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Dear Everyone!
Did you get a whopping rate increase on your health policy? A lot of folks have, especially from Anthem. But who gets called with the blame? The agent! People think that WE set the rates!
But a lot of agents don't really complain that loudly about increases. Why? Because it often means new business.
For example, I have a case I wrote with Anthem over a year ago. Recently the family rate went from $335 to $434. The client called and complained (duh!) and upon their request I offered her options. They are applying to another carrier giving me a commission I didn't think I'd receive again. It's the second time this year that this has happened.
I've heard similar stories from other area agents.
We can't be accused of "churning" (a criminal offense) when the client solicits the meeting and ultimately saves $1,200 hundred a year on basically the same kind of HSA coverage... deduct, OOP max,drugs, etc.
Anthem might be shooting itself in the foot... but it is indeed helping its agents in what is an otherwise challenging business environment. Of course the clients who are no longer insurable are being screwed, but that's the nature of the current system. Freedom of choice? Not for everyone! And you wonder why the current individual health insurance system is so unpopular? The major carriers just don't get it.
The carriers, their reps, their agents, and the lobbyists are doing a good job trying to defend an unsustainable system. They are all good company guys! But what most agents don't understand is that when the frying pan gets hot, Anthem and every other carrier will throw the reps and all agents into it, and will accept some kind of guarantee-issue-with-mandate system where no commissions will be paid and health agents (and company reps) will instantly be, as the English say, "redundant." All the carriers will take low or no profit and sacrifice their reps and agents to avoid being put out of business.
I know a number of health-only agents who have been practicing how to ask "You want regular or non-fat milk in your latte?" in three different languages!! :-)
Usted quiere la leche regular o sin materias grasas en su latte?
Vous voulez le lait régulier ou sans matières grasses dans votre latte?
Sie wünschen regelmäßige oder fettfreie Milch in Ihrem latte?
If you find it harder and harder to find a good health agent these days it is because they are all working their bottoms off learning the ins and outs of LTC, Disability, and life sales. The future is NOT in the health arena.
-Al
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We've Heard It All Before!
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Do you know that back in 1963 when Medicare was being proposed that the same gloom and doom arguments we hear today about civilization as we know it ending.... was being said by Medicare opponents. All we seem to hear these days is that there will be no doctors, no hospitals, no treatments if the government replaces the insurance companies and takes on the job of paying for care. Please note that the world did not end back in 1963, that Medicare was passed... and our citizenry is better for it.
How many of you would vote to end Medicare? Any of you? How about it, you Limbaugh conservatives?
Folks, if you honestly believe that the current individual (underwritten) health insurance system is working then you live under a rock. And it you honestly believe that the private sector is large enough and powerful enough and even has any intention in wanting to fix it, you live under a rock in a cave!
No one wants a government system, but the greed that inhabits the entire healthcare system is beyond the control of the private sector. Only the government can reign it in.
Will the system be better? It depends on how you define "better." For those in the lower strata of society, those who work hard for a living and who would lose their homes and savings because they either can't get or afford coverage... it WILL be a better system.
I know that most health agents make a lot of noise about "helping" people and "doing the right thing" for the client, but for many in this business, it's all about the money. There are a lot of agents who. could care less if 45% of our citizens can't have adequate medical care for an affordable price, so long as they get 7% (group) or 20% (individual) of each dollar spent on coverage by the rich and healthy.
Am I disgusted by many of my fellow agents? Absolutely. Without a doubt. Their greed, their selfishness, their hypocrisy, revolt me.
If they can tell me how the private sector can be changed such that the system will be financially viable such that they can still make their six-figure income, fine. But they can't. And each one of them is putting their own selfish interest ahead of what is good for the country.
I hear over and over again from the Limbaugh-conservatives that they are dead-set against any kind of government system. I hear the same from people in various Chambers of Commerce. It's all about the evil government.
I often think what all this opposition is about... besides the money... is that these conservatives are simply afraid that they might have to stand in line at the ER like those who don't have an insurance card in their wallet now do.
Medicare for the masses? If it means agents like myself are put out of business, well so be it. I tell agents to learn to sell another kind of insurance and be happy that they will live in a better and more just society.
Oh sure, a lot of so-called experts from the insurance carriers vent about how the medical delivery system will go down the toilet... but most really don't care about that. It's the money. It's all about the money.
I am so tired about hearing about the evils of "big government" and "socialized" this or that.
Come on. Try to convince me that "Alabama of 1958" was a better society than we have now. Try to convince me that we are worse off because of the social, educational, and political equality that people have worked their entire lives to make happen. Tell me how we would be better off without Medicare, Medicaid, and Food Stamps?
Tell me again why only the rich and healthy should be able to have medical care? Tell me again how being cured of disease is a privilege and not a right?
