Insurance Experts

Welcome to your competition’s worst nightmare! Imagine an insurance selling system so penetrating it will:

1. Separate you from the crowd as the undisputed expert in your field

2. Pre-sell your prospects, making the appointment just a matter of finishing up the paperwork

3. Generate stacks of warm leads from your target neighborhood and demographic

4. Cost you less than direct mail or telemarketing and present you as a true professional

5. Make you ask yourself, “Why didn’t I do this in the first place?”

Picture yourself appearing in your own custom scripted, half-hour Cable TV Infomercial, the undisputed expert in your field, speaking directly to your ideal prospect in a soft pre-sell interview format. Your viewing audience is selected with the accuracy of a surgeon’s hand by the cable channel airing your show. For less money than you thought possible, you position yourself as the expert in your field, you generate truckloads of warm, pre-sold leads, and you send your competition running for therapy.

Once your TV Infomercial Insurance Selling System leaves our production studio, you air it as often and as many times as you like. You target your show to attract health, life, annuity, home, auto, any kind of insurance prospect. The national average cost for prime time viewing (7:00 PM thru 11:00 PM) on local cable channels in most markets is an unbelievably low $150 to $200 per half-hour program. This is less cost-per-thousand-exposure than you spend annoying people with junk mail or telemarketing.

A Bizarre Secret

Let me tell you the most bizarre secret I’ve learned in my 40 years of sales. I’m just going to toss this out to you, and when you hear it you’ll think, “Oh, I already know that. That’s just too simple to work.” Most people dismiss it as being too simple. Maybe that’s why most insurance agents (90%) fail within eighteen months.

Here’s my secret: People buy things from people they (a) like, and (b) admire. What’s more, people can’t help but like the people they admire most. In fact, the more they admire you the more they like you and want to buy from you. Therefore, if you have an insurance selling system that positions you as the “expert” in your field, people will be irresistibly drawn to you and want to do business with you.

Remember the first closing technique you learned in “How To Sell Insurance 101” about assuming the sale? Just being the expert is a ridiculously easy way to not only assume the sale but compel your prospects to assume the sale, too. The subconscious dialog in your prospect’s mind is, “I naturally assume you’re going to let me buy this policy from you… aren’t you?”

You’ll be flabbergasted to know that you can become the “expert” in your field much easier than you think. Also, there are probably few, if any, insurance agents promoting themselves as expert in your local market, and fewer than few with their own TV Infomercial Insurance Selling System. This prime location “real estate” in your hometown cable channel is probably yours for the taking. When you appear on TV you set yourself apart from all other insurance agents. Your image is larger than life. After all, only experts are good enough to appear on TV. Your image skyrockets because you rise above the dog-pile of telemarketers and junk mailers fighting for leads. Your prospects come to you, ready to hear more, willing to take your advice, able to do business. You’re the expert. You’re on TV!

How It Works

You come to our production studio in Tucson, Arizona, where we do all taping, editing, pre- and post-production work. Our job is to make you a Star. We use only top professionals from camera operators to makeup artists. I’ve been in the insurance business for decades and understand the problems and frustrations producers go through in the field. This is no ordinary insurance selling system. We go to great lengths to separate you from the pack of agents your prospects typically send packing.

The 30-minute interview format is proven to be the most credible, convincing and friendly TV show format. You have time to delve into concepts in a way your future clients can really understand. You reveal your personality in an audio-visual dimension as an invited guest in their living room. You’re one of the family. You show how you are different, better, more knowledgeable, more comfortable and caring than other agents.

We begin with a pre-production interview session to identify and rehearse 10 to 20 key questions and answers. When you are ready, we roll cameras with me interviewing you in an easy, conversational dialog of the same familiar topics. We edit out awkward pauses, tongue twisters or mistakes, making you a polished professional, expert guest. If you need an insurance selling system that targets a certain demographic or client type, i.e. retired Seniors, high-risk drivers, new homeowners, small business owners, we will flavor the show to cover topics of interest to them.

In the editing room we pepper your show with appropriate testimonials, which may be stock footage or reenactments of your actual customers. We repeat “grabbers” often throughout the show to catch channel changers who may be surfing for anything of interest to watch. We display your telephone number frequently and suggest you offer a giveaway (we have Free Special Reports on several interesting subjects) “to the first 25 callers.”

