annuities growth (Exhibit 2). The availability of data has skyrocketed, and insurers have made progress in advanced analytics and artificial intelligence. Digital and mobile advances have raised the bar on transparency and service quality: customers can now file claims and access agents, insurance quotes, and policy information with a few taps on a screen.

The past decade has also introduced new challenges. Life insurers have not benefitted from the bull market (Exhibit 3). Global penetration fell to 3 percent, and premium growth within most developed markets, hovering just below 2 percent per year, struggled to match GDP. Globally depressed interest rates curtailed investment portfolio returns. More recently, the COVID-19 pandemic has depressed global interest rates even lower than those seen in the 2007–08 global financial crisis, leading to disproportional impact on life insurance stock relative to the rest of the market (Exhibit 4).

Meeting the moment across three key areas

Several trends show promise for the life insurance industry in the next decade. Customer demand is at an all-time high. Indeed, the COVID-19 pandemic has only reemphasized the need for mortality protection. Public pension replacement rates are declining and healthcare expenditures are rising—trends also accelerated by the COVID-19 crisis. Economic and demographic trends will also offer tailwinds. The global middle class is rapidly expanding, bringing higher incomes, growing financial wealth, and heightened risks to manage. By 2030, all baby boomers will be age 65 or older, 1 “Older People Projected to Outnumber Children for First Time in U.S. History,” US Census Bureau, March 13, 2018, census.gov. and many are expected to outlive their retirement savings. 2 Johnny Wood, “Retirees will outlive their savings by a decade,” World Economic Forum, June 13, 2019, weforum.org.

We believe the life insurance industry faces a pivotal, dual opportunity: the chance to fulfill growing customer needs while returning to profitability and growth. To achieve these goals, we expect winning life insurance companies to outperform in three areas in the decade ahead:

• personalize every aspect of the customer experience
• develop flexible product solutions suitable for a challenging regulatory and interest-rate environment
• reinvent skills and capabilities

Personalize every aspect of the customer experience

The influence of digital leaders in other industries has raised the bar in insurance as well. Several areas offer opportunities for personalization that can strengthen customer relationships.

A shift to targeted health management. Life insurers have long maintained a focus on mortality protection, but concern over mortality risk has diminished in many markets, which has reduced demand for core products. Despite recent increases in online research for life insurance, spurred by COVID-19, the long-term decline of mortality risk is likely to continue. In the coming decade, insurers will play an increasingly prominent role in the health of their customers as life expectancy increases and health trends change.

By 2030, the number of people aged 60 and older will grow by more than 50 percent, from 900 million in 2015 to 1.4 billion. 3 World Population Ageing 2015: Highlights, United Nations, Department of Economic and Social Affairs, Population Division, 2015, un.org. Further, noncommunicable diseases—those more closely linked to lifestyle and behavior, such as diabetes, heart disease, and lung cancer—will account for 71 percent of all annual deaths globally and represent an increasing proportion of mortality risk. 4 “Noncommunicable diseases,” World Health Organization, June 1, 2018, who.int. We believe these factors will motivate life and annuities manufacturers to engage customers in the shared-value economics of healthy living to increase policyholder longevity.

Technology will play an important part in this transition. The proliferation of data and connected devices, particularly wearables, will continue to make it easier for life insurance companies to play an active role in shaping customer health—to everyone’s benefit. Armed with this information, life insurance companies can provide well-timed, personalized reminders or notifications around diet, disease management, doctor appointments, local health resources, and physical activity. Customers are increasingly willing to share their data in exchange for personalization; today, six in ten consumers globally are comfortable sharing personal details with their insurer in exchange for lower premiums . 5 2020 DXC insurance survey report: The voice of the US customer, dxc.technology.

This trend has accelerated during the pandemic. Evidence shows that a higher proportion of consumers are willing to share data collected on their watches related to heart rate. In recent months, life insurance companies have relied on more detailed questions and medical records instead of in-person physical exams, which have not been possible with physical distancing.

Shared-value life insurance products, such as Vitality, are in the vanguard. Developed by Discovery Group in South Africa, Vitality pioneered the model of shared-value economics in its product design and pricing, leading to the creation of an engaged wellness ecosystem. Now in 22 markets, the program has seen a 35 percent reduction in mortality among highly engaged members and a 15 percent lower policy-lapse rate. 6 Integrated Annual Report 2019, Discovery, 2019, discovery.co.za. In addition, some Japanese life insurance companies are migrating to a “pay as you live” premium schedule with dynamic pricing. For example, customers who exhibit regular healthy behaviors, such as exercising and attending doctor checkups, are rewarded with lower premiums. In the future, we expect to see life insurance transition from the traditional “assess and service” model and shift toward “prescribe and prevent” (Exhibit 5).

Continuous underwriting. The evolution toward continuous underwriting, made possible by increased data and device connectivity, will present further opportunity for personalization. Currently, mortality underwriting suffers from two primary data gaps. First, it is constrained to a single moment in time—the initial sale. The only data available at that point are past morbidity and behavioral data on the customer. Second, it fails to account for a customer’s lifestyle changes, which are significantly more controllable.

We envision underwriting evolving in four phases that will increase personalization and customer engagement (Exhibit 6). Currently, insurers focus on automating the underwriting process to improve efficiency gains and reduce inconsistencies (phase 1). Some insurers have advanced to accelerated underwriting, for which applications are submitted digitally (phase 2). Doing so dramatically reduces the need for invasive fluid and paramedical exams and results in near auto-issuance for the majority of policies. Insurers will then graduate to microsegmentation and personalization, for which individualized offers are generated using comprehensive internal and external data sets with enhanced accuracy (phase 3). Finally, winning companies will provide continuous “one-touch” underwriting, with dynamic adjustment based on customer behavior and suggested personalized actions to significantly drive healthier behavior (phase 4). Together, this four-phase evolution flips the underwriting approach on its head, with environment, health, and lifestyle becoming primary inputs and medical data providing only one part of the picture (Exhibit 7).

Personalized, omnichannel customer journeys. COVID-19 has accelerated many of the digital and omnichannel elements that were in their early stages. According to our research, more than 90 percent of new business in China historically has been generated through face-to-face interactions. Since the onset of the pandemic, insurance companies have been forced to adopt digital-hybrid solutions by incorporating robo-advisors, video conferencing, and web chats. Moreover, a recent McKinsey survey of European consumers found that 54 percent of customers now prefer direct or digital channels, up from 38 percent before the crisis.

Frontline professionals will continue to play a critical role in reaching customers, so insurers must embrace the integration of physical and digital channels once the crisis subsides. Life insurance companies can direct leads to the channel or agent that best serves each customer’s needs. Further, agents will be armed with advanced analytics on their customer base as well as centrally provided digital leads. Throughout the customer life cycle, life insurance companies will engage in multichannel, personalized customer interactions to promote cross-selling (by identifying the most likely “next product to buy”) and proactively reach out to customers who are likely to lapse. Such interactions have the ability to reduce customer acquisition costs by up to 50 percent, generate 5 to 10 percent of new premiums, and reduce customer churn by up to 30 percent.

Upgrading agent capabilities to more effectively use digital tools will be critical to the pending distribution shift. Indeed, a recent McKinsey survey found that “generating leads” and “building initial client relationships remotely” were the two biggest challenges faced by agents. At the same time, these agents were spending disproportionately more time on customer service and administration than before. Life insurance companies will have to significantly invest in digital infrastructure and place analytics at the core of distribution.

Develop flexible product solutions suitable for a challenging regulatory and interest-rate environment

Interest rates have been globally depressed for a decade—and even longer for some economies, such as Germany and Japan. Interest-rate pressure has increased further due to COVID-19, with few signs of abating. At the same time, changing regulations have limited traditional methods of doing business. The most successful life insurers will redouble their focus on innovation and flexibility.

A paradigm shift of the guaranteed product. Over the past five to seven years, some countries (such as France, Germany, the Netherlands, and Switzerland) saw new government bonds issued at negative yields. Meanwhile, others (such as the United States and Japan) continue to combat near zero interest rates. Indeed, according to the European Insurance and Occupational Pensions Authority, more than half of European life policies guarantee an investment return to policyholders that exceeds the yield on the local ten-year government bond. 7 IMF Blog, “European Life Insurers: Unsustainable Business Model,” blog entry by Reinout De Bock, Andrea Maechler, and Nobuyasu Sugimoto, May 5, 2015, blogs.imf.org.

New capital regulations accompanied the globally depressed rates. For example, the introduction of Solvency II in 2016 in the European Union increased capital requirements for traditional life and annuity products, putting further pressure on profitability. Consumers will continue to seek out guaranteed returns, which means many insurers will face challenges in offering guarantees in a capital-efficient, profitable manner. Collectively, traditional long-term, fixed-rate guaranteed products will undergo a paradigm shift in structure, from being rooted in guaranteed returns to offering upside potential with guaranteed downside protection.

Several life insurance companies have already begun moving their portfolios toward a wide variety of capital-markets products, specifically hybrids and unit-linked products, that are more capital efficient and perform well in a low-rate environment. From 2015 to 2019, unit-linked premiums rose $76 billion globally, with European life insurance companies accounting for two-thirds of global growth (Exhibit 8). Such products may offer customers upside potential coupled with downside protection (as high as 100 percent). That said, capital preservation is not free; whether in commissions, expense ratios, or yield, customers pay for it.

Regardless of interest-rate movement, previous fixed-rate guarantees, coupled with new regulations and customer education around alternatives, will likely keep life insurance companies focused on capital-light products in the decade ahead.

Tailor new solutions for different life stages. In the coming decade, the industry will see the emergence of new types of coverage, as well as increasing flexibility in product coverage and payment. Household debt is still more than 100 percent of net disposable income in most OECD countries, 8 “Household debt,” Organisation for Economic Co-operation and Development, 2020, data.oecd.org. divorce rates continue to rise, and job insecurity, spurred by technological advancements, can create uncertainty for consumers. Indeed, despite a decade of global economic growth, nearly 50 percent of consumers are somewhat or very concerned about job loss for themselves or a member of their household . New products that help allay those concerns, as well as increase coverage and premium flexibility, will likely prove increasingly popular with consumers.

Flexible offerings, which allow the consumer to adjust coverage throughout the life of the policy, have been met with favor in Japan. For example, a leading Japanese insurer offers medical, asset accumulation, and protection against dread disease and mortality wrapped into a single product, enabling the customer to add or reduce coverage as their circumstances change.

Value-added services and nonmonetary benefits. Over the next decade, product innovation will likely expand to adjacent services. Life insurance companies, which are competing with not only their peers but also industry alternatives such as pure wealth and asset managers, will increasingly seek to differentiate themselves through value-added services and nonmonetary benefits, particularly as life and health coverage continue to converge.

In Asia and Europe, life insurance companies are already offering administrative support for medical visits, health management, and telemedicine. Going forward, these companies could also partner with ridesharing companies and hotels to provide transportation to doctor visits or accommodations for loved ones in times of need.

Nonmonetary benefits can also address the risk needs of policyholders. For customers concerned with the cost of living in retirement, life insurance companies in Asia and the United Kingdom are replacing financial payouts with guaranteed placement in senior living communities.

Such services give insurers access to fee-based earnings, an alternative revenue stream that could be rewarded by investors. At the same time, fee-based earnings introduce more complexity vis- à -vis sales and after-sales support. Ultimately, earnings potential will be shaped by not only customer demand but also companies’ abilities to upskill distribution talent and develop unique economic solutions for distributors.

Reinvent skills and capabilities

The path to growth in the next decade will require new talent and bolder strategies. Life insurers must respond by capturing more value from existing assets and pursuing targeted M&A.

A radically different workforce, underpinned by skills of the future. By 2030, 44 percent of insurance work activities have the potential to be automated (Exhibit 9). Roles that focus on repetitive work and manual processes will cease to exist in their present form, while technology and digitally savvy workers will increase in value. Emotional, interpersonal, and social skills will also become more critical, especially for customer-facing agents who can help consumers address their changing financial and coverage needs. However, these workforce shifts will not eliminate jobs—our research indicates net new jobs will be created due to advances in automation—but instead change the nature of the work. The COVID-19 pandemic has only accelerated such trends.

In the war for digital talent, life insurance companies are at a disadvantage. The financial-services industry trails other sectors in volume of digital and tech talent. In fact, 80 percent of millennials say they have limited knowledge of the insurance industry, 9 Millennial generation attitudes about work and the insurance industry, a joint paper from The Institutes and Griffith Insurance Education Foundation, 2012, theinstitutes.org. a troubling sign for an industry in which 25 percent of employees believe themselves to be within five to ten years of retirement . However, COVID-19 and recent social unrest present an opportunity for life insurers to reframe their societal purpose, which may help recruit and retain exceptional talent.

Seventy-five percent of global executives agree that upskilling and reskilling employees  must account for at least half of their skills gap solution. Life insurance companies that prioritize those efforts and develop operating models capable of responding to changing demands will distinguish themselves from peers and position themselves at the forefront of “future-proofing” their workforces.

Substantial value from in-force and closed blocks. Given global profitability challenges, insurers can increasingly optimize in-force and closed blocks as a source of value creation. Today, the attention given to in-force management is often not commensurate with its potential. Life insurance companies can enhance in-force value creation by executing across four pillars:

• commercial effectiveness, including lapse management and cross-selling to policyholders
• financial efficiencies, such as actuarial optimization and reinsurance
• operational efficiencies, such as reduced administrative costs
• transactions, such as partial or full sales of blocks of business

Companies can also extract value from closed blocks, which sometimes have unattractive product economics and operational difficulties or are misaligned with a company’s strategy. Yet given their cash flow potential, earnings, and embedded value, closed blocks deserve time, attention, and resources. Some insurers have helped fund investment in a digital transformation or an analytics road map by rationalizing their closed blocks of business.

By collaborating with actuaries and understanding the implications on the cost model, life insurance companies can often lock in savings and have a onetime release of reserves that is typically in the ten-to-one range (this ratio differs by company). In other words, for every $1 million saved in long-term in-force servicing costs on the closed block, there could be a $10 million onetime reserve release. Life insurance companies often use these funds to finance the transition of the closed blocks to a target platform, invest in digital and analytics, and wide-scale productivity transformations. The reserve can also be used in other ways to reduce the ongoing unit costs.

The prevalence of closed-block specialists will also spark increased sales by insurance companies beyond US and UK markets, where activity has been high. Specialists, whose scale facilitates lower costs per policy, have proven themselves to be effective operators. Moreover, closed-block sales can provide life insurance companies with immediate access to capital, derisked balance sheets, and a reduction in operational costs, such as legacy IT systems. But life insurance companies must remain open to exploring sales, and they can limit the risk of undervaluing their blocks by keeping an eye on the cost base, considering improvements, and structuring partnerships with potential buyers.

