FAQ

Life Insurance FAQs

1. What is the purpose of life insurance?

Life insurance replaces your income so your loved ones are able to maintain their current lifestyle if you pass away. The expenses incurred after an unexpected death could exceed any savings that you accumulated during your lifetime, and therefore become financially stressful for your family. Owning the right insurance policy will prevent this, and lighten your loved ones’ monetary burden.

2. Can I afford life insurance?

The tools on our website are designed to help you find the policy best suited to your financial capabilities. We promise that the added security of owning life insurance is worth the cost. All you need to do is answer a few short questions to see the policy options that are tailored to your insurance needs.

3. How long does it take to get life insurance?

This will depend on which type of policy you want. A standard issue life insurance policy can take up to 8 weeks to be processed, depending on the company and the medical exam date. Guaranteed issue polices can be issued within days, and sometimes even hours. Simplified issue policies fall somewhere in between, with the average time for approval being one week.

4. Should I receive my life insurance through work?

It is possible to obtain life insurance through work; however, it is far safer to own your own policy because you want to remain insured even if you lose your job. When your place of employment offers life insurance, your policy is only in place while you work for that company. In the case of unforeseen termination, you would be left uncovered. It is primarily for this reason that we recommend purchasing life insurance on your own.

5. How difficult is it to pass the medical exam?

If you do not have major health concerns, such as a chronic disease, and you do not have a history of nicotine or tobacco use, we recommend that you take the medical exam because it could yield significantly lower premiums as well as greater coverage options.

6. Should I buy term or whole life insurance?

This is a personal decision based on your payment preferences, financial goals, and your beneficiaries’ needs. Term life insurance policies last for a specified number of years, while a whole life policy will never run out. While term life policies tend to be the more popular option, every person’s needs are different. For more help with your decision, speak to one of our life insurance experts.

7. Should I buy guaranteed, simplified, or standard issue life insurance?

This decision depends on a number of factors. Remember that the more insurance companies know about you, the more coverage they are likely to provide at lower costs. This is why we recommend standard issue life insurance to clients who are generally healthy, and simplified or guaranteed issue life insurance to clients who want quicker, if less comprehensive, coverage. For more information, see our policy comparison tool here (link to side-by-side comparison page).

8. What is return of premium life insurance?

Return of premium life insurance policies will to you the amount you paid in premiums if you are alive when your policy term ends. You return of premium is essentially a refund of the money you paid for your life insurance policy. There are also permanent or universal life insurance policies that add the premiums paid into the policy’s death benefit.

9. How much life insurance should I buy?

The amount of life insurance you purchase depends on your preferred coverage, your outstanding debts, and your beneficiaries’ financial needs. For more information, use our coverage calculator to estimate the amount of life insurance you need (link to human life value calculator).

10. Should I buy life insurance on my child?

Purchasing life insurance for your child a personal choice. While it is critically important, it should be noted that securing a policy for your child early on protects them from the difficulties of obtaining coverage if they develop health issues in the future.

11. What happens when a life insurance policy lapses?

If your life insurance policy lapses, your carrier will no longer pay your death benefit or provide any coverage. It is extremely important to make sure that your policy is active, and contact your insurance professional immediately if this is not the case.

12. Can I go to my own doctor for the medical exam?

Unfortunately, your doctor cannot perform your medical exam. This is because insurance carriers often have their own medical professionals, who they prefer to work with. You can however choose the time and place of your exam.

13. What is underwriting?

Underwriting is the process through which an insurance company assesses risk to ensure that the cost of coverage for a client is proportionate to the risks that client face. A client who is considered low risk will pay lower insurance premiums. Insurers draw from many different sources during the underwriting process to produce as accurate an estimate as possible, and these estimates may vary from company to company.

14. How do my beneficiaries receive the money from my life insurance policy?

To collect the money from your life insurance policy, your beneficiaries must file a death claim with your insurance carrier. They are also required to submit an official copy of the death certificate.

