PRO Tips, organized by the type of insurance:
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Applies to ALL INSURANCE:
NEVER SKIP THE ANNUAL REVIEW: If you have a current and in-force insurance (of any type) and it has been over a year since it has been reviewed, give your agent a call. They might be able to suggest something new to you, which could have been unavailable during your last meeting. Time changes, and with it, so does insurance. Discounts and various savings opportunities come and go, and should be seized upon, while THAT specific strategy still exists.
ALWAYS Read Exclusions First. When you get an insurance brochure, proposal, or a contract – ALWAYS read the Limitations and Exclusions on the last pages. You will be surprised how many people do not do it. Even if you already signed the contract, you usually have several days to review and cancel – for FULL refund of anything that has been paid in.
Insurance Agent must never pressure a client to buy a policy without a chance to think about it. High pressure sales tactics, where you must sign on the “dotted” line right away are usually indications of a sub-par product. In worse cases, it can be even fraud.
HEALTH INSURANCE:
Short Term insurance plans are known for the notoriously high deductibles, which in return gets the consumer the lower monthly premium. The higher the deductible, the lower the cost. But there is a FIX: If you talk to your trusted insurance agent, they should be able to dig up a supplemental or indemnity coverage, which would cover this deductible in case of an emergency. So, if you have, let’s say, a $10,000 deductible – if an emergency occurred, you shouldn’t have to fork over anything out-of-pocket. Everything will be covered by these types of policies.
LIFE INSURANCE:
Long-Term Care Insurance and Long Term Care Rider are not the same thing. Due to the high costs of Long-Term Care industry, LTC Insurance by itself can be very expensive. But if you purchase LTC as an add-on option (rider) to a life insurance policy, the cost of the coverage is usually much less.