Insurance Agent Forum

[bhartiaxa]

Buying a life insurance cover is quite a simple process. Yet there are some simple tips you need to understand in order to get the best life insurance cover that meets all your requirements. Read on to make your buying of a life insurance a success.

1) Decide the amount you need to be covered for: This is the most important step in buying a life insurance cover. Find out what is the amount of cover right for you. If your cover is insufficient to meet your present liabilities, your dependents will have a hard time to make their ends meet in case of your death. If you take very high life cover, you will end up paying very high premiums which are a waste of money. So it is advisable to contact an independent life insurance broker who will help you choose the proper cover for you.

2) Find out the coverage included in your policy: Certain life insurance policies also provide cover for certain instances like unemployment, disability or critical illness. So if you already have separate insurance policies to cover these instances, you can always exclude them as going for them will increase your premium amount. This can be unnecessary expense.

3)Decide on the type of insurance policy you want to go for. If you want the cheapest insurance policy without an element of investment, go for term plan. For insurance and investment for a definite period, choose between endowment, whole life and unit link insurance policies. Due to the absence of investment option, term policy is the cheapest and unit link policy is the costliest.

4)Decide how long you want the policy to cover you: Your premium will be decided by the term you want your policy should last. This is very important because as you grow older, your premiums will increase. So if you have decided to take a policy for 15 years, your premium will increase at the time of renewal, as you have grown older. If you want to avoid this situation, opt for a whole life policy so that you are covered till you die.

5)Get life insurance quotes: Getting life insurance quotes is very important as different insurers have different premiums for a specific amount insured for a certain period with certain exclusions for a certain age. If you choose to avail of the insurance riders than the life insurance quotes will increase and this increase will not be uniform amongst various insurers. Asking for life insurance quotes can save you a lot of money over the policy term.


6)Study various life insurance quotes: After getting various life insurance quotes, go though them minutely. Understand what every policy covers as well as its exclusions. Select few policies that fulfill your need.


7)Find out about the quality of customer service of the short listed insurance companies: Quality of the customer service provided by insurance companies will vary a lot. Just because an insurance company is well known, it does not mean its customer service is excellent. You can get a honest feedback about the service of the insurers on different consumer forums, as well as consumer review websites. Here you’ll get an honest appraisal about the customer service of the insurers from actual experiences. It is very important to observe how quickly the company settles the claims, how the company deals with you in case of loss of policy documents and the ultimate surrender value of the policy, in case you cannot keep on paying the premium.

Following the above points will give you a better base as far as understanding Life Insurance is concerned. This will further enable you to make an insurance policy that will cater to your needs in a complete manner.

[Newby]

[COLOR=red]Duh!!!???[/COLOR]

[Mac1958]

With respect, if a life insurance agent explained the process to me like it's explained here, I would find a new agent.

The job of a good agent is to walk the prospect through this process based on careful fact-finding and appropriate decision-making, not to expect the prospect to do it themselves without knowing the "ins and outs" of the different variables involved. That's why (good) agents exist.

[Hadley]

What about the financial strength rating from AM Best for the insurance company?

Considering the current situation of AIG, I would think more and more prospective clients will be inquiring about the financial status of their life insurance company.

[Newby]

Originally Posted by Hadley

What about the financial strength rating from AM Best for the insurance company?

Considering the current situation of AIG, I would think more and more prospective clients will be inquiring about the financial status of their life insurance company.

What was AIG rated?

[GreenSky]

Originally Posted by Hadley

What about the financial strength rating from AM Best for the insurance company?

Considering the current situation of AIG, I would think more and more prospective clients will be inquiring about the financial status of their life insurance company.

Did something happen with AIG?

Rick

[The Rabbi]

According to some of the responses on the thread, I can see how hard it is to get a good agent.

I still wonder how some people think their way is the only way. Too bad you learned nothing from the efforts of the poster.

If you would have said something constructive, it would have been good.

[Newby]

Originally Posted by The Rabbi

According to some of the responses on the thread, I can see how hard it is to get a good agent.

I still wonder how some people think their way is the only way. Too bad you learned nothing from the efforts of the poster.

If you would have said something constructive, it would have been good.

This thread was started by a spammer. If I'm wrong, I apologize.

If AIG had a bad AM Best rating last month, I was not aware of it. I would like to know more if AM Best had forewarned us because I missed it. I have not done business with AIG so I was not aware of how they were rated.

[xrac]

Originally Posted by Newby

This thread was started by a spammer. If I'm wrong, I apologize.

If AIG had a bad AM Best rating last month, I was not aware of it. I would like to know more if AM Best had forewarned us because I missed it. I have not done business with AIG so I was not aware of how they were rated.

Newby,

I am with you. I don't think this original post contained much of value as far as buying insurance is concerned.

[djs]

Okay, the problem with the original post (which is actually well thought out) is that the average consumer wouldn't have a good basis of comparison when looking at the answers to these questions.

