Insurance FAQ's
MEG Financial Inc.
understands that insurance can become complicated. In
order to help
our
customers we have provided a list of common questions
and their answers. If you have any further questions
please contact us and we'll gladly reply.
MEG Financial, Inc. is a Florida based corporation that provides life insurance and financial services consulting to individuals and businesses in 50 states. Representing over 80 of the most respected life and disability insurance companies, our primary areas of expertise include term life insurance, universal life and equity indexed universal life, disability income insurance, in-force policy review, key man life, business succession planning, insuring tough health issues and estate planning.
At MEG, we provide free insurance quotes and advice to individuals and businesses all over the United States. Since the year 2000, we have successfully helped thousands of individuals and businesses obtain life and disability insurance and have written well over US $1.5 billion of life insurance. During this period, we have developed key relationships and special talents and niches that allow us to get more value for our customer. At MEG Financial, the bottom line is results and we are committed on every case to deliver the optimum policy that meets the diverse needs of each policyholder.
How can I contact MEG Financial?
How can I receive a quote and
is it free?
Yes, quotes are free and can be accessed directly
from our website. MEG Financial provides instant
term life insurance quotes and instant
universal life quotes from over 60 top insurance companies. Additionally,
we provide custom equity
indexed universal life insurance quotes and personalized
whole life insurance quotes.
In order to get the most accurate and appropriate quote,
you may prefer to call our office toll
free at (877) 583-3955 and an insurance professional can provide
you with a tailored analysis based on your specific
objectives.
What is the best advice you could give me to make sure
I choose the best policy?
When buying life insurance, you must first make sure that the policy you choose matches your overall goals and objectives and solves your need based on your specific circumstances. Each person’s goals are a bit different so a careful review of what is important to you is necessary in selecting the appropriate policy. When considering life insurance, a good question to ask is: “Why am I buying the insurance?”. Your answer to that question will help you identify if your need is temporary or permanent. If your need for the insurance is temporary, some form of term insurance will likely be the best option. If your need is permanent, a variation of universal life or whole life policy will probably be a better choice. Consulting with an independent insurance professional to determine the exact policy need is likely the best strategy to assure you make the best policy choice. To speak with one of our independent agents, please call toll free at 1(877) 583-3955 or fill out an online form.
What
is Equity Indexed Universal Life Insurance?
Equity indexed universal life is flexible premium universal life insurance policy that allows the policyholder the option to allocate cash values to an index account. The cash values in the index account participate indirectly in the upward movement of a stock index without accepting the normal risk associated with investing in the stock market. The actual “interest” credited to a policy’s cash value is determined by the annual changes of an equities index (excluding dividends). For more information see, How the Equity Indexed Universal Life Policy Works.
What is Universal Life Insurance?
This option offers greater flexibility than whole or term life. After your initial payment, you have the option of reducing or increasing the amount of your death benefit. If you choose to increase your benefit, you may have to provide medical proof that your health has not deteriorated. See, How a Universal Life Insurance Policy Works.
Term life insurance provides low cost temporary coverage for risk of premature death. It pays a benefit only if the insured dies while the policy is in force and builds no cash value. Term insurance is the most cost effective form of life insurance over the short run but over time will become cost prohibitive. For more details see,“Life Insurance Options: What is Term Life Insurance?”.
What is universal life insurance?
Universal life insurance is a combination of annual
renewable term insurance and traditional whole life
insurance that offers considerable policy flexibility
and affordable insurance protection. Actually, universal
life can be defined as term insurance with a side
fund that grows cash value. Insurance costs, like
annual renewable term insurance, can increase annually
based on the age of the covered individual. As premiums
are paid, insurance costs and fees are reduced form
the policy’s cash values. Any remaining cash
values grow at a current fixed interest rate. Policy
premiums are adjustable as long as there is sufficient
cash value to cover policy expenses. Insurance amounts
can also be adjusted to meet changing needs. For
more details see, “How
a Universal Life Insurance Policy Works.”
What is Variable Life Insurance?
Variable universal life insurance is essentially universal life insurance that includes an option to “invest” cash values in mutual fund type accounts that are made up of stocks and bonds . Like universal life, as premiums are made, costs of insurance, policy fees and expenses are deducted and the balance is directed toward investments called sub-accounts. These sub-accounts are actual investment accounts that fluctuate based on the performance of the underlying stocks and bonds. For more information see on variable universal life see, How a Variable Universal Life Insurance Policy Works.
