Thursday, May 23, 2013

Insurance Companies: Never Ask These Questions! (3)

Will I be covered by a group or an individual policy when I buy from
an association like AARP?
The differences between group and individual policies can be very significant
in terms of portability and coverage options. Saving a few dollars
through a group plan may not be the best option for a healthy applicant.

If I am to be covered under a group policy, will the insurer provide me
with a copy of the master policy? Will the certificate I may receive be
derivative of that master policy?
Long-term care insurance policies are complicated and detailed. You
need to see exactly what benefits you’re buying and what conditions will
trigger them.

What fees are being paid to those who manage the group plan?
Your group discount may not be as good a deal as it appears. If the insurer
has enough of a margin to give up to 3 percent in fees to the group,
you may be able to find another policy in the individual market that has
better benefits for almost the same premium.

If I have bought from a group trust, what fees are being paid to sponsors
or directors?
Did the sponsor or director shop in your best interest or their own? Was
the bidding rigged to favor an insider?

Is my call to the group insurer being recorded? What information is
going into the computer? Can I get a copy of the notes they’ve taken
of our conversation?
Your agent has an obligation to keep your personal information private.
But does the intake person on the telephone have the same obligation?

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