What is the "Free Look" period for insurance in MN and WI?

Consumers are protected against just about anything pertaining to insurance. Today I will speak a bit about the “Free Look” period that most insurance products offer.

Because over the years that the insurance industry has been in existence, situations have occurred in which consumers have misunderstood things and situations in which insurance agents unfortunately cared more about their commissions over the client and misconstrued things. Many times it is only a matter of communication but complaints are filed so more and more “safeguards” have been set up to protect the consumer. I think you’ll find that most insurance professionals value the time and effort it took to get licensed and do not want to jeopardize losing it or getting a large fine from the state commissioner of insurance, so they are very, very careful to treat consumers well.

The Free Look Period

There are many consumers who really want to be insured and have themselves and their loved ones protected but are truly afraid of speaking with an agent because they think that they may be forced to buy something they don’t want or need. Again, I assure you (if you feel this way) that you needn't feel this way.

Sometimes a client may ask while they are signing up for insurance if they can cancel their insurance. Of course I say, you can cancel your insurance, you can quit your job, you can get a divorce, you can get off the merry go round; you have choices and you can always say “no”. Going into the purchase of insurance with the attitude of cancelling is like going into marriage with the intent to get a divorce someday. But this is the point I want to make about consumers being protected…  many policies offer what is called a “free look” period that starts after the policy is delivered (and/or put in force; when it becomes active) and lasts from 7 to 30 days. If the client wishes not to keep the insurance, all premiums paid are reimbursed. 

I don’t get this “can I cancel” question often because when my clients purchase life insurance or any other, they truly want it and their intent is to keep it. I, like I’m sure most insurance agents, am very busy and do not work with “tire kickers”. Why would any professional work hard and take all of the time to get the best insurance product for the client knowing that the client will not keep the business on the books? Sometimes I will ask the client more questions about why they are having apprehension; sometimes they just need to know more and have their questions answered. Time is the only thing that cannot be replaced and if someone is not serious about being a client, I have to move on and work with someone who is.

CAUTION: Not everyone qualifies for life insurance.

You may qualify for insurance today (at the time of application), and literally have something happen to you the very next day that could disqualify you, perhaps for a lower premium, or make you ineligible for the insurance all together. (I’m not talking about “healthcare insurance” here;that pays the doctors and other healthcare professionals; I’m referring to insurance products that pay you or your beneficiaries).

TO MY READER: 

Since I have nothing to gain (because I’m most likely not your insurance adviser) I would encourage everyone reading this to feel safe knowing that if for some reason if you have to cancel coverage, you certainly may by having the free look period provision. But since no one knows what tomorrow may bring, it’s better to “think about it” but to be covered while you think about it. 

I’m writing a book and could use your help.

I am writing a new book and could use help from my FB friends. What questions would you want answered about life and health insurance but don't want to ask an agent because you don't want to buy insurance "right now" so you don't want to meet with an agent? Title of book will be: 10 Things you want to know about Insurance but didn’t want to (set an appointment with an insurance agent) to ask! Leave your comments at: www.terscott.com/contact and I'll email you the published eBook FREE! Thanks.

Terry L Scott

Insurance Agent

Are you a monkey when it comes to your insurance portfolio?

ARE YOU "MONKEYING AROUND" WITH YOUR INSURANCE? 

In Tony Robbins book, MONEY, Master the Game, he speaks about how people do not like to save because they think that they are actually giving it up instead of setting it aside for their future self. He tells us about monkeys who are elated when given one apple and really overly exhilarated when given two apples. Makes sense right? But guess what happens when the monkeys who were given two apples had one taken away. Even though they were excited to have one apple, they forgot all of that and when one was taken away (and remember, they still had the one) they, as Tony says in scientific terms, “They were mad as hell!”

Are we also like this monkey? Or can we set one apple aside for our future? I know this is hard and I will tell you that I’ve struggled with setting aside the apples of my finances for years. My my insurance readers, please be patient because I will get to saving "apples" applies to insurance in a moment. For now, please ask yourself whether you’ve saved apples for your future, saved enough apples, or continue with saving apples on a continual and consistent basis. Tony explains that when we think we are losing an apple (like the monkey) we won’t do it! But here’s a solution that Shlomo Benartzi of ULCA Anderson School of Management and Richard Thaler of the University of Chicago came up with that they call: Save More Tomorrow.