If we can have a private sector solution, fine. But I don't see it. They have tried with HMOs and managed care. But the price of healthcare just continues to increase.
I'm afraid that only the government has the size and power to control what is a runaway train. The current estimate is that 47% of the population has no medical safety net. How long will it be until it is 60% or 70%? I'd say three years, maybe four. The only "force" strong enough to put a stop to the cost spiral is the federal government. If you know of another way, call me and let me know. I'd love to hear it.
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A Few Words About Disability Insurance
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I don't know why, but the insurance industry just loves "awareness" months. Every quarter we get another one or two of them, and May is Disability Insurance Awareness Month. Can you stand the excitement?
OK, I don't write that much in this electronic fish-wrap about disability, because it is struggle to get people to take it seriously in CA. We have a state disability plan (SDI) that will cover most people for about half their income for a year (up to about $950 a week, max.) It's not a bad deal, but you have to be employed to get it (i.e. not getting unemployment benefits.) The problem is that it's for one year and that's it. What happens when you are laid up for longer than that... or for life? SDI does not help. That's were long-term disability (LTD) comes in.
The results of a new survey show the historic recession has left many Americans with less in savings and investments -- and as a consequence, they are more vulnerable to serious financial hardship in the event they were to become sick or hurt and couldn't work.
According to the nonprofit LIFE Foundation, more than a quarter of working Americans say they would have trouble supporting themselves financially "immediately" following a disability that keeps them out of work, while nearly half would reach that point in a month or less. Three out of four would face financial trouble within six months.
What about you? Could you sustain a major (or even a minor) disability?
LDT is really insurance of your paycheck and now more than ever, it's critical for Americans to insure their ability to earn an income.
The LIFE survey also found that while a majority of Americans feel less financially secure than they did one year ago, only 17 percent of workers worry about the financial threat of becoming disabled and being unable to work. Their greatest concerns were tied to the economy, such as not being able to keep up with bills, losing money in investments and savings and being laid off.
Obviously working Americans are not as concerned about the risk of a disability as they should be. What they don't know is that they stand a one-in-three chance of becoming ill or hurt and being out of work at least 90 days at some point in their career. Without disability insurance, most people would face devastating financial consequences if they were to suffer a disabling injury or illness.
There are four basic ways to obtain or maintain disability insurance coverage that meets your needs and budget:
Look into Group Disability Insurance - One of the most cost-effective ways to obtain disability insurance is through your employer. Employer-provided group disability insurance is typically easier to qualify for because the underwriting is often more lenient than for individual policies. With most group plans, employees are offered the same premium as others in their general age bracket, regardless of their health status or actual age. If you have the option to enroll in a group plan, look to sign up for a short-term disability (STD), which generally replaces a percentage of your income for three months, and long-term disability (LTD), which typically pays 40% to 60% of your pre-tax base salary for a longer period of time. To find out what your employer offers, talk to your benefits manager at work.
Consider obtaining coverage through professional organizations or associations - If you don't have coverage options through work, look for alternate programs through organizations and associations which provide affordable disability assistance to qualifying individuals. Many professional associations offer members the opportunity to purchase insurance through a group plan. Other sources of coverage include the Veterans Administration pension (for veterans); civil service disability pay (for federal/state government workers); black lung program (for miners); state vocational rehabilitation programs or group union disability coverage.
Check to see if you can qualify for lower premiums on your individual disability insurance policy - One of the primary ways of getting coverage is to purchase an individual disability insurance policy on your own. If you have your own policy, you may be able to qualify for lower premiums if, for instance, you have quit smoking, lost a substantial amount of weight or have made significant improvements to your health. In addition, in some cases changing careers may mean lower premiums. For example, if you go from being a construction supervisor to owning the company, your rates may decrease. If you're thinking of a new career, especially in today's economy, check into savings that may exist on the same amount of coverage.
Modify your current coverage options on your individual policy - If you are wondering if your budget will allow you to hold onto your policy, talk to your insurance agent or company. One way to reduce your premiums is to lengthen the waiting period--the time you begin receiving the benefit after claiming disability--say, from 90 days to six months. If this is something you're considering, be sure that you would be able to provide for yourself and your family for that period of time until your benefits take effect.
Disability insurance is not expensive... and for that reason a lot of agents don't sell it... hard to make a living with it. However, I keep up with this market and most often sell coverage from The Principal, which has excellent rates for white-collar people. For blue or gray collar, I look to either Union Central or Mutual of Omaha.
.Why is there a difference? Contact me or your agent and ask about the difference between a non-cancel plan and a guaranteed-renewal plan. A good agent will know and tell you why you might want one over the other.
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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
InsuranceSolutions123 Agency
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 the Insurance Solutions Agency.
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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