15. Under what circumstances could my policy be cancelled?

Your insurance company has two years after the policy is issued to make sure that all aspects of the contract are in good order.  This is called the contestability period. After this time, a claim must be honored, and your policy will be cancelled only if your fail to pay your premiums, or if it is discovered that you answered falsely on your insurance application.

 

Health Insurance FAQs

 

1. What is the purpose of health insurance?

The purpose of health insurance is to help you pay for medical services. These include visits to your primary care physician and emergency visit to the hospital.

2. Do I need health insurance?

We cannot overstate the importance of owning health insurance. Years of good health in the past do not guarantee that you will not face medical expenses in the future. Without health insurance, receiving proper medical treatment in the event of an unexpected illness or injury can be very difficult and expensive.

3. What kinds of medical services does my healthcare plan cover?

The medical services covered by your healthcare plan will vary according to your policy. You can speak to one of our health insurance professionals for more details on your particular policy.

4. What is a deductible?

A deductible is a specified amount that the customer pays for medical services before insurance coverage begins.

5. What is coinsurance?

Coinsurance describes the percentage of the cost for a covered health service that the customer covers after the deductible is paid. The term “coinsurance” is meant to convey that you share the cost of insurance with your health insurance company, which pays the remaining percentage of costs.

6. What are copayments?

A copayment is a fixed amount that the customer pays out-of-pocket to the insurance company each time he or she receives a covered service, such as a visit to a physician.

7. Can you be denied coverage due to pre-existing medical conditions?

Health insurance companies cannot deny you coverage or charge more for existing coverage due to medical conditions that you had before your coverage began.

8. Can I still get health insurance once open enrollment ends?

Usually, you need to wait until open enrollment begins to purchase new health insurance policies. However, there are options available if you need coverage quickly after open enrollment has ended. If you have experienced a qualifying life event, for example a recent marriage or divorce, you may be eligible for a special enrollment period. Additionally, you have the options of purchasing a short-term health plan or obtaining coverage through Medicaid.

9. What is the effective date of coverage?

Your effective date of coverage is the day your insurance coverage starts. From that day on, your insurance company will help you pay for your medical expenses. Your effective date of coverage may differ from the day you purchase your insurance, so be sure to check for it in your policy description.

10. How long does it take to get health insurance?

The average time it takes for a health insurance application to be approved is two weeks; however, this may vary depending on the company and care that you choose.

11. Is it very difficult to file a claim?

Filing a health insurance claim is not difficult. Take time to make sure that your claim is valid according to the specifics of your policy, then simply submit the bill for the medical services to your insurance company.

Home Insurance FAQs

 

1. How do I determine how much home insurance I need?

To determine the amount of home insurance that is suitable for you, you should take into account the estimated market value of your home, the value of new or unique features inside your home, and the value of your personal belongings. You should also think about which of these things you would want to make it a priority to protect with your policy.

2. What is a home inventory, and do I need one?

A home inventory is a list of all of your possessions and their values. An accurate home inventory will make it much easier for you to insure your belongings. In the event that your belongings are destroyed or stolen, a home inventory will also help you file a home insurance claim.

3. How do I complete a home inventory?

We suggest that you begin your home inventory with your most valuable belongings, and go room-by-room to ensure that you do not forget something. Take care to record valuable possessions, like jewelry, artwork, and collectibles because you may want to purchase special coverage for these items.

4. Which items are not covered by my home insurance?

Uncovered items will vary by policy. You can choose to have your personal belongings insured, and you can also choose which belongings to insure. The specifics on your policy that you will want to look for are the perils that are included in your coverage. Your insurer will not pay for any damaged to your belongings caused by uncovered perils.

5. What is the difference between named and open perils coverage?

Named perils coverage means that only damage caused by the perils listed in the policy will be covered by the insurance company. Open perils coverage means that damage caused by any peril that is not explicitly excluded in the policy will be covered by the insurance company.

