You have questions about insurance.
We have your answers.
We have your answers.
Insurance is an essential part of protection planning. Yet, many people put off getting it because it seems too complicated. This FAQ can help you understand what insurance is and what it can do for you.
General
Why do I need insurance?
Think of insurance as your safety net. If something happens that impacts your ability to earn a living or provide for loved ones, having the proper protection in place can provide funds to help ease the financial strain of an emotional situation.
How much insurance do I need?
It’s impossible to answer that without knowing the details of your life. Many times, clients come to us with an expectation of what they think they need. Usually, in discussions, we find the reality is much different. Our tried-and-true approach lets us get to know you and gain an understanding of your goals. We look at your sources of income and expected short- and long-term expenses, then add in assumptions for the commitments that arise as life changes. After that, we recommend an insurance plan that helps cover your obligations and protect you, your family, and your assets.
How much does insurance cost?
It’s impossible to answer this question without knowing the type and amount of coverage you need. However, you can count on 3P Insurance Services to find you insurance that offers the right level of protection at the right price point.
If I have policies through work, do I still need to get additional insurance?
While coverage from work is a great benefit, many times the amount provided is not sufficient to cover your and your family’s needs. With a complimentary policy review, we can determine if you’re good with the coverage you have or may need to rethink it. Additionally, when you leave or switch jobs, we recommend having your benefits reviewed to be sure your protection planning needs are still being met.
Life Insurance
Why do I need life insurance?
You’ve worked hard to provide a certain lifestyle for your family, and you want to make sure you protect it. Life insurance can serve as a source of financial security so that your family’s future is taken care of when you can’t be there to take care of them yourself.
How much insurance do I need?
It depends on what you want the insurance to do for you and your family. Besides covering final expenses, life insurance can replace lost income, help your family stay in the home they love, fund your child’s college education, cover household and unexpected expenses, and even contribute to retirement planning. Once we identify your cash needs and determine other potential sources of income, we’ll know what the gap in finances will be. Then we’ll recommend a life insurance amount that suits your needs.
Which type of coverage do I need: term or permanent?
It depends on your goals and budget. Term life insurance solely provides a monetary death benefit to your beneficiaries. It is a cost-effective solution that lasts for a specified amount of time. After that, you may have the option to renew, but at a higher rate. Permanent life insurance accumulates a cash value that you can access tax-free to cover expenses later in life and supplement retirement. It is a long-term solution with premiums that cost more than term but remain level for the life of the policy.
Will my family health history affect my insurability?
Yes. Carriers look at your personal and family history when determining your ratings and, in turn, premiums. They consider factors such as existing health conditions, genetic diseases, and cause and age of death for immediate family members. However, carriers look at these factors differently. Knowing your medical history, we can find the carrier with the most beneficial coverage for you. Keep in mind, you’ll have to go through an at-home medical assessment, arranged with the insurance company, to get coverage.
I got life insurance years ago. I’m all set, right?
Maybe. Maybe not. As your life changes, your insurance needs change. A policy that you purchased a few years ago may no longer be sufficient. Or it may provide too much coverage. Whenever a major life event occurs, such as marriage, divorce, buying or selling a home, a new job, having a baby, or when your grown kids leave home, you should review your coverage to see if you need to make adjustments.
Do I need to get life insurance if I have a policy through my company?
Many times, group life insurance offered through employers come with limitations. The policy is owned by the company and may not travel with you if you leave the job for any reason. The maximum benefit amount, which is usually tied to annual salary, may not be enough to provide for all your loved ones’ needs. An individual life insurance policy can make up the difference.
Disability and Long-term Care Insurance
What is disability insurance?
If you are ever hurt or sick and unable to work for an extended time, or need to stop working completely, disability insurance can help provide cash flow to help replace your salary and cover expenses.
Why should I consider getting disability insurance?