You’re not pitching The Clapper here. Your TV Infomercial Insurance Selling System and everything about it is tastefully produced, professionally orchestrated and smacks of the high quality of an Oprah, Dr. Phil, or Larry King Live show.

More Bang For Your Marketing Buck

Feel free to use our in-house media buying services. There is a long learning curve to the cable TV industry. Knowing the ins and outs can make a world of difference to your marketing campaign. Most insurance agents are happy to leave this busywork to professional media buyers who are intimately familiar with cable networks. We are happy to handle this for you at no cost to you. Our insurance selling system includes service after the sale. We will negotiate time slots, best rates, market penetration – everything you need to get the most out of your marketing dollars.

Another way to get more bang for your marketing buck is to upload your 30-minute TV Infomercial Insurance Selling System onto your website. Visitors to your website can get to know you in a way that shows you as credible and professional, yet an agent who is personable and approachable. You may also want to order our Special 200 Mini CD Package. We dub your show onto mini CDs with custom labels for you to use as client leave-behinds, referral generators, or the ultimate “drop-dead cool” business card.

The national average cost for a half-hour prime-time cable TV program is between $150 and $200, with larger markets more, smaller markets less. You may want to begin running your show five nights per week to see how it pulls, then adjust the scheduling as your need for leads dictates. The cost for us to produce your custom half-hour TV Infomercial Insurance Selling System is less than you might imagine. Most people guess the price to be $20,000 to $25,000. It should be, but it’s not. Please contact me by clicking on my bio below.

Most of us at one time or another have had a savings account at a bank. Health savings accounts are not that much different. A health savings account is a tax free medical saving account. Health savings accounts are always associated with high deductible health plans (HDHP). With a high deductible health plan, your annual deductibles are high but the monthly premiums are low. The health savings accounts make it possible to set money aside and then use it whenever needed for your medical expenses.

Health savings accounts are fairly new to the insurance scene. In December of 2003, President Bush signed the Medicare Prescription Drug Improvement and Modernization Act. This law was intended to help businesses save money on skyrocketing health insurance costs by allocating a greater portion of the cost to employees. In turn, an employee would pay lower monthly premiums but was responsible for much higher deductibles before health insurance coverage would kick in. In effect, you are self-insured up to your deductible for each year that you are enrolled in a HDHP. Previously, medical savings accounts were available only to small businesses and the self-employed. Health savings accounts are available to anyone under the age of 65.

The earlier medical savings accounts were tax free but did not allow for any type of investing. Not only are the HDHP health savings accounts tax-free, the assets from the accounts can be invested. This makes high deductible insurance plans an affordable and possibly lucrative option. You are allowed to set aside tax-free dollars now to guard against future health issues. If you enjoy good health and don’t need to use the money, your overall financial health will improve as well!

There is also another type of savings account applicable to medical expenses. A health care flexible spending account (FSA) is somewhat like a heath savings account but there are differences. One of the biggest differences is the amount of money that can be placed in them each year. With a flexible spending account there is no cap on the amount of money that can be contributed to the account unless your employer or insurance company sets one. Flexible savings account may sound like the better deal but if you are looking for flexibility it’s really not. The money you set aside in a flexible spending account can only be used for qualified medical, dental, vision or prescription expenses or any health-related expense that your health insurance policy does not cover. In addition, FSA funds must be spent each year or you forfeit any remaining balance. Thus, to maximize the tax savings benefits of a FSA, you need to be pretty accurate in determining your medical expenses from year to year.

For health savings accounts, you can contribute up to the lesser of your HDHP deductible or the amounts set by the Internal Revenue Service. For 2006, the IRS limits are $2,700 for individuals and $5,450 for family coverage. Taxpayers over 55 years old can contribute an additional catch-up amount of $700 for 2006. The money you place into a health savings account can be used for any medical expenditure and can be rolled over from year-to-year and from job-to-job. Withdrawals for non-medical purposes are taxed and carry a 10% penalty for taxpayers under age 65 years. After age 65, non-medical withdrawals are taxed without the penalty.

Health savings accounts can be a great option for some people. Coupled with the right high deductible insurance policy, a health savings plan can be the perfect medical insurance solution for those seeking lower premium costs without sacrificing adequate health insurance coverage. The fact that with a health savings account you can invest your contributions tax-free makes a health savings account an almost perfect solution. While not for everyone, if you’re in good health, with a longer span of time before retirement age and do not need costly ongoing prescription medicines, a HSA may be your best choice.