Precision M&A for expansion and capability building. Global M&A remained steady in the 2010s. The Americas accounted for 49 percent of deal volume by the end of the decade, followed by Europe at 32 percent. 10 Navigating a course between uncertainty and opportunity: Insurance growth report 2019, Clyde & Co, 2019, clydeco.com. Effective M&A—specifically as a vehicle for market expansion, capability building, and divesting noncore businesses—can continue to be a core strategy for successful life insurance companies.

Growth within existing markets will be challenging; life insurance companies can use acquisitions to enter new geographies, adjacencies, and products. Cross-border transactions can provide access to faster-growing developing markets, such as those in Latin America, and emerging markets in Asia. Moreover, the global middle class, projected to include six billion people by 2030, 11 Annual disposable income of $3,600 and over; World Population Prospects, United Nations, Department of Economic and Social Affairs, un.org; Cityscope by McKinsey Global Institute. will increasingly depend on robust wealth- and asset-management solutions, particularly in markets such as China, where the industry is evolving rapidly. Several life insurance companies have already expanded into such asset-management adjacencies, which have natural synergies with the industry’s core competencies. Others may find capital-light, fee-based businesses in areas related to other competencies to be more practical. Regardless, given the historically strong correlation between return on equity and price-to-book ratio, such investors reward higher return-on-equity businesses.

Life insurance companies can also rely on acquisitions for tech enablement and capability building. The past decade has witnessed the rise of insurtech, which attracted nearly $4 billion of global venture funding in 2018 alone. 12 Joanna Glasner, “A record $2.5B went to U.S. insurance startup deals last year, and big insurers are in all the way,” Crunchbase, April 4, 2019, crunchbase.com. Partially fueling the segment’s rise are the increasingly popular internal venture-capital funds launched by life insurance companies themselves. Such funds provide access to leading start-ups and serve as a natural “buy” versus “build” entry point for leading technologies. Insurtechs can also help companies increase their pace of innovation. The recent crisis has depressed valuations for start-ups, providing insurers an opportunity to acquire capabilities more cost effectively. As a result, life insurance companies can acquire their way to the forefront of disruptive innovation. If a full acquisition is not an option, hiring talent from insurtechs and other start-ups with greater digital and analytics capabilities is another possibility.

Finally, “shrink to grow” will likely prove a popular way for life insurance companies to launch their next growth S-curves. Divestitures of business lines or books of business, an increasingly popular trend at the end of the 2010s, can unlock capital to focus on new opportunities.

Download The future of life insurance: Reimagining the industry for the decade ahead , the full report on which this article is based (PDF–896KB).

Pierre-Ignace Bernard is a senior partner in McKinsey’s Paris office; Kweilin Ellingrud is a senior partner in the Minneapolis office; Jonathan Godsall is a partner in the New York office, where Andrew Reich is a consultant; and Bernhard Kotanko is a senior partner in the Hong Kong office.

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Life insurance is a contract between an insurance company and a policy owner in which the insurer guarantees to pay a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums the policyholder pays during their lifetime. The best life insurance companies have good financial strength, a low number of customer complaints, high customer satisfaction, several policy types, available and included riders, and easy applications.

Key Takeaways

• Life insurance is a legally binding contract that promises a death benefit to the policy owner when the insured person dies.
• For a life insurance policy to remain in force, the policyholder must pay a single premium upfront or pay regular premiums over time.
• When the insured person dies, the policy’s named beneficiaries will receive the policy’s face value, or death benefit.
• Term life insurance policies expire after a certain number of years. Permanent life insurance policies remain active until the insured person dies, stops paying premiums, or surrenders the policy.
• A life insurance policy is only as good as the financial strength of the life insurance company that issues it. State guaranty funds may pay claims if the issuer can’t.

Investopedia / Theresa Chiechi

Types of Life Insurance

Many different types of life insurance are available to meet all sorts of needs and preferences. Depending on the short- or long-term needs of the person to be insured, the major choice of whether to select temporary or permanent life insurance is important to consider.

Term life insurance

Term life insurance is designed to last a certain number of years, then end. You choose the term when you take out the policy. Common terms are 10, 20, or 30 years. The best term life insurance policies balance affordability with long-term financial strength.

• Decreasing term life insurance is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.
• Convertible term life insurance allows policyholders to convert a term policy to permanent insurance.
• Renewable term life insurance provides a quote for the year the policy is purchased. Premiums increase annually and are usually the least expensive term insurance in the beginning.

Many term life insurance policies allow you to renew the contract on an annual basis once the term is up. This is one way to extend your life insurance coverage, but since the renewal premiums are based on your current age, they can rise steeply each year. A better solution for permanent coverage is to convert your term life insurance policy into a permanent policy. This is not an option on all term life policies; look for a convertible term policy if this is important to you.

Permanent life insurance is more expensive than term, but it stays in force for the insured’s entire life unless the policyholder stops paying the premiums or surrenders the policy. Some policies allow for automatic premium loans when a premium payment is overdue.

• Whole life insurance is a type of permanent life insurance, which means it lasts your whole lifespan. It includes a cash value component, which is similar to a savings account. Cash-value life insurance allows the policyholder to use the cash value for many purposes, such as for loans or to pay policy premiums.
• Universal life (UL) insurance is another type of permanent life insurance with a cash value component that earns interest. Universal life features flexible premiums. Unlike term and whole life, the premiums can be adjusted over time and designed with a level death benefit or an increasing death benefit.
• Indexed universal life (IUL) is a type of universal life insurance that lets the policyholder earn a fixed or equity-indexed rate of return on the cash value component.
• Variable universal life (VUL) insurance allows the policyholder to invest the policy’s cash value in an available separate account. It also has flexible premiums and can be designed with a level death benefit or an increasing death benefit.

Top-Rated Companies to Compare

When shopping for insurance, you might want to start with our list of the best life insurance companies , some of which are listed below.

Term life insurance differs from permanent life insurance in several ways but tends to best meet the needs of most people looking for affordable life insurance coverage. Term life insurance only lasts for a set period of time and pays a death benefit should the policyholder die before the term has expired. That's in contrast to permanent life insurance, which stays in effect as long as the policyholder pays the premium. Another critical difference involves premiums—term life is generally much less expensive than permanent life because it does not involve building a cash value.

Before you apply for life insurance, you should analyze your financial situation and determine how much money would be required to maintain your beneficiaries’ standard of living or meet the need for which you’re purchasing a policy. Also, consider how long you'll need coverage for.

For example, if you are the primary caretaker and have children 2 and 4 years old, you would want enough insurance to cover your custodial responsibilities until your children are grown up and able to support themselves.

You might research the cost of hiring a nanny and a housekeeper or using commercial child care and cleaning services, then perhaps add money for education. Include any outstanding mortgage and retirement needs for your spouse in your life insurance calculation—especially if the spouse earns significantly less or is a stay-at-home parent. Add up what these costs would be over the next 16 or so years, add more for inflation, and that’s the death benefit you might want to buy—if you can afford it.

Burial or final expense insurance is a type of permanent life insurance that has a small death benefit. Despite the names, beneficiaries can use the death benefit as they wish.

What Affects Your Life Insurance Premiums and Costs?

Many factors can affect the cost of life insurance premiums . Certain things may be beyond your control, but other criteria can be managed to potentially bring down the cost before (and even after) applying. Your health and age are the most important factors that determine cost, so buying life insurance as soon as you need it is often the best course of action.

After being approved for an insurance policy, if your health has improved and you’ve made positive lifestyle changes, you can request to be considered for a change in risk class. Even if it is found that you’re in poorer health than at the initial underwriting , your premiums will not go up. If you’re found to be in better health, then you your premiums may decrease. You may also be able to buy additional coverage at a lower rate than you initially did.

Investopedia / Lara Antal

Step 1: Determine How Much You Need

Think about what expenses would need to be covered in the event of your death. Consider things like mortgage, college tuition, and other debts, not to mention funeral expenses. Plus, income replacement is a major factor if your spouse or loved ones need cash flow and are not able to provide it on their own.

There are helpful tools online to calculate the lump sum that can satisfy any potential expenses that would need to be covered.

Step 2: Prepare Your Application

Life insurance applications generally require personal and family medical history and beneficiary information. You may need to take a medical exam and will need to disclose any preexisting medical conditions, history of moving violations, DUIs, and any dangerous hobbies, such as auto racing or skydiving. The following are crucial elements of most life insurance applications:

• Age: This is the most important factor because life expectancy is the biggest determinant of risk for the insurance company.
• Gender: Because women statistically live longer, they generally pay lower rates than males of the same age.
• Smoking: A person who smokes is at risk for many health issues that could shorten life and increase risk-based premiums.
• Health: Medical exams for most policies include screening for health conditions like heart disease, diabetes, and cancer and related medical metrics that can indicate risk.
• Lifestyle : Dangerous lifestyles can make premiums much more expensive.
• Family medical history: If you have evidence of major disease in your immediate family, your risk of developing certain conditions is much higher.
• Driving record: A history of moving violations or drunk driving can dramatically increase the cost of insurance premiums.

Standard forms of identification will also be needed before a policy can be written, such as your Social Security card, driver's license, or U.S. passport.

Step 3: Compare Policy Quotes

When you've assembled all of your necessary information, you can gather multiple life insurance quotes from different providers based on your research. Prices can differ markedly from company to company, so it's important to make the effort to find the best combination of policy, company rating, and premium cost. Because life insurance premiums are something you will likely pay monthly for decades, finding the best policy to fit your needs can save an enormous amount of money.

Our lineup of the best life insurance companies can give you a jump start on your research. It lists the companies we've found to be the best for different types of needs, based on our research of nearly 100 carriers.

There are many benefits to having life insurance . Below are some of the most important features and protections offered by life insurance policies.

Most people use life insurance to provide money to beneficiaries who would suffer a financial hardship upon the insured’s death. However, for wealthy individuals, the tax advantages of life insurance, including the tax-deferred growth of cash value, tax-free dividends, and tax-free death benefits, can provide additional strategic opportunities.

Avoiding Taxes

The death benefit of a life insurance policy is usually tax-free. It may be subject to estate taxes , but that's why wealthy individuals sometimes buy permanent life insurance within a trust. The trust helps them avoid estate taxes and preserve the value of the estate for their heirs.

Tax avoidance is a law-abiding strategy for minimizing one’s tax liability and should not be confused with tax evasion , which is illegal.

Life insurance provides financial support to surviving dependents or other beneficiaries after the death of an insured policyholder. Here are some examples of people who may need life insurance:

• Parents with minor children. If a parent dies, the loss of their income or caregiving skills could create a financial hardship. Life insurance can make sure the kids will have the financial resources they need until they can support themselves.
• Parents with special-needs adult children. For children who require lifelong care and who will never be self-sufficient, life insurance can make sure their needs will be met after their parents pass away. The death benefit can be used to fund a special needs trust that a fiduciary will manage for the adult child’s benefit.
• Adults who own property together. Married or not, if the death of one adult would mean that the other could no longer afford loan payments, upkeep, and taxes on the property, life insurance may be a good idea. One example would be an engaged couple who take out a joint mortgage to buy their first house.
• Seniors who want to leave money to adult children who provide their care. Many adult children sacrifice time at work to care for an elderly parent who needs help. This help may also include direct financial support. Life insurance can help reimburse the adult child’s costs when the parent passes away.
• Young adults whose parents incurred private student loan debt or cosigned a loan for them. Young adults without dependents rarely need life insurance, but if a parent will be on the hook for a child’s debt after their death, the child may want to carry enough life insurance to pay off that debt.
• Children or young adults who want to lock in low rates. The younger and healthier you are , the lower your insurance premiums. A 20-something adult might buy a policy even without having dependents if there is an expectation to have them in the future.
• Stay-at-home spouses. Stay-at-home spouses should have life insurance as they have significant economic value based on the work they do in the home. According to Salary.com, the economic value of a stay-at-home parent would have been equivalent to an annual salary of $162,581 in 2018.
• Wealthy families who expect to owe estate taxes. Life insurance can provide funds to cover the taxes and keep the full value of the estate intact.
• Families who can ’ t afford burial and funeral expenses. A small life insurance policy can provide funds to honor a loved one’s passing.
• Businesses with key employees. If the death of a key employee, such as a CEO, would create a severe financial hardship for a firm, that firm may have an insurable interest that will allow it to purchase a life insurance policy on that employee .
• Married pensioners. Instead of choosing between a pension payout that offers a spousal benefit and one that doesn’t, pensioners can choose to accept their full pension and use some of the money to buy life insurance to benefit their spouse. This strategy is called pension maximization .
• Those with preexisting conditions. Such as cancer, diabetes, or smoking. Note, however, that some insurers may deny coverage for such individuals, or else charge very high rates.

Each policy is unique to the insured and insurer. It’s important to review your policy document to understand what risks your policy covers, how much it will pay your beneficiaries, and under what circumstances.

What to Do Before Buying Life Insurance

Research policy options and company reviews.

Because life insurance policies are a major expense and commitment, it's critical to do proper due diligence to make sure the company you choose has a solid track record and financial strength, given that your heirs may not receive any death benefit for many decades into the future. Investopedia has evaluated scores of companies that offer all different types of insurance and rated the best in numerous categories.

Consider How Much Death Benefit You Need

Life insurance can be a prudent financial tool to hedge your bets and provide protection for your loved ones in case of death should you die while the policy is in force. However, there are situations in which it makes less sense —such if you buy too much or insure people whose income doesn't need to be replaced. So it's important to consider the following.

What expenses couldn't be met if you died? If your spouse has a high income and you don't have any children, maybe it's not warranted. It is still essential to consider the impact of your potential death on a spouse and consider how much financial support they would need to grieve without worrying about returning to work before they’re ready. However, if both spouses' income is necessary to maintain a desired lifestyle or meet financial commitments, then both spouses may need separate life insurance coverage.

Know Why You're Buying Life Insurance

If you're buying a policy on another family member's life, it's important to ask—what are you trying to insure? Children and seniors really don't have any meaningful income to replace, but burial expenses may need to be covered in the event of their death. Beyond burial expenses, a parent may also want to protect their child’s future insurability by purchasing a moderate-sized policy when they are young. Doing so allows that parent to ensure that their child can financially protect their future family. Parents are only allowed to purchase life insurance for their children up to 25% of the in-force policy on their own lives.

Could investing the money that would be paid in premiums for permanent insurance throughout a policy earn a better return over time? As a hedge against uncertainty, consistent saving and investing—for example, self-insuring—might make more sense in some cases if a significant income doesn't need to be replaced or if policy investment returns on cash value are overly conservative.

A life insurance policy has two main components—a death benefit and a premium. Term life insurance has these two components, but permanent or whole life insurance policies also have a cash value component.

