A. Yes. The insurance industry's practice is to treat an asking about a potential claim the same as a claim that is filed. The reason is that industry data shows people who ask usually end up filing claims more often than those who don’t ask. Yes, even calling your agent can count as filing.
Q. Could I be denied insurance if I have called my previous insurance agents many time inquiring about potential claims but never filed any?
A. Yes. The insurance industry's practice is to treat an asking about a potential claim the same as a claim that is filed. The reason is that industry data shows people who ask usually end up filing claims more often than those who don’t ask. Yes, even calling your agent can count as filing.
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Q. What kind of underwriting class should I expect if I have diabetes?
A. Diabetes is a syndrome characterized by high blood sugar in which there is not enough insulin being produced (Type 1) or the insulin that is produced is ineffective (Type 2). Symptoms of diabetes include frequent urination, excessive thirst, extreme hunger, unusual weight loss, increased fatigue and blurry vision. The Centers for Disease Control estimate that in the U.S., diabetes affects over 18 million people or over 6% of the population. Of this group, a third are undiagnosed and insurance testing is a primary way of detecting it. The diagnosis of diabetes is made based on the presence of elevated glucose with suggestive symptoms or an abnormal blood glucose test. Hemoglobin A1c is a test that is very useful in the underwriting of life insurance, and typically a concern once it reaches levels of 6.0 or greater. The primary questions to be asked for someone with this history are:
Typically, there are height and weight issues, as well as hypertension concerns, and these will factor into the ratings as well. Please contact us if you have any specific questions. Q. Does a term life policy have cash value?
A. No, a term life insurance policy does not have any cash value. However, on some term policies, you can add a rider that could return all of your premium, this is called "Return of Premium" rider. With this ROP rider, if you outlive the term of your policy you will get your entire premium returned. A Return of Premium policy costs considerably more but if you outlive the policy, you get your premium back and you had the death benefit for the duration of the policy. Q. I invested in a portfolio over a number of years, some years are up and some years are down in values. How do I calculate my average return over these years? A. Many investors tend to calculate the multi-year investment's return by looking at each year's return, then do an arithmetic mean calculation. Unfortunately this is the wrong method. Geometric mean is the right way to calculate a multi-year investment's return. See how the arithmetic and geometric means could differ from the following examples: You can use Excel to easily calculate geometric mean, here is how do you do it -
Step 1. Get each year's % return, e.g. 10%, -15%, etc. Step 2. Add 1 to each of the annual return, e.g. 1.1, 0.85, etc. Step 3. In Excel, use Geomean function to calculate the numbers obtained from step 2. That's the geometric mean return! For archived newsletters, please visit here.
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