Life Insurance can be confusing, let us help you decipher your way through it. This is the first in a several part series where we will introduce you to a few of the key terms in the Life Insurance world.

First of all, life insurers (also known as carriers) offer more than just traditional life insurance. One of today’s hot products is Long Term Care (LTC), we will talk about LTC in another article. They also offer products like Annuities, Critical Illness and Disability Income insurance. You can purchase these products through agents, which typically sell only the carrier’s product they are associated with, brokers which sell products from various carriers and on your own through the Internet.

An introduction to Life Insurance products starts with the two basic categories that life insurance products fall into. These are those with Cash Value and those without Cash Value. An insurance policy with a cash value is a policy that has a value for the insured that they can borrow or withdraw from. Cash value is built up by paying premiums to build up your cash value. Typically, those without cash value are Term Insurance products. Those products with a cash value, typically are investments that last until you die. A Whole life policy and a Universal life policy are examples of policies with a cash value.

In this article, we will concentrate on term life policies. These are the most common types of policies and do not have a cash value. You purchase a term policy for a specific amount of time, usually 10 or 20 years. Since these policies have no cash value, they are generally a very good value. A term policy is the ideal choice for people under 40 years old. For example, a 30 year old with good health can find a policy for less than $300 a YEAR for $500,000 in protection. This should more than cover anyone around that age.

Another form of a term policy is offered to many of to help offset some of our credit risks. For example, have you received an offer that if you pass away, your mortgage will be paid off? This is generally what is known as a decreasing term policy. Mortgage companies market this to their clients that covers the unpaid portion of the debt to them. Before purchasing one of these types of policies (often offered along with car loans, credit cards, etc as well) do your research! You can easily find out how much a policy will cost by clicking one the links on this page.

In later articles we will discuss some of the different kinds of cash value policies.

This article is brought to you by the Wealth Bounce webmaster.

The easiest way to obtain affordable, low cost health insurance is to purchase a low cost health insurance plan through your employer. These health insurance plans are usually Health Maintenance Organizations (HMOs) or Preferred Provider Organizations (PPOs), and – even better news- purchasing a low cost health insurance plan through your employer usually means that your monthly premiums are deducted from your paycheck, much like taxes are. If you’re lucky, you won’t even miss those premiums!

Yet, not everyone is fortunate enough to work for an employer who offers affordable, low cost health insurance. Actually, some people aren’t even able to work at all. Maybe they’ve lost their jobs or been laid off. Maybe they’ve become disabled, or just too old to work. Whatever the reason, there’s good news. Affordable, low cost health insurance is within reach – if, that is, you’re willing to do a bit of stretching.

Use your spouse’s health insurance plan. If you are married and your spouse as an affordable, low cost health insurance plan, he or she may be able to add you to it.

Look into state-sponsored health insurance programs. These state-sponsored programs are ideal for the disabled and elderly; actually, most of them are designed just for those people.

Check out a few short-term medical insurance plans. Short term medical insurance plans are designed for individuals who have suddenly found themselves laid off or out of work, but plan to join the workforce again once they can. Short term medical insurance plans are full of benefits, and are generally available anywhere from six to 12 months.

Start looking at various individual health insurance plans. These are usually the most expensive of all health insurance plans; however, what you’ll pay in premiums will pale in comparison to what you’ll pay in hospital bills should you become ill or injured. This makes having an individual health insurance plan seem all the more affordable and low cost.

Many people are skittish about life insurance, because they feel that it is useless, or it makes them face their mortality, or they may arrogantly think that they won’t die. But let me reassure you, life insurance is not only useful, but also essential if you’re young or old, or have a young family. Life Insurance should definitely be one piece of your financial portfolio.

BENEFITS OF LIFE INSURANCE

1) Protects your family – If you should die prematurely a life insurance policy will give your young family and spouse a financial buffer. The lost income can be devastating.

2) For children and young adults – accidents are a leading cause of death.

3) As you get older – it can help to defer funeral costs.

Life Insurance can help fill the gaps when you or someone you love passes away, as well as, helping to eliminate the stress and uncertainty of their future.