Death Benefit

The death benefit  or face value is the amount of money the insurance company guarantees to the beneficiaries identified in the policy when the insured dies. The insured might be a parent, and the beneficiaries might be their children, for example. The insured will choose the desired death benefit amount based on the beneficiaries’ estimated future needs. The insurance company will determine whether there is an insurable interest and if the proposed insured qualifies for the coverage based on the company’s underwriting requirements related to age, health, and any hazardous activities in which the proposed insured participates.

Premiums are the money the policyholder pays for insurance. The insurer must pay the death benefit when the insured dies if the policyholder pays the premiums as required, and premiums are determined in part by how likely it is that the insurer will have to pay the policy’s death benefit based on the insured’s life expectancy. Factors that influence life expectancy include the insured’s age, gender, medical history, occupational hazards, and high-risk hobbies. Part of the premium also goes toward the insurance company’s operating expenses. Premiums are higher on policies with larger death benefits, individuals who are at higher risk, and permanent policies that accumulate cash value.

The cash value of permanent life insurance serves two purposes. It is a savings account that the policyholder can use during the life of the insured; the cash accumulates on a tax-deferred basis. Some policies have restrictions on withdrawals depending on how the money is to be used. For example, the policyholder might take out a loan against the policy’s cash value and have to pay interest on the loan principal. The policyholder can also use the cash value to pay premiums or purchase additional insurance. The cash value is a living benefit that remains with the insurance company when the insured dies. Any outstanding loans against the cash value will reduce the policy’s death benefit.

Good to Know

The policy owner and the insured are usually the same person, but sometimes they may be different. For example, a business might buy key person insurance on a crucial employee such as a CEO, or an insured might sell their own policy to a third party for cash in a life settlement .

Life Insurance Riders and Policy Changes

Many insurance companies offer policyholders the option to customize their policies to accommodate their needs.  Riders are the most common way policyholders may modify or change their plans. There are many riders, but availability depends on the provider. The policyholder will typically pay an additional premium for each rider or a fee to exercise the rider, though some policies include certain riders in their base premium.

• The accidental death benefit rider provides additional life insurance coverage in the event the insured’s death is accidental.
• The waiver of premium rider relieves the policyholder of making premium payments if the insured becomes disabled and unable to work.
• The disability income rider pays a monthly income in the event the policyholder becomes unable to work for several months or longer due to a serious illness or injury.
• Upon diagnosis of terminal illness, the  accelerated death benefit rider allows the insured to collect a portion or all of the death benefit.
• The long-term care rider is a type of accelerated death benefit that can be used to pay for nursing-home, assisted-living, or in-home care when the insured requires help with activities of daily living, such as bathing, eating, and using the toilet.
• A guaranteed insurability rider lets the policyholder buy additional insurance at a later date without a medical review.

Borrowing Money

Most permanent life insurance accumulates cash value that the policyholder can borrow against. Technically, you are borrowing money from the insurance company and using your cash value as collateral. Unlike with other types of loans, the policyholder’s credit score is not a factor. Repayment terms can be flexible, and the loan interest goes back into the policyholder’s cash value account. Policy loans can reduce the policy’s death benefit, however, if you don't pay them back.

Funding Retirement

Policies with a cash value or investment component can provide a source of retirement income. This opportunity can come with high fees and a lower death benefit, so it may only be a good option for individuals who have maxed out other tax-advantaged savings and investment accounts. The pension maximization strategy described earlier is another way life insurance can fund retirement.

It’s prudent to reevaluate your life insurance needs annually or after significant life events, such as divorce , marriage, the birth or adoption of a child, or major purchases, such as a house. You may need to update the policy’s beneficiaries, increase your coverage, or even reduce your coverage.

Insurers evaluate each life insurance applicant on a case-by-case basis, and with hundreds of insurers to choose from, almost anyone can find an affordable policy that at least partially meets their needs. In 2018 there were 841 life insurance and annuity companies in the United States, according to the Insurance Information Institute.

On top of that, many life insurance companies sell multiple types and sizes of policies, and some specialize in meeting specific needs, such as policies for people with chronic health conditions. There are also brokers who specialize in life insurance and know what different companies offer. Applicants can work with a broker free of charge to find the insurance they need. This means that almost anyone can get some type of life insurance policy if they look hard enough and are willing to pay a high enough price or accept a perhaps less-than-ideal death benefit.

Insurance is not just for the healthy and wealthy, and because the insurance industry is much broader than many consumers realize, getting life insurance may be possible and affordable even if previous applications have been denied or quotes have been unaffordable.

In general, the younger and healthier you are, the easier it will be to qualify for life insurance, and the older and less healthy you are, the harder it will be. Certain lifestyle choices, such as using tobacco or engaging in risky hobbies such as skydiving, also make it harder to qualify or lead to higher rates.

You need life insurance if you need to provide security for a spouse, children, or other family members in the event of your death. Life insurance death benefits, depending on the policy amount, can help beneficiaries pay off a mortgage, cover college tuition, or help fund retirement. Permanent life insurance also features a cash value component that builds over time.

What Affects Your Life Insurance Premiums?

• Age (life insurance is less expensive)
• Gender (female tends to be less expensive)
• Smoking (smoking increases premiums)
• Health (poor health can raise premiums)
• Lifestyle (risky activities can increase premiums)
• Family medical history (chronic illness in relatives can raise premiums)
• Driving record (good drivers save on premiums)

What Are the Benefits of Life Insurance?

• Payouts are tax-free. Life insurance death benefits are paid as a lump sum and are not subject to federal income tax because they are not considered income for beneficiaries.
• Dependents don't have to worry about living expenses. Most policy calculators recommend a multiple of your gross income equal to seven to 10 years that can cover major expenses like mortgages and college tuition without the surviving spouse or children having to take out loans.
• Final expenses can be covered. Funeral expenses can be significant and can be avoided with a burial policy or with standard term or permanent life policies.
• Policies can supplement retirement savings. Permanent life policies such as whole, universal, and variable life insurance can offer cash value in addition to death benefits, which can augment other savings in retirement.

How Do You Qualify for Life Insurance?

To qualify for life insurance, you need to submit an application. But life insurance is available to almost anyone. However, the cost or premium level can vary greatly based on your age, health, and lifestyle. Some types of life insurance don't require medical information but generally have much higher premiums and involve an initial waiting period before the death benefit is available.

How Does Life Insurance Work?

Life insurance works by providing a death benefit in exchange for paying premiums. One popular type of life insurance—term life insurance—only lasts for a set amount of time, such as 10 or 20 years. Permanent life insurance also features a death benefit but lasts for the life of the policyholder as long as premiums are paid.

Insurance Information Institute. " What are the Different Types of Term Life Insurance Policies? "

Allstate. " What Is Variable Universal Life Insurance? "

Insurance Information Institute. " What are the Different Types of Permanent Life Insurance Policies? "

Internal Revenue Service. " Life Insurance & Disability Insurance Proceeds ."

Social Security Administration. " Liens, Adjustments and Recoveries, and Transfers of Assets ."

NAIC. " Life Insurance ."

Insurance Information Institute. " Facts + Statistics: Industry Overview ."

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Insurance Case Studies: The Ultimate Guide

How do you show your prospects exactly what your company can do for them? With a case study. Insurance case studies provide buyers with the solid facts, figures and performance examples they need to make a purchasing decision.

What Is a Case Study?

A case study is a powerful marketing tool that is often used in the middle or bottom of the sales funnel, to help buyers develop a preference for your offering. Case studies increase buying confidence and validate the buying decision. They prove that your product or service performs as promised.

Case studies change the conversation from telling to showing. Instead of just telling prospects how great your brand is, you can show prospects exactly what your brand is capable of achieving. This gives prospects a more concrete understanding of what to expect and enables them to step into the shoes of a satisfied customer.

The Elements of a Case Study

An effective case study contains key elements that align with the buyer’s journey:

• Who is the customer? If you don’t have permission to name the customer, describe the customer by industry, size and other relevant details.
• What problem were they trying to solve? When B2B buyers are shopping for a product, they’re trying to solve a specific problem. Identify this problem so other prospects with similar problems can relate. Sometimes, there’s more than one problem.
• What other solutions did they consider? B2B buyers usually consider multiple options before deciding. This is a key part of the process, and including the details can help emphasize why your company stood out.
• Why did they choose your solution? State exactly what your company offered that other competitors couldn’t.
• What was the implementation process like? Switching B2B vendors can be a major undertaking. Describe the process so your prospects will know what to expect. Of course, you want to put your company in a positive light and focus on the positives, but you can include hiccups that occurred in the process and how you handled them. Prospects know that things don’t always go perfectly according to plan, and this shows that you’re competent and able to overcome any barriers that arise.
• How has the company benefited? In the beginning of the case study, you described the client’s problem. Now touch back on this and show how the problem has been solved. Include specific information about how the company has benefited from your product or service. For example, how much time or money has the client saved? How are they better prepared? How have you helped increase their revenues?
• What are the key takeaways for others in a similar situation? Convince prospects that they should follow the client’s example and partner with your company. Summarize your argument with key takeaways from the case study.

Case Study Dos and Don’ts

To squeeze the most value from your case study, you need to follow some best practices.

• Don’t just list bulleted facts. You might be able to pull a list of bulleted facts from your case study to use in other types of content, such as social media posts, but your actual case study should be at least two pages long to tell the story in a meaningful way.
• Do use names. Your case study will carry a lot more weight if the featured customer is named. You can also use anonymous case studies, but they are not quite as credible.
• Do appeal to emotions. Think of your case study as a story. You’re showing your prospects what it’s like to work with your company, so you need to build a narrative. This is also a good place to build an emotional argument by showing how your company can help clients deal with pain points and reduce problems.
• Don’t make your case study longer than it needs to be. Your prospects are busy, and they probably won’t have time to read an overly verbose document. Provide enough information to create a compelling story, but don’t get bogged down with unnecessary details. An effective case study will often be around two pages.
• Do include quotes. You can say that your company is great, but it sounds more convincing if one of your customers says it. The featured customer may be willing to provide you with quotes and their logo to include in your case study. As a bonus, this is also free publicity for them.
• Do get permission. If you’re naming a customer, you will need to secure their permission and allow them the opportunity to review and approve the final piece before it is used. Be sure to save their written approval in case questions arise in the future.

Case Studies Should Be Part of Your Content Library

Creating a case study can take some time and effort, but they are worth it.

According to the 2022 Edelman Trust Barometer , 63% of people worry business leaders are trying to mislead people with false or exaggerated statements. If you just say that your company can help people solve their problems, your prospects might not believe you. You need to build credibility, and a case study that provides concrete examples can help.

A case study is also a fantastic way to differentiate yourself from your competition. As mentioned earlier, case studies are often used in more advanced stages of the customer journey, when prospects are already familiar with your company and need information that’s going to guide their purchasing decision. You want to create preference for your company so you can close the sale, and a case study can help you do that.

Your Case Study Can Convert Leads for Years

Some content has a short life, but not case studies. Although creating a case study will require some effort, once you have it, you can use it for as long as you continue to offer the featured products and services, and the featured company is still a customer.

• Feature your case study on your website. You can create a landing page for your case study or case studies so prospects can find them easily. They can be offered as instant downloads or you can generate leads by gating them with a form.
• Promote your case study in social media posts. Spread the word about your case study on social media. You can always just write a post and link to the case study, but also consider designing graphics for the case study. A LinkedIn carousel post is another great way to highlight your case study on social media.
• Encourage prospects to download the study as a call to action in your blog posts . This is a practical way to encourage your audience to learn more about your company.
• Link to case studies in email nurturing campaigns . If you’re nurturing a prospect that has downloaded other content, a case study link can entice additional engagement.
• Build case studies into your sales processes . Sales professionals love using case studies as handouts as they provide a great springboard for meaningful conversations.
• Use content to develop webinars or videos . You can even use case study content as the foundation for very powerful webinars or videos.

Need Case Studies but Don’t Know Where to Start?

Inbound Insurance Marketing can help your company develop powerful, effective case studies. Learn more. Or, if you’re ready to get started, schedule 30 minutes to discuss your project.

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• Group Life Insurance Solution At Swiss Life
• Comprehensive Group Life Insurance Solution At Swiss Life CASE STUDY Download PDF

Comprehensive Group Life Insurance Solution At Swiss Life

Project objectives.

The main objectives of the Comarch solution implementation project at Swiss Life focused on increasing the insurer’s business competitiveness and profitable growth , as well as reducing operational and noncompliance risks .

Swiss Life needed a comprehensive solution that would cover all life and pension insurance processes end-toend, including new business processes, contract and claim management, as well as management of their clients and insureds. The key advantage of our solution is definitely a self-service online portal for all group life insurance participants who can manage their coverage and investments without the need of contacting the insurer’s customer center.

Tomasz Jędroszkowiak Project Manager, Comarch

We were in need of an innovative solution that would make us closer to our clients. We wanted to enhance our relationship with them and make our services more client-oriented. The Comarch system offered the open architecture, wide business process management abilities, advanced business intelligence and a rich integration scope, including among others, banking systems, transfer agents, or general ledgers. That would allow us to handle all business processes in one solution.

Tony Ciccarella IT Program Manager/Architect, Swiss Life

PROJECT RESULTS / BENEFITS

Owing to the implementation of the Comarch solution all Swiss Life insurance processes are fully covered . The full range of insurance products are supported and all contracts managed in one system. Besides, the user experience and customer service have been significantly enhanced thanks to the self-service portal.

Apart from the core functionality of the Comarch Life Insurance system, we also implemented an integrated document management module, numerous external interfaces and Comarch Insurance Client Essentials – portal dedicated to policyholders’ HR departments and contract managers as well as individual insureds.

We are satisfied with the results of the project as our clients can easily manage all insurance and pension contracts, while their employees stay up-to-date and manage their policies and investments on their own. Moreover, Swiss Life has better control and overview of our pension business and more opportunities to grow it.

Madeleine Simmler Weiss Project Manager Business and Head Client & Partner Services, Swiss Life

PROJECT CHALLENGES

The project was multilayer and multistage as Swiss Life required both new functional and technical architecture to ensure optimal business process management for the future. Moreover, the desired solution was to smoothly operate in several countries and numerous languages, meeting multinational needs and regulations. Thus, the project was divided into several phases each concluded with go-live releases.

Good cooperation made us complete this large project successfully. The challenge was mostly related to the extensive data migration and integration of the Comarch solution with our external systems.

We had to face some real challenges related to the robust area of the implementation. This large enterprise required strong and extended project teams with specialists from various fields and business units leaning on strong management support.

SOLUTION COMPETITIVE ADVANTAGES

Comarch life insurance.

The comprehensive system supporting individual and group life insurance. The solution allows efficient management of all parts of insurance business, including product definition, offer presentation, underwriting, policy operations, claim processing, fund management, billing and collection, technical provisions and reserves, calculations and reporting.

