Life Insurance
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James S
Flashlight Enthusiast
They are going to plug you into their formula to see how long they think you are likely to live before they figure out your premium /ubbthreads/images/graemlins/smile.gif They are also looking to make sure you're not on your last month of a six months to live pronouncement from a doctor somewhere.
I don't know where they get the info, but we had to take their blood tests and whatnot as well to get ours. but not having it just wasn't an option once we started having kids.
If they are a national chain/firm they will tell you about 2 kinds of life insurance and will give you the hard sell on the kind where you accumulate some value in it over time. As far as I'm concerned that kind is for people that can't be trusted to save any money for themselves. We didn't get it. But if you aren't the kind of person to hide away a few bucks a month, then you might want to consider it. But really it's just an investment account where they get to do whatever the heck they want with your extra money and you can take it out at some point in the distant future. I'll do my own investing and saving thank you...
The 2 companies we talked to all had good privacy agreements written out where you could see exactly that they were not going to do anything with your medical record apart from review them prior to offering you service. If they don't have a document that tells you your rights as related to their database of information, then you don't want to work with that company.
I don't know where they get the info, but we had to take their blood tests and whatnot as well to get ours. but not having it just wasn't an option once we started having kids.
If they are a national chain/firm they will tell you about 2 kinds of life insurance and will give you the hard sell on the kind where you accumulate some value in it over time. As far as I'm concerned that kind is for people that can't be trusted to save any money for themselves. We didn't get it. But if you aren't the kind of person to hide away a few bucks a month, then you might want to consider it. But really it's just an investment account where they get to do whatever the heck they want with your extra money and you can take it out at some point in the distant future. I'll do my own investing and saving thank you...
The 2 companies we talked to all had good privacy agreements written out where you could see exactly that they were not going to do anything with your medical record apart from review them prior to offering you service. If they don't have a document that tells you your rights as related to their database of information, then you don't want to work with that company.
tvodrd
*Flashaholic* ,
Survivors trying to collect it can be in for some real hassles. I'm in the middle of a bunch of that now.
Larry
Larry
[ QUOTE ]
tvodrd said:
Survivors trying to collect it can be in for some real hassles. I'm in the middle of a bunch of that now.
Larry
[/ QUOTE ] No kidding. My father inlaw passed earlier this month and I'm trying to handle everything for my wife. The insurance looks easy. I'll know in a few weeks, I just sent it off.
The IRA and Mutual funds are being quite a pain. They ask for stuff I've never heard of. Fortunately, my good friend's Uncle is a CPA and Financial advisor so he's helping us fill out the forms and protect us from taxes.
tvodrd said:
Survivors trying to collect it can be in for some real hassles. I'm in the middle of a bunch of that now.
Larry
[/ QUOTE ] No kidding. My father inlaw passed earlier this month and I'm trying to handle everything for my wife. The insurance looks easy. I'll know in a few weeks, I just sent it off.
The IRA and Mutual funds are being quite a pain. They ask for stuff I've never heard of. Fortunately, my good friend's Uncle is a CPA and Financial advisor so he's helping us fill out the forms and protect us from taxes.
The two types of ins. James S is describing are whole life and term life. Whole life is the "savings plan" policy a company will try to sell you. DO NOT BUY WHOLE LIFE INSURANCE. You might as well throw you money away. WHOLE LIFE INS. IS A RIP-OFF.
Term life ins. on the other hand, is very affordable depending on your health and age. I bought a 30 yr policy at 25 yo and get a pretty decent, 30 yr level premium.
Zander ins. and Protective Life are both good.
Me, I didn't feel too invaded (and airport security ticks me off more than anyone for this reason). I am not trying to hide anything. As far as finding all your doctors, I would be very suprised if that were the case. There are surely some ins. databases they search, but there is no way the seek out and find your treating physicians.
Term life ins. on the other hand, is very affordable depending on your health and age. I bought a 30 yr policy at 25 yo and get a pretty decent, 30 yr level premium.
Zander ins. and Protective Life are both good.