TYPES OF LIFE INSURANCE

There are different types of insurance, which can fit each individual’s needs and situations. The different types and explanation of each are as follows:

Term Life Insurance – Term life gives you coverage for a particular period of time. (Builds No Cash Value)

Whole Life Insurance – Whole Life can give you protection for your entire life at a fixed rate. Whole Life builds up cash values, and in some cases, paid dividends.

Universal Life Insurance – Universal Life gives you more flexibility — allowing you to adjust your premiums and to increase or decrease your death benefit.

Accident Insurance – Accident Insurance gives your family an income in the event of your accidental death.

To conclude, when I was younger, I felt that life insurance was a waste of my money. But that changed when I seen the results of what happens when a father of three young children died unexpectedly. He had no insurance to care for his three children. Not only did his wife and children have to deal emotionally with their loss, but it also left them financially crippled. From that moment on, I realized the importance of Life Insurance and what it can bring to my family – a financial safety net, and for me, peace of mind.

One of my client’s wives paid me a visit to ask about life insurance, a product I was well acquainted with. She told me that she and her husband were visited last night by a life insurance agent. “Jan, what did he try to sell you?”

“A $90,000 whole life policy with an annual premium of $500. Is that okay?”

Knowing that few people really understand life insurance, I asked her if she really understood what the agent was talking about.

“I thought I did last night,” she replied, “but when I woke up this morning, I wasn’t so sure. That’s why I’m here. You once told me to never buy life insurance unless I talked to you about it. Well, I’m here. Could we chat about it?”

I was glad that Jan was here instead of Mark. I have learned that it is much easier to talk to women about life insurance than men. Women seem to better understand the financial consequences of their spouses’ death, especially if they are mothers. Most men, however, don’t want to face life insurance because they think that they will never die. Women know better.

I was no stranger to the murky world of life insurance. Throughout my 20 years as a CPA, I’d often locked horns with insurance agents and financial planners who wanted to sell garbage life insurance products to my clients. In my role as a CPA, I always believed that it was my job to act as a mother hen and protect my clients from the wolves.

I began by asking Jan a question that zooms to the heart of the matter. “Tell me Jan, why are you buying life insurance? What do you hope to accomplish?”

She answered, “To protect me and the children in case Mark dies.”

That quickly established the fact that Jan knew about the key issue: that life insurance has but one purpose: protection in case disaster strikes.

Then I asked her another question. “Just suppose that you knew for sure that Mark was going to die tomorrow. How much life insurance would you buy on his life —$90,000 or $450,000 — assuming the premiums were identical?”

She looked at me as if I was crazy. “I’d buy the $450,000 policy. Who wouldn’t?”

I then gave Jan a quick education about life insurance, explaining that there are only two kinds of life insurance, term and cash value. The problem is knowing which one of them is the better buy.

Term insurance is pure insurance ( protection) coverage. If you pay the premium and die , the insurance company will pay the face value of the policy to your beneficiary. It is available to age 95 and can be purchased yearly, or on a guaranteed level premium basis for 5,10,15, or 20 years. The product is uncomplicated and very inexpensive. The premiums, however, do increase each time the policy is renewed since the insured has grown older.

Cash value life insurance (sold as whole life, endowment, straight life, permanent life, universal, and a zillion other names) is the second type. It differs significantly from term because there is a savings or investment feature attached–the cash value. About 75% to 80% of every premium dollar goes to this cash value “kitty” and the remainder pays for the actual life insurance protection. These policies typically last to age 100 and the premiums remain level for one’s entire life.

Thus, in one slick package, a cash value life insurance policy claims to accomplish two worthy goals: death protection and family savings. It was my job to convince Jan that cash value insurance fails miserably on both counts and that she must, for her and her children’s sake, buy pure term life insurance and nothing else.

“Jan, there are two reasons why you must not buy that whole life policy or any other cash value product. First and most importantly, cash value life insurance is anywhere from five to ten times more expensive than the equivalent amount of term insurance. It’s like paying $75,000 for a $15,000 automobile just because you went to the wrong dealership.”

To keep their customer’s attention away from the high cost of cash value, agents focus their sales spiel on the investment feature, usually with the aid of reams and reams of incomprehensible computer printouts. This sales tactic has literally duped the American public out of trillions of dollars in the last 150 years, ever since cash value was invented.

“Jan, how much time did the agent spend last night talking about the actual insurance protection versus how much money you’ll earn from the cash value policy?”

