Independent And Dependent Agents

Have you ever thought why you have always been able to be quoted prices on multiple companies?  Why some people you talk to can’t sell more than one company?  Well I am here to teach you that there are 2 types of sales agents out there.  Not including whether they are ethical or if they know what they are doing those can be weeded out and fixed.  What I am talking about is the independent and dependent agents.

Dependent Agent

The dependent agent is one who may be able to quote you many companies but would only be able to sell you one specific company.  This means that they are tied to a company.  This has both good and bad for these sales agents.  Those that are dependent on one company have better and more access to this one company.  They may have exclusive rights to sell certain products that are not available to those that aren’t.  That is why these sales agents may be more proficient in what they are trying to sell you.  Which is good to be knowledgeable when selling.

Another advantage for the sales agents that are dependent is that they are able to have additional bonuses. The company they represent want their product sold so they will go to additional lengths to keep those agents that sell only their product.  They will offer additional bonuses, trips and even more on each product sold.

One of the main setbacks of a dependent sales agent is that they can only sell the one product so if there may be a comparable product that a client would want the agent would not be able to sell that product.  This is where the independent agent fits into the picture.

Independent Agent

The independent sales agent has their hands in many companies and has tools to be able to quote from.  As with the dependent agent there are goods and bads for an independent agent

For the independent agent the greatest good and greatest bad come from the same source.  The ability to have access to many products.  The good is just that, but the bad comes from the lack of knowledge about each and every product.  What most sales agents in this case will do is learn from each provider what the best product is that they can offer as agents and will add that to their knowledge.

Another good of a independent sales agent is that they do have access to many different products.  They are normally able to customize the product to your needs.  The independent agent tends to have more of a needs based approach with their clients.

Each of these agents strive for the best for their clients.  With all outside factors being equal you should feel comfortable in either situation.  Let me know your thoughts on dependent and independent agents by commenting below.

 

Basics of Disability Insurance

We all know how important typical health insurance is, but did you know that disability insurance is just as important? In the event that you are hurt on the job, and cannot work, disability insurance will give you peace of mind. You will still able to provide for your family. While we would like to think that we always work safely, accidents do happen. And you need to be sure that you have every angle covered in the event of an accident. If you become ill or injured on the job and you are unable to return to work, there are a couple of options that will replace lost income. These types of disability insurance are not going to fully replace your income.  This is because they want you to have an incentive for returning back to work once you get well.

Social Security benefits are paid to you when your disability is expected to last for at least 12 months. This is when no gainful employment can occur and you remain out of work for the duration of your leave. Employer-paid disability is required by almost every state in the United States. This type of disability insurance is deducted from your paycheck, and is there for you in the event of an accident. When you are looking at disability insurance policies, it is important to understand what they mean. While the two available policies are both for disability, they both cover a different amount of time you will be covered, and when you will start receiving your compensation.

The 2 Different Types of Disability

A short-term disability policy means that you will be covered for no longer than 2 years. With this policy you may have to wait up to 14 days before you start receiving compensation. A long-term disability policy is a little different. The disability compensation will not kick in for several weeks, sometimes a couple of months. However, long-term disability will cover you for a longer period of time, and sometimes for the rest of your life.

Along with having the two different types of insurance policies, there are also two different protection features. Protection is offered to you to ensure that you are not going to be treated unfairly due to your inability to work. Non-cancelable means that for no reason other than not paying your premiums can your policy be canceled. With this type of policy you will lock in your premium and will not risk a decrease in the benefits. On the other hand, a guaranteed renewable policy means that the same benefits will be available every year. The only way that your premium will be increased is if every policyholder within the same rating class as yourself increases also.

While there are many options when choosing your insurance as well, these are the most popular selections. It is important to discuss all available options when choosing a policy to ensure that you know what you will receive in the event of an accident or illness. Talk to us to research your options. And to find the best choice for you and your family.

Supplemental Medical Insurance – What Is Supplemental Medical Insurance?