6. How do I get lower home insurance premiums?

There are several ways to save on your premiums. One method is to purchase multiple policies from one carrier to get a discount. A common practice is bundling your home and auto insurance to receive both at a better price. Another way to lower your premiums is to make your home safer by implementing security features, such as upgraded windows, doors, and locks.

7. If I file a claim, will my premium go up?

Home insurance premiums do not always increase after a claim is filed. However, many companies apply a discount on their premiums for customers who have never filed a claim. This discount cannot be reinstated, so don’t be surprised to see higher premiums after you file a claim.

8. What is personal liability coverage?

The purpose of personal liability coverage is to protect your current and future assets. With personal liability coverage, anyone taking legal action against you for events like an injury that occurred on your property will seek compensation from your insurance company, and not you. This could save you thousands of dollars in legal fees.

9. What are the Medical Payments to Others for?

Medical Payments to Others are allocated for third parties who are injured on your property, and require payments for medical expenditures.

10. Do I choose my insurance, or is it up to my mortgage lender?

In almost all cases, you can and should choose your own home insurance. Remember that your mortgage lender simply wants home to be insured, and may not be interested in finding you the best rates. If you default to whatever policy they choose, you could end up paying thousands of extra dollars for an unsuitable policy.

11. Does home insurance protect against a robbery?

Typically, any insurance that you have taken out on your personal belongings will extend this protection to theft.  Check the details of your policy to make sure.

12. What natural disasters are not covered under typical home insurance plans?

The natural disasters covered by insurance policies depend on the geographical region of your home, because certain weather events are more likely to happen in certain areas. Typically, flood and earthquake insurance need to be purchased separately from standard home insurance, and their prices will vary according to location.

13. Under what circumstances could my policy be cancelled?

Your insurance carrier can only cancel your policy if you fail to pay your premiums, or if it is discovered that you answered falsely on your home insurance application. You will generally be given 10-20 days’ notice before your policy is cancelled. Please be aware that insurers can also refuse to renew your home insurance policy, for reasons like poor credit score, criminal behavior, or multiple claims.

Auto Insurance FAQs

 

1. How long does it take to get auto insurance?

Obtaining auto insurance usually does not take long. If you have all of your information ready, such as the details of your car and driving history, you can submit your application within minutes, and select to start your insurance that same day.

2. What does basic auto insurance cover?

Basic auto insurance covers injuries and damage to other people or their property in case of a vehicular accident.

3. Do I have to have auto insurance?

In the United States, you do need to own auto insurance in order to drive. Each state has minimum auto insurance laws, most of which require that drivers purchase some type of basic liability insurance.

4. What happens if I don’t have auto insurance and I get in a car accident?

Depending on which state you are driving in, the consequences of a vehicular accident without proper insurance could include loss of your license, fines, and even jail time. Furthermore, if you are found responsible for the accident, the other party could take legal action against you.

5. How expensive is auto insurance compared to other types of insurance?

Generally, car insurance is one of the cheaper insurance types. The rates you pay will depend on your state, carrier, and policy details. Other variables that are factored into your auto insurance rates include location, age, gender, marital status, driving record, vehicle type, and vehicle use. For more information, talk to one of our auto insurance experts.

6. Can an auto insurance company deny me service?

It is within the rights of auto insurance companies to refuse claims, deny new policies, or refuse to renew an existing policy. They are allowed to deny service for reasons such as poor driving record or multiple at-fault claims.

7. Does my auto insurance policy cover other vehicles that I drive, such as rental cars?

In most cases, owning collision and comprehensive coverage will grant you protection when you drive cars that aren’t yours, like rental cars. However, this may not always be the case. Make sure to check both the details of your policy, as well as the rental car company’s waiver.

8. If my car is stolen, will my insurance pay to recover or replace it?

Liability or collision-only coverage only covers the consequences of a car accident, and will not pay to replace your car if it is stolen. If your policy includes comprehensive coverage, you are protected against the theft of your car.

