tag:blogger.com,1999:blog-5465015914589377788.post885185440142141463..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Life Insurance that Doesn’t PayMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-5465015914589377788.post-65533923588409712022011-07-17T19:22:49.346-04:002011-07-17T19:22:49.346-04:00yes if you have a policy with a company it is rene...yes if you have a policy with a company it is renewable but it also comes with all the exclusion's that a group policy come's with personal life insurance is the best policy to have. term is the best to have whole life is a rip off and life insurance from a company has to many exclusion in them. I meet a lady the other day that had group through her work and she works for a hospital. Her son was diagnios with cancer and was dropped cause had cancer and she had ever checked the cancer policy.Colbynoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-60143449373309917742008-10-22T13:33:00.000-04:002008-10-22T13:33:00.000-04:00This is one of the reasons why I recommend an indi...This is one of the reasons why I recommend an individual term life insurance policy. Most policies that are available through an employer aren't portable so if you get laid off you're putting your family at risk. I wish your friend and his family the best.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-49717186173979557742008-10-21T22:24:00.000-04:002008-10-21T22:24:00.000-04:00Michael - good question. I'll have to look into t...Michael - good question. I'll have to look into that. I had assumed that if I ever left my company that the insurance would end with the job, which is why I also have private insurance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-52529829058299452852008-10-21T08:18:00.000-04:002008-10-21T08:18:00.000-04:00Mike: It sounds like your life insurance was unde...Mike: It sounds like your life insurance was underwritten at the time of application. The remaining question I have concerns your group life insurance at work. Is it renewable if you leave your employer (voluntarily or otherwise)? If it is renewable, under what terms? As my friend Jim found out, the so-called renewability of his life insurance applied to less than half of his coverage, and his premiums increased by about a factor of 7.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-82392555881320644122008-10-20T23:06:00.000-04:002008-10-20T23:06:00.000-04:00Just to reinforce what Preet said. I have both pr...Just to reinforce what Preet said. I have both private insurance and group insurance from work.<BR/><BR/>In both cases, I had to do a lengthy (20 mins) phone interview with what seemed like a million questions. Your habits, family medical history etc. This was followed up by a visit by a nurse/technician who took blood and urine samples along with blood pressure readings.<BR/><BR/>So if you get underwriting done at time of purchase, then that is what to expect. If it doesn't happen then you might not be covered as well as you thought.<BR/><BR/>MikeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-74074259772087614282008-10-20T17:50:00.000-04:002008-10-20T17:50:00.000-04:00Gene: Thanks for the links. I don't mind a littl...Gene: Thanks for the links. I don't mind a little ranting on this topic. People pay for life insurance to protect their families in case the worst happens. What's the point of having life insurance that may or may not pay out? I doubt that very many people would take mortgage life insurance if they knew that the insurance company would decide whether to pay or not after their deaths.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-62101613811147749232008-10-20T17:42:00.000-04:002008-10-20T17:42:00.000-04:00Reminds me of a show on CBC TV's "Marketplace" pro...Reminds me of a show on CBC TV's "Marketplace" progam. The show dealt with mortgage life insurance, and the conclusion was that it is usually worthless. Say, heaven forbid, you get cancer and die. The policy excludes you if you ever talked to your doctor about cancer, or had a pap smear test, or had your moles checked before accepting the insurance.<BR/><BR/>Have a fatal heart attack? Did you ever have your blood pressure tested before you signed up for the insurance (who hasn't)? Well, that excludes you!<BR/><BR/>So, your claim is denied, and you get your premiums returned to you. Big help! The lucky ones who never have to try to use the insurance are just stuck with an overpriced insurance plan that probably wouldn't have helped much anyway.<BR/><BR/>I may be exaggerating here, I'm not entirely sure. I'm probably confusing some details with the movie "Sicko". Michael Moore's documentaries are not an impartial source.<BR/><BR/>Here's the mortgage insurance show from "Marketplace"<BR/><BR/>http://www.cbc.ca/marketplace/in_denial/<BR/><BR/>Here's a show on automobile credit life insurance:<BR/><BR/>http://www.cbc.ca/marketplace/2007/02/credit_insurance.html<BR/><BR/><BR/>Also, an article on how life insurance is cheaper and more flexible than mortgage insurance.<BR/><BR/>http://www.cbc.ca/news/story/2006/09/21/life-insurance.html<BR/><BR/>Thanks for the forum to rant a little. I'm off track from your original post, but it's in the same general topic of life insurance.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-37824376296536250032008-10-20T11:39:00.000-04:002008-10-20T11:39:00.000-04:00Preet: Thanks again for the information. I'll be...Preet: Thanks again for the information. I'll be interested to read your life insurance series if you decide to write one. I would be particularly interested in whether there are any laws concerning renewability of life insurance policies that would be relevant to Jim's case.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-28876892279044182932008-10-20T11:32:00.000-04:002008-10-20T11:32:00.000-04:00It varies with the group insurance plan provider. ...It varies with the group insurance plan provider. But I have seen many cases where the underwriting will be performed at claim time.<BR/><BR/>If you are not filling out long medical questionnaires, it's a good bet you are not as well protected as you may think.<BR/><BR/>Note that some private life insurance contracts will also allow you to access 10% of the death benefit ahead of time if you are critically ill and your prognosis is especially poor. This clause seems to have many names, like the Compassionate Care Allowance or what have you, but this may allow someone to access funds while trying to settle their affairs, or to seek alternative treatments if they so desire, etc. Perhaps I'll write up a series comparing private life versus group life - there's lots to cover.WhereDoesAllMyMoneyGo.comhttps://www.blogger.com/profile/09185007666460707356noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-71659916662038532232008-10-20T10:27:00.000-04:002008-10-20T10:27:00.000-04:00Preet: Thanks for the information. I had heard t...Preet: Thanks for the information. I had heard that with mortgage insurance the check to grant or not grant coverage occurs when you make a claim (i.e., when you die). Is this also the case with life insurance obtained through employer benefits plans?Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-48540768569232350372008-10-20T10:10:00.000-04:002008-10-20T10:10:00.000-04:00I believe it is quite widespread. One of my former...I believe it is quite widespread. One of my former colleagues has an equally compelling story: his best friend had both mortgage provided insurance (similar to group insurance in that the underwriting is done at death) and private life insurance through my colleague friend.<BR/><BR/>Sadly, he died in a snowmobiling accident and had trace amounts of alcohol in his system. The private insurance sent a cheque within 10 days and the mortgage insurance claim was denied.<BR/><BR/>I strongly recommend people consider replacing any insurance that has underwriting at time of claim with insurance that has underwriting at time of application. It can actually be cheaper if you are healthier than the group average health, but first and foremost you won't have to worry about whether you actually have coverage or not (of for as much as you thought or not).<BR/><BR/>It doesn't care who you work for, and can be converted to a permanent type of insurance should you become ill with a disease that may affect your insurability later on, etc. Lots of reasons to go with private insurance - just do your homework before meeting with an agent - they are also commission based - you may want to pay a fee-only advisor to recommend appropriate coverage and then get the insurance yourself through Kannetix or something.WhereDoesAllMyMoneyGo.comhttps://www.blogger.com/profile/09185007666460707356noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-72415362844501985782008-10-20T07:33:00.000-04:002008-10-20T07:33:00.000-04:00I await any comments on this topic as I am very in...I await any comments on this topic as I am very interested as well.Anonymousnoreply@blogger.com