Six Life Insurance Questions and Answers

1. How does a life insurance company decide how much a particular policy costs?

The price of a life insurance policy is a life insurance company’s calculation of the amount of cash necessary to gather from each member of the life insurance pool. The price is always dependent on the mortality tables and the calculation of the size of the risk the life insurance company is taking on by being the insurer of your life insurance policy.

2. How does a life insurance company assess their risk in insuring an individual?

When somebody applies for a life insurance policy, the company will inquire about their health status and often require a medical exam. The life insurance company will use information gathered to determine if and how they want to insure the individual.

This determination of “if” and “how” is referred to as “underwriting.” There are not many limits on the type of information underwriters can take into consideration.

3. Do all life insurance companies require a medical examination? Often companies will require a physical medical examination prior to agreeing to insure an individual. Generally, they have a company doctor that will conduct this examination. This doctor or medical technician may have their own office or may even come to the potential insured party’s home for their convenience. The insurance company should not charge the potential insured party for this exam.

4. What types of questions will the life insurance company ask when applying for a policy?

It is common for life insurance applications to ask the following questions:

Do you regularly use tobacco or tobacco products? Life insurance companies strongly believe that smoking or using tobacco products in any form can make an individual’s life shorter and will charge higher premiums for smokers.

Do you have AIDS, cancer, heart disease, or are you HIV+? Depending on the severity of any health conditions such as these, a life insurance company may sell you a policy at the normal rate or possibly charge you a more expensive price. If the health problem is extremely severe, most life insurance companies will directly reject your application.

Do you have a hazardous career? With more dangerous jobs, companies tend to charge a more expensive price for a life insurance policy. If your job requires an above average amount of risky, life threatening behavior, expect a higher cost for life insurance.

Does your immediate family have a history of fatal diseases or death at a young age not due to an accident? The life insurance company is not barred from questioning you about you and your family’s health history. Diseases that commonly run in the family that are fatal, such as heart disease, Sickle Cell Anemia, or cancer may cause a company to reject your application or charge you a higher rate.

5. What other questions can I expect to be asked?

A life insurance application may ask seemingly unrelated health questions to asses high risk behavior.

Some of these questions may include the following:

In the past seven to ten years have you ever been arrested for driving under the influence? Diagnosed or medically treated for cancer, AIDS, HIV, chronic lung disorder, heart disease, diabetes, stroke, or liver problems? Recommended by a medical professional to cease or reduce drinking alcohol?

Are you currently or have you ever been disabled or forced to retire due to an illness or injury?

Answering “yes” to any one of these inquiries may result in getting a life insurance application denied, it is far better than answering dishonestly and then having a claim refused later down the line. This outcome could result in your beneficiaries getting nothing if you should die.

6. Can life insurance companies use genetic testing to determine whether or not they want to insure someone?

Life insurance companies often use genetic testing to learn as much as possible about their potential clients. By administering a blood test, companies can determine not only what diseases you may currently have, but ones you may get in the future as well. Some states do not permit this kind of testing for health insurance purposes, but generally for life insurance, genetic testing is permitted.

Sarah Martin is a freelance marketing writer based out of San Diego, CA. She specializes in the topic of life insurance: policies, companies, agents, and advice. For a free quote, please visit http://www.equote.com.

Insurance Marketing History Lesson For Insurance Agents

Insurance agents all over the U.S. right now are under fire because Insurance marketing is not working and most insurance agents blame the economy.

The insurance agent struggles to get new insurance leads and their home office is not letting up on the quotas for production. And the biggest challenge of all is the combination of a perceived down economy, the lack of ways to get new insurance leads and the pressure of the agents home office all equates to less money for the agent.

Traditional ways of getting new insurance leads and growing an insurance agency just do not work. And it is futile to get into the we have got the lowest price wars because this is what pigeon holes agents into believing they provide a commodity and confirms the inaccurate perception to the public that the insurance services provided by the agents is a commodity.

So what should smart agents do in an economic environment like today? And is insurance marketing a 'dead man walking?'

