Protecting your family is the single most important thing any individual can plan for during his or her life. Buying life insurance can be confusing, and a frustrating process. As an insurance agent, I am well aware of the details a customer must know to make the decision easier. In this article, I will offer practical advice on how to simply purchase life insurance.

Look for a company that has at least an AA-rating or above. Independent agencies such as Moody’s and Standard & Poors rate insurance companies on financial strength., there’s little or no difference in two companies with the same exact financial rating. You should feel comfortable with any company that has an AA or higher rating.

When it comes to pricing, don’t be fooled into thinking that insurance agents determine prices and that you can negotiate. Insurance companies set prices and they depend on age, gender, health, smoking status, family history, activities such as scuba diving, auto racing, foreign travel, etc. Insurance agents are not allowed to offer customers any pricing discounts or incentives. Insurance companies offer different versions of the same product. Often you will see what appears to be the same product, but at a lower price. Normally, the reason for this is that the lower priced policy offers a weaker guarantee where the policy is not guaranteed for the full period. For example, a 10 year policy that is only guaranteed for the first 5 years.

When choosing a policy there are important details to consider such as selecting the guarantee period, determining whether or not the policy is convertible and if re-entry is available. The guarantee period determines how long the premium remains at a level rate. Once the guarantee period is over, the premium will increase. It is important to determine how long you will need the coverage and choose accordingly. Guarantee periods range from 1 to 30 years.

Most, not all, insurance companies will offer the ability to convert your term policy into a permanent policy during a given period of time. During this period, if you choose to convert your policy, you are not required to prove medical insurability. You will only be required to pay the new premium at your older age. The period of time you have to convert may be the guarantee period or less. It is important to check the policy description or ask your agent to make sure.

Re-entry refers to the point at which you want to extend or purchase a new policy with the same company. It is important to know if you will be required to take a new medical exam or simply pay the new premium. All companies have different rules and you should understand them before you make your choice.
Another important consideration is choosing your beneficiary. It is normally an easy decision when it comes to your spouse or partner, but not if there are minor children in your family. Minor children named as a primary or secondary beneficiary must have a guardian/custodian appointed to handle and distributions of funds according to state laws.

Choosing a life insurance policy does not have to be a difficult process. It also does not have to be done alone. Today, you have the choice of working with a local agent or shopping online. Internet websites such as CompleteLifeQuote.com allow you to search hundreds of products and offer you the final decision as to which one to apply for. The companies work with you to process your application and send your policy once approved. Customers can expect to save money this way simply because they are able to choose for themselves instead of having an agent push his/her company’s products. I hope this article has shown you that making this important decision does not have to be a difficult process. Best of luck!

Mark F. Simmons

CFO, Complete Life Quote, Inc.

http://www.completelifequote.com

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The insurance field can be quite confusing. This goes doubly-so for the medical insurance field, so it is best to really have a grasp on the terms used by insurance companies so we can all speak the same language.

Unfortunately, they don’t make it easy. For example, they use the terms ‘coinsurance’ and ‘copay’ very often. If you don’t understand the difference, you can find yourself owing alot of money and not knowing why.

The terms are really simple, once you understand them:

Coinsurance: coinsurance is a term used for a percentage amount you are responsible for. For example if your insurance policy is 80/20, where you are responsible for paying 20% of your bill, the 20% is a coinsurance.

Copay: copay is usually a flat fee. For example, every time you go to the doctor you pay a 25.00 copay for the office visit, regardless of the level of service you receive.

Be careful, though. Normally, copays do not apply to deductibles, where coinsurance does. You may find yourself being nickle-and-dimed in copay fees, then stuck with a higher deductible should anything major come up. Check your insurance policy to make sure.

The more you know about the terms in your insurance policy, the more you will understand what rights you have, and which insurance programs are right for you.

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Did you know that there are certain kinds of medical treatments that insurance companies refuse to cover, even if a doctor deems the treatment necessary? It’s true, and this truth may make you wonder, are politics involved when it comes to insurance companies and their health insurance policies?

To a certain degree, we can assume politics are involved when it comes to insurance companies and the medical treatments they’ll cover under their health insurance policies. These politics are due mostly to politics within the insurance industry itself, rather than the politics you think of when you think of the government.

For example, many insurance companies refuse to cover certain medical treatments under their health insurance policies because of the cost of the medical treatments. Regardless of how effective the medical treatments are, if they are considered too expensive for the insurance company to pay, the insurance company won’t cover the medical treatment under their health insurance policies.

The same applies to insurance companies and homeowner’s insurance policies. It’s virtually impossible, if not completely impossible, to get flood coverage with your homeowner’s insurance policy. Why? Because floods are quite common in many parts of the country, and the cost of fixing damages caused by floods is extremely expensive. Many insurance companies also won’t cover homeowner’s who own certain kinds of potentially dangerous animals, such as Pit Bulls, under their homeowner’s insurance policies because of the how expensive the damages an attack from a Pit Bull can be.

Is it really fair to refuse to offer certain kinds of insurance policies simply because a person happens to live in a flood-prone area, or own a certain kind of pet? Isn’t that what insurance is all about - helping people in the event of emergencies and accidents?

Take a look at your insurance policy, and find out what isn’t covered and why. You may just want to start searching for a new insurance provider.

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