In disability, expenses go up and income goes down. Not having a paycheck can affect your current lifestyle and your ability to save for retirement. Disability insurance provides a source of income, so you won’t necessarily have to deplete your savings, tap into your portfolio, borrow from credit, or sell assets before intended.
Why do I need individual disability insurance if I have group coverage through work?
On average, group disability only covers about 60% of your salary, unless there is an employer cap, in which case you could receive less. Also, if your employer contributes partially or wholly to the premiums, the benefit may be taxable. An individual disability policy can close the gap between the income you’re used to and the income you’ll receive. Plus, if you pay your premium with post-tax dollars, benefits can be paid tax-free.
How much does individual disability insurance cost?
It depends. Age, profession, benefits you’re eligible for, and policy features all influence the cost of coverage. When you apply, we’ll first talk to estimate the amount of income you’ll need, match it against other sources of income you have, and determine the additional monthly amount need to be properly covered.
What extra information will the carrier need when considering me for disability insurance?
In addition to your personal, medical, and financial information, the carrier will ask for your current job title and a brief description of your role, to help them properly assess risk. They’ll also need an overview of any employer-provided group disability coverage you have (including if the proceeds are taxable or not), and a breakdown of your base salary, bonus, and commission structure.
Should I be looking at Long-Term Care Insurance?
At some point in life, most people need help with activities of daily living, including bathing, toileting, dressing, eating, transferring, and grooming. Long-term Care Insurance helps safeguard your assets and protect your family from covering costs associated with extended care, whether provided at home, a facility, or an assisted living community. Age and health matter when applying. We’ll evaluate your situation and determine if long-term care insurance makes sense for you.
Working with a broker
Why work with an insurance broker?
As a broker, we take an objective approach to your coverage. We shop the market to find the right carrier with the right coverage to fit your current needs and future goals. And we provide objective guidance and recommendations so you get the best coverage for you. If you go directly to a carrier, you may be limited to their product offerings and by their specific insurability requirements.
What’s the difference between an insurance agent and a broker?
An insurance agent represents their carrier. They have an obligation to sell that carrier’s specific products and services and are financially incentivized by that carrier. On the other hand, a broker, which is what 3P Insurance Services is, represents you. We have access to many carriers and have no incentive to choose one over the other. We make our insurance recommendation purely based on which carrier has the best coverage for you.
Is there a difference in insurance cost if I work with a broker or go directly to a carrier?
No. The premium you pay for your insurance coverage is the premium you pay, based on your health rating. But when you work with us, you get the benefit of having an external broker who knows the ins and outs of insurance advocating for you with the carrier.
Your services are free. So, how do you get paid?
When we assist you in securing coverage, we’re compensated directly by your chosen carrier. You don’t pay us anything. If we’re working together but, for some reason, don’t go through the entire planning process, you won’t ever be charged a fee for our time or services. Policy reviews of existing coverage are always complimentary.
What information should I have ready for our initial assessment call?
The initial assessment call is really a conversation, so we gain an understanding of your specific insurance needs, and you gain an understanding of the insurance process. To best prepare, come to the call with a general idea of your total income, household expenses, mortgage balance (if there is one), and any health concerns, including medical diagnosis and medications. It would also be helpful to have copies of any group life or disability coverage you have through work for review.
What information should I have ready for my insurance application?
Carriers have different items that they ask for during their application or underwriting process. To facilitate the process, it’s good to have a list of your medications and health concerns ready as well as an overview of your net worth, including your home value, investments, savings, and financial obligations (ex. remaining mortgage, student loans, and other debts). You’ll also need to provide your driver’s license.
Why decide to work with 3P Insurance Services?
We believe that insurance is about more than policies and procedures. It’s about people. Our goal is to help protect you, your wealth, your family, and your lifestyle. Throughout the insurance process, we’ll answer your questions simply and completely, make sure details are attended to, and check in with you so that you feel comfortable with the decisions we make every step of the way. It is not enough for us to get you a policy. We want to deliver peace of mind.