[If you want to see the previous edition of this newletter CLICK HERE.]
Dear Everyone!
My good friend Dan Poynter said I should "name" my newsletter, so I have! Since I tell what 'they' don't want you to hear, I thought the "Tattler" was a good choice.
I hope the summer is going well for you. I'm busy writing Aetna and Nationwide health because they have 'easier' underwriting. Blue Shield won't take anyone with a pimple on their tush! Aetna and NW also have great rates and plans.
September is National Life Insurance month and I'm getting ready to do more work in that sector in the last quarter and next year.
Lots to say, so let me get on to it.
-Al
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Why you want an agent
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This should be titled "Why THEY don't WANT you to have an agent." It's no secret that the large carriers who have most of the business (two of them are associated with a color and the third might make you think of Germany) would love for you to bypass an agent and get your health coverage on the web directly from them. Or if you don't do that, than from someone like the eHealth website.... anyone but a trained and experience agent!
Why is that? Well first off they don't have to pay the 20% commission on the first year premium. But even that's not such a big deal. Basically they know from experience that most people who shop on their own will pay too much for coverage that they probably don't need. And that's a good thing... for them!
They know that a good agent (like moi!) won't let you overspend for coverage and will explain some of the 'fine print' to you.
For example, take deductibles on high-deduct HSA policies. There is a choice in plans: an individual deductible or a family deductible (almost always twice the individual.)
Say you are a couple with one child and you want an HSA plan. You see that the plan summary says $4,000/$8000. Do you know what that means? You probably think it works like a co-pay plan where the first person who reaches $4,000 gets benefits and the other $4,000 (in order to make the $8,000) can be made by the others in the family.
Well, you would be wrong. On most HSA plans the carriers us an AGGREGATE deductible such that no one gets a dime until $8,000 has been reached.
A good agent (moi!) would ask "Is there a better chance that one person might reach $4,000 or is it a better chance that the family would reach $8,000? Why does the agent ask that? He/she wants to figure out if it is better to write each person with their own individual plan (a $4,000 deduct) or to put everyone on one family plan with the higher aggregate deduct.
(And the answer is that on HSA plans for most carriers, it is almost always better to put each person on their own plan. Not with Aetna as they have a much better way of doing HSA deducts... which is why I write a lot of Aetna HSA plans.)
Would most people know to put mom, dad, and junior on individual plans? Of course not. They go to the web, see a price for a 'family plan' and sign up. Yes, HSA family plans do have a place... but only for famlies that have a chronic illnesses and whose members are going to use a lot of services.
This is just one area where having a 'pro' on your side of the table is a huge benefit. (And it cost you nothing... but it cost the carriers plenty... and they know it!)
Honestly. If you have a friend or relative who says they are going to apply on their own for health insurance, please tell them that they are probably going to (putting it politely) get screwed. Tell them to get an agent (moi! :-))
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| What's in YOUR file?
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Do you know that what's in your doctor's records can help get you declined for insurance. I'll bet you don't know this, and I know your doctor does not know this. No one knows this.
For example. You go to the doc for your annual physical and he/she asks "So how are you doing"
"I've been depressed the past six months because I lost my job" you reply
"How about we put you on some Lexapro or Zoloft," the doctor says.
"No, I'm sure I'll get a new job soon and I'll be fine," you answer.
What does the doctor write in the file? "Patient complained of depression. Zoloft and Lexapro suggested."
OK, now you go and apply for insurance (life or health or disability, etc.) and for some reason (like the moon is in Jupiter that day) the carrier seeks your medical records from the doctor. The underwriter (who is not a doctor or nurse) skims over it and sees the words "depression" and "Zoloft" and stamps the application as "DECLINED."
You don't think it happens? It happens. It happens a lot! Can you get it fixed? Yes. If you have a good agent (like moi!) he/she can help you protest the declination and get your records fixed.
However the best thing is to ASK your doctor for a copy of your records and see for yourself what's in them. (And good luck reading the hen-scratchings!)
The next best thing is that when talking to your doctor you should say something like "Don't put this in my record but I've felt depressed recently" or something like that. Explain to him or her what I've said above. They will deny it's true, but when it comes to insurance doctors don't know what they don't know!
It's not their fault. Doctors really WANT to have a complete journal about you. It's their job. And of course you want them to keep good records so that you are not prescribed something you might be allergic to. Unfortunately a single entry in your record of a simple observation based upon something inconsequential can get you into the 'declined' column when you are applying for coverage.
Be careful what you say and find out what gets into your records.
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| How's your Dow? |
How many of you have a "variable" financial product? In the insurance biz we use 'variable' to mean 'risk'! A variable life or annuity is based on the performance of an underlying investment (called the 'sub-account') It might be mutual funds or a bunch of stocks. (Caution, don't confuse variable annuities with fixed-index annuities... which are very safe).
So how's your Dow doin'? Not so great, huh? Now you know why I don't sell variable life or variable annuities or variable anything. I write fixed or indexed annuities from Midland National, a solid, conservative company in Iowa. I like West Coast Life (in San Francisco) for term as well as whole-life. I don't sell variable-universal life. I only will write SAFE MONEY products... these are insurance products where you can't lose a penny of your principal. The return might not be so hot, but making money is always better than losing it.
Most clients say "Al, I'm not as concerned with the return ON my money as I am with the return OF my money!"
In the coming weeks I'll talk more about life and annuity products, what segments of the population they are good for (as well as not good for!) and why a portfolio should have life, annuities, and last but not least... something that will fund long-term nursing/residence care should that be necessary (and a good life policy can do this for you... sometimes easier and at less cost than long-term care policies.)
The point is that while you should have some money in the equity markets (my equity market advisor is Dustin Buck with Edward Jones Co.) with the way the economy has been performing and the relative uncertainty of the next few years, you should be thinking "flight from risk" and "safe money" investing.
My motto has always been "It's not how much you make that will determine your net worth on any given day... it is how much you don't lose."
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Well, that's a wrap for this issue. I hope you've found some of the info above useful and interesting. If you have questions about life or health coverage, safe-money annuities, or employer group benefits just give me a call or send email.
Sincerely,
Alan N Canton
Adams-Blake Insurance Solutions
InsuranceSolutions123.com
916-962-9296
CA License # 0F31110
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Al Canton, Owner
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I'm Al Canton, owner of Adams-Blake Insurance Solutions.
Everyone promises the best service, etc. So I won't bore you with that message.
Bottom line, I know health insurance, work-supplements, medicare, life, and annuities.
Most importantly, I'm honest. I will not put you in a product just for the money. I've been here 25 years and I've built my business reputation on integrity and honor.
It's that simple.
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