instant quotes
Considerations when buying a insurance policy
Here are some points to keep in mind as you shop.
Always check with several companies and agents
Is it wise to contact several companies (and agents) before you buy. Be sure to compare benefits, the types of facilities you have to be in to receive coverage, the limitations of coverage, the exclusions, and, or course, the premiums. (Policies that provide identical coverage and benefits may not necessarily cost the same.)
Take your time and compare outlines of coverage
Never let anyone pressure or scare you into making a quick decision. Don't buy a policy the first time an agent comes calling. Ask the agent to give you an outline of coverage. The outline of coverage summarizes the policy's benefits and highlights important features. Compare outlines of coverage for several policies.
Understand the policies
Make sure you know what the policy covers and what it does not. If you have any questions, ask the agent or call the insurance company's home office before you buy.
If the agent gives you answers that are vague or differ from information in the company literature, or if you have doubts about the policy, tell the agent you will get back to him or her later and don't hesitate to call or write to the company and ask your questions. Beware of an agent who claims the policy can be offered only once.
Some companies may sell their policies through the mail, bypassing agents entirely If you decide to buy a policy through the mail, contact the company if you don't understand how the policy works.
Don't be misled by advertising
Don't be misled by the endorsements of celebrities. Most of these people are professional actors who are paid to advertise. They are not insurance experts.
Neither Medicare nor any other federal agency endorses or sells long-term care policies. Be skeptical of any advertising that suggests the federal government is involved with this type of insurance.
Be wary of cards received in the mail that look as if they were sent by the federal government. They may actually have been sent by insurance companies or agents trying to find potential buyers. Be skeptical if you are asked questions over the phone about Medicare or your insurance. Any information you give may be sold to insurance agents who will call you or come to your home.
Don't buy multiple policies
It is not necessary to purchase several policies to get enough coverage. One good policy is enough.
Your medical history is extremely important
Accurately disclosing your medical history is extremely important. Make sure you fill out the application completely and accurately. If an agent fills out the application for you, don't sign it unless you have read it and made sure that all of the medical information is correct. If information about the state of your health is misstated, incomplete, or wrong, the company will refuse to pay your claims and cancel your policy. For that reason you should always fully and completely explain the full extent of your medical condition. If you are unsure about any particular item be sure to state "do not recall." And as a catchall to protect yourself, always refer the carrier to your doctors' records of the care provided to you and list the names and address of your doctors.
Never pay the agent in cash
Write a check and make it payable to the insurance company.
Get the name, address, and telephone number of the agent and of the company
If you don't receive your policy within 60 days, contact the company or agent
Read the policy again and make sure it provides the coverage you want
Reread the application you signed
It becomes part of the policy. If it's not filled out correctly, notify the insurance company immediately. Keep the policy in a convenient place where you or anyone else readily can find it, and tell a trusted friend or relative where it is.
Pay premiums automatically
It may be a good idea to have premiums automatically deducted from your bank account and paid electronically by your bank. Should an illness delay or prevent paying your statements on time, your coverage will not lapse.
Buy only from a financially stabile company
Several private companies or rating agencies conduct financial analyses of insurance companies and grade them. These ratings carry no guarantee of accuracy but can provide you with information on how some analysts view the health of particular insurance companies. Different agencies use different rating scales, so be sure to find out how the agency labels its highest rating as well as the ratings for the companies you are considering. Ratings from some agencies are available at most public libraries, or you can call the agencies directly at the numbers listed below. (Note that there will be an extra charge on your telephone bill for calls to a "900" number.)
Best Company (900) 420-0400
Demotech, Inc. (614) 761-8602
Duff & Phelps, Inc. (312) 368-3157
Fitch Investors Service, Inc. (212) 908-0500
Moody's Investor Service (212) 553-1653
Standard & Poor's (212) 208-1527
Weiss Research, Inc. (800) 289-9222
The United States General Accounting Office in September, 1994 issued a special report to the Subcommittee on Commerce, Consumer Protection and Competitiveness of the U.S. House of Representatives committee on Energy and Commerce, entitled Insurance Ratings: Comparison of Private Agency Ratings for Life/Health Insurers [GAO/GGD-94-2094BR]. The report is worthwhile ordering at a cost of $2 by writing U.S. General Accounting Office, P. O. Box 6015, Gaithersburg, MD 20884-6015.