Thanks to its modular structure and unique flexibility, it can be tailored to individual customer needs, including the individual life cycle of business processes and the specific nature of a particular insurance company. It allows the insurer to optimize and grow all aspects of life insurance in line with latest trends and changing markets requirements.

Read more about Comarch Life Insurance

Comarch Insurance Client Essentials

The intuitive self-service portal providing the insurance company’s clients with fast insight into their insurance covers and new product offering, anytime, anywhere. The tool also allows them to perform independent insurance operations without the need to contact their insurer’s customer service directly. For the policyholders’ HR departments and contract managers the system provides additional functionalities for group life contract management.

Read more about Comarch Digital Insurance (Comarch Insurance Client Essentials before)

The Swiss Life Group is one of Europe’s leading comprehensive life, pensions and financial solutions providers. As a market leader of group life business in Luxembourg, the company offers local risk and occupational pension solutions as well as global employee benefits solutions for expatriates and mobile employees to local and multinationals companies. As a leader in cross-border life insurance solutions for high net worth individuals, Swiss Life offers high-end life insurance cover combined with asset management, from Luxembourg, Liechtenstein and Singapore

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• Insurance Digital Transformation: Improving the Customer Experience

In this insurance digital transformation case study, our design thinking practice drives impactful results to the client's bottom line and customer experience.

JANUARY 29, 2018

As data analytics transform the global business community at a rapid pace, many opportunities exist for insurers to leverage information to grow their bottom line. All insurance companies are sitting on a wealth of information about their customers and operational processes. The biggest challenge insurers face with this data? There’s too much data to sort through, and it’s difficult and time consuming to translate information into actionable insights.

Making your data work harder – and more valuable -- is what the Sutherland Cloud Analytics platform is all about. It has positively impacted many companies on a global scale, combining the power of data analytics with artificial intelligence (AI) to drive insights to fuel decisions that boost your bottom line and customer experience.

Harnessing Big Data Drives Insights, Streamlines Processes

Guardian Group , an integrated financial services organization with a focus on life, health, property and casualty insurance, pensions and asset management, recently partnered with Sutherland to rapidly monetize its data assets to meet their business needs.

Prior to engaging Sutherland, the leading insurer was challenged with disparate, unsynchronized databases and inconsistent data across their organization, and basic financial and operational reporting did not deliver valuable information for executive decision making. The time was right for Guardian Group to make agile adjustments to address changing customer expectations, market needs, and regulatory mandates.

Sutherland’s Cloud Analytics Platform and associated consulting established an ongoing big data capability to facilitate a culture of leveraging insights for business decisions. Thanks to Sutherland’s cloud-based solutions, Guardian Group saw an approximately 25 percent reduction in manual efforts and associated labor cost for some activities, 20 percent reduction in claims-related processing turnaround time, and 100 percent digitization of forms now available online.

An End-to-End Analytics Transformation

Core components of the data analytics solution for Guardian Group include:

Suspense Amount Management for cloud: AI-leveraged analytics that enables insurers to wade through complex data streams and meaningfully allocate premium suspense amounts to the right policies. It’s designed to optimize cash flows to improve loss ratios, combined ratios, and current ratio.

Operational Lapse Accounts Analytics to better understand agent performance and drive optimal account management processes.

Operational solutions to help drive efficiencies and automation in customer-facing and claims management processes.

Precise customer service and predictive modeling powered by analytics capable of turning customer and market behaviors into models.

Strategic customer, agent, and policy profitability analytics to assess emerging risks, identify new revenue sources and optimize enterprise-wide profitability.

Now is the time to leverage data analytics to your drive competitive advantage and positively transform processes throughout your insurance organization.

Reduce Risk. Gain Advantage. Improve Retention.

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LIC Case Study | Success Story of Life Insurance Corporation of India

Ria Puneyani

Sales of life insurance policies are a vital source of revenue for any life insurance company and their primary motivation for doing business. Because today's business operations are so intertwined, claim settlement services significantly influence life insurance policy sales. People can use life insurance plans to cover a variety of hazards throughout life.

The insurance industry grew rapidly in the first two decades of the twentieth century. In 1938, it increased from 44 firms with a total business-in-force of Rs.22 crore to 176 companies with a total business-in-force of Rs.298 crore. The call for the life insurance sector to be nationalised had been voiced before, but it gained traction in 1944 when a measure to modify the Life Insurance Act 1938 was filed in the Legislative Assembly. However, it was not until 1956 that life insurance was nationalised in India when the Life Insurance Corporation was passed by the Indian Parliament on June 19.

Origin of LIC LIC's Objectives Growth of LIC LIC's at Present LIC's Products and Services LIC Services for its Employees LIC's Marketing Strategy Conclusion FAQs

Origin of LIC

The Life Insurance Corporation of India was established on September 1, 1956, by the Ministry of Finance of the Government of India, with the goal of making life insurance more widely available, particularly in rural areas, with the goal of reaching all insurable persons in the country and providing adequate financial cover at a reasonable cost.

LIC's Objectives

The primary goal of LIC is to promote life insurance across the country, particularly in rural regions and among the socially and economically disadvantaged, to reach all insurable individuals and provide them with appropriate financial protection against death at a fair cost.

Maximise people's savings mobilisation by making insurance-linked savings sufficiently appealing. Another goal is to function as trustees for the insured public in their individual and collective capacities, meeting the community's diverse life insurance demands as the social and economic environment changes.

LIC intends to involve all employees to the best of their abilities to advance the insured public's interests by delivering prompt and courteous service.

Growth of LIC

In 1956, LIC had 5 zone offices, 33 divisional offices, and 212 branch offices in addition to its corporate office. Because life insurance contracts are long-term contracts that require a range of services during the policy's life, LIC felt the necessity to extend operations and open a branch office at each district headquarters in subsequent years.

The LIC was reorganised, and it created a considerable number of new branch offices. It shifted servicing tasks to branches due to the reorganisation, and departments were declared accounting units. It had a significant impact on the company's success. You can observe that from about INR 200 crores in new business in 1957, the company only exceeded INR 1000 crores in 1969-70, and it took another ten years for LIC to reach the INR 2000 crore barrier. However, after reorganisation in the early 1980s, LIC had already surpassed INR 7000 crores in Sum Assured on new policies by 1985-86.

LIC's at Present

LIC has practically monopolised the solicitation and sale of life insurance plans in India, having existed as a massive insurance business for almost 60 years. LIC has expanded its operations outside of India to 14 countries to meet the insurance needs of Non-Resident Indians.

With an asset value of INR 2,529,390 crores, LIC is now India's largest life insurance business, controlled by the government. LIC's headquarters are in Mumbai .

It currently operates eight zonal offices and 113 divisional offices around the nation. It has 2,048 branches across India in various towns and cities.

In addition, LIC maintains a network of over 15 million agents that sell life insurance to the general population. The LIC had a total life fund of $28.3 trillion as of 2019. In the 2018–19 fiscal year, the total value of sold insurance was $21.4 million. In 2018–19, LIC resolved 26 million claims. With 290 million policyholders, it is the largest insurance company in the world.

The Life Insurance Corporation of India (LIC of India) is one of India's largest financial organisations, providing comprehensive financial solutions for all aspects of life. It has a customer base of around 23 crores, making it the largest insurance company globally. After Indian Railways, it is the second-largest real estate owner in the country. The LIC advertises through newspapers , radio, television, billboards, and other media.

LIC's Products and Services

The Life Insurance Corporation of India (LIC) offers a variety of life insurance plans. As a government-owned Life Insurance Firm, LIC's policies are in high demand and appeal to a broad spectrum of consumers.

LIC For endowment, LIC offers the Jeevan Pragati, LIC Jeevan Labh, LIC Single Premium Endowment Plan, LIC's New Endowment Plan, New Jeevan Anand, LIC's Jeevan Rakshak, LIC's Limited Premium Endowment Plan, LIC's Jeevan Lakshya, LIC's Aadhaar Shila, and LIC's Aadhar Stambh.

LIC Jeevan Umang specialises in life insurance.

LIC's Bima Shree, LIC's Jeevan Shiromani, LIC's New Money Back Plan- 20 years, LIC's New Money Back Plan-25 years, LIC New Bima Bachat, LIC's Jeevan Tarun are some of the money-back plans available. Money-back plans include LIC's Anmol Jeevan II and LIC's e-term Plan.

Their pension schemes include the Pradhan Mantri Vaya Vandana Yojana, LIC New Jeevan Nidhi, and LIC's Jeevan Akshay.

LIC Services for its Employees

Agents are being offered home loans.

The LIC of India's Agents Housing Scheme provides house loans to the company's agents. It has a separate subsidiary, LIC-HFL, from which many housing plans are moved for fairer distribution.

Employees are given meal coupons.

In September 2010, the Life Insurance Corporation of India (LIC of India) introduced a one-of-a-kind benefit for all workers. The number of meal vouchers is determined by each team member's position in the hierarchy.

Team member participation in sports is encouraged.

Employees of the LIC of India are encouraged to participate in various sporting activities to improve their physical fitness and overall personality. Employees have also spoken on behalf of the company at different national and international levels. It has recruited numerous workers from its Sports Recruitment Quota to maintain competitive excellence in sports and to compete on an equal footing with other businesses.

Training its employees

LIC has begun to provide training to its staff at all levels of the organisation. It has established a distinct Human Resources Development / Organizational Development (HRD/OD) Department to develop and enhance capabilities, commitment and foster a learning and performance-focused culture.

LIC's Marketing Strategy

LIC Life Insurance's marketing approach is pretty basic. Its primary goal is to educate consumers about the company's different policies and brands. Personal selling, exhibits, demonstrations at events, advertising, and innovative schemes have all been used by LIC to achieve this goal.

As presents and incentives, policyholders are given bags, diaries, and calendars. As promotional activities, advertisements are displayed on TVs, newspapers, and billboards .

A mobile advertising van circulates across rural regions, raising awareness of the firm. LIC-Life Insurance has a website and a webpage where it provides thorough information on each potential inquiry to satisfy customers.

LIC is continually working to strengthen "Brand LIC" and strengthen the brand's link with growing market segments. It has done so by maintaining a regular media presence in national and regional outlets.

It has also sponsored several national and international programmes and a variety of activities such as newspaper campaigns and continuous coverage of goods in several publications.

Who is the founder of LIC?

LIC has been founded by Government of India in 1956.

What are the Subsidiary companies of LIC?

LIC subsidiary companies are:

• LIC Pension Fund Limited
• LIC Cards Service Limited
• IDBI Bank Limited

What is the number of employees in LIC?

There are 1,14,000 employees (2020) working for LIC, and over 10 Lakh LIC agents.

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• Research note
• Open access
• Published: 10 September 2022

A case study of adapting a health insurance decision intervention from trial into routine cancer care

• Miles E. Charles   ORCID: orcid.org/0000-0001-8381-6803 1 ,
• Lindsay M. Kuroki 2 ,
• Ana A. Baumann 1 ,
• Rachel G. Tabak 3 , 4 ,
• Aimee James 1 ,
• Krista Cooksey 1 &
• Mary C. Politi 1  

BMC Research Notes volume  15 , Article number:  298 ( 2022 ) Cite this article

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This study adapted Improving Cancer Patients’ Insurance Choices ( I Can PIC), an intervention to help cancer patients navigate health insurance decisions and care costs. The original intervention improved knowledge and confidence making insurance decisions , however, users felt limited by choices provided in insurance markets. Using decision trees and frameworks to guide adaptations, we modified I Can PIC to focus on using rather than choosing health insurance. The COVID-19 pandemic introduced unforeseen obstacles, prompting changes to study protocols. As a result, we allowed users outside of the study to use I Can PIC (> 1050 guest users) to optimize public benefit. This paper describes the steps took to conduct the study, evaluating both the effectiveness of I Can PIC and the implementation process to improve its impact.

Although I Can PIC users had higher knowledge and health insurance literacy compared to the control group, results were not statistically significant. This outcome may be associated with systems-level challenges as well as the number and demographic characteristics of participants. The publicly available tool can be a resource for those navigating insurance and care costs, and researchers can use this flexible approach to intervention delivery and testing as future health emergencies arise.

Introduction

JL is a 66-year-old patient with progressive, recurrent ovarian cancer whose clinician recommended that she start on a targeted, oral cancer therapy based on genomic testing of her cancer. A month after receiving this recommendation, JL received a “summary of benefits” from her insurance company reflecting she owed a $3000 USD co-pay for a 30-day supply of this targeted therapy (the goal was to continue this therapy until her disease no longer responded to it, or she had intolerable side effects; her clinicians estimated this might take 1–2 years). As a full-time employed nurse, JL had health insurance. However, she did not qualify for the industry-sponsored financial assistance drug program because her annual income was slightly ($3500) over the allowed threshold. She would have to spend down 3% of her income on prescriptions that year in order to receive 100% coverage for the medication. Furthermore, because she had both government-sponsored and private insurance, her government-sponsored insurance made her ineligible for a “co-pay card” sponsored by the pharmaceutical company. JL was extremely distressed about this financial strain and considered whether and how she could take this therapy recommended by her doctor.

JL, like many under-insured patients, was inadvertently overlooked by her oncology team to be at risk for what scholars refer to as “financial toxicity,” or the material and psychosocial hardship from high costs of care. Yet, as many as 64% of patients report financial hardship following a cancer diagnosis [ 1 ], and many face barriers, like those described above, that prohibit affordable access to needed cancer therapies [ 2 , 3 ]. We use this case study to describe the critical steps we took to adapt and implement a health insurance decision intervention for cancer patients and survivors like JL, while balancing intervention testing and adaptation with real-world needs during a global pandemic.

Evidence supporting the intervention and the need for adaptation

Improving Cancer Patients’ Insurance Choices ( I Can PIC) is an interactive online decision tool originally designed to help cancer patients, like JL, think through their health insurance choices and identify ways to offset high costs of cancer and survivorship [ 4 ]. It provides tailored cost estimates across insurance plan types based on demographic and health characteristics and provides financial support resources.

In a randomized controlled trial of I Can PIC compared to an attention control group where participants were given an alternative intervention: a handout that lists financial resources along with brief definitions of health insurance terms, I Can PIC users knew more about health insurance and were more confident understanding insurance terms [ 4 ]. However, many I Can PIC users reported that their employer-based and marketplace insurance gave them limited choices [ 4 ]. This implied the potential to better align the tool within the current insurance landscape, even if it required adaptation before meeting all of its goals [ 5 ]. Therefore, the team elicited feedback from clinicians, patients, and policy experts on ways to emphasize using health insurance rather than focusing mostly on choosing health insurance (Additional file 2 : Table S1). This paper describes the adaptation process of I Can PIC to achieve these goals.

