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Table of Contents Practical
Pointer
Topic
of Interest
Getting
Private Insurance |
Shopping
for Insurance
Here are some things you should consider when
shopping for any type of insurance:
- Shop around. Prices
can vary substantially from one company to another, even for policies
with similar benefits. Get quotes from several companies before buying a
policy.
- Buy only from
companies that are financially sound. Although there is no foolproof way
to assess a company’s financial strength, a useful measure is the
company’s financial rating by an independent rating service such as
A.M. Best , Dun and Bradstreet etc.
- Choose companies that
have a good track record for customer service. The number of consumer
complaints against a company is a good indication of the company’s
customer service record. Your family and friends are other sources of
information about a company’s customer service. Ask them if they’ve
had any experience with the companies you’re considering.
- Buy only from
licensed companies. Licensed companies belong to a guaranty association
that will pay your claim if your insurance company goes broke. If you
buy from an unlicensed company and have a claim, it might go unpaid.
- Buy from an agent you
know and trust. If you buy insurance through the mail or by phone, ask
whether the company has a local agent or a toll-free number you can call
if you have questions.
- Try to find an agent
that specializes in long-term care insurance. Because of the many
variables in structuring a long-term care policy, it’s important to
have an agent who has the knowledge and experience to guide you through
the process and help you choose the appropriate coverage for your
individual needs.
- Consider your needs.
Although it’s difficult, try to anticipate what services you might
need in the future and choose a policy that’s right for you.
As with any insurance purchase, it’s important to
protect yourself. Follow these tips:
- Read what you are
asked to sign before you sign it. Never sign a blank application form.
- If an agent tries to
rush you, be suspicious!
- Ask questions and
take notes when you talk to an agent. These could help later if there is
a dispute over what you were told about a policy.
- Don’t buy insurance
on the agent’s first visit. Invite someone you trust to be present
during the second visit. An agent shouldn’t object.
- Answer all questions
on the application accurately. Most
applications are detailed and lengthy and require expertise.
Of course, the applicant and agent can sit side by side and
complete together – and should do so – to ensure accuracy of info.
Omitting or falsifying information could cause the company to
deny your claims or cancel your policy.
- Do not pay cash or
make a check out to an individual agent. Always pay by check or money
order to the company so you have a clear record of payment. Insist on a
receipt signed by the agent on the company’s letterhead.
- Be sure you have the
names and addresses of the agent and the insurance company. Know how to
contact the agent and the company if you need help.
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