[If you want to see the previous edition of this newletter CLICK HERE.]
Dear Everyone!
I want to welcome a lot of new people I met at the Fair Oaks Chicken Festival and the Carmichael Chamber mixer... two terrific events!
Again, thanks for all the kind words that so many of you have sent me about this newsletter. I work hard on it and I'm glad you enjoy and appreciate it.
If there is something you'd like me to write about, just let me know.
-Al
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The Long Gray Line
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Some of you with military experience might have heard of the Long Gray Line. The rest of you might have seen the 1955 film starring Tyrone Power about the life of long-time United States Military Academy instructor Marty Maher. "The Long Gray Line" is a phrase used to describe, as a continuum, all graduates and cadets of the USMA at West Point, New York.
Take a look around at who is selling insurance these days? Do you see a lot of gray hair? The industry is becoming the "Long Gray Line" of American business.
I can't remember when I've met anyone working in the life and health business under age 45. I go to lots of seminars held by carriers, and the average age is... dead! (Well almost!)
Young(er) people don't want to go into the insurance industry as they did 20 years ago (or 40 in my case). I remember when getting out of college and going to work for a New York Life or a Met or even a local agent was "a good thing."
Of course there were not as many job opportunities back then as there are now... technology (back then you had to be a double-E) or healthcare (RN or MD) or government (had to be a lawyer.)
And to be fair, it's not just insurance. Young people don't want to go into anything 'sales' related. They really look down on anyone who sells something.
Young people today want to be "creative." They want to dream up the next hedge fund, or get in on the ground floor of a start-up firm, or come up with the next Flicker or Google.
They don't see sales as being a worthwhile endeavor... maybe because so many of them have poor 'people skills' having grown up playing video games after school instead of joining 4-H or the school theatre group, or a sports team, or a club (science, language, computer, etc.)
To them, we're all Willie Loman.
It's too bad because sales is an honorable 'profession.' I like to think that I provide valuable services to those who engage me for advice on life, health, and asset protection 'products.'
The misconception is that "If you can't do anything else, you can always go into sales (insurance, real estate, etc.)"
It's true. One reason that young people don't want to go into sales is because they see the lack of 'respect' given to those who sell.
When I tell people I sell insurance I get a far different reaction than when I would tell them I was a software engineer (which I was.)
But I (and anyone in financial-sector sales) have to know more law than most lawyers, more procedures than most office managers, more current events than most journalists, and I have to have better people skills than most doctors.
Yet young people just see a guy or gal with a briefcase whom they think are trying to bamboozle a 'victim' into buying something they don't want and don't need. That's our image.
They never see the look of 'relief' on the face of someone who bought a cancer plan six months ago and who was just diagnosed with CA... and know they won't go broke.
They never see the relief of a widow when the agent brings her a $250,000 check after the death of her husband.
And most importantly, young people just can't imagine the sense of fulfillment that comes with knowing you helped protect people from financial disaster if some really "bad stuff goes down" (to use their terms.)
I'm sure getting rich on Wall Street is worthwhile. I'm sure that sitting for months and months writing computer code for a new web search site brings satisfaction. I assume working day and night on a merger and acquisition between two giant corporations is a worthy endeavor. That's what young people see on TV and in the print media. They don't see a salesperson.
Correct me if I'm wrong but there hasn't been a salesman on a TV show since... since... does anyone know? That's right. Robert Young on Father Knows Best.
This was one of the longest running shows in the history of TV (and on radio before that!) It was about the "character" of Jim Anderson and his family.... and how no matter what happened the solid 'ethical values' of the man was always able to solve whatever problem someone in the family had.
Oh yes, I forgot. He sold insurance.
I'm afraid the "Long Gray Line" is getting grayer by the day... because I'm probably the only person reading this who knows who Tyrone Power was or who ever sat by the TV watching Father Knows Best.