The answer is a resounding 'No', but at the same time insurance marketing must break from the clutter of all the marketing messages bombarding prospects and if the agent wants to get something different in terms of better results in today's economy, then the agent must do some things different.

The easiest place to start to differentiate yourself from the insurance agent struggling to survive is to look at what you have been doing ....and STOP! I know that sounds simple, but to continue to do what used to work even though it no longer works is wasted money.

But also, don't be like the agents who are no longer in the business. They were not smart enough to look at the marketing lessons from the past and discover that it is wisdom to stop doing the marketing that does not work, BUT you NEVER stop marketing. Because when you stop marketing you have started the bugle playing Taps.

What type of marketing should you do?

The answer is marketing that is emotional, compelling, riveting, and engaging, and yes you can do that with any product or service and especially in the insurance market.

One easy way to be engaging is to tell stories or triumph and tragedy and paint the prospect into the story so that they can experience the emotion of the story without having to go through the challenge of the story. And in fact, insurance agents often can simply share some of the stories about claims that happen in their agency and explain how insurance either did or could have helped.

Another key is to make sure that you are contacting your prospects in ways other than just a sales motion. You can provide value by doing things that makes their life more convenient. And this could be as simple as sending out voice-broadcasts when you hear about a great deal on pizza from a local business or letting them know where the lowest gas prices are located. You can discover this information by simply taking 10 minutes searching online.

The insurance clients love this type of service because you are providing a way to make their life more convenient. Remember Small things really do make big differences.

So ask yourself this question on a daily basis What else might you be able to provide to add convenience to your clients, but you can get for free?

Insurance agents who want to get more insurance leads and retain their clients will love the results of starting these simple, easy, but extremely effective systems.

I hope these tips have been helpful for you and inspire you to continue and grow your agency.

David T. Johnson has arranged for insurance agents to get a FREE GIFT Plus discover how to get Insurance Leads

7 Mistakes to Avoid When Buying Automobile Insurance

Comparing and purchasing auto insurance can be a real challenge, especially if you are new to the process. Many automobile owners make costly mistakes because they simply do not know how to approach insurance companies or brokers and are not sure what to expect.

Some insurance agencies will look out for you to be sure you get the best possible protection at the best price, but don't bet on it. Be informed before you go shopping for vehicle insurance coverage. If you will put a little time and effort, you'll save time and money. Here are seven common mistakes to avoid when buying auto insurance online or through conventional sources.

Mistake #1: Failing to Compare Coverage Types and Policies

Automobile insurance varies from one policy to the next. There are many types of coverage that you can purchase and each provides a certain umbrella of protection for different circumstances. Never jump to conclusions when obtaining online insurance quotes, but examine each offer based on the type of coverage available. An example would be a quote that includes both liability and collision insurance versus a quote that includes liability only. The policy with liability only will obviously cost much less.

Mistake #2: Thinking Cheapest is Always Best

The cheapest car insurance is not always best. You should be careful about choosing auto insurance based solely on price. There are many "fly-by-night" companies or start-up companies that never make it. They might promise very low premiums today, but that doesn't really matter if the company goes out of business soon. This is not to say you can't get great bargains on car insurance, but just to be mindful of the scams and companies that make unrealistic promises. Stick with larger companies that have been in business a while with a known reputation for great service.

Mistake #3: Buying Too Little Coverage

Don't make the mistake of buying too little coverage, especially when it comes to liability insurance. Liability coverage protects you in case you cause an accident that harms another's vehicle or their health. Car repairs and medical expenses can be very costly. Even if you have to pay a little more to get extra liability, you'll be glad you did should this type of accident ever occur.

Mistake #4: Forgetting to Pay Your Insurance Bill

If you forget to pay your automobile insurance bill or if you are late for any reason, this could cause your premium to increase for the next year or even a few years. It can also cause your policy to lapse, which means you'll possibly have no coverage during this period of time. This is a dangerous situation to be in. To avoid it, set up billing on automatic payments if possible or make paying your insurance a top priority when the bill arrives! Mistake #5: Assuming Coverage

Never assume that anything and everything is covered when purchasing auto insurance, whether online or off-line. Ask what's covered before signing a policy. Remember that theft, weather damages, fire damage, and other mishaps or acts of God are usually covered in a comprehensive policy. Comprehensive policies often will cover everything under the sun - no matter what the cause. These can include hail, flooding, riots, explosions, glass breakage, falling or flying objects, windstorms, etc.

