Frequently Asked Questions
About Insurance
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Q. Recently I purchased a house, and now I am bombarded with offers to buy a "mortgage insurance" to pay off my loan in the event of my death. What type of insurance should I consider?
A. When you've been offered "mortgage insurance" it is most likely a Life Insurance. We recommend you to shop around for the best rates before you make your decision. Also you should decide what type of Life Insurance you need. If you are looking for the least expensive way to cover your mortgage consider Term insurance. If your goal is to have a permanent plan with cash value accumulations that later can be used to pay off your loan balance before the end of its term, take a look at Universal or Whole life policy. In addition, we suggest you consider acquiring a Disability Income insurance policy that would protect your most valuable asset - your ability to earn income.
Q. What is the difference between Long-Term Care insurance and Disability insurance?
A. Long-Term Care insurance provides benefits if you have a prolonged illness and require skilled nursing or personal home care. Disability Income insurance policy will pay a specified amount of monthly benefits to you should you become disabled, it's an income-replacement insurance.
Q. Why do I need Long-Term Care insurance, doesn't Medicare cover expenses associated with nursing home care?
A. Medicare may cover up to 100 days of skilled nursing home care per benefit period when certain conditions are met. After 20 days recipient of care must pay a coinsurance. In 2002 the coinsurance was $101.50 per day.
Q. What does it mean Convertible Term Insurance?
A.Most Term Life insurance policies carry a convertibility features. It allows the insured to convert a Term policy into a permanent contract without medical exams. It's very valuable feature for someone who experienced adverse health effect and will have a hard time trying to purchase a new policy after current Term contract expires.
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"I really value the team at insurance-planning.biz; they put so much effort into helping me buy Disability insurance. I am a firefighter and I couldn't find a company that would cover me because of this. Now, however, I am insured and my family is protected."
--Ricardo Sampans. Washington, D.C.
