Paul Sanchez
The insurance industry is a trillion-dollar industry that employs nearly three million people. It is a profit-driven industry, and insurance companies will try to make as much money from customers as they can. There are several books available that can help readers understand the insurance industry better, such as Understanding the Insurance Industry by A.M. Best, Inside the Insurance Industry, and The Insurtech Book. These books can provide valuable insights into the industry's workings, including the different types of insurance, legal aspects, and how insurance companies operate.
| Characteristics | Values |
|---|---|
| Author | Todd Erkis |
| Author's Background | Actuary and former insurance executive with over 25 years of industry experience |
| Contents | Secrets and tips to help readers "win at insurance", including how common insurance products work, how to get the best price, and how to save for retirement |
| Style | Easy to understand, no insurance jargon, interwoven with personal stories from the author |
| Intended Audience | People who want an unbiased guide to buying insurance |
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What You'll Learn
Settlement offers can be negotiated
The book "Delay, Deny, Defend: Why Insurance Companies Don't Pay Claims and What You Can Do About It" by Jay M. Feinman provides valuable insights into the insurance industry and how it operates. It reveals that insurance companies have shifted their focus from policyholders to stockholders since the late 1990s, resulting in a negative impact on claimants. This book helps readers understand the "settlement game" and the various players involved.
While most insurance claims are handled properly and timely, there are instances where claimants face challenges. One common issue is that insurance companies have huge incentives to minimize the amount they pay out on claims. For example, in the case of a total loss claim for a car accident, the settlement amount offered by the insurance company may include mandatory taxes and fees, reducing the actual cash value (ACV) of the vehicle. Additionally, insurers may not issue partial settlement checks that release them from total liability unless a compromise has been agreed upon by both parties.
To negotiate a settlement offer, it is essential to understand how insurance companies process claims. "Insurance Settlement Secrets: A Step-by-Step Guide to Get Thousands of Dollars More for Your Auto Accident Injury Without a Lawyer!" by Mackinnon and Matheson provides tips and insights from an industry insider on negotiating injury settlements. However, some readers have criticized the book for its poor organization and focus on sensationalism rather than providing a step-by-step guide to reaching a fair settlement.
When negotiating a settlement, it is crucial to keep detailed records of interactions with the insurer and all relevant documents. In complex cases, enlisting the help of a specialized lawyer can be beneficial. Organizations like the NAIC, a federal agency handling customer complaints in the insurance industry, and United Policyholders, a group dedicated to protecting people from insurance companies, can also provide support and resources. By arming themselves with knowledge and seeking assistance when needed, claimants can improve their chances of negotiating a fair settlement that meets their needs.
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Hire a public adjuster
When it comes to the insurance industry, there are a few things your insurer doesn't want you to know, and one of them is that you have the option to hire a public adjuster. A public adjuster acts in your best interest, unlike the insurance company's adjuster, who acts in the interest of the insurance company.
Public adjusters are licensed professionals who can be hired to evaluate property loss, determine the dollar amount a claim should pay out, and help you file insurance claims. They can be especially useful if you think your claim was poorly handled, if your damage is severe, or if you simply want an insurance professional to navigate the claims process on your behalf.
When you file a claim with your home or car insurance company, they will typically assign one of their own adjusters to investigate and determine a payout amount. However, you have the option to hire a public adjuster who will work on your behalf and negotiate with the insurance company to get you the maximum payout. This is because public adjusters are hired by individuals, while company adjusters are employed by insurance companies.
Before hiring a public adjuster, it is important to check their credentials and license status. Public adjusters must be licensed in every state they practice in and are required to participate in continuing education courses to maintain their licenses. You can find a public adjuster by searching online, using directories like the one maintained by the National Association of Public Insurance Adjusters (NAPIA), or by asking friends and family for recommendations. Once you've found a few options, be sure to research their fees, which are typically a percentage of the final claim payout, and can vary between adjusters.
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Tricks to mitigate liability
Insurance companies are known for their games and fine print. They have expert negotiators who know the ins and outs of insurance and all the tricks to reduce their liability. Here are some tricks to mitigate liability that the insurance industry doesn't want you to know:
Hire a public adjuster: Insurance companies don't want you to hire a public adjuster because they act in your best interest, whereas the insurance company's adjuster acts in the interest of the company. A public adjuster can help you navigate the complex world of insurance and ensure you don't get taken advantage of.
Negotiate settlement offers: Insurance companies don't want you to know that settlement offers are negotiable. You don't have to accept the first offer, and if you believe it is too low, you can reject it and negotiate for a better one. Stand your ground and don't be afraid to ask for what you deserve.
Understand the fine print: Insurance policies are often filled with complex jargon and hidden clauses. Take the time to thoroughly read and understand the fine print of your policy. Know your rights and what is and isn't covered so that you can avoid any unpleasant surprises when making a claim.
Seek alternative solutions: Insurance companies may try to delay or deny claims. In such cases, consider seeking alternative solutions or services. For example, if your home insurance claim is denied, you can look into government assistance programs or non-profit organizations that offer grants or low-interest loans to help with home repairs or temporary housing.
Get informed: Education is power. Read books like "What Insurance Companies Don't Want You to Know" by Todd Erkis, an actuary and former insurance executive. Such books can provide unbiased guidance, secrets, and tips to help you navigate the insurance landscape and make informed decisions.