Intervention adaptation process

We used two guides to structure the adaptation process. The Iterative Decision-making for Evaluation of Adaptations (IDEA) decision tree informed the process of adaptation [ 6 ], and the Framework for Reporting Adaptation and Modifications-Expanded (FRAME) guided the tracking of adaptations (Fig.  1 ) [ 7 ]. To start the adaptation process, we first identified the core elements of the intervention that improved outcomes: health insurance educational resources, cost-of-care conversation guidance, and resources to offset costs which are critical to patients like JL (Additional file 1 : Fig S1). During this iterative process, we then added new elements to I Can PIC and made content, format, and functional improvements based on stakeholder feedback and the original trial results (Additional file 2 : Table S1).

I Can PIC as Tracked and Adapted Using the FRAME Approach

Assessment of the adapted I Can PIC tool

After we adapted I Can PIC , we assessed its effectiveness among newly-diagnosed patients with gynecological, colorectal, or lung cancer, examining their health insurance knowledge, financial toxicity, health insurance literacy, and delayed or forgone care due to cost. We conducted a historic control survey assessing these constructs as well as whether and how treatment costs were discussed with patients at their most recent visit with their physicians. Next, we conducted a brief virtual/video conference training with fifteen medical or surgical oncologists to talk about screening for financial distress and discussing costs with patients. After the training, we conducted a pilot intervention study where patients were sent I Can PIC , completed a survey after their upcoming oncology appointment, and a follow-up survey 3–6 months after recruitment. Once during the study, we gave the oncologists feedback and reminded them to screen for financial distress and refer patients to I Can PIC. This study was approved by the Human Research Protection Office at Washington University in St. Louis (protocol number 202003033).

The COVID-19 pandemic introduced unforeseen obstacles to patient enrollment that shifted in-person recruitment to virtual methods (e.g., phone calls and emails) from secured, Health Insurance Portability and Accountability Act (HIPAA) compliant university-affiliated phone numbers and emails. We also partnered with the institutional review board and streamlined the consent script to be more succinct and engaging [ 8 ]. Prior to these changes and even after, many newly diagnosed cancer patients did not want to add a research commitment to their already busy or overextended lives. With recognition of these challenges and others, the revised version of I Can PIC was made available to the public while undergoing testing so that patients outside of eligibility criteria, like JL with recurrent cancer, or patients not interested in research, could still benefit from its health insurance and care costs information and support.

Eligible patients for both the historic control and intervention groups were English speaking, at least 18 years old, eligible for insurance through their employer or the federal marketplace, and diagnosed with a new lung, gynecological, or colorectal cancer within five months. Participants were recruited from a single site, NCI-designated cancer center where fifteen oncologists (five gynecologic oncologists, three colorectal surgeons, two medical oncologists treating colorectal cancer patients, and five thoracic surgeons treating lung cancer patients) gave the study team permission to review medical records and approach eligible patients for study participation. Recruitment into the historic control group began in May 2020. Starting in October 2020, we conducted our first provider training, since health insurance open enrollment was beginning, and we wanted at least some patients to use I Can PIC while they had options of changing insurance. Between October 2020 and February 2021, we trained the fifteen oncologists to screen for financial toxicity and discuss care costs with patients.

After clinicians were trained, we recruited patients into the intervention arm. Patients were asked to review I Can PIC before their upcoming appointment. After they met with their oncologist, the research team sent them a survey that could either be completed online or by phone. A three-month follow-up survey was also sent to patients in the intervention arm.

Patient socio-demographics were self-reported. As in the original trial, participant numeracy and health literacy were assessed using validated scales [ 9 , 10 , 11 , 12 ]. Primary outcomes included health insurance knowledge, health insurance literacy, frequency, and type of care cost conversations (including topics and strategies discussed), financial toxicity, and patient referrals to resources to further discuss costs [ 13 ].

Statistical analysis

Descriptive statistics were calculated for all sociodemographic variables and compared between groups using chi‐square analyses or Fisher's exact test for categorical variables, as appropriate, and the Kruskal–Wallis test for continuous variables. Baseline surveys for both the control and intervention groups were compared for one-way analysis of variance, Fisher's exact test to determine if there were nonrandom associations between two categorial variables, and Chi-Square tests to determine if two categorical variables were independent. To compare the intervention at the baseline survey and 3–6 month follow-up survey, paired t-tests for continuous variables and kappa statistics for categorical variables (discussed costs or not, discussed cost strategies or not, referral made or not, etc.)

During our study period, there were 1512 total logins on the I Can PIC website, of which 1058 (70%) were guest users. Guest users were treated in other facilities, ineligible due to cancer type, or not interested in participating in the research study, but wanted to access the information. Among the 136 consented and surveyed participants (68 historic controls; 68 intervention group), socio-demographics were similar except that the intervention group was slightly higher educated (Table 1 ). The intervention group had slightly higher health insurance knowledge (mean score 77.02 vs 72.45) and slightly higher health insurance literacy (mean score 34.71 vs 33.03) compared to controls; these differences were not statistically significant. Knowledge and health insurance literacy was sustained at the 3–6 month follow-up.

The frequency of cost discussions related to cancer care was similar between the intervention and control groups (57.4 vs 67.7%, p = 0.22), with the most common topics involving insurance, time off work, and costs of medications. Specific cost strategies that were discussed are detailed in Table 1 . Overall, a small proportion of patients received referrals (eg., I Can PIC website or any outside agency/office such as government assistance, community agency or charity, or hospital billing) from their oncologist to learn more about cancer costs and did not vary by group (controls, 16.2% vs intervention group, 20.6%).

Financial toxicity was reportedly low in both groups (17.7% in the control vs 16.1% in the intervention group), though decreased slightly within the intervention group during the study period (first survey average score was 16.06 vs. 14.17 at the 3–6 month follow-up). Unfortunately, 18% of individuals in the control group and 13% in the intervention group reported delaying care due to cost (p = 0.41).

Throughout the adaptation process, it is important to ensure that end users like JL can benefit from effective interventions, even if interventions require refinement and continued testing. Using systematic decision trees and guides such as IDEA and FRAME, we described one way to systematically track intervention adaptations while ensuring real-world access throughout the process to benefit patients. Strengths of our study include our diverse stakeholders which included patients, clinicians and policy experts who provided advice on I Can PIC , including patients across several cancer types, and modification of consent processes and tool access to optimize patient engagement and minimize burden.

This case example provides a guide for deploying low-risk interventions in routine care while continuing to generate evidence and improve on their public health impact. Of 1512 total logins on the I Can PIC website, 70% were guest users outside of the research study, and we hope many of them, like JL, benefited from I Can PIC access even if they were reluctant to join a study. JL ultimately made an informed decision with her oncology team and the support of her family to only work part-time to optimize her benefits in order to receive the targeted, oral cancer therapy through the pharmaceutical company’s financial assistance program.

Despite growing awareness of financial toxicity on underinsured patients, more interventions are needed to better integrate cost conversations into routine cancer care. Systems-level changes are needed to address this burden of care on patients. Future work will continue to build on the frameworks discussed to adapt content and delivery of I Can PIC so that patient-centered outcomes, such as financial toxicity, distress, quality-of-life, and adherence to treatment, are improved. This case study can provide guidance for other implementation studies, including those that might be conducted during future health emergencies.

Limitations

Due to rapid changes as a result of the COVID-19 pandemic, it is important to note limitations of our study design and execution of our protocol. Given this unprecedented time when unmet social and health needs were and still remain under constant threat and turmoil, we acknowledge our non-randomized study design and recruitment of historic controls are critical limitations to interpretation and generalizability of results. The timing of their recruitment could have exacerbated health or financial strain, although the pandemic was still ongoing even at the end of the study with new waves of health risks emerging. Future health emergencies could introduce similar issues without addressing the larger social and societal needs. Furthermore, COVID-19 and rapid transitions to virtual recruitment presented other challenges to this project, which was initially planned to be in person. Despite modifications to the protocol, consent documents, and workflow to reduce burden on participants, systemic issues remained that reduced the diversity of our sample in the research component of intervention implementation. These challenges are likely to remain without addressing systemic barriers to research and care more broadly. Consequently, these results may not be representative of the experiences of lower income and/or racially diverse patients experiencing financial toxicity due to their cancer diagnosis. Ongoing feedback from stakeholders will continue to ensure that the needs of various populations, including oncology providers are considered.

Availability of data and materials

The datasets used during the current study are available from the corresponding author on reasonable request.

Abbreviations

Improving Cancer Patients’ Insurance Choices

Iterative Decision-making for Evaluation of Adaptations

Framework for Reporting Adaptation and Modifications-Expanded

Health Insurance Portability and Accountability Act

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Acknowledgements

Not Applicable.

Financial support for this study was provided in part by a grant from the American Cancer Society (RSGI-17–018-01-CPHPS), the National Cancer Institute (P50CA244431), Washington University’s Institute for Clinical and Translational Sciences Dissemination and Implementation Research Core (UL1 TR002345) and The Foundation for Barnes Jewish Hospital. The content is solely the responsibility of the authors and does not necessarily represent the official views of the American Cancer Society, the National Institutes of Health, or Washington University. Ana Baumann and Rachel Tabak are funded by CTSA Grant UL1 TR002345 and P50 CA-19–006. Ana Baumann is also funded by 3U01HL13399403S1 and 5U24HL136790-02. LK was supported by the KL2 TR000450 and Doris Duke to Retain Clinical Scientists (2015215).

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Miles E. Charles, Ana A. Baumann, Aimee James, Krista Cooksey & Mary C. Politi

Division of Gynecologic Oncology, Department of Obstetrics and Gynecology, Washington University School of Medicine, St. Louis, USA

Lindsay M. Kuroki

Brown School, Washington University, St. Louis, USA

Rachel G. Tabak

Prevention Research Center, Washington University, St. Louis, USA

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All authors contributed to writing, revising, and approving the manuscript. MP led the decision intervention development and adaptation process and critically evaluated and revised the manuscript. MC and LK led the writing of the manuscript, its revisions, and final submission. AB and RT led the evaluation of the adaptation process and critically revised the manuscript for important implementation content. AJ contributed to the design and adaptation of the intervention and critically revised the manuscript. KC led the discussion of the changes to the study as a result of the COVID-19 pandemic, assisted with data analysis, and contributed to revisions of the manuscript. All the authors read and approved the final manuscript.

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Correspondence to Mary C. Politi .

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This study was approved by the Human Research Protection Office at Washington University in St. Louis (protocol number 202003033). All individuals that participated in this study provided informed consent.

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Supplementary Information

Additional file 1: figure s1..

I Can PIC as Adapted and Tracked Using the Iterative Decision-Making for Evaluation of Adaptations (IDEA) Framework Steps.

Additional file 2: Table S1.

Stakeholder- and Participant-Suggested Adaptations to I Can PIC.

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Charles, M.E., Kuroki, L.M., Baumann, A.A. et al. A case study of adapting a health insurance decision intervention from trial into routine cancer care. BMC Res Notes 15 , 298 (2022). https://doi.org/10.1186/s13104-022-06189-8

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September 8, 2017

Financial plan with solutions of a real life case study.

Sadique Neelgund

Note – This case study is published in Steven Fernandes book There is always a financial solution …  published by Bestsellers18 which is a compilation of different case studies. Sharing here with permission of author.

Name  – Abhishek Goel (30)

Family – Father (67), Mother (63)

Resides in – Delhi

Occupation : Service

Job Details : Works as Chief Manager Claims for a Private General insurance company.

Background:

Abhishek is single and stays with his parents in his father’s house in Delhi. He has an elder brother who works abroad. Abhishek remembers that at an early age he got a first-hand experience on savings when his parents encouraged both the brothers to open a children’s bank account which was being operated from the school premises. Both brothers started saving Rs. 5 per month and this money was utilised in the next academic year to purchase some books, stationery, etc. His father used to work in an engineering firm while his mother was a teacher. When he was in the first standard, his father’s company faced lockout and for nearly 2 years the family survived on his mother’s income. His father got an opportunity to work in the gulf later and for some time the family’s finances were on track.

Again, tragedy struck when his mother had to give up her job due to health reasons. After working for a couple of years abroad, his father’s firm closed down and he had to come back. His mother started taking tuitions at home to make ends meet. Since the convent school where the siblings were studying were aided by the government, they did not have to pay any fees for their secondary school education. Abhishek’s mother ensured that every expense was monitored and followed a strict budget. Both the brothers understood the family’s grim financial situation and consciously supressed their desires for story books/ toys etc. The difficult financial situation made the brothers realise that good education and qualification was the single most path to getting a good job and ensure financial stability. With the generous help from charitable donors Abhishek and his brother got interest free loans to complete their higher education. Abhishek completed his BE in Automobile engineering while his brother did is Hotel management.

Even during his first few years of college, Abhishek had started earning by giving tuitions. Part of this money was deposited in his bank and rest was given to his mother to manage the family’s expenses. Abhishek has had a very good rise in his career in the last 9 years since he has been working and presently he is in a very good position with a well-known General insurance company. Since he has been only exposed to traditional investment options like Insurance, Post office and FD schemes, Abhishek started his investment journey from 2007 with these products. To save tax he purchased traditional insurance policies and invested the rest in Fixed deposits. Even then he has been able to create a good investment basket because he has kept his expenses to the minimum and tried to save as much as he could.

Last year he booked an under construction flat worth Rs. 62 lakhs for which he paid the down-payment of 10% from his own savings. He is expected to get possession of the flat by December 2018. So far, he has taken a loan of Rs. 18.50 lakhs and he intends to try and pay as much as he can from his own sources in the next 2 years before possession.

Savings habit: In almost all cases with a few exceptions, our parents are the initiators into the world of savings and investments. Abhishek too understood the importance of savings through his parents who encouraged him right from his school day. He had never looked back ever since. Most of us lose our way once we get caught up in our work and other family responsibilities. Abhishek continues this habit till today and now savings has become an integral part of his responsibilities.  He only needs guidance on how/ where to invest the savings.

Insurance as an investment: Most people buy insurance as an investment product or rather it is sold that way to make it attractive for the buyer. Investment oriented insurance policies are of two types – Traditional and Unit linked. Traditional policies typically invest in government bonds, approved securities and instruments which provide fixed income while Unit linked policies invest in instruments varying from government bonds to equities as per the fund chosen by the investor.

Traditional insurance policies typically don’t provide more than 5-6% returns over the long term while equity oriented funds in unit linked policies can fare better than traditional policies in the long run. Therefore, traditional insurance policies don’t serve as a good investment for the long term. How can a product which cannot beat inflation help you to reach your long-term goals? Abhishek made an early start but due to lack of knowledge and with a view of saving tax, he invested in traditional insurance policies, allocating a good amount of premium.

What is the present situation?

Basic Numbers

Monthly Income: Rs 90000

Monthly surplus: Rs. 32522

Networth Statement

ASSET ALLOCATION

Emergency fund: Apart from the savings account, the fixed deposits provide a decent back up In case of any emergency.

