Each Insurance Company uses different methods and factors to decide whether or not to insure you.

Here is a good example. If you have high blood pressure that you control with medication, one company might reject you while another company may accept you. Just don’t give up searching.

If you have a medical problem it’s a good idea to talk it over with your doctor. Treatment may improve your condition enough to meet company standards or the company may qualify you as a special risk at an adjusted premium.

You should also want to check on group life insurance. Some group plans do not require a medical exam or health histories from your doctor.

Insurance Companies are part of the free enterprise system and within certain limit they can select those individuals they want to insure.

However they are not free to turn down coverage without a valid reason.

Insurers cannot refuse insurance to anyone based on:

• sex
• martial status
• race
• creed
• color
• national origin

It is also against the law to deny coverage to domestic violence victims, people with a sensory, mental or physical problem.

The internet has become a very popular way to purchase life insurance policies. Remember all state laws and regulations regarding selling insurance apply to the Internet and insurance-based Web sites. Do some research and make sure the company is authorized to do business. Call the Insurance Consumer hotline before signing any policy.

Most people prefer to buy life insurance through an agent or broker.

Agents represent one or more companies. The agents job, is commission based to sell your policies of the company they represent.

Brokers represent and work for you. You would describe to the broker the type of coverage you want and the amount you want to spend. The brokers job is to survey the market and bring back options for you to review. The broker also receives a commission of the sales they arrange.

It is very wise to choose your agent or broker carefully.. Choose some who is an established business person in your community. If you have concerns about an insurance provider contact the Insurance Consumer Hotline.

You do not need a lawyer to resolve disputes in most cases, most insurance companies will generally be willing to work with your to straighten out any problems.

First contact your insurance agent. If your concerns are not addressed contact the company’s customer service office. If customer service fails short of your expectation ask about the company’s procedure for appealing decisions.

If your self-help efforts fall short then the next step is to contact the Department Of Insurance Office of Consumer Services, and speak to a life insurance analyst. Your analyst will answer your questions over the phone and explain any additional steps you should take to resolve your problems. The staff will give you an honest and unbiased answers to all your questions.

If this explanation does not satisfy you, you can then request a complaint form which your insurance analyst will mail to you with instructions of how to fill the complaint form. Your analyst will review all the facts to make sure the company follows its contract with you as well as Insurance Regulations.

The most frequent complaints about Life Insurance are:

1. Misrepresentation
2. Information requested
3. Coverage question
4. Claim denial

Most agents are very professional and honest but remember a dishonest agent can confuse you with a sales pitch designed for high sales commission with little regard to the impact it might have on you financially.

A good agent can be your best ally and advocate if you have a problem with the insurance company.

It is always good to get recommendations from friends, business acquaintances, banker or lawyer about finding the best agent you want to buy your life insurance from.

Insurance agents are all required to be licensed. But I personally look for an agent with extensive education beyond the bare minimum required for a license. These agents may use initials after their names to let you know you are dealing with a well-trained professional. Some examples:

CLU: Chartered Life Underwriter

ChFC: Chartered Financial Consultant

FLMI: Fellow of Life Management Institute

CFP: Certified Financial Planner

The beneficiary should get a claim form from the insurance company. The insurance company will need, the name of the insured, a policy number and a certified copy of the death.

The beneficiary will have choice of ways to receive a death benefit. Settlement options could include the following:

• A lump sum payment
• An installment payment usually with interest
• A checking account where the beneficiary receives a check book and can withdraw money when need
• The insurance company could hold the benefits and pay interest

You generally do not have to pay income tax on death benefits.

Get advice from your lawyer or account on this matter.

Critical Illness Insurance covers you in case you become ill and you are diagnosed with the illness listed in this insurance policy. This policy would be very benefical if you become very ill because you can receive a lump sum cash payment . In some cases the policy could be structured to pay out regular income if you undergo a surgical procedure.

This policy may require that you must survivie a minimum number of days from the time when your illness was diagnosed. The survival period is usually 28 to 30 days.

You should read the fine lines in your policy to understand what illnesses your policy covers. The most common conditions would be: blindness, deafness, kidney failure, heart attack, multiple sclerosis, cancer, parkinson’s, major organ transplant, paralysis of limb, terminal illness, etc….

The finances received from this policy during a Critical Illness is usually used to: pay off debt, replace lost income, pay for recuperation aids, pay for costs of the care and treatment.

It would be financially wise to purchase a Critical Illness policy in conjuction with a Life Insurance policy. If you have not purchased a Critical Illness Policy you should consider talking to your insurance company.