I remember challenging my uncle when I was a young teenager when he went for seconds on my mother's apple pie. I said, "I thought you were on a diet?" He said to me, "Oh, I'll start again tomorrow" and he was totally serious! So I know this thought pattern is out there and this Save More Tomorrow could really work. 

The Save More Tomorrow (SMarT) is a program that agrees with people that they can “save more tomorrow, so don’t bother me today; but OK, I can squeeze let’s say, 3% of what I earn and put it away for my future” and “Sure, I’ll increase this (in the future) when I get raises, get a bonus, a gift or money, etc., but not today”. So people set aside a very small amount and to their amazement, over just several years these people are saving a whopping 19% of their income. (Actually they are not saving in the low paying interest savings accounts at their local bank or credit union, but higher payout options, but even starting with deposits in a savings account would be a positive but I don’t have time to address that here). 

The point is that people feel that when they put money aside, they are "losing it" so they don’t want to, but agree that 3% is so little that they won’t miss it "losing it", so they do it and over time they reap the rewards of  a larger amount of money set aside, (still not feeling any negative aspects) and actually realizing some amazing compound interest!

So, now let me talk to my insurance friends. All of the above is great in one’s realm of finances and saving, right? But let’s apply this to another part of finances which is one’s area of insurance; that of insuring one’s life, legacy and health. Who wants to set aside money for something they may not use like health insurance or something they themselves may not be around to experience themselves (life insurance)? Why should I give up this apple today for these results that I may or may not see tomorrow?

Using the exact same premise in Tony's information above, why not set something aside today in such a small amount that you won’t notice it and then increase it later in the future? Start small with your insurance portfolio, but start with something, no matter what age you are. We know that we need to get our exposures covered but that we’ll get to it someday, but unfortunately sometimes  “someday” gets to us first. 

The hardest part of most things is taking the first step and starting something. Jack Canfield in his book, The Success Principles, states that we all have what he calls "attention units". These are things that are always on our mind, things that we want to get to but don’t and so they take up real estate in our head. When we are thinking of things like this, since we can only think of one thing at a time, these attention units take the place of more fun and positive things that we could be thinking! My advice (that I also continually tell myself) is to get rid of these attention units. I say that when we have too many attention units, that we truly have an attention deficit!

ACTION POINT: Why not see how much just a little life insurance would be and start today, then increase it in the future when you can? Find out how much it would be to protect your “money machine” which is you, and your ability to create an income. When you get sick your health insurance pays the doctors but who pays you? Protect yourself and your ability to make an income so your house, car and other necessities are taken care of while you are forced away from making income while recuperating.

You may be surprised just how affordable it is to set that apple aside for your future protection. Why  monkey around with your insurance needs? Do something small with your insurance portfolio today and increase it in the future; but at least start.

My name is Terry L.Scott and I’m glad to be in the Life and Legacy business; finally insurance really is affordable! 

This is NOT insurance, but it is a great savings on HealthCare... Check it out!

I am an insurance agent and love what I do. Sometimes my clients cannot qualify for certain products. Check this site out; it might really help you and your family; everyone qualifies!

Just click on the pic:

Terry Scott Insurance Agent shares What Businesses and Individuals Need to Know with the ACA

Since I'm an insurance agent and on this side of the business, it's my duty to stay abreast on the trends in the industry. And because I'm not the typical insurance agent, I don't keep this to myself, I share it with my clients and anyone who reads this blog (I know other agents in the industry read this and I welcome and invite them to do so). Finally before I share today's article, as always I'll let you know that I have my hands full with my commitment to assisting clients in MN and WI (I usually have 3 to 4 face to face appointments and 10 phone calls to take care of every day minimum  because my business has been built on referrals) however, it you are in any other state and have questions, I will do my best to answer them and/or I will refer you to another reputable agent in your area!

Here's a link to an informative article about business people insuring their employees now with the ACA in place. Please take a moment to read it; it may be the most important thing you'll read about to protect your business today!

ARTICLE: Next year (2015; this was published December 2014) will be the first year that small businesses face penalties under the Affordable Care Act if they don’t provide health insurance coverage for employees. Those with 100 or more full-time employees will have to provide insurance to at least 70% of them; in 2016 that threshold drops to 50 or more full-time employees and coverage extends to 95%. Although this “employer mandate” is the law, small business health insurance is also a way to attract top talent and keep them from jumping ship. Businesses spend about one-fifth an employee’s annual salary to replace them.
READ MORE HERE. 

Make it a great day!
Terry Scott
Insurance Agent