Dear Everyone!
Some of you didn't get the previous newsletters because I was using a horrible mailing service. Ihave a new one now, so I hope it will be back on track.
I'm just back from New York City where I did some training on annuities. More on that in future issues.
There are several issues in health insurance that i want you to know about, so let's get to them.
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| Buy health insurance on the net?
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I get asked "Why can't I just get my health coverage on the Internet, like from eHealthInsurance.com?"
The answer is simple. You can... and you shouldn't!
Statistics show that most people who use the Internet end up with a plan that is more expensive and has less coverage than if they use an agent.
By law (in every state) the rate is the rate. Whether or not you buy direct or through an agent, you pay the same. Most agents want to write (larger) groups as that is where the money is (but it is a lot more work.) I like to write individual because it is less work!!
Most agents don't want to write small group (2-5) because there is little money in it and it's a PITA... but I do it because I get goodwill and often a referral. What goes around comes around. (If you make your living in sales... and never learn anything else ... learn that!)
Good agents will not try to 'sell you up' so that they make a larger commission. If you buy a policy beyond your budget a good agent knows you will cancel it sooner or later (usually sooner... when another agent comes by with the 'right' plan for you.)
Most insurance agents do NOT get paid up-front. We usually receive commission (paid by carrier, NOT YOU!) in 12 pieces... each time you pay we get paid. It is called getting paid "as earned" so if you drop the policy, we don't get any more commission. (Well, some carriers will advance the first year premium, but if the insured cancels the policy, say 7 months out, the carrier wants the pro-rated (5 months) commission BACK... and they GET it... by deducting it from future commissions... or taking the agent to court for it!)
The agents on the phone in the boiler rooms who work for the big Internet brokerages are on salary and could care less if the policy lapses. They get a small case-count bonus and perhaps a little piece of the premium if they sell you 'up' to a higher priced plan... but they get paid no matter what... and that's all that matters to them. They don't care if the policy is 'right' for your needs, if you can afford it, or if you even NEED it! Why should they? They've never met you, probably don't live in the community, and will probably never talk to you again.
Sure, use the net to research and price policies... but buy at your own risk. |
| Beware the mini-med!
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I had a client come to me this month with a sad song. Her boss met an agent from United American who convinced him to drop his major-med group policy and replace it with what is known as a mini-med?
What's that? Well it's a health care policy that has limited benefits, caps on many coverages, and often no benefits for name-brand drugs.
Now there IS a place for these in the insurance market, but NOT AS A REPLACEMENT for a major-medical policy.
Most mini-med policies (like the one from United American) say right at the top in BOLD LETTERS that it is to be used as a supplement to a major medical policy.
So why did the owner take this as his group plan? It's way, way, way cheaper.... and for good reason... the policy does not cover anything that is going to cost the insurance carrier REAL money.
Of course, I advised the client to decline this coverage and see if she could get her boss to award her what he was going to pay out for her mini-med, and she could use those funds with her own and get REAL coverage through one of the Blues or Aetna. She was lucky becasue her boss agreed. He didn't have to do this... and most companies won't.
So, if you are presented by your boss with a "new plan" make sure you take a good look at it and make sure that they are not trying to pawn-off on you one of these kinds of policies... because if they do, you are one bad accident away from losing everything you have or have saved for.
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| Workplace-supplements getting BIG!
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You've all seen the duck. Well I don't represent Aflac for a whole lot of reasons... none of which I want to talk about in public. However I do write for Colonial Supplemental which is their largest competitor.
It seems that everyone and their dog are coming after the duck. Why? Well you have to first understand what workplace supplements are. These are life and family 'protection' plans that "fill-in" where most group policies stop. Some examples of supplements are coverages to pay medical deductibles, pay a lump-sum if you get cancer, pay a daily amount if you are disabled, and pay an amount to bury you. Most of these coverages are inexpensive, but very necessary, and they appeal to a lot of people.
So why the new popularity? Full-bore group medical and disability are almost out of reach for most small (1 to 100 employee) firms. With work-sups, the boss can still offer a solid catastrophic plan (at much lower cost) and let employees supplement it with the coverages THEY want.
And like group coverage, supplements are tax deductible for both the boss and the worker via a Section 125 plan (which Colonial will set up for a company for free!)
It all comes down to the fact that employers cannot provide cradle-to-grave coverage anymore. It's just too expensive. Employees now have to assume more of the cost. With work-sups, employees can pick and choose what is important to them and just buy those plans.
Aflac has had the market all to themselves, and they lead it because they spend $50 million a year on TV. (My company, Colonial, spends zero a year but is still #2... what does that tell you?)
Things are going to change because a lot of big guns are coming into town... AIG, Allstate, Nationwide, just to name a few. I think Colonial is the best of the lot, but I welcome these others. It will only make the market more competitive and create better plans for workers.
If you are not being offered these policies, ask you boss or HR person to contact me and I'll be happy to tell them how they can provide execellent benefits to their employees at no direct cost to their bottom line. |
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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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