Group health insurance rates have been increasing year after year. Employers are being forced by changes in recent laws to make drastic changes in employee benefit programs. Many employers have changed their health insurance to high deductible plans in order to keep premiums affordable for employees. Disability programs and group life insurance have been trimmed down minimal amounts of coverage. This creates gaps in coverage. Employees will look for alternatives to what has been omitted or decreased in their benefit package. The answer to this problem has come in the form of supplemental health insurance. Supplemental medical insurance companies enroll the employer's employees and then the employees pay premiums through payroll deduction. With many carriers employees are also able to keep the plans even if they leave the employer.  It is a great benefit to employees to have this portability in their gap coverage.

A Few Of The Supplemental Medical Insurance Products

1. Disability Insurance – Supplemental disability insurance is sold to employees to fill in gaps or replace lost benefits. Long term and short term disability insurance is purchased with a variety of waiting periods and benefit periods.

2. Life Insurance – Supplemental life insurance includes a variety of permanent plans as well as term life insurance. There are non-medical life policies available for larger groups when a certain amount of employees participate in the plan.

3. Dental Insurance – This is one of the more popular supplemental health products because it usually the first discontinued by the employer.

4. Cancer Insurance – The cancer policy is a single need policy with relatively low premiums.

5. Accident Insurance – The accident policy covers accidental injury and death. There are accident disability riders on some accident policies.

6. Hospital Income – The hospital income policy pays a daily dollar rate to the insured while hospitalized. These policies can pay as low as $10 per day and as high as $200 for each day hospitalized.

What Else You Need To Know About Supplemental Insurance

The need for supplemental insurance is stronger than ever before. Rising premiums on health insurance and the rise in deductable in order to keep costs low create gaps in you insurance.  People don't realize how expensive health insurance is until something catastrophic happens to them, and by then it is too late for the supplemental coverage.  With supplemental insurance you have the opportunity to pay for coverage that is much lower than premiums for health insurance.  The supplemental coverage also pays cash to the individual not the doctor.  This allow individuals to use the money as needed.

What happens with health insurance the next few years will either have a greater push towards the supplemental insurance. Or changes will made in policies to adapt to the changes in health care. Either way will lead to greater innovation and support for gaps we may have in our insurance.

Life Insurance Part 1 The Top 5 Myths Of Term Insurance

Term life insurance has many advantages. But understanding term life insurance and its benefits means sifting through the myths surrounding it; and there are many myths about it. These myths and misconceptions can result in too little coverage causing financial hardship for families suffering the loss of a loved one.

To avoid this from happening to you, we've taken a look at the most common misconceptions about life insurance to set the record straight. In this article we will explore myths around buying term and in other parts to this series we will explore permanent.

Myth #1: I don't work outside the home so I don't need life insurance.

False! Just because there's no paycheck to replace, doesn't mean life insurance is unnecessary. A policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring into the household, but instead about the money they keep in the household.

In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.

Myth #2: I'm young so odds are I won't need life insurance.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you'll die during your working years, you're not insuring for what's likely to happen but instead, for the worst-case scenario.

That's why term life is inexpensive for young, healthy people. Buying it now means you'll be providing financial security without spending a lot of money for it.

For example, online quotes show that a $250,000 10-year term policy for:

• a healthy 35-year old woman costs as little as $165 a year
• a healthy 35-year old man costs as little as $195 a year

What's more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums - for the same coverage - offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.

Myth #3: If it's really so cheap there must be a catch.

There's no catch to term life insurance. Your basic term life policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you'll need life insurance, whether that's until the kids are out of school or until your mortgage is paid off. Learning the difference between term and permanent is in our other article "Life Insurance Basics".

Plus, your premiums are fixed for the length of the term. They won't increase even if the status of your health changes.

Myth #4: I don't need life insurance once my children are self-supporting and my mortgage is paid off.

Everybody's needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?

Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.

Myth #5: I have life insurance through my job. I don't need any more insurance coverage.

