Long Island Life Insurance FAQ’s
By Insurance Suffolk Brokerage
“Isn’t the price of life insurance the same with every company?”
No. Each company has different underwriting guidelines and pricing when it comes to rating someone for life insurance. That is why you want to empower yourself with a life insurance broker as opposed to a company agent since we work with the top Long Island life insurance companies in New York state.
“Well, I should go with the life insurance agent that offers me the lowest price then, right?”
Not necessarily. First, it’s important to understand the process for applying for life insurance:
- – Complete a written application with a life insurance company of your choice
- – Get underwritten by the life insurance company (medical exam & medical records background check)
- – Receive your formal offer for life insurance from the company
- – You decide whether or not to take the life insurance policy offered by the company
As you can see, the price that matters is the price the life insurance company offers you after you have been underwritten for coverage…not what an agent or broker quoted you at. What we at Insurance Suffolk do is approximate your rate as closely as possible based on the personal information you provide us. The more accurate the medical information you provide us with is, the more accurate your projected offer will be from the company. Since life insurance company agents can only offer you products from the company they work for, agents tend to misquote life insurance shoppers in an attempt to close a sale. Since we are a brokerage, we have the luxury of finding another company that will offer you the best price for life insurance in New York.
“Why do I need to take a medical exam and need to answer all sorts of personal questions about my medical history?”
Life insurance companies need to determine how much of a risk you are before considering making an offer to you. The higher the risk you are (thereby increasing your chances of a premature death), the higher the cost will be for your life insurance. This is also why the life insurance company must be authorized access to your medical records, which part of the application paperwork.
“I got my life insurance policy when I was a smoker. I have quit since then. Am I stuck with this higher rate for the life of the policy?”
Absolutely not. After about a year has gone by where you no longer smoke, you can request from your life insurance company that they lower your rate since you are now a non-tobacco user. If your company denies your request for a rate reduction, you can also hire Insurance Suffolk to shop your Long Island life insurance policy around to be replaced with a non-tobacco rate from another company. The choice is yours.
“I’ve been denied life insurance recently. Does this mean I’m uninsurable with every other carrier?”
Not necessarily. We’ve written a number of clients that were turned down after working with a life insurance company agent but got them covered with another life insurance company. Some clients were uninsurable but not all of them were. It all depends on the severity of your pre-existing conditions and how strict the underwriting guidelines were from the company you were turned down from. Ask your life insurance agent to have their life insurance company provide you with written, specific reasons as to why you were turned down along with a copy of your lab results. When you have them, call Insurance Suffolk and we will talk about your options. We are a brokerage and can find out which Long Island life insurance company will consider offering you a policy.
“How do I know the life insurance company I choose will actually pay my beneficiary when I die?”
While there is never a guarantee of a company’s financial stability (even with heavily advertised life insurance companies), you can gauge a company’s financial strength by their financial ratings. Ratings companies like Standard & Poor’s or AM Best provide such financial ratings for life insurance companies and post them on their web sites. This will give you more peace of mind when selecting a life insurance company for your coverage. Insurance Suffolk continuously reviews life insurance company ratings to ensure you are going with a financially stable company.
“I’ve already spoken with a few company agents for life insurance. Was this enough research?”
No. Not only is there a larger pool of life insurance companies to choose from, a company agent is not thinking about your particular situation. You are just being offered the one type of life insurance policy they have available to them. Conversely, Insurance Suffolk hand picks the life insurance product from a specific company that works well for your particular situation…and at a competitive price. We also provide comparisons with other life insurance companies so that you have choices available to you.
“Do you charge a broker fee for your services?”
No. We get paid the same way a company life insurance agent gets paid…by the life insurance company.
From Babylon to Massapequa, to Lindenhurst to Merrick, our life insurance professionals at Insurance Suffolk help our local residents in finding the right Long Island life insurance policy that fits your specific needs at affordable prices. Contact one of our Long Island insurance brokers for a free evaluation and life insurance quote today.