Life insurance : Abhishek is covered for Rs. 1.09 crores through 1 term pan of 1 crore and two traditional plans. He also has a traditional pension plan for which his monthly contribution is Rs. 8145 and the maturity is in 2041. He has a limited premium traditional policy where the last payment is to be done next year. The last policy is an endowment policy which will mature in 2028.

Health Insurance : Abhishek is covered for Rs. 5 lakhs through his employer group insurance policy. His parents are covered for Rs. 2 lakhs each through a separate policy. He also has a separate health cover of Rs. 15 lakhs through a combination of mediclaim and top up policy.

Investments: Investments are very well diversified into debt and equity with debt comprising 55% of the allocation and equity at 45%. Property has been excluded as its for self-consumption.

Liabilities: Presently there is only 1 loan which is a home loan taken on the under-construction property.

Abhishek has opted for EMI payments (instead of only pre EMI interest) as it enables him to claim tax benefits on both principal and interest payments as well as loan outstanding keeps reducing with each EMI payment.

Risk Profile: Moderate

Recommendations:

Emergency fund: Abhishek needs to maintain an emergency fund of Rs. 1.75 lakhs, which should take care of nearly 3 months of expenses. Presently he has maintained Rs. 1.05 lakhs in savings account which can be maintained as it is and additionally he should move Rs. 70000 from his FDs into a liquid fund.

Accident Insurance: Abhishek should take a personal accident comprehensive policy which will cover for accidental death, permanent and partial disability including weekly/monthly compensation for loss of work due to total temporary disability. A PA cover of Rs. 50 lakhs with a TTD cover of Rs. 15 lakhs are suggested. The premium for this will be approximately Rs. 7000

Life Insurance: Considering the financial goals and outstanding liabilities, Abhishek’s cover is adequate. He needs to stop the traditional pension policy as well as the endowment policy which matures in 2028. The yield on these policies are less than 6% and hence coming out of those will make sense now rather than continue them till maturity which is more than 12 years to 20 years from now. Surrender of the 2 policies will fetch him approximately Rs. 3 lakhs. He should revisit the cover post marriage.

Health Insurance: The present cover is adequate as per his age. He should include his wife’s name when he gets married next year.

Debt Management: Even though the actual loan approval amount is Rs. 50 lakhs, Abhishek should not take the full disbursement. He should try and use his own sources to pay for the property and keep the loan to less than Rs. 30 lakhs. A higher loan and EMI can hamper future goals. He can use the Rs. 3 lakhs from insurance surrender to pay for slab wise payments. The policy surrender will also enable the increase in surplus amount every month.

Financial Goals:

1. Marriage (2017)

Current value: Rs 4 lakh

Future Value: Rs. 4.36 lakh

Status of goal 1:

Abhishek does not want to spend too much on marriage and considering the fact that the marriage expenses will be shared with his spouse, he would not like to exceed Rs. 4 lakhs. A part of the Fixed deposits can be used for this goal.

Returns expected in fixed deposits: 6% post tax.

 2. Buying a car (2018)

Future Value: Rs. 4.66 lakhs

Status of goal 2:

He needs to start Sip of Rs. 18500 in ultrashort debt funds for a period of 24 months to achieve this goal.

Returns expected in Ultrashort debt funds: 6% post tax over the required time horizon.

3.   Educational funding for 1 child (2036 – 2041 )

Current value: Rs. 32 lakhs

Future Value: Rs. 2.42 crores

Status of goal 3:

Considering the long-term nature of this goal, Abhishek needs to invest Rs. 14000 per month for 25 years in a combination of largecap and balanced funds. Due to the present surplus, he can easily invest for this goal.

Returns expected in the mutual funds portfolio: 13% over the required time horizon.

4.   Retirement Planning (2041)

Present Annual expense (Excluding children’s expenses and EMI’s) –Rs. 3.60 lakhs

Future Annual Expense – Rs. 19.53 lakhs

Corpus required – Rs. 4.53 crores.

(Inflation considered: 7%, Returns on corpus during retirement 9%, Expected life expectancy at 85 years)

Status of retirement goal – One principle which Abhishek has followed when he left his last organisation in 2014 is to transfer his EPF to the new employer rather than withdraw which most people do. With compounding and regular contribution, the EPF turns out to be a good amount during retirement. Considering a 5% increase in basic year on year his EPF in the year 20141 should be worth Rs. 1.93 crores. The mutual funds and equity shares if maintained that long can fetch him Rs. 1.45 crore and Rs. 1.56 crore respectively. These 3 assets are sufficient to create a good retirement corpus as per today’s needs.

Most of us plan retirement when there are either 10 or less years for one to retire. That leaves very little time to enable compounding of your investment and the savings and investments required in the short time will also be huge.

Taxation: Abhishek’s EPF and life insurance premiums of 2 policies (Term and 1 traditional) exceed the limit of Rs. 1.5 lakhs provided under 80C.  He is also utilizing the 80D deduction up to Rs. 25000 due to health insurance premium of self and parents. He can avail the home loan interest benefit on under construction property in 5 equal instalments from the year of completion of his flat.

Conclusion – It’s truly said, “Experience is the best teacher”. Abhishek’s life is a live example of how his childhood period of financial turmoil has moulded him to be a better saver and investor. At his age, he had done a fairly good job of creating a good investment basket. There are several like him who have an opportunity to choose what is right. Many of his age, having similar salary may not have accumulated as much as he has. In this age of uncertainty, it’s very critical that the younger generation focuses on saving and building up a good corpus right from the first salary. Else there will always be regrets and “I should have done that” sighs when you evaluate your life in your 40s and 50s.

Note – This case study is published in Steven Fernandes book  There is always a financial solution …  published by Bestsellers18 which is a compilation of different case studies. Sharing here with permission of author.

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Spending $75 a month on life insurance means I can stop the cycle of poverty my family's been in for generations

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• I've watched many family members die without enough money to cover their final expenses.
• I never wanted that, so I bought a term life insurance policy in my 20s that I renew every five years.
• It's enough to cover basic expenses for my kids and help them establish their own homes.

When my grandmother died 10 years ago, I didn't even need to ask if she had a life insurance policy. I knew she didn't. Just like most other members of my family.

My grandmother had no estate or assets. Since she left no surviving spouse or dependent child, the $255 death benefit that Social Security sometimes pays out wasn't even an option.

She would be laid to rest in a cemetery plot where my grandfather had been buried 30 years before. My grandmother wanted to be buried, too, not cremated. But since she died in a different state from where the cemetery was located, the cost to transport her body was way more than anyone could afford. So, despite her wishes otherwise, she was cremated for financial reasons.

Only two of her seven children were employed at the time, so they gathered whatever funds they could scrape together. And that — combined with the available credit they had on their credit cards — was just enough for the cremation and the cemetery's fee to open a hole big enough for us to place her ashes. There were no funeral services, and no memorial event.

The poverty cycle in my family

This situation isn't unusual in my family. Just last year, my aunt died in a similar financial state. It was pretty much the same story when my stepfather died five years ago, uninsured and with nothing in his bank account .

I hail from a family where poverty traces back for generations. Many of my relatives have struggled just trying to afford food and shelter. Something like life insurance would be considered a luxury, and — like anything else not required for basic survival — would be low on the priority list.

Family lore says that at least one of my ancestors was buried in New York City's potter's field , where the poor and unidentified are interred in mass graves. 

I and other family members have had to scramble to help pick up the financial pieces when some of our relatives have died without any insurance. Sometimes there wasn't even enough f67or an obituary .

Watching this scenario play out repeatedly over the years taught me a valuable lesson: In death — as in life — your financial resources often determine your fate. I knew from a young age that I didn't want to be the cause of one of these post-death panics that send loved ones into a frantic scramble.

As a result, I've had life insurance since I was in my early 20s because I've never wanted to leave anyone else in that position. 

Why I bought life insurance

I've seen experts and others share the opinion that life insurance isn't necessary if you don't have minor/dependent children to support. But someone will still need to take care of your final arrangements. And I know from firsthand experience that even the most bare-bones, no-frills burial can be more expensive than you might expect.

I'm guessing those experts likely don't hail from families like mine. They are perhaps taking it for granted that every deceased person has money in the bank or plenty of other assets that will cover burial and funeral expenses.

Even if most people do in fact have sufficient assets at the moment to cover those costs, things can change. People may lose their jobs, get hit with major medical expenses, or otherwise face unexpected financial hardships. This is increasingly likely as they get older, particularly if they start having health issues. 

And the harsh reality of life insurance is that if you wait until a point when you think you may actually need it in the near future, it may be too late.

In my recently deceased aunt's case, she did look into getting life insurance a few years ago (partly at the urging of her sister, who'd had to cover some of the expenses after their mother's death). Unfortunately, at that point she'd already had lung cancer and was in her 60s, so insurers weren't exactly eager to cover her, at least not without charging a fortune. A decent life insurance policy she could afford was virtually impossible to find. 

I'll renew my life insurance policy for as long as I possibly can

I have a term life insurance policy I've had for years, and I protect it like a precious gift. I have children who are still trying to get their own financial footing. I hate to picture them in a panic, trying desperately to come up with enough to bury me if I were to die with no insurance.

I first got this policy when I was in my early 20s. At the time, I didn't know much about insurance (and obviously, there wasn't really anyone in the family I could ask). But I felt like anything was better than having nothing at all, so I took the most affordable option I could find that would at least provide enough to take care of my children for a while if something were to happen to me.

It currently costs me less than $75 a month. The policy renews every five years, and I plan to keep it indefinitely — ideally, for life — because I've now reached an age where it might be more difficult to get a brand new policy from scratch. It goes up a bit with each renewal, but it's cheaper than starting over again with a new policy.

It is enough to reasonably cover basic expenses for my kids for at least a year or two, and to help them establish homes of their own.

I'm hoping that in this one significant way, I can try to help shift the family legacy.

This article was originally published in December 2019.

Watch: Why childcare has become so unaffordable

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What Happened to Ashley Madison? The True Story of the Dating Site's Infamous 2015 Hack — and How It Bounced Back

In 2015, the identities of the 37 million users of infidelity website Ashley Madison were hacked and revealed online

Courtesy of Netflix

The infamous 2015 hack of the dating website Ashley Madison led to multiple headline-making scandals — and now, a new Netflix documentary is revisiting the data leak and its aftermath.

Ashley Madison rose to fame in the early 2000s as the first — and only — dating website for married people seeking affairs. The website drew criticism for its promiscuous premise, but the naysayers had little to no effect on Ashley Madison’s success. By 2015, the infidelity site had nearly 40 million users worldwide and was projected to earn $150 million in revenues, Ashley Madison's then-CEO Noel Biderman told Business Insider at the time.

“The vision was to be the largest and only website for married people who wanted to have an affair,” an employee said in the trailer for Netflix’s docuseries Ashley Madison: Sex, Lies & Scandal , which began streaming on May 15.

Ashley Madison was well on its way to realizing that vision when it all came crashing down in July 2015. Internet hackers stole the customer data for all 37 million of Ashley Madison’s users — and posted it online in August 2015. The data leak and its fallout led to the resignation of Ashley Madison’s CEO and the public humiliation of its users.

Adding to the drama was the fact that multiple high-profile figures were named in the Ashley Madison hacking scandal, including Josh Duggar , Hunter Biden (although he denies that he had an account), former Real Housewives of New York City husband Josh Taekman and Snooki ’s husband Jionni Lavalle (Snooki has fiercely denied Lavalle had used the site). But Netflix’s three-part docuseries takes a closer look at the everyday people who signed up for the cheating website — and how the data leak affected their relationships and their lives.

“Rather than berating people who joined Ashley Madison we were much more interested in exploring why they were drawn to the site — what were they looking for? What was going on in their relationships? And crucially — what was their partner’s side of the story?” Toby Paton, the series director, wrote in a statement, per Variety .

But what is the true story of Ashley Madison and its 2015 hack? Here’s everything to know about the infamous dating website’s rise, fall and rebirth.

What is Ashley Madison?

Ashley Madison is an online dating service that was originally targeted towards people looking to have an affair — either with married individuals or singles.

The site was founded in 2001 by Toronto native Noel Biderman, a former attorney, sports agent and “self-described happily married father of two,” according to a 2009 profile in the Los Angeles Times . Biderman is also behind the website’s name — a combination of the two most popular baby names for girls in 2001 — and its infamous slogan: “Life is short. Have an affair.”

The premise of Ashley Madison was quick to ruffle feathers, with critics claiming it was promoting promiscuity and profiting off of marital strife.

“This is a business built on the back of broken hearts, ruined marriages and damaged families,” Trish McDermott, a dating-industry consultant who helped found Match.com and Engage.com, told TIME in 2009. “It’s in the business of rebranding infidelity.”

But Biderman was a staunch defender of Ashley Madison, even claiming that the company “preserves more marriages than we break up,” according to the Los Angeles Times .

“Infidelity has been around a lot longer than Ashley Madison,” Biderman told the outlet. “Given that affairs are going to happen no matter what, maybe we should see Ashley Madison as a safe alternative.”

Though the company's morals could be debated, its success could not: By 2015, the site boasted nearly 40 million users and was projected to top $150 million in revenue, Business Insider reported. Ashley Madison was even considering a $200 million IPO on the London stock exchange in the spring of 2015, according to Fortune .

What happened to Ashley Madison during the data breach?

Steve Meddle/Shutterstock

In July 2015, a group of anonymous internet sleuths called The Impact Team hacked Ashley Madison’s website — stealing user account data for its 37 million users and threatening to post it online.

The data stolen included users’ login details, email addresses, payment transaction history and passwords. The Impact Team threatened to release all customer records (including sexual fantasies, credit card information and real names and addresses) online unless Avid Life Media — Ashley Madison’s parent company — shut down all of its websites, per Business Insider.

At the time of the initial breach, The Impact Team revealed their motivation for the cyber attack. According to the hackers, Ashley Madison charged users $19 for a full delete of their profile (reportedly earning the company $1.7 million in profit in 2014) — but didn’t actually follow through with the requests.

“You promised secrecy but didn’t deliver,” the hackers stated, according to Business Insider. “We've got the complete set of profiles in our DB dumps, and we'll release them soon if Ashley Madison stays online ... A significant percentage of the population is about to have a very bad day, including many rich and powerful people.”

That “very bad day” came in August 2015, when the hackers made good on their threat and released the customer data for all 37 million of Ashley Madison’s users.

“This event is not an act of hacktivism, it is an act of criminality,” Avid Life Media said in a statement following the data release, per Wired . “It is an illegal action against the individual members of AshleyMadison.com, as well as any freethinking people who choose to engage in fully lawful online activities ... We will not sit idly by and allow these thieves to force their personal ideology on citizens around the world.”

Following the data breach, a $576 million class action lawsuit accusing the company of negligence, invasion of privacy and emotional distress was filed in California. Ashley Madison's parent company settled for $11.2 million in 2017.