She thought a bit before answering. “Well, he spent the whole evening going over a bunch of computer printouts that showed us how rich we’d be in fifty years when we retire, and how much we could borrow from the policy if we ever needed a loan.”

“But what did he say about your protection needs?”

“Come to think about it, hardly anything at all. After we told him that we could afford a $500 yearly premium, he looked in a book and said that he had found a great $90,000 whole life policy that we could afford. But about protection, he really said very little.” I could tell that she was starting to bristle in anger, a sign that I was doing a good job.

I then told Jan that people with children living at home should have, as a rule of thumb, about eight to ten times their yearly gross income in life insurance protection. For Mark and Jan, that translated into at least $475,000. The agent who met with them should have figured that out and done his utmost to assure such adequate protection.

“You see Jan, that agent’s sole emphasis should have been on your financial protection in case Mark dies tomorrow, not about making you a rich lady in 50 years. The agent’s decision to sell you the anemic whole life policy would literally rob you and your kids of $385,000 if Mark dies tomorrow.”

“But Mark is not going to die tomorrow. Don’t say that!”

“Jan, you don’t know that. He could die tomorrow or in a week from any one of a thousand and one different causes. And so could you or I. That’s why you must be fully protected right now. Life insurance is a today need.”

I continued…”Jan, remember when I told you that there were two reasons to avoid cash value life insurance?”

“Yes.”

“You told me Jan that the agent spent most of last night talking about the wonders of the cash value investment. Now I am going to give you the real scoop about that.” This one always puts the final nail in the cash value coffin.

“The cash value,” I continued, “is not like an ordinary investment such as stocks, bonds, or a bank savings account.”

“But the agent said it was just like a bank savings account…”

“It resembles a savings account about as much as a shark resembles a goldfish. Tell me Jan, what do you think happens to the cash value—the promised pot of gold—if Mark dies? Who gets it?” The fun starts…

“That’s easy,” she replied, “I do…it’s our money…our investment…right? Marsh…tell me I am right!”

“Sorry, you are wrong. If Mark dies, the insurance company keeps it. That means that all that extra premium you paid for so many years goes up in smoke.”

“So what do I get if Mark dies?”

“You get the face amount of the policy…but you could have gotten that for a fifth of the premium with a term policy.”

“Marsh…you can’t be serious. In my worst nightmare, I would not expect something like this. Are you sure?”

“Very. But if you want some proof of your own, get the book What’s Wrong With your Life Insurance by Norman Dacey. That’s just one of many books in the library that echoes what I have been yapping about. Don’t think I am the Lone Ranger on this.”

Apparently she got fed up. Her voice rose as she said, “The agent never said word one about any of this! Are you telling me that he bent our ears off last night just to sell us a chump change policy that will leave me seriously underinsured just so he could make a bigger commission…and that they steal my investment to boot if Mark dies?”

“That about hits the nail on the head. And one more thing…when you tell the agent you want a term policy instead, expect another visit from him. Be aware that they are very well trained in changing minds. Plus, you might want to shop around for the best deal. Even among term policies there is a wide variance in price.”

End

Postscript:

It is this author’s hope that anyone in possession of this article pass it onto their relatives, friends, and neighbors. The information in this article can put many thousands of extra dollars in the bank accounts of those who need it most.

Our good health is one of the most important possessions we have - and with the cost of health care rising, health insurance is one of those things that just makes sense. The possibility of you or a loved one being affected by serious illness isn’t something you like to dwell on, but it definitely pays to think about the consequences of such an event before it actually happens.

Chronic or serious illnesses are expensive, and without health insurance, getting the medical treatment you need may be difficult if not impossible. A comprehensive health insurance plan can take some of the worry out of life with the reassurance of knowing that if the worst happens, your medical expenses are covered.

When you’re shopping for a health insurance plan, there are several things you’ll want to consider when deciding what type of plan is best for you and your circumstances.