9. Should I buy collision or comprehensive auto insurance?

Whether you buy collision or comprehensive auto insurance is a personal choice that depends on how much protection you want, and in what situations. Basic collision or liability coverage is a must for every customer simply to protect them against the consequences of an accident.

10. Will filing an insurance claim affect my premium?

If you are found to be at fault for the damage you are filing a claim for, then it is very likely that your premiums will rise. However, if you were not at fault, your insurance rates may stay the same. This varies on a case-by-case basis, so talk to your insurance professional for more information.

11. Does auto insurance pay for car repairs?

A basic auto insurance policy will typically pay for repairs only if they are needed as a direct result of a collision. It may not pay for repairs that result from anything but an accident. Comprehensive coverage policies typically pay for all mechanical repairs, and not just damage caused by an accident.

12. Can I change my auto insurance policy once it’s already in place?

Yes. Insurance companies will understand if your needs change after purchasing an auto insurance policy. Usually, this process is fairly simple even if you are changing your policy in the middle of a policy period. In some cases, you may need to cancel your current plan to purchase a brand-new one. Be sure to check your policy to see how  this  process works, and contact your insurance professional if you wish to adjust your current plan.

 

Disability Insurance FAQs

 

1. How much does disability insurance cost?

The cost of disability insurance will depend on your age, sex, occupation, and the amount of potential lost income. Generally, disability insurance policies will cost between 1 and 3% of your annual income.

2. Why do I need disability insurance if I already own health insurance?

Health insurance policies only cover limited and specific conditions, and will not necessarily pay for the medical expenditures of your disability. Furthermore, health insurance will not replace your income if you find yourself suddenly unable to work.

3. What types of illnesses and injuries does disability insurance cover?

This will depend on whether you have a short or long-term disability policy. Short-term disability insurance usually covers lengthy illnesses, injuries that prevent you from working, and time taken off for the birth of a child. Long-term disability insurance will generally cover conditions like musculoskeletal or connective tissue disorders, cancer, cardiovascular or circulatory disorders, and mental illnesses. The conditions vary by policy, so make sure you know the details of your policy and the cases in which you would be covered.

4. Can I get disability insurance payouts if I’m on maternity leave?

Yes. Maternity leave is typically covered by short-term disability insurance.

5. Do I need short and long-term disability insurance?

It is recommended that you purchase both short and long-term disability insurance because it is impossible to predict whether you will need compensation for your income in the future. Medical expenses can drain your savings very quickly, so we recommend protecting against long leaves from work with both types of disability insurance.

6. How long will it take for me to receive the benefits of my policy?

For short-term disability insurance, the waiting period before you receive a payout from your policy is usually less than 14 days. For long-term disability insurance, the waiting period is generally between 1 to 6 months, with the average being 90 days.

7. How long will I receive the benefits of my policy?

Payouts for short-term disability coverage typically last for 3 to 6 months. Long-term disability insurance payouts can last for 2 years to whenever the customer reaches the age of 65.

8. How much does long-term disability insurance pay me in the event of a claim?

Typically, long-term disability insurance will replace 50 to 60% of your income.

9. Do I need disability insurance if I get workers’ compensation?

Yes. We recommend that you purchase disability insurance even if you receive workers’ compensation because disability insurance will cover you in more cases.  Workers’ compensation only helps if you are injured in your workplace: it will not pay you for any inability to work that did not result from an even for which the employer could be found liable. Therefore, if you had to take time off work due to a lengthy illness or injury, you would not receive any compensation for your loss of income.

10. Am I able to work part-time and still collect benefits from my disability insurance policy?

In most cases, you cannot work and still collect the benefits from your disability insurance policy. However, if you take out an own-occupation policy when you purchase coverage, you may be allowed to work a different job and still collect the benefits from your policy.

11. How long does it take to file a disability insurance claim?

You should file your disability claim within 20 to 30 days after you are unable to work. It can take anywhere from 30 to 90 days for an insurer to reach a decision on a disability claim.

