• Insurance acts as a an investment because you pay a premium and expect something in return -- worth more than you paid in the first place-- should something ever happen to you.
• Some financial planners don't see insurance as investment.
• Premium is a small loss with an expectation that something will happen to you that will cost you more.

PREVENT PAYING MORE - 5 QUESTIONS TO ASK BEFORE BUYING INSURANCE

• Do you really need insurance? (very unique investment?) Make sure someone will have an economic loss. If something happens to you?
  • Someone
  • Economic Loss
  • Event
  • Ex. if you're single, no dependents, you prolly don't need insurance
• How much coverage do you need?
• What type of insurance do you need?
  • Temporary - Term Insurance
  • Permanent - Permanent Insurance ie., whole life insurance, variable life, universal life, variable universal
• From whom would you get your insurance from? Type of insurance agent do you need? Prolly someone you would spend your life with.
  • Competent
  • Always available
  • Should understand your needs
  • suggests the right product for you
  • Check insurance commission
• To choose insurance company
  • Dependable
  • Will be around for years (20 - 30 yrs from now when you will need it)
  • Registered in the Insurance Commission
• How much can you afford?
  • Temporarily apply for the least expensive from term insurance to permanent insurance

CLAIMING INSURANCE

• Life insurance can be proactive. Even before you need to claim, sit down with your insurance agent and let him or her walk you through the process
  • All contact details
  • All forms should be with you all the time
  • DO NOT leave everything to your agent, in case s/he will not be with you in case you need to claim
• Make sure that all your policies are SAFE
  • These are the most important documents needed to file a claim
  • It is advisable to put all other necessary forms and contact details together with the policies in a secure place that is easy to access
• Inform beneficiaries of the procedures. They should know how to do it in case you're not there.
• What people should not do when you claim.
  • Making a fraudulent claim is unlawful. Insurance will be rescinded
    • Each claim is different, requirements. Death claim, critical illness, reimbursement for hospital expenses, etc.
    • Consult a 3rd party before taking the Insurance Commission evaluation? Insurance policy should clearly state what is claimable. Make sure claimant's rights are protected.
    • PROBLEM OCCURS if there is a gray area. ie., Accidental Death. Insurance company will investigate before claiming. Insurance Commission.
  • DO NOT Submit an examination under oath without obtaining legal advice
  • __DO NOT Sign an insurance check without verifying the correct amount.

FINANCIAL ADVISER: John Louie Areopagita https://www.linkedin.com/in/john-louie-areopagita-85192238

DISPUTES

• When there's a dispute in the claiming process, the Insurance Commission acts as the arbitrator between the insurance company and the claimant.
• If the claim is not satisfied with the decision of the commission, s/he can elevate the case to the appelate courts. This is the time the claimant brings in a lawyer to argue the case.
• Insurance company can only contest claim if you had a pre-existing condition (for health insurance) that you were not forthright about. Burden of proof is within the insurance company to prove that this is not a pre-existing condition prior application of policy via medical records with 3rd party investigative agency, doctor. If policy was approved no recourse for insurance company but to process the claim. If prior to application, the medical records say that she has had some proof or indication of prior condition, ie., saw a mass, then insurance company cannot process the claim (considered as pre-existing condition).

DENIED CLAIMS

• Insurance Code has very specific provisions on when a claim can be denied.
  • Policy lapse due to non-payment of premiums
  • Misrepresentation. ie., previous condition that you didn't report and insurer finds out
  • Wilful, reckless acts increasing chances of hazard ie., motor-cross racing.
  • Over-insurance ie., property insurance, cannot be insured to more than what it's worth.
  • Acts of terror, is covered
  • Accidental death due to acts of terror -- not covered.

HOLDING PERIOD FOR INSURANCE

• Life Insurance - 2 year contestability period
• Health Insurance - immediately applicable. No holding period, therefore, no possible probs with claims.