• Your lifestyle will affect the cost of your insurance coverage - if you smoke, are overweight, or have an otherwise unhealthy lifestyle, your insurance costs will be higher. Pre-existing medical conditions will also increase the cost of your insurance coverage.
• Most plans cover normal medical expenses - but before signing anything, think about what other services you and your family are likely to need, and if the plans you’re considering cover those needs. This is where it pays to know about the medical history of your relatives, so that you can make decisions based upon what types of medical conditions might run in the family.
• If you require specialist care, make sure your plan covers it.
• Emergency care - usually a referral from your doctor is a prerequisite of emergency medical care. Some health insurance policies won’t pay for weekend hospital visits unless you are referred by your doctor, and some will require that you wait until a weekday if it’s not a matter of life and death. Check out these types of details before making a commitment.
• Prescriptions - think about what prescriptions you currently need and what you may require in the future. Insurance plans vary as to the percentage you are required to pay on prescriptions, and some charge a flat fee rather than a percentage.
• Supplemental insurance - dental insurance and chronic or acute illnesses such as cancer are not usually covered by normal health insurance. Dental insurance is usually covered by an entirely separate policy. Diseases such as cancer, or critical conditions such as heart attack or stroke, can quickly become expensive, and supplemental insurance is designed to kick in when regular health coverage is exhausted.

Before you commit to an insurance plan, make sure you’re absolutely clear on what is and isn’t covered. Your policy will list services that are covered, and will also list those that aren’t covered. Bear in mind that your insurance company decides what expenses they will pay for, not your doctor.

Your doctor may decide you need a specific medical procedure, but that won’t make your insurance company change their mind about covering it if it’s not included in your insurance plan. It’s a good idea to be very familiar with the terms of your policy, so that you can let your doctor know what you’re covered for - when possible, your doctor can then recommend medical care and services that you insurance policy will pay for.

For some it means security, knowing that their family or business is safe should they unexpectedly pass away. For others it conjures up images of pushy salesmen and confusion about what they are buying.

By learning about the different life insurance policies available you can make an informed decision that will give you peace of mind and satisfaction with your responsible decision.

There are three main types of policies. Here is a brief explanation of what they mean:

Whole Life

Whole life insurance is a permanent insurance. This means that the policy stays in effect for your ‘whole life’ as long as premiums (payments) are up to date.

The cost of whole life insurance premiums will usually be more than the cost of an equivalent amount of term insurance because the cost is averaged. While the cost of term insurance goes up with each renewal, whole life insurance never needs renewing. Instead of paying smaller premiums when you’re young and high premiums as you age, whole life premiums stay the same.

In some policies a savings option can be added which can be used to borrow against.

Universal Life

Universal life insurance is another form of permanent insurance. Like whole life the policy is in effect until you die. You never need to renew the policy (regardless of health) and the premiums will never go up.

Universal life also incorporates other financial services including a savings plan that can be made in addition to the policy. Otherwise the policy can be surrendered in exchange for the savings that have accumulated. Policy owners can often choose from many options including adding another person to the policy, managing their own investments or using the savings to cover the costs of premiums.

Universal life insurance is the most expensive option because of the amount of flexibility and options.

Term

Term insurance is the least expensive life insurance policy option. Term insurance is selected for a certain period of time (term) such as; 1 year, 5 years, 10 years or 20 years.

Term insurance is a good choice for young families with dependants and high debts (such as a mortgage) that they will be no longer be responsible for in 15 to 20 years when the policy ends. Term insurance has no cash value – it cannot be borrowed against or cashed in. If the policy ends and the individual wants to renew the policy the cost of premiums will be higher.

Using term insurance to cover the basic financial requirements of an individual while also instituting a separate savings plan may reduce the need for insurance later in life.

Critical illness insurance is designed to pay out a lump sum if you are unfortunate enough to be diagnosed with one of a list of medical conditions specified in the policy documents.

There is a wide variation in the length of the lists, some covering as few as eight illnesses and one a staggering 140, but this is a slightly different version, which pays various sums, according to the severity of the condition. Heart disease and cancer head the list on all the policies. Very few policies will cover illness caused by stress or mental problems. Back problems are rarely covered either.

Whilst some people consider critical illness cover essential and enjoy the peace of mind being insured offers them, it is interesting to note that a great many claims are turned down. It is believed that this figure is 20%. The most common reason for this being non-disclosure of a previous illness. Insurance companies are quite entitled to do this and the first thing that will happen, in the event of a claim, is that the insurance company will ask for your full health records. They will go through these very thoroughly and if they find any proof of failure to tell them about a previous illness or condition, whether or not you consider it to be relevant to the current condition, they can legally refuse to pay out on the claim. The law states, quite clearly, that if a customer has failed to disclose information sought by the insurer, the provider is entitled to scrap the cover.