Exclusions to a life policy? Hmmm, you still have a heartbeat, we won't pay. After that, it begins to get a bit murky.... acts of war, suicide in the contestibility period, etc, but they all read about the same.

The questions left out are more telling, such as does the agent have the knowledge to figure out who should own the policy (and why), is a trust involved, what are the potential estate tax implications, etc?

Even AIG still has their reserves to pay their death claims. I wouldn't panic (yet). Except New York, I don't think any state insurance commissioner is going to reduce the reserve requirements for them.

Dan

[xrac]

CPA Journal, The: Life insurance: Dispelling illusions

"There are numerous issues to be reviewed and resolved while shopping for life insurance before making an intelligent purchase. Who is best equipped to review the alternatives? Who can explain the differences between illustrations from the same company for the same policy form, same premium amount, and same amount of coverage? What about tax issues?

The most informed responses to the questions above will not be obtained from the typical mail-in response or 800 number, nor will they come from the Internet, the relative, the banker, the stockbroker, the fee-only planner, or even the CPA. The most knowledgeable responses will come from well-qualified life insurance professionals with years of hands-on experience and professional credentials: the chartered life underwriter (CLU) or chartered financial consultant (ChFC). Many such advisors will also possess other advanced credentials, such as an MBA, JD, or CPA. Many have also created strategic partnerships with CPAs, bankers, and property and casualty firms.

These insurance professionals will be members of the National Association of Insurance and Financial Advisors as well as the Society of Financial Service Professionals, just as lawyers will belong to their state and local bar associations and accountants to the AICPA and state societies. The more sophisticated insurance advisors will be members of the local Estate Planning Council and will provide satisfied client references. Going with a newer agent is a less risky choice if working jointly with a more seasoned professional.

A final word on agents, brokers, and advisors. The truly professional insurance advisor may have a primary company or relationship, but should not represent just one carrier. Today's advisor must have relationships with multiple companies and access to a wide variety of products. A single purchase may comprise a variety of products from several companies. The carriers should have solid financial ratings and a long-term commitment to the life insurance industry and its products.

A professional insurance advisor does not just sell a policy. Bringing their personal experience to bear, they advise and counsel, they review policy forms, options, costs, benefits, structures, tax implications, and nonfinancial considerations as they relate to the prospective purchaser, both at the time of purchase and in the future."

[LGilmore]

As far as I know AIG's life insurance company was just fine. AIG is a company made up of many companies. Their mortgage division was in the sh itter, the life was fine with reserves a plenty. The problem was the mortgage division couldn't rob the life for assets. Or am I mistaken?

[Tomas]

Originally Posted by Newby

This thread was started by a spammer.

At last someone figured out what these articles from baxwhatever are. Of course it's a spam. It's a copy/paste from somewhere and used to get a link to their page. Check his other posts - no discussions, no answers to the questions, just starting the threads...
Pathetic that some of you still take him seriously and trying to discuss what he wrote...

[atlantainsguy]

Follow the original post -- right after buying max E&O and locating a good attorney.

A few thoughts:

NAIC Model Code and every state DOI Code strictly prohibits calling life insurance an "investment". Period. Great way to get a hefty fine, or loose your license.

Would anybody be effected financially if you died? And, do you care?

All life insurance is the same thing, just with a different payment plan. Do you want an increasing payment plan, a fixed-level payment plan, or a flexible payment plan?

Do you want the lowest starting cost, or the lowest total cost?

If Term is your conclusion -- do you want a quality Term policy, or a stripped-out Term policy?

Who should control the business relationship -- you, or the insurance company?

If permanent -- who should own the money -- you, or the insurance company?

If permanent -- how will you get the money back?

Do you want all the tax benefits associated with life insurance, or not?

"The life insurance industry believes, and trains its agents to believe, that you're going to die tomorrow -- and that somebody else needs the money.

On the other hand...

I believe you are probably going to die of old age, and that you just want to live better in the meantime -- while still taking care of your beneficiaries."


atlantainsguy

[DavidD1]

Originally Posted by Tomas

At last someone figured out what these articles from baxwhatever are. Of course it's a spam. It's a copy/paste from somewhere and used to get a link to their page. Check his other posts - no discussions, no answers to the questions, just starting the threads...
Pathetic that some of you still take him seriously and trying to discuss what he wrote...

I've been in the business several years and have sold or currently sell everything...up to annuities, just starting med supps now but i am very leary from some of the posts. Is there a way to review a persons previous posts. Seems like so many don't do anything but bitch, fight, and spam. I would like to be able to see a persons previous posts before I take their advice.

[STIBROKER@AUSTIN.RR.COM]

I would like to know why bhartiaxa has deleted all his post's.....

[Newby]

Originally Posted by DavidD1

I've been in the business several years and have sold or currently sell everything...up to annuities, just starting med supps now but i am very leary from some of the posts. Is there a way to review a persons previous posts. Seems like so many don't do anything but bitch, fight, and spam. I would like to be able to see a persons previous posts before I take their advice.

You just click on their name and then select "see all posts by" from the drop down choices.