False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you're not around.

What's more, when you leave your job for any reason, including retirement, your coverage usually stops.

Myth #6: It's such a hassle to get life insurance.

Thanks to the Internet, getting quotes is fast and easy. There are a number of online life quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online.

Final Fact:

From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out.

Life policies provide you with customized coverage for your family's needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come.

Next week in part 2 we will talk about myths revolving around permanent insurance in "Life Insurance Myths Part 2".

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Basics For Health Insurance

Health insurance, in this modern world of cancer, heart disease, AIDS, diabetes, asthma, ageing and other diseases and afflictions, it is essential to have some sort of health insurance. There are many levels of health insurance coverage available.  Like most things in life, you get what you pay for Which means good coverage can be very expensive.
Common Terms
The two most common terms in insurance are premium. The amount paid on a scheduled basis for your coverage. And deductible, which is your out-of-pocket expense before the insurance pays your provider. For instance, you might pay $300 premium per month for family coverage. Your deductible might be $250 per person. This means if you broke your ankle and went to the hospital emergency room, you would pay the first $250 of the bill. Two other terms that are part of health insurance are max-out-of-pocket and co-insurance.  Max-out-of-pocket limit is the maximum amount of money that you will spend on your health insurance.  Be careful some policies have a limit as to the amount of insurance you can use in one year.  Co-insurance is the percentage of cost you pay between the deductible and the max-out-of-pocket. Think of health insurance in these three parts, and your questions will be answered.  First, you pay all health care costs until you reach your deductible.  Second, you pay a percentage of your health care costs until you reach your max-out-of-pocket.  Third, you pay nothing for health care (unless your plan says otherwise).
Options
You can purchase very basic catastrophic coverage, which would carry a very high deductible and the premium would be less than comprehensive coverage which would have a higher premium and lower deductible. It pays to invest the time to investigate various insurance options, taking into consideration your age, your general health and the health of your family members. Employers can offer group health insurance. It is most likely the least expensive option for you, and usually the premium is deducted from your paycheck. Health insurance is a calculated risk; can you afford the premiums? Or, are you willing to risk paying less out of pocket for medical expenses in a year than the premiums would cost? Consider carefully.

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Dental Insurance

Dental costs are becoming an increasingly significant health care expense. Protect yourself against these costs with a dental insurance policy. Dental insurance policies typically work in the same way as any other medical insurance policy. Paying your monthly premium and this will entitle you to specific dental care procedures such as checkups, cleaning and x-rays. You can be covered for other procedures that are deemed necessary to keep your teeth and gums in good health.

Comprehensive

Most insurance policies, will vary in what treatments they cover and how much they cost. There can be more expensive policies that will give you greater benefits and allow you access to a greater range of services, cheaper ones will be restricted in what they cover and you will be required to contribute to the cost of procedures you require. If you will need dental surgery, oral implants, or other more expensive forms of treatment, you will want to go for a more comprehensive policy. One main difference between medical and dental health care is that children generally require more treatment than adults do. This is true right up through your child’s teen years. This is when orthodontists’ bills can often be extremely expensive. You may wish to cover only your children with dental insurance. You should check with your insurer to see if insuring only your children is possible. While some insurance companies will allow children to have their own dental insurance policies, others will only insure them as part of an adult or family plan. If this is the case you will require to insure them with your own dental insurance provider and this may mean taking out dental insurance for yourself if you do not already have it.

Discounts

Another option offered by some insurance companies is to take a form of dental discount card. This is not dental insurance in the strict sense of the meaning but does provide you with discounts on dental treatment when you require using them. They can be a cheaper way of obtaining limited protection against dental costs. For this reason are growing in popularity. These dental plans are also called value plans with the insurers. Not all insurers will provide them so shop around and see what’s on offer. There are great differences in what you will be offered for your money. Considering that dental insurance can be a significant expense, it is wise to make sure you know what is available before you decide to opt for any policy.

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