Underwriting of any insurance product will vary from company to company and by specific risk. Sometimes, there is a master rule, while other times, companies will vary in the coverage that they will offer and at the pricing. As an ongoing part of this blog, we look at different insurance planning scenarios and how they impact you.. Remember, it pays to do your homework and to review multiple insurance companies and if you have an agent, make sure that they have access to more than one company and a couple of products. If the only tool your agent has is a hammer, every insurance need is a nail.
This is also a point to consider when your insurance advisor is presenting different types of policies. If the insurance agent only has access to one company’s products or that company’s selection of products is narrow, then you are limited to what that agent has to offer. Imagine going into a grocery store and the only products they sold were made by Nabisco (just an example of a brand, don’t read anything into this choice….). Would this be your regular grocery store?
Is the policy that your advisor presenting the best choice for you or is the product that the agent likes to sell? Some advisors will sell the product of the day and/or the one that pays them the highest commission. Right now, one of the top selling insurance products are indexed insurance products, however, these are some of the worst products for consumers in most cases due to caps on returns, high fees, no control on participation rates and many other components that are at the company’s control and are completely opaque.
So remember choice is good, however, being educated when making that choice is even better. To learn more, use the tools & resources at www.tonysteuer.com