Who was exposed in the 2015 hack of Ashley Madison?

D Dipasupil/Getty ; Johnny Nunez/WireImage

Several high-profile figures were exposed when hackers posted the customer data for all of Ashley Madison’s 37 million users.

Josh Duggar , Real Housewives of New York City husband Josh Taekman , YouTube’s Sam Rader , Snooki’s husband Jionni LaValle and Hunter Biden were all named in the Ashley Madison leak. However, Ashley Madison does not verify users’ emails — so an account could be set up with someone’s name and email without their knowledge.

At the time, Snooki denied that her husband had an Ashley Madison account, writing on Instagram that it “couldn’t be any further from the truth.” Biden also vehemently denied having an account on the infidelity website, saying the email linked was one that he no longer used after being hacked.

“I am certain that the account in question is not mine,” Hunter said in a statement at the time. “This account was clearly set up by someone else without my knowledge and I first learned about the account in question from the media.”

Duggar, Taekman and Rader, however, all issued apologies for their involvement with the website.

Rader, from the YouTube channel Sam and Nia, admitted to making an Ashley Madison account two years prior. He also stated that his wife had forgiven him for the “mistake.”

Taekman, the husband of former RHONY star Kristen Taekman, provided a statement to PEOPLE, apologizing to his wife and children for “any embarrassment or pain” he may have caused.

“ I signed up for the site foolishly and ignorantly with a group of friends and I deeply apologize for any embarrassment or pain I have brought to my wife and family,” Taekman said. “We both look forward to moving past this and getting on with our lives.”

Duggar , at the time, was already under fire for allegedly molesting five underage girls (including two of his sisters) as a teenager. After news broke of his Ashley Madison account, he admitted to being unfaithful to his wife Anna and issued an apology on his family’s website.

“While espousing faith and family values, I have been unfaithful to my wife,” the statement read. “I am so ashamed of the double life that I have been living and am grieved for the hurt, pain and disgrace my sin has caused my wife and family, and most of all Jesus and all those who profess faith in Him.”

In addition to exposing high-profile users, the Ashley Madison leak may have been linked to at least two suicides, Toronto police claimed in August 2015. A month later, a New Orleans pastor also committed suicide after allegedly having his name exposed in the data breach.

What happened to Ashley Madison CEO Noel Biderman?

Jane Mingay/Shutterstock

In addition to the identities of Ashley Madison’s 37 million users being revealed, Biderman himself was also exposed in the 2015 hacking scandal.

Though Biderman had repeatedly told the media he had never been unfaithful to his wife Amanda, hackers leaked hundreds of the CEO’s emails that claimed otherwise. The emails suggested that Biderman had had multiple affairs, including one with a Toronto-based escort that lasted several years, Buzzfeed reported.

In the wake of the hacking, Biderman stepped down from his role as CEO of Avid Life Media, Ashley Madison’s parent company. Avid Life Media stated at the time that his resignation was “in the best interest of the company.”

Does Ashley Madison still exist?

Chris So/Toronto Star/Getty

Though the 2015 hacking threatened Ashley Madison’s existence, the website has continued to thrive in the near-decade since.

In 2016, Avid Life Media rebranded as Ruby Corp. and hired Rob Segal and James Millership as its CEO and president, respectively. The pair worked on revamping the beleaguered Ashley Madison site — which involved gaining back their clients’ trust and winning over new customers.

Segal and Millership increased the site’s cybersecurity — hiring Deloitte, instituting annual audits and removing all of the fake female bots from the website, Business Insider reported. The duo also ditched Ashley Madison’s infamous tagline “Life is short. Have an affair,” and instead replaced it with “Find your moment,” according to a Ruby Corp. press release .

“It was a limiting label that's out-dated and doesn't speak to the wide variety of connections people find on Ashley Madison,” Segal said in the press release. “While remaining true to our roots, Ashley Madison needs to evolve, grow and attune to modern sexuality in 2016.”

The rebrand attempted to shake Ashley Madison’s reputation as a website for those seeking affairs — but the company appears to have returned to its adulterous roots. Its website currently features the original logo (a woman wearing a wedding ring doing the “hush” symbol) and motto of “Life is Short. Have an affair.”

It is also as popular as ever: According to the site, it boasts 80 million users (more than double the amount at the time of the 2015 hacking).

If you or someone you know is considering suicide, please contact the 988 Suicide and Crisis Lifeline by dialing 988, text "STRENGTH" to the Crisis Text Line at 741741 or go to 988lifeline.org .

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We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Geico Auto Insurance Review 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Discounts Ratings are based on the number of discounts a company offers in comparison to other insurers.

Ease of use Ratings are determined by our editorial team. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim.

NAIC complaints Ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.

• Robust website and mobile app.
• Many discounts available.
• Doesn't offer gap insurance.
• Limited network of local agents.
• Below average customer satisfaction for auto insurance claims in a recent J.D. Power study.

Geico earned 5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.

Geico is the nation’s third largest auto insurance company, known primarily for low rates offered directly to consumers online and over the phone. It is available in all 50 states and Washington, D.C.

» MORE: The best car insurance companies

In our auto insurance reviews, our editorial team considers both the customer and the insurer. These are some of the factors we take into account:

Financial strength. We use A.M. Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. NerdWallet does not recommend companies with a rating lower than a B. 

Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best auto insurance companies have fewer than the expected number of complaints.

Ease of use. This category looks at how easily consumers can interact with an insurer through its mobile app and website. This includes how much coverage information is offered online, whether a user can start and track a claim online and get a quote and mobile app scores based on the Apple and Google Play store ratings.

Discounts. We look at both the kind of discounts a company offers and the total number of discounts available.

Where Geico stands out

Geico offers plenty of discounts and may be an affordable choice for many drivers. The company regularly appears as one of the cheapest options in recent NerdWallet cheap car insurance analyses.

The company also offers a variety of ways to digitally manage your auto insurance policy, including through its website and mobile app. In fact, Geico received an online experience score of 79 out of 100 by a pool of its customers in a NerdWallet survey conducted online in June and July 2023. To put that in perspective, the average score among ten insurers was 78, and the highest was 82.

Where Geico falls short

Geico doesn’t offer gap insurance. And if you prefer to work directly with an agent, you might have difficulty finding one near you. The company has a limited number of local agents depending on the state you live in.

Geico doesn’t rank as high for customer satisfaction as some other auto insurers. The company has close to the expected number of complaints you’d expect for a company of its size, and in J.D. Power’s 2023 study of overall customer satisfaction [0] J.D. Power . 2023 U.S. Insurance Shopping Study . Accessed May 14, 2024. View all sources , Geico was ranked the fourth insurer out of eight.

Compare to other insurers

How much does geico car insurance cost .

Geico car insurance costs $1,846 per year on average for full coverage insurance . That is more than $100 a year less than the average national rate of $1,982 per year. Compared to other large insurers, Geico’s rates fall toward the front of the pack. 

These rates are for a 35-year-old driver with a clean driving history and good credit with full coverage insurance. Our full coverage rates include liability, comprehensive, collision and any additional insurance a state requires a driver to have. These rates are averages, and your own price will depend on your driving history, car make and model, location and other factors. 

For more information on Geico car insurance rates, including rates after an at-fault accident or DUI, check out the dropdown below.

How Geico's rates compare

Your car insurance rate is determined by a variety of factors including your driving record and credit history in most states.

Here are Geico’s average annual auto insurance rates compared to 2024 national averages for full coverage insurance and four driving profiles.

If you’re looking for the cheapest auto insurance rates possible, you may want to buy the minimum car insurance needed to drive in your state. Read our cheap car insurance article to see average minimum car insurance rates by company and state.

Geico auto insurance coverage

When you're shopping for car insurance coverage, it's important to understand what car insurance coverage you want and what you’re required to buy. For instance, most states require a minimum amount of car insurance to drive a vehicle. Alternatively, if you want extra protection, you may be interested in full coverage insurance. Read about the most common types of car insurance coverage to see how they work.

In addition to typical car insurance coverage choices, Geico offers mechanical breakdown coverage. This covers repairs to all mechanical parts of a new or leased car less than 15 months old and with fewer than 15,000 miles, except problems caused by wear and tear. There’s a $250 deductible.

Mechanical breakdown coverage is renewable for up to seven years or 100,000 miles, whichever comes first, and does not pay for regular maintenance, such as tuneups.

» MORE: Compare auto insurance rates  

Auto insurance discounts

Geico has a long list of car insurance discounts, so there’s a good chance you can find a price break that applies to you. Although details vary by state, you may be eligible for discounts for:

Having safety equipment, like airbags, anti-lock brakes, daytime running lights or an anti-theft system.

Owning a vehicle that is three model years old or newer.

Driving for five years with no accidents.

Using seat belts.

Completing a defensive driving course, or driver’s education for a young driver.

Having good grades, if you or someone on your policy is a full-time student.

Participating in an emergency deployment with the U.S. military.

Being an active or retired military service member or a member of the National Guard or Reserves.

Being an active or retired federal employee.

Insuring more than one vehicle with Geico.

Buying a homeowners, renters, condo or mobile home policy through Geico.

Being a member of organizations, such as alumni associations or sports groups.

First time shopping for auto insurance? Unsure where to start? Check out our guide on how to shop for car insurance .

Pricing based on tracked driving habits

In many states, Geico offers a program called DriveEasy, which uses a smartphone app to track habits such as speeding, hard braking and using your phone while driving. You can get a discount for safe driving, but in some states, you may end up paying more if the app finds you to be a riskier driver.

See what you could save on car insurance

Complaints and customer satisfaction.

Geico had close to the expected number of complaints about auto insurance to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners.

Geico received an overall satisfaction score of 78 out of 100 from a pool of its customers in a NerdWallet survey conducted online in June and July 2023. To put that in perspective, the average score among seven insurers was 78, and the highest was 82.

Geico ranked below average in J.D. Power’s 2023 auto claims insurance study [0] J.D. Power . 2023 U.S. Auto Insurance Claims Satisfaction Study . Accessed May 14, 2024. View all sources , and slightly below average in its 2023 auto insurance shopping study [0] J.D. Power . 2023 U.S. Insurance Shopping Study . Accessed May 14, 2024. View all sources .

More about Geico insurance 

Website: You can learn about and get a quote for many types of insurance through Geico’s website, and you can also submit a claim or make a payment. Additionally, the site has a feature to help you find the cheapest gas station near you.

App: Geico’s mobile offering for iOS and Android helps you keep track of your policy and billing details, access your digital auto insurance ID card, pay bills and submit claims. You can also use the app to request roadside assistance and track your car’s maintenance history.

Virtual assistance: Geico’s virtual assistant is a feature of its website and mobile app that can answer your insurance questions and provide specific policy information. Your Geico account is also accessible using Amazon's Alexa and Google Assistant.

Life, homeowners and renters insurance from Geico

Geico offers home insurance through partner companies. To learn more about the coverage options available, read our Geico homeowners insurance review .

Geico also offers renters insurance through its partners. To read about this program, see NerdWallet’s Geico renters insurance review .

Other insurance from Geico 

Geico sells the following types of insurance:

Motorcycle insurance.

Insurance for all-terrain vehicles.

Recreational vehicle insurance.

Boat or personal watercraft insurance.

Commercial auto insurance.

Umbrella insurance (some policies sold by a third party).

Geico offers other policies through third parties, including:

Collector insurance for classic cars.

Condo and co-op insurance.

Mobile home insurance.

Pet insurance.

Life insurance.

Yes, Geico is a good insurance company for most. If you’re looking for an affordable car insurance policy, and you’re comfortable managing your own accounts online when an agent isn’t nearby, Geico might be right for you.

You can file a claim online, through the Geico app or over the phone.

Yes, Geico covers rental cars if yours is in a wreck, as long as you’ve added rental reimbursement coverage to your policy (it’s optional). The coverage may have daily and/or per-claim limits.

No, Geico doesn’t offer gap insurance. To find companies that do, see our guide to gap insurance .

Customer service number: Geico’s phone number is 800-207-7847. You can also find an agent to call on the website.

Email: Contact form via the website

Live chat: Geico offers a live chat on its website.

X: Reach out to Geico on X at @Geico_Service .

No, Geico doesn’t offer gap insurance. To find companies that do, see our guide to

gap insurance

Customer service number:

Geico’s phone number is 800-207-7847. You can also find an agent to call on the website.

Contact form via the website

Geico offers a live chat on its website.

Reach out to Geico on X at

@Geico_Service

Methodology

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

Auto insurance ratings methodology

NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints and discounts. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines and full ratings methodology for auto insurance .

ON A SIMILAR NOTE...

Dive even deeper in insurance, compare car insurance rates, best car insurance companies of may 2024, cheap car insurance.

Explore INSURANCE

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• About Adverse Childhood Experiences
• Risk and Protective Factors
• Program: Essentials for Childhood: Preventing Adverse Childhood Experiences through Data to Action
• Adverse childhood experiences can have long-term impacts on health, opportunity and well-being.
• Adverse childhood experiences are common and some groups experience them more than others.

What are adverse childhood experiences?

Adverse childhood experiences, or ACEs, are potentially traumatic events that occur in childhood (0-17 years). Examples include: 1

• Experiencing violence, abuse, or neglect.
• Witnessing violence in the home or community.
• Having a family member attempt or die by suicide.

Also included are aspects of the child’s environment that can undermine their sense of safety, stability, and bonding. Examples can include growing up in a household with: 1

• Substance use problems.
• Mental health problems.
• Instability due to parental separation.
• Instability due to household members being in jail or prison.

The examples above are not a complete list of adverse experiences. Many other traumatic experiences could impact health and well-being. This can include not having enough food to eat, experiencing homelessness or unstable housing, or experiencing discrimination. 2 3 4 5 6

Quick facts and stats

ACEs are common. About 64% of adults in the United States reported they had experienced at least one type of ACE before age 18. Nearly one in six (17.3%) adults reported they had experienced four or more types of ACEs. 7

Preventing ACEs could potentially reduce many health conditions. Estimates show up to 1.9 million heart disease cases and 21 million depression cases potentially could have been avoided by preventing ACEs. 1

Some people are at greater risk of experiencing one or more ACEs than others. While all children are at risk of ACEs, numerous studies show inequities in such experiences. These inequalities are linked to the historical, social, and economic environments in which some families live. 5 6 ACEs were highest among females, non-Hispanic American Indian or Alaska Native adults, and adults who are unemployed or unable to work. 7

ACEs are costly. ACEs-related health consequences cost an estimated economic burden of $748 billion annually in Bermuda, Canada, and the United States. 8

ACEs can have lasting effects on health and well-being in childhood and life opportunities well into adulthood. 9 Life opportunities include things like education and job potential. These experiences can increase the risks of injury, sexually transmitted infections, and involvement in sex trafficking. They can also increase risks for maternal and child health problems including teen pregnancy, pregnancy complications, and fetal death. Also included are a range of chronic diseases and leading causes of death, such as cancer, diabetes, heart disease, and suicide. 1 10 11 12 13 14 15 16 17

ACEs and associated social determinants of health, such as living in under-resourced or racially segregated neighborhoods, can cause toxic stress. Toxic stress, or extended or prolonged stress, from ACEs can negatively affect children’s brain development, immune systems, and stress-response systems. These changes can affect children’s attention, decision-making, and learning. 18

Children growing up with toxic stress may have difficulty forming healthy and stable relationships. They may also have unstable work histories as adults and struggle with finances, jobs, and depression throughout life. 18 These effects can also be passed on to their own children. 19 20 21 Some children may face further exposure to toxic stress from historical and ongoing traumas. These historical and ongoing traumas refer to experiences of racial discrimination or the impacts of poverty resulting from limited educational and economic opportunities. 1 6

Adverse childhood experiences can be prevented. Certain factors may increase or decrease the risk of experiencing adverse childhood experiences.