Me, I didn't feel too invaded (and airport security ticks me off more than anyone for this reason). I am not trying to hide anything. As far as finding all your doctors, I would be very suprised if that were the case. There are surely some ins. databases they search, but there is no way the seek out and find your treating physicians.
Stu
Newly Enlightened
Slight thread drift--
Something to consider regarding beneficiaries (please note I am not an attorney or any kind of authority on insurance matters, just want to bring this up from personal experience, hoping to help others avoid problems at the worst possible time):
As I understand it, if you take out a life insurance policy on yourself, it is a contract strictly between you and the company. Be very careful about how you fill out the beneficiary form. If you have two children you want to get the money in case of your death and you listed them as "Joe Smith and Sue Smith", each would get 50% of the payout. If one of these kids is not alive at the time, 50% would go to the living child but the other 50% would either go to the deceased child's estate or some other person the company chooses (may not be what or who you want). But, if you list "Joe Smith OR Sue Smith" that may make all the difference in how disbursement is given (make sure ahead of time!).
Also, I have known of divorce situations where the beneficiary was not changed after remarriage, and then years later some totally uninterested ex-spouse gets a big cash windfall while the newly widowed family gets laughed at and pays all the funeral bills, etc.
Any "mistake" on the beneficiary form such as failure to designate any beneficiary, or listing yourself (since you're actually dead) may cause the company to pay out based on their own default system (might be 100% to surviving spouse first, or kids in equal portions if no surviving spouse, or to the parents of the deceased, or to the estate of the deceased if none of the above exists). Even if there is handwritten, dated proof of the exact desires of the deceased person's wishes about that specific policy, the company may only honor their own beneficiary form (the physical document itself), NOT any letter or legal will describing who should get all your assets... they do not have a contract with your legal will, it is with you, and whoever is listed on the beneficiary FORM gets the payout (maybe you want your estate listed, if so, fine).
One more thing (a real possibility) if you fill out the form properly, then mail it, it may get LOST in the mail, or LOST later at the company after you have called up to confirm they received it.
Safest bet from my experience is: 1) be sure your intended beneficiaries are properly listed, 2) Photocopy the beneficiary form you are sending to the company and have the copy NOTARIZED, then place the notarized copy in a safety deposit box or whatever so your beneficiaries can have access and collect as intended.
Sorry for the long drift. Not a pleasant subject, but important.
Something to consider regarding beneficiaries (please note I am not an attorney or any kind of authority on insurance matters, just want to bring this up from personal experience, hoping to help others avoid problems at the worst possible time):
As I understand it, if you take out a life insurance policy on yourself, it is a contract strictly between you and the company. Be very careful about how you fill out the beneficiary form. If you have two children you want to get the money in case of your death and you listed them as "Joe Smith and Sue Smith", each would get 50% of the payout. If one of these kids is not alive at the time, 50% would go to the living child but the other 50% would either go to the deceased child's estate or some other person the company chooses (may not be what or who you want). But, if you list "Joe Smith OR Sue Smith" that may make all the difference in how disbursement is given (make sure ahead of time!).
Also, I have known of divorce situations where the beneficiary was not changed after remarriage, and then years later some totally uninterested ex-spouse gets a big cash windfall while the newly widowed family gets laughed at and pays all the funeral bills, etc.
Any "mistake" on the beneficiary form such as failure to designate any beneficiary, or listing yourself (since you're actually dead) may cause the company to pay out based on their own default system (might be 100% to surviving spouse first, or kids in equal portions if no surviving spouse, or to the parents of the deceased, or to the estate of the deceased if none of the above exists). Even if there is handwritten, dated proof of the exact desires of the deceased person's wishes about that specific policy, the company may only honor their own beneficiary form (the physical document itself), NOT any letter or legal will describing who should get all your assets... they do not have a contract with your legal will, it is with you, and whoever is listed on the beneficiary FORM gets the payout (maybe you want your estate listed, if so, fine).
One more thing (a real possibility) if you fill out the form properly, then mail it, it may get LOST in the mail, or LOST later at the company after you have called up to confirm they received it.