What this means, in effect, is that if you fail to tell the insurers, at the time of making the application for critical illness cover, of even minor ailments, then the whole policy will not be worth the paper it’s written on.

This appears to be an impossible situation. Minor illnesses, long forgotten, may come back to haunt you. For the Mums’ out there – can you remember the “oddities” of your pregnancy? Your blood pressure may have been raised; you may have suffered the usual morning sickness, backache and what is known as “gestational diabetes”. This is quite common. Most cases don’t even need treatment and clear up, never to return. Years later you may decide to take out some critical illness cover. Do you even remember the pregnancy problems, let alone imagine they could make a difference to an unrelated illness? Yet this failure to disclose could be the reason for an insurer refusing to pay out on a later, unrelated, critical illness.

How many times do you come out of the Doctor’s surgery clutching some pills, unsure of the actual name the doctor gave to the condition for which you’re now being treated? It will be there, on your records, but years later and with the condition long cleared up, who can honestly say that they remember, and record, every minor illness.

In the event of a dispute regarding non-disclosure, if the Financial Ombudsman Service gets involved, they will try to establish whether the consumer told deliberate lies or whether they had omitted details because, for example, the questions on the proposal form were poorly worded.

One way in which the situation could be improved would be by insurers carrying out more detailed investigations prior to issuing cover or if they were to agree not to scour medical records if a claim is made after an agreed and reasonable period.

If you’re considering taking out critical illness insurance, it is obviously very important to read the policy very carefully and make sure you tell the truth, the whole truth and nothing but the truth. Only make the final decision to go ahead when you’re sure you’re totally confident regarding your choice of insurer.

An on-line broker will be able to offer you a choice of policies and lots of advice. There are some special internet discounts, too.

The joy of flying your own bird and providing yourself with a better transportation option are often the primary objectives of private aircraft ownership. To reach this objective most of us must deal with aircraft financing…and all of us need aircraft insurance.

Here are ten factors you should take into consideration in order to help avoid unpleasant surprises and be more certain you’re getting what you want for an aircraft loan and insurance.

1.First, select a knowledgeable professional representative (aviation insurance broker and aircraft finance broker) who understands your aircraft finance and insurance needs and desires.

Aircraft Financing

2.Interest rate is always important know whether it is fixed or adjustable and what the loan period (length) is. Lenders offer many combinations. Understand the terms of the loan before signing.

Typically adjustable rate loans are tied to a published index check the history of the index to get a sense as to what the future may hold.

For those who anticipate only a short term need for financing, then the adjustable rate program often provides interest savings over the fixed rate option.

For those who plan to retain their financing for a long period of time, the fixed rate option provides stability and piece of mind.

3.Loan term and amortization schedule the longer the amortization schedule the easier it will be to make the required monthly payments.

Pay attention to the aircraft loan term, which can be much shorter than the amortization schedule.

4.Fees and Loan Costs understand the total cost to close a loan.

5.Points lenders often offer the ability to “buy down” the interest rate on an aircraft loan exchanging up front points to reduce the interest rate.

One point is equivalent to 1% of the loan amount. Depending upon how long the aircraft loan is outstanding determines the true interest paid when points are involved. The shorter the actual loan life the more of an impact the point has on the effective rate of the loan.

6.Prepayment before signing understand the restriction regarding prepayment of a loan, either in full or in part.

7.Servicing your aircraft loan payments may be to another company rather than the one who is taking your loan application. It is important to understand who will be servicing your loan after it closes.

Aircraft Insurance

8.Aircraft insurance coverage addresses three main areas of concern liability, hull (physical damage), and medical.

Liability coverage is provided either in a comprehensive manner (”smooth coverage̶ or with sub-limits (per passenger, per person, or family member limitations).

Hull coverage covers physical damage to the aircraft and is an “agreed/stated value” between the insurance company and the insured.

The medical portion is “no-fault” coverage offered as a supplement to standard medical insurance for medical expenses not typically covered otherwise.

9.Obtaining the best aircraft insurance coverage for the least cost can be achieved by maintaining currency, frequent flying in the insured aircraft or similar, participating in recurring training, advanced ratings (particularly instrument), an accident free history, complying with all regulations, etc.

10.Honesty is the best policy. It is important to provide accurate and complete information on the application requested by the insurance company verification of all pertinent information will most likely occur before settling a claim.