NY Attorney General to Investigate Unpaid Life Insurance Benefits

New Yorks attorney general and comptroller have started investigating unpaid life insurance benefits in a joint effort. After nearly a year of preliminary investigations and issuing subpoenas, the parties say they want to make sure companies keep their promises to beneficiaries and to the state by meeting their payment obligations.

Earlier this year, Attorney General Eric Schneiderman initiated investigations to determine whether the life insurance industry was failing to turn over unclaimed policy proceeds to the comptrollers office as required under New Yorks abandoned property law.

The law says that an life insurance companies cannot hold onto unclaimed property— in this case, unclaimed life insurance benefits—for longer than three years. If i

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Understanding the Importance of Umbrella Insurance

Ensuring security for one’s asset is perhaps the most important aspect in leading a peaceful life. Insurance plays an important role in this context with the assurance it offers for the safety of one’s home, property, vehicle, health, employment and many other aspects. There are different types of insurance schemes available from which the individual can choose the apt one. One such popular type is the umbrella insurance. It is a category of liability insurance in which the policy holder can avail the benefit above or below the limits associated with the primary schemes. The term itself is an indication of the shielding nature offered by the plan.

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But my Term Life Insurance Quote was Much Lower

Okay, so it was suggested to you that you were in the best health class (Preferred Best) when you were shopping around for term life insurance quotes.  You submitted an application and your policy was issued at Standard Plus (the third best class) and, accordingly, at a higher premium.  How did this happen?

There are several reasons your premium was higher than your term life quotes:

  • Maybe the lab results came back with a few items in ranges that would lead to a lesser health class.  As an example, lets say your cholesterol reading was 240.  If you had known that when you received your life insurance quote (and relayed that information to the agent), you would have been quoted in the proper health class.
  • You underestimated (guessed?) your weight when getting your quote, so your actual weight (as measured in your medical exam) was higher, bumping you into the next health class.
  • Your initial quotes did not take into consideration certain health factors, such as blood pressure, cholesterol, family history of heart disease or cancer, driving record, involvement in risky profession or activities.  All were taken into account during underwriting.  This is sometimes used as a bait-and-switch technique.
  • Your agent did not make sure that you answered all the questions on the application thoroughly.  If an agent is doing his job properly, he/she will make note of any trouble areas on your application and discuss with you the possibility of a different health class (and higher premium).

The moral of this story is, make sure your initial life insurance quotes are based on specific health factors; if you arent sure of some health questions, let that be known; be forthcoming on your application and; be aware that your quotes are only initial quotes and may differ from the insurance companys final offer, especially if any of the points above are evident.

If you would like life insurance quotes that take into account your health profile, feel free to get quotes for term life insurance, universal life insurance and return of premium term life insurance.


Water Damage Increases Insurance Premiums

Over the past year, it seems that water damage has become a larger problem than ever for homeowners, with a 44% increase in the number of home insurance claims made in relation to problems that have been caused by water.

In total, these sorts of claims have the potential to increase the premiums on home insurance by £40 per person according to research done by Allianz Insurance.

In addition to this, the research highlights just how much water damage costs homeowners each and every day £2 million.

A Stressful Problem

The largest percentage of water damage stems from feeder pipes (39%) while damage caused by water from baths and showers causes 11%. I

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Life Insurance Companies Offering Mortgages

You wouldnt think of life insurance companies as an option for mortgage lending, but times are changing.  According to the New York Times article Insurers See An Opening in Commercial Mortgages by Julie Satow, the commercial mortgage market has been volatile and this is allowing life insurers to take advantage of this market and become stronger lenders.

The mortgage industry has been plagued with weak investor interest, wary lenders and continuous warnings from rating agencies about the high risks associated with mortgage lending.  This gave life insurers a unique opportunity to participate more than usual in mortgage lending.  

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No More Phone Books

If you’re tired of phone books coming to your house, or can use the internet or your smartphone to find what you need rather than wasting the paper on an entire book, you can make a change for the better.

  • Call 1-877-243-8339 to opt-out of receiving DEX phone books.
  • Call 1-800-929-3556 to opt-out of receiving Yellow Book directories.
  • Call 1-800-555-4833 to opt-out of receiving the Verizon phone book.

Thank you for saving a tree today.


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