Common Concerns
Some of the most common concerns and topics when researching or purchasing life insurance.
Top Reasons people purchase life insurance
The top reasons people buy life insurance because their income has some impact on the way their family and loved ones live and want to protect them from any financial burden upon their passing.
Top Reasons people Need life insurance
The top reasons people need personal life insurance are to cover... Final Expenses, Loss of Income, and Mortgage Payment.
What to look for in my Life Insurance company
Few things we want to make sure of when choosing a life insurance company...
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They have the product(s) to fit your needs.
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A good financial rating which can be found on AM Best or FitchRatings
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They have a high Quality customer satisfaction rating.
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Compare quality products across companies to see what fits you best.
What to look for in my Life Insurance Policy
Few things we want to make sure of when choosing a life insurance policy...
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Ensure the benefit value meets your families' needs.
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Ensure the premium payment is comfortable based on your income and other necessary bills.
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Check for Riders and make sure you are getting all value out of your policy, not just death benefit.
Why I should review my current Life Insurance Policy regularly
​Few reasons we want to check on our current life insurance policies...
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May not be sure of exactly what you have, if you have the right type or amount.
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If your living or responsibility circumstances changed. Married, kids, new mortgage, Retiring, etc.
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Improved health or lifestyle change. Like 2 years since a stroke or you quit smoking.
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Check for lower rates or policy upgrades.
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Make sure you have the riders you want.
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Ensure your Beneficiaries are correct.
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Check for Loans (sometimes taken automatically due to Automatic Premium Loan)
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Check to see if your policy expires. If so, when does that happen?
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Check Cash Value amount
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Check to see that current cost of insurance has not exceeded premium.
Can a Broker help me with my Policy Review?
Absolutely! A thorough policy review is a pivotal part in determining what your needs are and helps our brokers ensure you are maximizing your insurance benefits.
It's Free to work with a Broker
Brokers licensed by states individually and are either self employed or contracted with an Independent Organization that helps them get contracted with different insurance providers. Sales professionals can sometimes be looked at as pushy, but in reality Insurance brokers work for the client because if they don't find them a policy worth keeping the family doesn't get protected and the broker doesn't get paid to help his/her family. Nobody wins.
Benefits of a Broker...
A good licensed broker who is contracted with the right carriers is able to provide you with a plethora of options and services to help you choose which one perfectly fits you and your families' needs based on health and financial goals.
Broker vs. Agent
A "broker" works for multiple insurance carriers and has access to multiple companies while an "agent" works for only one individual insurance company and can help with that companies products only.
What is a Rider?
A Rider is something included in or added onto a life insurance policy that gives it value other than just a cash value or death benefit. Some common riders are Accidental Death and Dismemberment, Accelerated Death Benefit (Critical, Chronic, and Terminal Illness, Nursing Home confinement), Return of Premium, Guaranteed insurability, etc. Click here to learn more about Riders
What are Living Benefits?
Living Benefits are additional parts (riders) included in life insurance policies that provide you benefit while you are still alive.
Burial vs. Cremation vs. Funeral Insurance.
Whats the difference??
In terms of Life insurance...none. All of these problems are typically handled with the same type of whole life, final expense policy. We've just started calling it different names for what we want it to take care of. You can buy specific burial or cremation insurance from the funeral home, which goes to the funeral home or crematory instead of to your family or loved ones.
Life Insurance vs Pre-Need pre-paid plan?
The main difference here is who is in control of the funds designed to take care of your final wishes and who will be in charge of any extra funds. With Life insurance all the money goes to your family, or beneficiary, and they get to make decisions and keep any extra funds. Pre-need or pre-paid plans send all money to funeral home and often require you to pay the full amount, as opposed to an insurance policy where you could pass away prior to paying the full amount of the funeral. The insurance company is then responsible for the funds.
What to be careful about with plans in the mail and on TV...
Plans that come through the mail or on the television are usually what can be referred to as "one size fits all" plans. They typically carry a waiting period of 2 or 3 years (guaranteed issue policy), work in units based on age which can skew the amount you are actually getting. If it sounds too good to be true it most likely is.
Red flags for seniors and their current policies...
Typically when we become of the senior or retirement age we begin to work with what is commonly referred to as a "fixed income". Well when we are on a fixed income we don't need any drastic changes in our bills. A few things seniors can look out for to make sure their current life insurance policy is what they need...
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Notices/bills/literature in the mail from your life insurance. These typically indicate things in the policy are subject to change, like payment or coverage amount, not usually a good thing for a senior.
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Automatic payments stop. Usually not a good sign, often times seniors think their policy must be paid up, however that is rarely the case. More times than not they had a term policy that expired and had no renewable option on it.
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Different health ratings and what they mean
Some companies have 8-12 or more health classification rankings. Most of those can be broken down into four main classifications
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Preferred Plus - The healthiest of clients. Typically have a good personal and family health history, take little to no medications, and qualify within height and weight guidelines.
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Preferred - Next best healthiest. Still a very healthy individual with good height and weight. Maybe a few medications and minor health concerns. Could participate in dangerous work or hobbies or your family history may not be the best.
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Standard Plus - No history of family health issues and you are still fairly healthy, but have some minor issues with your health or the height and weight guidelines.
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Standard - Lowest of four basic categories, however, widely regarded as the category most people fall into. May have some personal health issues or your family might not have the cleanest health history.
Non-Medical vs.
Full MedicalExam
Non-Medical means you do not have to get a physical exam before getting approved, while Full Medical means you will need to complete a full medical exam based on the requirements of the carrier. Typically full medical exams are required for substantial amounts of insurance or by certain carriers depending on the desired product.
Starter Plans and how they help
Starter plans are essentially smaller life insurance plans that you buy because you are as young and healthy as you're going to be, but you may not be able to afford the full amount you want right away. Buying a starter plan allows you to lock in at least some coverage at a lower rate so you do not have to buy as much later. It also guarantees that you have at least some coverage in place in case your health declines and you no longer qualify for coverage. Life insurance is purchased with your health first, and wallet second.
Why you should review your policy every few years
Typically you should check on your life insurance policy at least every two years or the minute you think something may be changing. When you review it you want to make sure it is the right type of policy, and that nothing is going to change unexpectedly on you, like the price going up or the policy expiring.
Benefits of a "Grow-Up Plan" for child or life insurance for children under 18.
Many benefits to a Grow-Up Plan. The most popular is offered by Gerber and is available through our Licensed Brokers. The main perks offered by Gerber are a doubling death benefit at 18 for no extra cost and the option to purchase extra insurance no matter future health or occupation. The main benefit of a juvenile life insurance plan is provide current and future insurability and also a cash value savings for the child as they age.
Personal vs. Group Life Insurance
Personal life insurance is purchased individually and usually features plans and options in which the insured can choose from. Group life insurance is typically offered through work and is a very inexpensive way to supplement your life insurance, but should not be relied upon as sole insurance coverage. Individuals can also purchase their life insurance individually to be part of a group plan. Simply put the insured is in charge of the terms of their individual policy and are not in control of anything with a group policy.