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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

July/August 2018

The ABCs of Insurance

The ABCs of Insurance

Life insurance terminology is often difficult to understand. Here’s an explanation for some puzzling insurance phrases so that you’ll know what they mean.


Underwriting
How an insurance company examines risk to decide whether or not to approve applicants to buy insurance.


Evidence of insurability
This is generally proof of your health, although some insurers may also check your finances and employment to determine insurability.


Standard risk
This is underwriting — or rating — which determines normal risk. A standard risk will pay more for insurance than the lowest risks, but less than substandard risks, who are the highest risks.


No underwriting is required
You hear this phrase when an actor pitches a term life insurance policy on television. In reality, individual term insurance is typically for a low amount and doesn’t fully pay a death benefit for the first two or so years.


Group insurance
This is typically a nominal amount of coverage underwritten on a large amount of people. This is usually a benefit offered by employers and associations.


Beneficiary
The person or entity that receives the insurance policy’s death benefit. An entity could be a charity or even a business.


Rider
Most whole life and some term life policies offer riders, which insurers also call endorsements. You can consider them addendums that, sometimes for an extra fee, may add to your benefit or suspend premiums, among other options.


Lapse
When policy owners miss a payment, an insurance policy could lapse, or be cancelled. There are riders to protect against this possibility, too.


Dividend
Whole life insurance policies often pay a predetermined rate of interest on paid premiums. The insurer can use earnings and expense savings to reduce your premiums, increase your benefit and pay periodic dividends.


Agents
These are people, licensed by the states in which they sell insurance, you should contact to learn more about individual life insurance.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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