Frequently Asked Questions
What is the best type of life insurance to have?
My quick answer is the one that is in place the day you die! Your family or business associates are more concerned that the policy solves the financial needs that were present when the policy was put in place. There are many types of life insurance products that are designed for many different situations. A competent insurance professional can help you sort through the options for your specific situation that make sense for you.
What do the initials CLU mean by an insurance agent's name?
A Chartered Life Underwriter, CLU, has earned the premier credential in the insurance profession, representing eight or more comprehensive
college-level courses covering all aspects of insurance planning, estate and retirement issues, taxation, business insurance, and risk management.
The authority to use the CLU® mark is granted by the Certification Committee of the Board of Trustees of The American College, and that privilege is contingent on adherence to strict ethical guidelines.
Why do term life rates vary so much from carrier to carrier?
Each insurance company has its own set of underwriting rules and guidelines that it uses to assess the applicant and determine what underwriting class they will offer. It is up to the life insurance professional to do a thorough evaluation up front to determine the best carrier starting point for the applicant. Please note the agent does not set or negotiate life insurance rates with the carrier. The professional agent knows which carrier to go to given the health condition/life style of the applicant to secure the best rate. Great example was an individual who contacted me paying $12,000/yr for a life policy rated as a smoker with the current carrier. When I told him he would qualify for same coverage paying $2500/yr as a non-smoker needless to say he became a satisfied client.
Why do life insurance applications ask questions about income and net worth?
Life insurance companies also underwrite the applicant from a financial perspective to justify the amount of coverage being applied. If replacing an individual’s income is the primary objective then an underwriter would for example allow coverage for a 40 year old or less up to 25 times earned income as a guideline range. An age range of 66-70 they may only allow 5 times earned income. The financial underwriting guidelines vary from carrier to carrier so again it benefits you to have a life insurance professional do the leg work to find the best fit.
Who is the A.M. Best Company and why should I care?
The A.M. Best Company, an independent rater of insurance companies, has been rating them for over 100 years, since 1899. They assign grades to insurance companies, based on their financial strength, and ability to pay claims. The best companies are the ones that have an A.M. Best rating of A++ (Superior), A+ (Superior), A (Excellent), A-(Excellent). The top life insurance professionals will usually only work with the companies rated A or better by A.M. Best.
I have been declined or rated for life insurance with a previous agent so am I going to get declined or rated again if I put an application in with you?
I have worked on cases where an individual was declined by 3 carriers and then on the 4th company we were able to secure a Standard offer. Complete details about health history and finding the carrier that has the underwriting expertise and risk tolerance for the specific situation is key to being successful in placing certain cases. Sometimes it is easy and sometimes not. All carriers want to know up front if a person has been declined or rated but that doesn’t mean they will do the same. They will underwrite the applicant using their own guidelines and risk assessment. The professional independent agent will usually not give up at the first no from an underwriter.
Should I tell the insurance examiner everything about my health history?
Absolutely yes!! No one likes surprises especially insurance underwriters! You want all information to be disclosed on the application and through medical records so there are no questions about the policy being issued at the underwriting class approved. Life is to short and we will not tolerate anyone we feel is not being completely straightforward in the application process.
What is your opinion about term verses permanent life insurance?
I usually answer that question with a question. Tell me when are you going to die and why are purchasing the coverage?
The reality is the need for life coverage is fluid and reasons for owning are many throughout our lifetime. Term provides the most coverage for the least money for a specific period of time ie. 10 years, 15 years, 20 and so on. Permanent coverage whether it be whole life, universal life, variable life are products that can be designed to last for normal life expectancy all the way to age 121. All the products are tools to solve different needs for personal and business planning. Everyone has to decide what makes sense for their situation after they have been given the facts from a true professional in the business.
If I decide to do business with National Insurance Connection who will I work with?
I personally handle all my clients from start to finish. Technology today enables me to do so. I am as far away from you as the nearest phone or computer. My I-phone keeps me connected even when I am not in my office after hours and on weekends.