It’s difficult for consumers to know if they’re being ripped off when it comes to life insurance. Price alone doesn’t tell the whole story because many products are cheap, but they have terrible coverage. Without much product knowledge, consumers will rely too much on price to make a buying decision, which quite often leads to a bad decision. At Houston Life Insurance Plans, we try our best to educate consumers with product knowledge so they make the best buying decision possible. Try out our blog page to get the product knowledge you need.
To get the best insurance advice, you should work with an independent agent that has experience. Experience is important because new agents don’t know the market very well. A new agent might think that a particular product is well priced, but an experienced agent may know of a better priced product. New agents may be biased in the products they recommend because they lack the experience working with different products. Finally, some agents are contractually obligated to sell insurance with only one company (called captive agents). Those agents are obviously biased in their recommendations. Not only that, but captive agents quite often sell products that are not competitively priced. It’s important to work with an experienced, non-captive agent to get unbiased advice, which is exactly the type of agent you get at Houston Life Insurance Plans.
If you have COPD or any other lung disease, insurance companies will put you in one of three categories: graded (also called modified), standard, or preferred. Graded plans have a two year waiting period for full coverage, and they are usually the most expensive. Unlike graded plans, standard and preferred offer immediate full coverage (no waiting period). The only difference between standard and preferred is the rate you pay, with standard being more expensive.
The category you fall under depends on three criteria: the insurance company, the type of lung disease, and the frequency of symptoms. As you probably know, different insurance companies have different appetites for risk. Some insurance companies try to put everyone with more than seasonal symptoms into a graded/modified plan. Conversely, some companies are fine giving preferred rates for chronic asthma. The type of lung disease matters to insurance companies because some types pose a greater risk to life. No company will give a preferred rate for COPD. A standard rate is the best you can hope for with that disease. As a general rule, you should expect a graded/modified plan whenever supplemental oxygen is used (some companies make an exception when oxygen is used for sleep apnea). The last criteria is frequency of symptoms. Inhalers are a good example. Inhalers used for yearlong symptoms will sometimes give you a less favorable underwriting decision than inhalers used for seasonal allergies. If you live in Houston or surrounding cities, you can get one of the Houston life insurance plans that cover COPD and other lung diseases.