Safest bet from my experience is: 1) be sure your intended beneficiaries are properly listed, 2) Photocopy the beneficiary form you are sending to the company and have the copy NOTARIZED, then place the notarized copy in a safety deposit box or whatever so your beneficiaries can have access and collect as intended.
Sorry for the long drift. Not a pleasant subject, but important.
bwaites
Flashlight Enthusiast
I sold life insurance for 10 years before I went into the medical profession. Stu's points are well stated.
However, there are varying opinions about Whole Life/Term Life.
Whole life tends to give better returns than a savings account or savings bonds and does so on a tax deferred basis. Most of the richest, self made men in the country have whole life policies for that reason, they also use term life for short term protection if there is some important transaction or business deal that requires their presence to make it work. Whole Life is a savings plan attached to a policy, and most people who buy it end up with significantly more than those who use the "buy term and invest the difference" argument, simply because it is an enforced savings plan. Very, Very safe investment.
That said, if you can accept some risk, can be dedicated to investing, and don't spend it when you earn it, (three VERY, VERY, BIG ifs, at least looking at the average Americans investment portfolio!) than you can do better if you invest the difference between the two.
Most Americans, however, invest in flashlights, boats, fast cars,guns, etc. and don't REALLY invest in anything that gains value.
Back to the topic from the first thread. The insurance company will ask you to sign a "consent for release of information" which they will forward to your physician who will then send them your records, (if they send a check to cover his cost of copying them!)
The underwriter at the insurance company will then review it. If he finds something he needs more info on, he will request it from the doctor or hospital or specialist, once again using that "consent for release of information".
If he is satisfied, that ends it.
The next question is this, "So what if i don't give him my real doctor?"
That is simple, the insurance company gets no info back, which throws up a BIG, RED, flag. They start wondering what you are hiding and may just refuse to issue coverage, or they may give you a rate which you are unwilling or unable to pay.
Hope this helps. If you want or need more info, just ask. But, to put it bluntly, insurance companies are very, very good at finding the info they need. Remember, they make a profit every year!
Bill
However, there are varying opinions about Whole Life/Term Life.
Whole life tends to give better returns than a savings account or savings bonds and does so on a tax deferred basis. Most of the richest, self made men in the country have whole life policies for that reason, they also use term life for short term protection if there is some important transaction or business deal that requires their presence to make it work. Whole Life is a savings plan attached to a policy, and most people who buy it end up with significantly more than those who use the "buy term and invest the difference" argument, simply because it is an enforced savings plan. Very, Very safe investment.
That said, if you can accept some risk, can be dedicated to investing, and don't spend it when you earn it, (three VERY, VERY, BIG ifs, at least looking at the average Americans investment portfolio!) than you can do better if you invest the difference between the two.
Most Americans, however, invest in flashlights, boats, fast cars,guns, etc. and don't REALLY invest in anything that gains value.
Back to the topic from the first thread. The insurance company will ask you to sign a "consent for release of information" which they will forward to your physician who will then send them your records, (if they send a check to cover his cost of copying them!)
The underwriter at the insurance company will then review it. If he finds something he needs more info on, he will request it from the doctor or hospital or specialist, once again using that "consent for release of information".
If he is satisfied, that ends it.
The next question is this, "So what if i don't give him my real doctor?"
That is simple, the insurance company gets no info back, which throws up a BIG, RED, flag. They start wondering what you are hiding and may just refuse to issue coverage, or they may give you a rate which you are unwilling or unable to pay.
Hope this helps. If you want or need more info, just ask. But, to put it bluntly, insurance companies are very, very good at finding the info they need. Remember, they make a profit every year!
Bill
I don't have time to go into all the details here, but whole life insurance is like letting the insurance company use your money for free for your entire life, or until you need the policy (in which case you get much less than if you had been using a term life policy at an equivalent rate).
Look at the policy terms and think critically, and you'll see it's no deal.
Look at the policy terms and think critically, and you'll see it's no deal.
