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Beware the Hype of Superfluous Products
Gary A. Cook; MSFS, CLU, RHU, CFP® CMP™
The following insurance policies should be carefully considered by physicians before purchase, since they may be unnecessary, too expensive, provide only minimal benefits or be duplicated in other insurance policies.
Avoid or Purchase?
These suspect insurance policy types include credit life or home mortgage insurance (decreasing term), life insurance for children, accident policies for students and pets, hospital indemnity policies, dread disease insurance, credit card insurance, pet health insurance, life insurance for the elderly, funeral insurance, flight insurance, pre-paid legal insurance and most extended warranties on automobiles, televisions, stereos, home computers and the like.
On the other hand, the following types of coverage may be important in selected cases: trip cancellation insurance, termite insurance and flood and earthquake insurance. Regardless, the purchase choice for all of the above is your own – so think carefully.
The “Perfect” Retirement Insurance Vehicle – Does Not Exist!
Additionally, according to fee-only life insurance expert Peter C. Katt of Kalamazoo, Michigan, doctors should be on guard against believing in the existence of perfect retirement vehicles funded through “springing” cash value life insurance plans.
These plans reportedly feature payments of very large premiums while the policy is subject to favorable tax treatment, and then transferring the policy to the insured doctor when it appears to have no taxable value, after which the cash value springs to life.
Assessment – Beware the VEBA
Unfortunately, in the real world, tax deductible contributions and tax-free benefits do not exist without resorting to fraud or deception.
Particularly notorious are the so-called continuous group insurance and VEBA (Voluntary Employee Benefit Association) pre-paid retiree plans, despite the fact that the later have been mistakenly endorsed by state medical societies – in certain cases.
Conclusion
Always remember that no matter how professional and sincere marketers appear, there are no life insurance that can legitimately provide tax-deductible insurance with tax-free retirement benefits.
Therefore, you should always consult a qualified professional for further information regarding your specific needs. And so, have you ever been “burned” or benefited by any of the above insurance policy types?
More information: ttp://www.jbpub.com/catalog/9780763733421
About insurance agents: https://healthcarefinancials.wordpress.com/2007/12/18/insurance-agents-raising-the-bar
Fiduciary education: http://www.CertifiedMedicalPlanner.org
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Filed under: Insurance Matters | Tagged: Insurance Matters |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
ON HEALTH INSURANCE: An Overview for the US
Posted for Alan by the “Executive Post”
The Alan Katz Health Care Reform Blog
Earlier this month, America’s Health Insurance Plan’s (AHIP) published its annual Health Insurance: Overview and Economic Impact in the States.
It provides a snapshot of the economic impact health insurance has on state economies along with some interesting statistics.
All readers, subscribers, physicians and healthcare executives are urged to review it.
-Hope Hetico; RN, MHA
Alan Katz is a past president of both the National and the California Association of Health Underwriters. In 2003 NAHU named Alan the Health Insurance Person of the Year, awarding him that year’s Harold R. Gordon Memorial Award. He was named CAHU Member of the Year in 2000 and 2007.
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