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| How Accident Coverage Can Help
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I want to borrow some 'knowledge' from one of the few young(er) agents I know, a Mark Hart, who works in Southern CA. He wrote an interesting piece to his clients a while ago about accident insurance and how it can be used to 'mitigate' a high-deduct health plan.
Everyone is talking "high-deduct" these days. They have to. Rates on low-deduct are through the roof! But these plans make some folks skittish because one trip to the ER to get your broken pinky set can cost you the rest of your arm and part of your leg.
The key to reducing anxiety over these plans, according to Hart, is an inexpensive supplemental accident plan. It won't relieve all the 'stress' but it can help with a lot of it.
An accident plan won't pay a dime if you get ill, but if you have an mishap (like you rack up your car or fall off the roof) and seek/need medical help, they'll cover 100% up to the set limit after a $100 deductible.
Some insurance companies offer these as options with their plans, or you can purchase an accident plan on your own. These stand-alone plans will pay up to $5,000 and they are very reasonably priced, ranging from $25/month for a $5,000 plan for an individual, to $30 for a family.
Having an accident plan can work to "mitigate" (a word I use a lot with respect to our broken healthcare system) the risk that comes with a high-deductible health plan. Let's say you have a $4,000 deductible on your HSA plan, and it then pays 100%. You should consider adding a $5,000 accident plan to your coverage. If you have an accident that led to a bill of $800, you would only be responsible for $100.
If you have a car wreck or a major 'incident' that resulted in a major bill, your accident plan would pay $5,000 after you paid the first $100. This would cover your $4,0000 deductible on your HSA plan. From there your major medical insurance pays the rest (which is why I like HSA plans... they are simple to understand) Your exposure would only be $100.
Remember, this only works with accidents, but accidents are a major reason a lot of folks end up in the ER or OR.
Why take a risk you don't have to, when the cost to insure yourself is so small? Talk to me.
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| Not Alone, You Don't! |
I've seen two examples where people who thought they could get health insurance on their own via the web have found that while it is simple to buy, it is also simple to buy the wrong plan!
The first case was someone who thought they were buying a major medical plan, but they didn't read the summary and later found out their plan did not cover brand-name drugs. She is looking at $1,000 a month for the year she will need the meds. That would not have happend if she had been working with me.
In the second case, a guy got what he thought was a major-med but it turned out it was a mini-med. It had a $3,000 cap on out-patient (OP) procedures.
Well that seems reasonable. But what he didn't know is that what we think are 'major' surgeries are NOW routinely done on an OP basis. He had a procedure done in the morning and he was home in the evening. The total bill was $8,500. He is left with $5,500 to pay. Again, that would not have happend on my watch.
Why are there so many crappy plans out there? Simple. They are expensive and pay zippo. The profit margin is huge. The carriers want YOU go go to their websites and buy them... and people do... because they think they are 'saving' money.
Most agents who know what they are doing will not sell you a plan they would not buy themselves. If you wanted a plan without full drug coverage or one with a cap on OP services, I would tell you to get it on your own because I won't sell it. (Assuming you can afford something better.) No, I'm not trying to run up the commission. I'm trying to do the right thing. If you would rather make the payments on a $45,000 BMW and buy a crappy health plan, fine. But you can't buy it from me.
Now, if you can't afford anything better than a crap plan, fine. I'll let you have it... on the condition that when you get a better income that we move you up to a better plan. That's the deal.
All the carriers are panting after the 21 to 35 year old market with these cheap policies. For $40 a young person can get one of these plans. But for $20 more a month (OK, so they have 5 fewer Starbucks visits a month!) they can get a full-bore HSA plan that will have the kind of coverage they need.
My message here is that if you don't want to buy from me, fine. But buy from SOMEBODY (maybe Mark Hart, above) who is ethical and knowledgable.
There are a lot of good agents out there. Just ask around. Please, please, please, don't do this on your own. An agent costs you ZERO. We are paid by the carrier. Most of us are honest and most of us want and will do a good job for you.
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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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