Insurance should compensate a loss but not enrich, otherwise the risk for moral hazard and fraud increases.

Determining a potential loss can be quite difficult in life / disability insurance. Different kinds of insurable interest require special calculation methods. These calculations are only approximations to reflect the financial loss. Individual circumstances should always be considered.

The following points should be checked:

• Determination of the potential loss
• Disability income should never fully replace pre-disability income
• A person should not be worth more dead than alive
• The total line (= new + all existing / concurrent covers) should be taken into account