Remember, insurance companies have their own interests at heart, so it's important to be proactive, ask questions, and seek alternative sources of information and support to ensure you're getting the best outcome for yourself and your family.
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How to get the best price
The book "What Insurance Companies Don't Want You to Know: An Insider Shows You How to Win at Insurance" by Todd Erkis, a former insurance executive, is a great resource for those seeking to get the best price on insurance. The book provides an unbiased guide to winning at insurance, offering easy-to-understand information and secrets to help you and your family achieve financial security.
- Understand the negotiation process: Insurance adjusters are skilled negotiators who know the intricacies of homeowners insurance. They will negotiate from a position of strength, assuming that the average homeowner lacks their level of expertise. It is crucial to recognize their negotiating tactics and not be intimidated.
- Hire a public adjuster: Consider hiring a public adjuster who works in your best interest rather than the insurance company's. A public adjuster can provide valuable expertise and guide you through the claims process, ensuring that your interests are protected.
- Negotiate settlement offers: Remember that settlement offers are not set in stone. You have the right to negotiate and should not feel pressured to accept the first offer. If you believe the offer is too low, don't hesitate to counter or seek further negotiation.
- Educate yourself about common insurance products: Understanding how different insurance products work is essential. By familiarizing yourself with the various options available, you can make informed decisions and choose the most cost-effective plans that meet your specific needs.
- Seek unbiased guidance: Utilize resources like the book mentioned above, which offers an insider's perspective without insurance jargon or hidden motives. An unbiased guide can empower you to make informed choices and avoid common pitfalls when navigating the insurance landscape.
By following these strategies and staying informed, you can increase your chances of getting the best price on insurance and ensuring your financial well-being.
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How to save for retirement
Retirement planning is a complex and often confusing topic, and it's no wonder that many people seek guidance from books like "What Insurance Companies Don't Want You to Know." This book, written by Todd Erkis, an actuary and former insurance executive, aims to demystify insurance and help individuals make informed decisions about their financial future, including saving for retirement. Here are some key considerations and strategies for those seeking to save and plan for their retirement:
Understanding Retirement Income Needs
Start by estimating your monthly income needs during retirement. Experts suggest that you will need at least 70% of your pre-retirement income, but some recommend increasing this to 80% or 90%. This estimate will help you set savings goals and determine the right types of insurance and investments.
Traditional Retirement Savings Plans
The most common way to save for retirement is through employer-provided plans, such as 401(k)s, or individual retirement accounts (IRAs). Contribute as much as you can to these tax-advantaged plans, taking advantage of any employer-matching programs. If you've maxed out these options and want to invest more, consider a Life Insurance Retirement Plan (LIRP). With a LIRP, you essentially "overpay" your premiums to build up a cash value that can supplement your retirement income.
Life Insurance Considerations
Life insurance can play a crucial role in retirement planning, especially if you want to provide for your loved ones after your passing. There are two main types to consider: term life insurance, which covers you for a set period, and permanent life insurance, which lasts your entire life. If you have financial dependents and are still building retirement savings, term life insurance can provide peace of mind. On the other hand, permanent life insurance can be used to supplement retirement income and ensure a financial legacy for your beneficiaries.
Healthcare Costs and Medicare
Don't forget to factor in healthcare costs, which tend to increase as we age. In the US, you become eligible for Medicare at age 65, which includes hospital insurance (Part A) and medical insurance (Part B). Signing up for Part B will impact your monthly benefit amount, so it's essential to plan accordingly.
Social Security Benefits
You can apply for your monthly retirement benefit through the Social Security Administration (SSA) between ages 62 and 70. The longer you wait to apply, the higher your benefit payment will be, so consider delaying retirement if you can. Remember that your benefit payment may be temporarily reduced if you continue to work and earn above a certain limit before your Full Retirement Age (between 66 and 67).
Housing and Other Expenses
As you age, consider downsizing or relocating to reduce housing costs, which can include maintenance, fees, taxes, and insurance. Additionally, look for ways to save on other expenses, such as by borrowing against a life insurance savings account, which typically offers lower interest rates than commercial lenders.
Retirement planning requires careful consideration of your unique circumstances, and it's always a good idea to seek professional financial advice. By understanding your options and taking a proactive approach, you can work towards a comfortable and secure retirement.
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Frequently asked questions
"Understanding the Insurance Industry" by A.M. Best is a great introductory book for those wanting to learn about insurance. It is easy to read and provides an overview of the industry.
Insurance companies want to make as much money from you as possible. They will not leave any money on the table when paying you out for an insurance claim. Insurance adjusters, appointed and paid for by your insurer, will never put your interests before those of the insurance company.
"Inside the Insurance Industry" is a book that speaks to professionals and individuals looking for ways to monitor their financial well-being. It covers terminology, different types of insurance, legal aspects, underwriting, and unknown factors that can affect policyholders, agents, and insurance companies. "The INSURTECH Book" is another book that speaks to industry professionals who want to learn about emerging business models, engaging customers more effectively, and employing new technology.
The insurance industry is a trillion-dollar industry that employs nearly three million people. It is a profit-driven industry, paying close to $25 billion in premium taxes annually.
There are many types of insurance, including property insurance, liability insurance, workers' compensation insurance, vehicle fleet insurance, professional liability insurance, and cyber liability insurance.