A. Whole life insurance provides guaranteed coverage for the lifetime of the insured at a fixed premium and also builds cash value at a guaranteed rate. The policy premiums are determined at the policy issue date and remain constant for the life of the policy. Cash values are credited with a guaranteed interest rate and grow over time tax deferred. In the simplest terms, with whole life, you are self-funding your insurance program. For more details see, What is whole life Insurance?
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What type of life insurance should
I buy?
There are several different types of life insurance
and each policy can protect a variety of coverage needs.
The type of policy that you buy should be determined
by your reasons for purchasing the insurance. If your
need can be measured in a specific time frame and the
need is temporary, term life insurance is likely the
best solution. If the insurance is needed for long
term death benefits with the ability to accumulate
cash, whole life or universal life may be the best
alternatives. If guaranteed life insurance at a low
cost is desired, a guaranteed universal life policy
would be the best choice. Or if retirement planning
and cash accumulation are primary objectives, the variable
life insurance or equity indexed universal life insurance
might best achieve your objectives. No matter what
the circumstances, consulting with an independent insurance
professional to determine the exact policy need is
likely the best strategy to assure you select the appropriate
policy. To contact one of our independent insurance
professionals, please
call toll free at 1(877) 583-3955.
How
much Insurance do I need?
Determining the amount of life insurance needed
depends on the purpose for buying the coverage (for
a quick estimation of your insurance need see our, “Life
Insurance Needs Calculator”). Each individual's
circumstances differ. Therefore, personal goals will
dictate the amount of insurance needed. Most agents
suggest a multiple of 7 -10 times income as a general
guideline for determining a life insurance amount.
In reality, the best method for determining the amount
of insurance required to meet your objectives is
based on the needs of the individual, family or business
entity. For more information see, “The Needs
Based Approach” to buying life insurance.
In what health class will I qualify?
Determining which health class you will realistically qualify for is the most important part in obtaining the best possible life insurance rate. Underwriting is the process where the insurance company reviews your health and medical history, avocations, MVR, hobbies and lifestyle issues to determine the risk of insuring you at a given rate. Each company has its own unique underwriting criteria they use to classify a given risk. It is a regular occurrence for competing companies to offer widely varying rates to the same individual. For more specific underwriting information see, Determining your health class. If there are any questions as to which health class you can obtain, please call our offices toll free at 1 (877) 583-3955.
What if I have a medical
condition? Will it affect my rate? What are my options?
Medical conditions may or may
not affect your life insurance rates. If you have a
current or previous
health condition, while you may not qualify for “advertised
rates”, but there is an excellent chance that
you may obtain an affordably priced policy. At MEG,
we represent over 60 companies and specialize in helping
individuals with past health problems obtain competitively
priced policies. We have developed 1500+ clients over
the last 6 years and many of these individuals have
had past health histories. If you have a medical condition
or are unsure about whether or not a past health issue
is a factor, please call our offices toll free
at 1 (877) 583-3955. An insurance
professional can review your specific health history
and help you identify
the company that will offer you the best medical underwriting.
How do I apply for life insurance?
Anyone can apply directly on-line, e-mail us to apply or you may call our office toll free at 1 (877) 583-3955. If applying on-line, after getting your quote, you can click the Apply Now button and add any comments and then submit your request. A licensed insurance professional will call you within 24 hours to review options and go over the application process. If you call us toll free, we will take the necessary time to answer any questions or concerns and then take the application over the telephone within10-15 minutes. Our goal is to be as efficient as possible in respect of your time but at the same time get the best results!
What are the medical exam requirements to obtain
a policy?
In order to obtain any life insurance policy, a "mini-physical" exam
also known as a “paramedical exam” is required.
The paramedical exam is scheduled and completed by
a nationwide firm called Portamedic. The exam takes
about 20-30 minutes and is administered by a registered
nurse or trained phlebotomists. It is done at your
convenience in your home or office or at the examiner's
office whichever you prefer. The insurance company
will pay the full costs of the exam and as part of
MEG’s service, we will provide you with the results
of your labs free of charge. For more details on the
insurance exam requirements see, “Everything
you wanted to know about..A PARAMEDICAL EXAM”.