In brief, the General Accounting Office concluded that the insurer ratings issued by Weiss, Best, Standard and Poor's, Moody's and Duff & Phelps could not be easily compared because the companies did not use the same approach and methods to rate insurers. But, "Weiss placed far less reliance than the other agencies on analysts' judgment." In addition, Weiss was the only agency to rate more than half of all insurers. Both Weiss and Moody's were less likely than others to assign insurers their top ratings.
On average Weiss' ratings reflected financial vulnerability much sooner than other companies. In comparing the two leaders in life and health carrier evaluations, the federal government study found that out of 26 cases of financially vulnerable insurance firms, in which both Weiss and Best issued "vulnerable" ratings, Weiss was the first to warn in 19 cases. In addition Weiss reported on 4 additional companies that Best did not report as financially vulnerable. Weiss also acted earlier than Best. On average Weiss acted 8 months before Best did.
In addition, Weiss has a record of reporting adverse ratings well before public regulatory commissions and state departments of insurance. Weiss identified Executive Life of California 379 days before the first public regulatory action. Executive Life of New York in 372 days, Fidelity Bankers in 308 days, First Capital in 617 days, Monarch in 162 days and Mutual Benefit in 40 days. Best on the other hand reported on Executive Life of California only 6 days before regulators took action and in the case of the other reported failures only issued a report several days after public action had been taken.
Assuming that the past is prologue for the future, Weiss is the odds on choice for a rating agency, followed by Best. Weiss also provides a very valuable "watch dog" warning service to consumers interested in a specific company at a cost of $76 dollars a year or consumers may choose to call for a verbal rating at a charge of $15, a brief written report for $25 or a personal safety report for $45. When you are planning on spending thousands of dollars on long-term care premiums, a detailed personal safety report and a "watch dog" reports make good sense. Reviewing a policy during the free-look period
If you decide you do not want the policy after you purchase it, you can cancel the policy and get your money back if you notify the company within a certain number of days after the policy is delivered. This is called the "free-look" period. Check with your state insurance department to find out how long the free-look period is in your state. If you want to cancel do the following:
Keep the envelope the policy was mailed in, or insist your agent give you a signed delivery receipt when he or she hands you the policy.
If you decide to return the policy, send it to the insurance company along with a brief letter asking for a refund.
Send both the policy and letter by certified mail and obtain a mailing receipt.
Keep a copy of all correspondence.
The refund process usually takes 4 to 6 weeks.
If you have questions about the agent, the insurance company, or the policies, you can contact the state insurance department.
To answer this question, you need to check with your own health insurance company. Many health insurers do not cover international health coverage.
What is coverage for medical evacuation or repatriation insurance
Medical evacuation benefits provide for transportation to a medical facility that can provide appropriate care in the event of serious injury or sickness that cannot be adequately dealt with at the location where the illness or accident took place.
Continue reading "What is coverage for medical evacuation or repatriation insurance" »
What kind of covered or not covered in normal travel insurance pans
There are many variations of travel insurance plans. Some typical insurance coverages include the following:
1. Coverage for vacation and trip cancellation
2. Coverage for travel interruptions, delays and cancellations
Continue reading "What kind of covered or not covered in normal travel insurance pans" »
Why I need a trip or travel insurance plan
As we know that The outlay of money for travelling can be quite substantial. You may find yourself facing the loss of more money than you want to lose should unforeseen circumstances arise that make it necessary to cancel or interrupt your trip.
Continue reading "Why I need a trip or travel insurance plan" »
What is a trip insurance and What is travel insurance
Trip insurance is used to help alleviate some of the financial loss that may be incurred because your trip is interrupted, delayed, or cancelled by unforeseen events.
Continue reading "What is a trip insurance and What is travel insurance" »