By Trish Pearson
Insure Your Future
Trish Pearson
It seems like the television is filled with ads for various types of insurance. Whether it’s home, auto, health or life, every ad uses misleading questions to make you pick up the phone. Once you do that, they have you and will keep you on the phone – or worse, bombard you with “follow up” calls.
Here are five of the most common myths that insurance companies employ:
- “We save you money by bundling home and auto insurance.” Most agents know to do that and will automatically quote both insurances together. It does often, but not always, cost less. The ads that use this approach are for one insurance company. An insurance agency represents many companies and will “shop” around for the best price and coverage.
- “You can get money back in your Social Security check – call today and give us your ZIP code.” The reason they want your ZIP code is that the programs that provide extra help, such as covering your Medicare B premium, are administered by each state and the income eligibility guidelines will differ. To qualify for help with the Medicare B premium in Connecticut, the adjusted gross income must be below $2,616 per month for an individual and below $3,525 per month for a married couple. This is a great savings for those on a moderate income. However, a relatively small percentage of people qualify. Once they have you on the phone, the company will attempt to sell another type of policy. If at first they don’t succeed, they will call again and again and again.
- “You may be missing out on free dental coverage, glasses, gym memberships, groceries and more.” All Medicare Advantage plans in Connecticut offer these benefits. They are not all the same, but they are not unique to one company, as these ads imply. An independent agent can research plans offered by various companies that include these additional benefits. The health and drug coverage is the most important and should satisfy your needs. Added benefits are secondary.
- “Sell your life insurance policy – even term policies and use the money to pay for your grandchildren’s college.” Whole life insurance policies will build “equity” over time. If canceled, the insured will receive some money back. Term policies do not have any value other than the death benefit. They are for a specific period, generally 15-30 years. Once that term expires, the current rate is not guaranteed and the policy has no value. Again, the goal is for you to pick up the phone and call. They will try to sell a different policy or have you purchase the policy with equity at a discounted rate.
Consider all the above as “come-ons,” as in, “Oh, come on, this has to be too good to be true.” The good news is that many of the ads will stop after March 31. Until then, hit the mute button and finish your Wordle.
Trish Pearson is a licensed independent insurance agent and certified long term care specialist. Contact her at 203-640-5969 or trishpearson281@gmail.com.