The insurance exam is one of the most crucial steps
in obtaining life insurance and has a significant impact
on your actual rate. For more information on how to
get the best results on your insurance exam, click
the Life Insurance Examination Checklist.
How long does
the process of applying for insurance take?
Generally speaking, the application process should be expected to take 4-8 weeks to complete. After the application and insurance exam are completed, the underwriting process begins where the insurance company will review your mini-physical results and medical history. During the underwriting process, the insurance company may request a copy of your actual medical records. Once your medical records are obtained, the insurance company will review the entire file and an approval will usually follow within 5-7 business days.
How can I make sure that I select a good insurance company?
Financial ratings for most insurance companies are available with one or more of the independent ratings services. These services include AM Best, Standard & Poor’s, Moody’s, Fitch and Weiss Research. Each of the independent rating services has its own criteria for ranking an insurance company. You may also visit the websites of each of these services or you can contact MEG and we can provide the financial ratings of any insurance company. When you obtain a quote for either term life insurance or guaranteed universal life insurance, you will see the AM Best rating for each company listed. We recommend using companies that have at least an “A” rating with AM Best but prefer “A+”.
Are there any exclusions of coverage?
During the first 2 years of every life insurance
policy there is a contractual clause known as the "contestability
period". The contestability period protects the
insurance company from fraudulent and misleading statements
made by applicants for insurance. During this initial
2 year period, all insurance companies will investigate
death claims for fraud and misleading statements made
by deceased applicants. If the insurance company can
prove in court that an applicant for insurance lied
or committed fraud during the application process,
a claim can be denied. The contestability period also
includes a suicide provision. The suicide provision
states that death claims made on behalf of individuals
that commit suicide within the first 2 policy years
will be denied. If suicide occurs after the first 2
years, the claim will be paid. Generally speaking,
fraud, misrepresentation and suicide within the first
2 years are the only policy exclusions. Policy language
varies among companies so read your policy carefully.
When am I required to send payments and how do I pay?
You can make your first
payment when you submit your application, subject
to certain conditions, or
you can wait until the insurance company approves your
policy before submitting money. If you send payment
with your application, and all policy conditions are
met, you are "conditionally covered" after
your exam has been completed. "Conditionally Covered" means
that you are covered during the underwriting process
as long as the insurance company eventually approves
you at the same rate class that you applied. If you
choose not to send money until the policy is approved,
no coverage will be in effect until the insurance company
receives payment.
You may choose to pay in one of 4 ways. The insurance
company will bill you annually, semi-annually, or quarterly,
or you may choose to pay by monthly bank draft. The
cost for these options will vary. Depending on the
insurance company, there may be an extra charge of
2-6% for any mode other than annual.
Can the insurance company cancel my policy at any
time?
No! Life insurance policies are unilateral contracts meaning they cannot be cancelled by anyone other than the insured individual or the policy owner. As long as you pay the premium on time, the coverage will remain in effect. However coverage can be cancelled at any time by simply discontinuing premium payments.
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(1) The
S & P 500 (Standard and Poor’s Composite
Price Index) is composed of 500 commons stocks representing
major U.S. industry sectors.
“ Standard and Poor’s®,” “S & P®,” “S & P
500®,” “Standard & Poor’s 500,” and “500” are
trademarks of The McGraw-Hill Companies, Inc.
(2) “Dow Jones” and “DOW JONES INDUSTRIAL AVERAGE (DJIA)
COMPOSITE STOCK INDEX” are service marks of Dow Jones & Company,
Inc.
This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s
and Standard & Poor’s makes no representation regarding the advisability
of purchasing such a policy.
(3) The NASDAQ-100®, NASDAQ-100 INDEX® and NASDAQ® are registered
trademarks of the NASDAQ Stock Market Inc. (which with it affiliates are the “Corporations”).
This product has not been passed on by the Corporations as to their legality
or suitability. This product is not issued, endorsed, sold or promoted by the
Corporations. THE COPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH
RESPECT TO THIS PRODUCT. THE INDEX DOES NOT INCLUDE DIVIDENDS PAID BY THE UNDERLYING
COMPANIES.
