Insurance FAQ’s

MEG Financial Inc. understands that insurance can become complicated. In order to help our customers we have provided a list of common questions and their answers. If you have any further questions please contact us and we’ll gladly reply.

Who is MEG Financial, Inc.?

MEG Financial, Inc. is a Florida based corporation that provides life insurance and financial services consulting to individuals and businesses in 50 states. Representing over 80 of the most respected life and disability insurance companies, our primary areas of expertise include term life insurance, universal life and equity indexed universal life, disability income insurance, in-force policy review, key man life, business succession planning, insuring tough health issues and estate planning.

At MEG, we provide free insurance quotes and advice to individuals and businesses all over the United States. Since the year 2000, we have successfully helped thousands of individuals and businesses obtain life and disability insurance and have written well over US $1.5 billion of life insurance. During this period, we have developed key relationships and special talents and niches that allow us to get more value for our customer. At MEG Financial, the bottom line is results and we are committed on every case to deliver the optimum policy that meets the diverse needs of each policyholder.

How can I contact MEG Financial?

Visit MEG Financial’s Contact us Page.

How can I receive a quote and is it free?

Yes, quotes are free and can be accessed directly from our website. MEG Financial provides instant term life insurance quotes and instant universal life quotes from over 60 top insurance companies. Additionally, we provide custom equity indexed universal life insurance quotes and personalized whole life insurance quotes. In order to get the most accurate and appropriate quote, you may prefer to call our office toll free at (877) 583-3955 and an insurance professional can provide you with a tailored analysis based on your specific objectives.

What is the best advice you could give me to make sure I choose the best policy?

When buying life insurance, you must first make sure that the policy you choose matches your overall goals and objectives and solves your need based on your specific circumstances. Each person’s goals are a bit different so a careful review of what is important to you is necessary in selecting the appropriate policy. When considering life insurance, a good question to ask is: “Why am I buying the insurance?”. Your answer to that question will help you identify if your need is temporary or permanent. If your need for the insurance is temporary, some form of term insurance will likely be the best option. If your need is permanent, a variation of universal life or whole life policy will probably be a better choice. Consulting with an independent insurance professional to determine the exact policy need is likely the best strategy to assure you make the best policy choice. To speak with one of our independent agents, please call toll free at 1(877) 583-3955 or fill out an online form.

What is Equity Indexed Universal Life Insurance?

Equity indexed universal life is flexible premium universal life insurance policy that allows the policyholder the option to allocate cash values to an index account. The cash values in the index account participate indirectly in the upward movement of a stock index without accepting the normal risk associated with investing in the stock market. The actual “interest” credited to a policy’s cash value is determined by the annual changes of an equities index (excluding dividends).

What is Universal Life Insurance?

Universal life insurance is a combination of annual renewable term insurance and traditional whole life insurance that offers considerable policy flexibility and affordable insurance protection. Actually, universal life can be defined as term insurance with a side fund that grows cash value. Insurance costs, like annual renewable term insurance, can increase annually based on the age of the covered individual. As premiums are paid, insurance costs and fees are reduced form the policy’s cash values. Any remaining cash values grow at a current fixed interest rate. Policy premiums are adjustable as long as there is sufficient cash value to cover policy expenses. Insurance amounts can also be adjusted to meet changing needs. This option offers greater flexibility than whole or term life. After your initial payment, you have the option of reducing or increasing the amount of your death benefit. If you choose to increase your benefit, you may have to provide medical proof that your health has not deteriorated.

What Is Term Life Insurance?

Term life insurance provides low cost temporary coverage for risk of premature death. It pays a benefit only if the insured dies while the policy is in force and builds no cash value. Term insurance is the most cost effective form of life insurance over the short run but over time will become cost prohibitive.

What is whole life insurance?

A. Whole life insurance provides guaranteed coverage for the lifetime of the insured at a fixed premium and also builds cash value at a guaranteed rate. The policy premiums are determined at the policy issue date and remain constant for the life of the policy. Cash values are credited with a guaranteed interest rate and grow over time tax deferred. In the simplest terms, with whole life, you are self-funding your insurance program.

What is Variable Universal Life Insurance?

Variable universal life insurance is essentially universal life insurance that includes an option to “invest” cash values in mutual fund type accounts that are made up of stocks and bonds . Like universal life, as premiums are made, costs of insurance, policy fees and expenses are deducted and the balance is directed toward investments called sub-accounts. These sub-accounts are actual investment accounts that fluctuate based on the performance of the underlying stocks and bonds.

What type of life insurance should I buy?

There are several different types of life insurance and each policy can protect a variety of coverage needs. The type of policy that you buy should be determined by your reasons for purchasing the insurance. If your need can be measured in a specific time frame and the need is temporary, term life insurance is likely the best solution. If the insurance is needed for long term death benefits with the ability to accumulate cash, whole life or universal life may be the best alternatives. If guaranteed life insurance at a low cost is desired, a guaranteed universal life policy would be the best choice. Or if retirement planning and cash accumulation are primary objectives, the variable life insurance or equity indexed universal life insurance might best achieve your objectives. No matter what the circumstances, consulting with an independent insurance professional to determine the exact policy need is likely the best strategy to assure you select the appropriate policy. To contact one of our independent insurance professionals, please call toll free at 1(877) 583-3955.

How much Insurance do I need?