Preventing adverse childhood experiences requires understanding and addressing the factors that put people at risk for or protect them from violence.

Creating safe, stable, nurturing relationships and environments for all children can prevent ACEs and help all children reach their full potential. We all have a role to play.

• Merrick MT, Ford DC, Ports KA, et al. Vital Signs: Estimated Proportion of Adult Health Problems Attributable to Adverse Childhood Experiences and Implications for Prevention — 25 States, 2015–2017. MMWR Morb Mortal Wkly Rep 2019;68:999-1005. DOI: http://dx.doi.org/10.15585/mmwr.mm6844e1 .
• Cain KS, Meyer SC, Cummer E, Patel KK, Casacchia NJ, Montez K, Palakshappa D, Brown CL. Association of Food Insecurity with Mental Health Outcomes in Parents and Children. Science Direct. 2022; 22:7; 1105-1114. DOI: https://doi.org/10.1016/j.acap.2022.04.010 .
• Smith-Grant J, Kilmer G, Brener N, Robin L, Underwood M. Risk Behaviors and Experiences Among Youth Experiencing Homelessness—Youth Risk Behavior Survey, 23 U.S. States and 11 Local School Districts. Journal of Community Health. 2022; 47: 324-333.
• Experiencing discrimination: Early Childhood Adversity, Toxic Stress, and the Impacts of Racism on the Foundations of Health | Annual Review of Public Health https://doi.org/10.1146/annurev-publhealth-090419-101940 .
• Sedlak A, Mettenburg J, Basena M, et al. Fourth national incidence study of child abuse and neglect (NIS-4): Report to Congress. Executive Summary. Washington, DC: U.S. Department of Health an Human Services, Administration for Children and Families.; 2010.
• Font S, Maguire-Jack K. Pathways from childhood abuse and other adversities to adult health risks: The role of adult socioeconomic conditions. Child Abuse Negl. 2016;51:390-399.
• Swedo EA, Aslam MV, Dahlberg LL, et al. Prevalence of Adverse Childhood Experiences Among U.S. Adults — Behavioral Risk Factor Surveillance System, 2011–2020. MMWR Morb Mortal Wkly Rep 2023;72:707–715. DOI: http://dx.doi.org/10.15585/mmwr.mm7226a2 .
• Bellis, MA, et al. Life Course Health Consequences and Associated Annual Costs of Adverse Childhood Experiences Across Europe and North America: A Systematic Review and Meta-Analysis. Lancet Public Health 2019.
• Adverse Childhood Experiences During the COVID-19 Pandemic and Associations with Poor Mental Health and Suicidal Behaviors Among High School Students — Adolescent Behaviors and Experiences Survey, United States, January–June 2021 | MMWR
• Hillis SD, Anda RF, Dube SR, Felitti VJ, Marchbanks PA, Marks JS. The association between adverse childhood experiences and adolescent pregnancy, long-term psychosocial consequences, and fetal death. Pediatrics. 2004 Feb;113(2):320-7.
• Miller ES, Fleming O, Ekpe EE, Grobman WA, Heard-Garris N. Association Between Adverse Childhood Experiences and Adverse Pregnancy Outcomes. Obstetrics & Gynecology . 2021;138(5):770-776. https://doi.org/10.1097/AOG.0000000000004570 .
• Sulaiman S, Premji SS, Tavangar F, et al. Total Adverse Childhood Experiences and Preterm Birth: A Systematic Review. Matern Child Health J . 2021;25(10):1581-1594. https://doi.org/10.1007/s10995-021-03176-6 .
• Ciciolla L, Shreffler KM, Tiemeyer S. Maternal Childhood Adversity as a Risk for Perinatal Complications and NICU Hospitalization. Journal of Pediatric Psychology . 2021;46(7):801-813. https://doi.org/10.1093/jpepsy/jsab027 .
• Mersky JP, Lee CP. Adverse childhood experiences and poor birth outcomes in a diverse, low-income sample. BMC pregnancy and childbirth. 2019;19(1). https://doi.org/10.1186/s12884-019-2560-8 .
• Reid JA, Baglivio MT, Piquero AR, Greenwald MA, Epps N. No youth left behind to human trafficking: Exploring profiles of risk. American journal of orthopsychiatry. 2019;89(6):704.
• Diamond-Welch B, Kosloski AE. Adverse childhood experiences and propensity to participate in the commercialized sex market. Child Abuse & Neglect. 2020 Jun 1;104:104468.
• Shonkoff, J. P., Garner, A. S., Committee on Psychosocial Aspects of Child and Family Health, Committee on Early Childhood, Adoption, and Dependent Care, & Section on Developmental and Behavioral Pediatrics (2012). The lifelong effects of early childhood adversity and toxic stress. Pediatrics, 129(1), e232–e246. https://doi.org/10.1542/peds.2011-2663
• Narayan AJ, Kalstabakken AW, Labella MH, Nerenberg LS, Monn AR, Masten AS. Intergenerational continuity of adverse childhood experiences in homeless families: unpacking exposure to maltreatment versus family dysfunction. Am J Orthopsych. 2017;87(1):3. https://doi.org/10.1037/ort0000133 .
• Schofield TJ, Donnellan MB, Merrick MT, Ports KA, Klevens J, Leeb R. Intergenerational continuity in adverse childhood experiences and rural community environments. Am J Public Health. 2018;108(9):1148-1152. https://doi.org/10.2105/AJPH.2018.304598 .
• Schofield TJ, Lee RD, Merrick MT. Safe, stable, nurturing relationships as a moderator of intergenerational continuity of child maltreatment: a meta-analysis. J Adolesc Health. 2013;53(4 Suppl):S32-38. https://doi.org/10.1016/j.jadohealth.2013.05.004 .

Adverse Childhood Experiences (ACEs)

ACEs can have a tremendous impact on lifelong health and opportunity. CDC works to understand ACEs and prevent them.

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Help! Our Cruise Operator Went Bankrupt and We Are Out $17,905.

A couple purchased an Arabian Sea voyage, but Vantage, the cruise company, went under. Their travel insurance was supposed to cover financial default, but the claim was repeatedly denied.

By Seth Kugel

Dear Tripped Up,

In September 2022, I booked a 17-day Arabian Sea cruise through Vantage Travel Services to celebrate my 80th birthday with my wife. The cruise was to set sail in October 2023. I used my credit card to leave a $2,000 deposit and paid the remaining $17,905 shortly afterward by bank transfer. I also bought the Worldwide Trip Protector plan from Travel Insured International (for $1,954), in part because it covered financial default and bankruptcy of cruise lines. Vantage then canceled the cruise and offered me an alternative date I could not make; I also declined their offer of credit and asked for a refund, which they agreed to. But no refund ever came, and they stopped answering the phone. My credit card returned the $2,000, and I filed an insurance claim for $17,905. It was denied, as was my first appeal. Then Vantage filed for bankruptcy, and my second appeal was denied too. The reasons given by the insurer were outrageous. They cited a vague parenthetical phrase in the policy’s bankruptcy clause, claiming I wasn’t covered because I purchased the cruise directly from the cruise line (rather than, say, through a travel adviser). Then they said my policy lapsed when I canceled the trip. But I did not cancel; Vantage did. I also filed a complaint with the New York State Department of Financial Services, which was rejected. Can you help? Michael, Smithtown, N.Y.

Dear Michael,

When Boston-based Vantage filed for bankruptcy last year, it owed thousands of customers a total of $108 million for cruises and other travel products they had paid for but never received. The company’s former owner is facing lawsuits in New York and Pennsylvania. But you had purchased an insurance policy to cover just such a risk, a smart move. Or so you thought until the insurance company, Travel Insured International, denied your claim and then used exasperating logic to fend off your two appeals, first interpreting the policy’s financial default and bankruptcy clause in a maddening way and then twisting the meaning of the word “cancel.”

You made a few mistakes as well — most notably, by making a claim based on a financial default that had not yet happened. But after speaking with law professors, insurance experts and competing insurance companies, I believe Travel Insured International was wrong, at least by the time of your second appeal, and should pay up.

What does it have to say for itself? For nearly five months, Travel Insured International and its parent company, Crum & Forster, did not respond to my detailed inquiries. Days before publication, however, a spokeswoman, Amy Whilldin, sent the following statement:

“The claim was properly considered, and the correct determination was made based on the facts of this claim, which was to the satisfaction of both the New York Department of Financial Services and the New York State attorney general.”

Ms. Whilldin is correct about the state’s financial services department . An examiner with the department, which regulates the insurance industry, rejected your complaint. “After a review of the policy language," he wrote, “we do not find they are acting in an arbitrary or capricious manner,” referring to Travel Insured International. I disagree with that determination, as we are about to get into.

But the attorney general’s office was not satisfied. You had complained to its Department of Consumer Frauds and Protection, and they did not receive a response from the company. “Despite our repeated efforts,” an employee wrote, “they have failed to respond.” The letter goes on to recommend you consider suing the company.

I have a better idea. You should file a formal grievance with Travel Insured International, which under your policy allows you to submit new evidence, and if that fails even argue your case in person. (You told me you are not interested in a third option, to accept travel credits under the conditions offered by the Australian company that bought Vantage’s assets.)

In the meantime, your story provides great lessons on how travelers should choose the appropriate travel insurance policy, and what can go wrong even when they do.

In your initial claim to Travel Insured International, filed in late 2022, you cited Vantage’s “very poor record” in refunding its customers and your “assumption that the company is in default in making payments.”

This was an error: Your policy defines financial default as “the total cessation of operations,” and Vantage at the time was running at least some cruises. Travel Insured International’s response simply said that “your travel supplier canceling your trip is not a covered reason.” True.

When you first appealed in April, Vantage was two months short of declaring bankruptcy outright, and was not yet in financial default as defined by the policy. But it was teetering. (That one of its cruises left at all made headlines in The Boston Globe .) This time, Travel Insured International denied your claim, citing the bankruptcy clause, which protects policy holders in case of “Bankruptcy or default of an airline, cruise line, tour operator or other travel provider (other than the Travel Supplier, tour operator, travel agency, organization or firm from whom you purchased your travel arrangements).”

That parenthetical says you are not covered if the organization that sold you the cruise goes bankrupt. You purchased the cruise directly from Vantage, so you are not covered, according to the claims adjuster’s reasoning. (Why the company even cited this clause, if the cruise line was not yet in default, remains a mystery.)

Similar clauses appear in many travel policies, but that’s not what they’re supposed to mean, said Loretta Worters, vice president for media relations at the Insurance Information Institute , an industry group.

Such provisions, she explained, are intended to exclude coverage for an unscrupulous or financially flailing middleman that goes belly-up after collecting your money but before passing it along to the actual travel provider.

“Some of these are fly-by-night, travel-agencies-in-their-kitchen kinds of things,” Ms. Worters said. ( We encountered one such agency in a previous Tripped Up column .)

Guess who agreed with Ms. Worters: The agent who answered the phone when I called Travel Insured International’s customer care line as a potential customer. I asked about the clause and she agreed it was ambiguous, checking with a supervisor before saying: “If you are booking directly with the company and the company itself goes under default or bankruptcy, you would be able to file a claim for the nonrefundable portion of your trip.”

Ms. Whilldin, the spokeswoman for Travel Insured International, did not specifically answer my question about this apparent conflict. But it seems their claims adjuster made a mistake, aided by the ambiguous language of the underwriter who wrote the policy. (That’s United States Fire Insurance, another Crum & Forster company.)

Now, let’s discuss the second appeal. “Once you cancel your trip, the coverage under the plan ends,” Travel Insured International said. Your argument is that you did not cancel; Vantage did.

I think almost anyone who isn’t a lawyer would agree with you. But Oren Bar-Gill , a professor at Harvard Law School and the author of “Seduction by Contract: Law, Economics and Psychology in Consumer Markets,” explained to me the opposing argument. Vantage was contractually allowed to change the dates or offer credit, and you refused, the equivalent of canceling.

But, he added, when Vantage agreed to refund your cruise, it could be “considered a waiver of their contractual rights,” weakening the argument that you canceled your contract.

In a lawsuit New York State filed against the now-defunct Vantage and its former owner, Henry Lewis, the issue also comes up: The suit says Vantage “deceptively” mislabeled cancellations as “postponements.”

Even Travel Insured International admitted that Vantage had canceled, in its original letter rejecting your claim. “It is our understanding that your travel supplier, Vantage, canceled your cruise,” the claims adjuster wrote. Somehow, however, by the third response you had gone from cancelee to canceler.

You also missed a red flag when you chose your policy. Suzanne Morrow, the chief executive of InsureMyTrip , where you found your plan, told me you called the company within minutes of your purchase and asked an agent to point you to the bankruptcy clause. (You confirmed this to me.)

That means you’re not the typical insurance customer blindsided by small print you never read. If you were so concerned about the cruise line’s solvency, you could have canceled your plan during the insurer’s “free look” period and chosen one with more straightforward language — I found several on the InsureMyTrip website.

What lessons can we take away from your debacle?

To begin with, pay for everything with a credit card when your credit limit allows. Because of an odd quirk in a 1974 law , card issuers are required to reimburse you if the company you interacted with goes bankrupt.

Beyond that, the basic advice for travel insurance remains unchanged: Shop for a plan separately through a provider you trust or an aggregator like InsureMyTrip, rather than adding trip protection by checking a box just before you purchase a big-ticket item. Read the policy summaries fully and click through to the actual policy document to read fine print on issues that concern you most (say, bankruptcy protection or medical coverage for pre-existing conditions).

If you don’t understand anything, call the company. If it cannot answer satisfactorily and follow up in writing, choose another provider.

If you need advice about a best-laid travel plan that went awry, send an email to [email protected] .

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Seth Kugel is the columnist for “ Tripped Up ,” an advice column that helps readers navigate the often confusing world of travel. More about Seth Kugel

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