Mistake #6: Failing to Notify Your Agent of Important Changes

If you add a driver (such as your teenage daughter or son), have a minor or major accident, or sell or trade a vehicle, you must notify your agent of these changes. These can affect your insurance premium, and it's also required by law to add a child to your policy when they obtain a driver's permit. Also, don't forget to notify your agent of positive changes that could result in a driver's discount, such as upgrading your car with safety features, getting good grades in school (for teen drivers), taking a defensive driving course, etc.

Mistake #7: Not Shopping Around

Don't just buy the first car insurance policy you come across. Do an automobile insurance comparison using online tools or visit several local insurance agencies to compare policies and pricing. Even if you buy car insurance online, look at all the options before making a decision. Shopping around can save you thousands of dollars over the years, and can even make it possible to secure additional coverage that you might need later on down the road.

No matter which company you choose, always get everything in writing before making a commitment. Never make a decision right away. Take home the materials, read them over, and maybe even consult with someone that knows a lot about insurance before taking that final step. Avoid these automobile insurance mistakes so you can get all the coverage you need to fit your budget.

Bob Pardue is owner of Find Car Insurance Now. Learn more about comparing and saving on automobile insurance by visiting http://www.find-car-insurance-now.com now ...

Acquire Online Health Insurance in Texas

When you want to acquire quotes on health insurance, Texas offers you plenty of insurance quote providers. While you can get quotes from local companies or agencies, the best source is the Internet. Through online insurance quotes, it will be relatively easy for you to compare the prices or rates of policies from different insurance companies. In turn, you will be able to buy insurance plan that fits your needs and your budget. This is very convenient, especially with all the other finances that you have to take care of.

The cost of health care within the U.S. has increased quicker than the capability of an average consumer to settle them. When you are employed, the company that you are working is responsible for paying the policies of insurance. But if you are self-employed, you are compelled to settle a monthly payment that is as high as $500. While there are costly insurance policies, you can also avail of affordable health insurance. Texas provides you with insurance quote providers, both locally and on the web. For easier insurance quote comparison, online methods are recommended. In case of an illness and you are required to stay within the hospital for a long time, you are required to pay thousands for medications and bills. If you are not insured, you will be obliged to pay for this amount by yourself. But with your health insurance, you will have someone to cover the finances.

The government offers incentives to small companies. These are intended to let small businesses set up health plans for its workers. The bad thing is that only a few companies are providing their employees with insurance plans. This is due to the fact that it is difficult for some business owners to search for affordable health insurance policies. What is more, government tax breaks cannot cover for the involved extra expenses. When you are an employee of a small company or you are not employed at all, you require life annuity for future purposes.

Because of the inability of some companies or businesses to provide their workers with health insurance, they are forced to buy insurance policies for themselves. When you are paying for expensive monthly insurance, this can sometimes lead to the option of paying for food first or paying for insurance that will come in handy, in case you or a member of your family gets sick. If you think that it is hard to search for an insurance policy that fits your finances well, get insurance quotes online. Since accidents and sicknesses are inevitable, life annuity is important.

Through insurance quotes, you will be able to compare policy rates from different insurance companies. This way, you will know which company offers the most affordable insurance plans. There are a handful of sources from where you can get the quotes. However, the most convenient is an online insurance quote provider. One of these is Best Insurance Quotes & Service LLC. Through the innovative and high-tech tools of an insurance quote agency on the web, you will find it easy to look into the policies of several insurance companies. Although you may not find very cheap rates, you will still be able to find an insurance policy that you can fit into your budget. When you want to obtain quotes on health insurance, Texas offers Best Insurance Quotes & Service LLC.

You will be able to find the most reliable Texas life insurance quotes and lowest online life insurance quotes through Best Insurance Quotes & Service.