Determining the amount of life insurance needed depends on the purpose for buying the coverage (for a quick estimation of your insurance need see our, “Life Insurance Needs Calculator”). Each individual’s circumstances differ. Therefore, personal goals will dictate the amount of insurance needed. Most agents suggest a multiple of 7 -10 times income as a general guideline for determining a life insurance amount. In reality, the best method for determining the amount of insurance required to meet your objectives is based on the needs of the individual, family or business entity.

In what health class will I qualify?

Determining which health class you will realistically qualify for is the most important part in obtaining the best possible life insurance rate. Underwriting is the process where the insurance company reviews your health and medical history, avocations, MVR, hobbies and lifestyle issues to determine the risk of insuring you at a given rate. Each company has its own unique underwriting criteria they use to classify a given risk. It is a regular occurrence for competing companies to offer widely varying rates to the same individual. For more specific underwriting information see, Determining your health class. If there are any questions as to which health class you can obtain, please call our offices toll free at 1 (877) 583-3955.

What if I have a medical condition? Will it affect my rate? What are my options?

Medical conditions may or may not affect your life insurance rates. If you have a current or previous health condition, while you may not qualify for “advertised rates”, but there is an excellent chance that you may obtain an affordably priced policy. At MEG, we represent over 60 companies and specialize in helping individuals with past health problems obtain competitively priced policies. We have developed 1500+ clients over the last 6 years and many of these individuals have had past health histories. If you have a medical condition or are unsure about whether or not a past health issue is a factor, please call our offices toll free at 1 (877) 583-3955. An insurance professional can review your specific health history and help you identify the company that will offer you the best medical underwriting.

How do I apply for life insurance?

Anyone can apply directly on-line, e-mail us to apply or you may call our office toll free at 1 (877) 583-3955. If applying on-line, after getting your quote, you can click the Apply Now button and add any comments and then submit your request. A licensed insurance professional will call you within 24 hours to review options and go over the application process. If you call us toll free, we will take the necessary time to answer any questions or concerns and then take the application over the telephone within10-15 minutes. Our goal is to be as efficient as possible in respect of your time but at the same time get the best results!

What are the medical exam requirements to obtain a policy?

In order to obtain any life insurance policy, a “mini-physical” exam also known as a “paramedical exam” is required. The paramedical exam is scheduled and completed by a nationwide firm called Portamedic. The exam takes about 20-30 minutes and is administered by a registered nurse or trained phlebotomists. It is done at your convenience in your home or office or at the examiner’s office whichever you prefer. The insurance company will pay the full costs of the exam and as part of MEG’s service, we will provide you with the results of your labs free of charge. For more details on the insurance exam requirements see, “Everything you wanted to know about..A PARAMEDICAL EXAM”. The insurance exam is one of the most crucial steps in obtaining life insurance and has a significant impact on your actual rate.

How long does the process of applying for insurance take?

Generally speaking, the application process should be expected to take 4-8 weeks to complete. After the application and insurance exam are completed, the underwriting process begins where the insurance company will review your mini-physical results and medical history. During the underwriting process, the insurance company may request a copy of your actual medical records. Once your medical records are obtained, the insurance company will review the entire file and an approval will usually follow within 5-7 business days

How can I make sure that I select a good insurance company?

Financial ratings for most insurance companies are available with one or more of the independent ratings services. These services include AM Best, Standard & Poor’s, Moody’s, Fitch and Weiss Research. Each of the independent rating services has its own criteria for ranking an insurance company. You may also visit the websites of each of these services or you can contact MEG and we can provide the financial ratings of any insurance company. When you obtain a quote for either term life insurance or guaranteed universal life insurance, you will see the AM Best rating for each company listed. We recommend using companies that have at least an “A” rating with AM Best but prefer “A+”.

Are there any exclusions of coverage?

During the first 2 years of every life insurance policy there is a contractual clause known as the “contestability period”. The contestability period protects the insurance company from fraudulent and misleading statements made by applicants for insurance. During this initial 2 year period, all insurance companies will investigate death claims for fraud and misleading statements made by deceased applicants. If the insurance company can prove in court that an applicant for insurance lied or committed fraud during the application process, a claim can be denied. The contestability period also includes a suicide provision. The suicide provision states that death claims made on behalf of individuals that commit suicide within the first 2 policy years will be denied. If suicide occurs after the first 2 years, the claim will be paid. Generally speaking, fraud, misrepresentation and suicide within the first 2 years are the only policy exclusions. Policy language varies among companies so read your policy carefully.

When am I required to send payments and how do I pay?

You can make your first payment when you submit your application, subject to certain conditions, or you can wait until the insurance company approves your policy before submitting money. If you send payment with your application, and all policy conditions are met, you are “conditionally covered” after your exam has been completed. “Conditionally Covered” means that you are covered during the underwriting process as long as the insurance company eventually approves you at the same rate class that you applied. If you choose not to send money until the policy is approved, no coverage will be in effect until the insurance company receives payment.

You may choose to pay in one of 4 ways. The insurance company will bill you annually, semi-annually, or quarterly, or you may choose to pay by monthly bank draft. The cost for these options will vary. Depending on the insurance company, there may be an extra charge of 2-6% for any mode other than annual.

Can the insurance company cancel my policy at any time?

No! Life insurance policies are unilateral contracts meaning they cannot be cancelled by anyone other than the insured individual or the policy owner. As long as you pay the premium on time, the coverage will remain in effect. However coverage can be cancelled at any time by simply discontinuing premium payments.

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