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Life & Health Insurance FAQs

What should I consider when buying life insurance?

  • There are several options or factors to consider when purchasing a life insurance policy
    • What type is right for you?
    • For how long will you need the coverage?
    • How much do you need?
    • The extensions you wnat to include in your policy
  • To help figure out which is right for you, it may be useful to understand some of the basics of a life insurance policy:
    • Premium - The amount you pay in exchange for coverage
    • Lenght of Coverage - The amount of time you are insured
    • Cash Value - The amount available to the policy holder through  surrenders, loans and withdrawals
    • Death Benefits - The amount of money paid to your beneficiaries upon your death

What should be the value of life insurance I own?

  • It varies and all depends on your needs and situation. Contact an insurance company or agent, define your needs, they will be able to come up with a suitable solution.

How can I lower my life insurance premium?

  • Life insurance is based on several different factors, below are some common ones:
    • Age
    • Health history
    • Occupation
    • Height and Weight
    • Income
    • Smoking or tabacco use
    • Alcohol

What is cash value?

  • Cash value is the interest earning section of a life insurance policy. The cash value growth of a permanent life insurance policy is tax-deferred, which means you do not pay taxes on the growth of the cash value unless the money is withdrawn. Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.

What should I think about when buying health insurance?

  • Basically health insurance comes in three types:
    • HMO - Health Maintenance Organizations - The least costly, but highly restrictive. A physician is selected by you and he decides what is medically necessary for you an when you need a specialist.  If the treatment is too costly the HMO can override your doctor's advice
    • PPO - Preferred Provider Options - Allows you to select any provider in the PPO list and generally cover a wide variety of services recommended by those providers. Some PPO cover other providers, but with a larger co-payment.
    • Fee for service is the most expensive policy. It allows you to go to any provider care physician who has approve visits to specialists.

What is CO-Payment?

  • The predetermined amount you are required to pay each time you avail a medical service. In other words, if you visit a physician you are required to pay a certain amount between $5-$30 (standard range) as CO-pay per visit.

What is CO-Insurance?

  • A certain percentage of amount the insured is required to pay to share the cost of medical care.

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