 

Long-term care Insurance FAQs

 

1. Which services are provided by long-term care insurance?

Long-term care insurance provides for services typically excluded by health insurance, including but not limited to adult day service centers, hospice care, assisted living facilities, nursing homes, and skilled nursing care.

2. Why do I need long-term care insurance if I already have health insurance?

Health insurance generally does not cover the daily, extended care services that are provided by long-term care. Some health insurance plans will cover a short stay in a nursing home, and even then, only under very strict conditions. There are many more options for care under a long-term care policy, so it is much more likely that you will find something that suits your needs.

3. Is nursing home insurance different from long-term care insurance?

No; coverage for nursing home insurance usually falls under long-term care policies.

4. Do I need long-term care insurance if I am in good health?

We recommend long-term care insurance because you cannot know if you will require care in the future. With the growing costs of healthcare and medical services, long-term care coverage ensures that you will receive the help you need without having to suddenly shoulder a significant financial burden.

5. Is long-term care expensive without insurance?

Long-term care is very expensive without insurance. Depending on the type of care you require, your annual costs could be anywhere between $20,000 and $100,000 a year, and these prices will only increase.

6. When should I buy long-term care insurance?

It is easier to qualify for long-term care insurance when you are younger. The average age at which people buy long-term care insurance policies is in their 50s. After the age of 60, many insurance companies begin to increase their rates due to increased risk of health conditions.

7. What are the factors that will determine the premiums I pay?

Your premiums will vary depending on which insurance company you choose to purchase from. The factors that insurers will consider when setting your premium include age, health, gender, marital status, and the amount of coverage you want.

8. If I have a family member who is willing to stay home and take care of me, should I still consider long-term care insurance?

We still recommend that you consider obtaining long-term care insurance in case you need professional medical assistance that your family member is unable to provide.

9. What are six activities of daily living covered in long-term care?

The six activities of daily living are bathing, eating, dressing, continence, toileting, and transferring.

Pet Insurance FAQs

1. If I buy pet insurance, am I still free to use my own veterinarian?

Yes. In fact, you are free to use any licensed veterinarian anywhere in the world.

2. What does pet insurance cover?

This depends on what type of policy you choose. You can purchase policies that provide coverage solely for routine checkups and vaccinations, or also cover your pet for illnesses, accidents and wellness care.

3. Are my pet’s congenital and hereditary diseases covered by insurance?

Hereditary and congenital diseases are covered by some, but not all, pet insurance policies. See the details of your policy to know what your pet is protected against.

4. When should I buy my pet insurance?

We recommend that you purchase pet insurance immediately upon bringing your pet home. This is because many pets will need checkups and vaccinations when they are young, and the right insurance policy can reduce these initial costs for you.

5. What are the factors that determine my pet’s insurance premiums?

Your pet’s species, breed, gender, spay or neuter status, location, and age are all factors that pet insurance companies will consider when setting your premiums.

6. What is the difference between an annual and per-incident deductible on my policy?

An annual deductible is a set amount that you pay each year for all of your pet’s medical services, whereas a per-incident deductible is the amount you would pay for each incident that requires care from a veterinarian.

7. What is the cap on benefits for a pet insurance policy?

Some pet insurance policies will state a cap on benefits, which simply means the maximum amount that the insurance company will pay for an incident or in a given year.

8. What is a reimbursement rate for a pet insurance policy?

The reimbursement rate for a pet insurance policy is the percentage of the medical expenses that your insurance company covers. It should be noted that higher reimbursement rates come with higher premiums.

 

Company FAQs

 

1. Why choose Policy Penguin?

Policy Penguin was started with one purpose in mind: to help clients unfamiliar with the policy-purchasing process find insurance that is best suited to their needs with the help of professionals who have great knowledge and expertise in the industry.

2. What makes Policy Penguin different?

Our defining feature is our commitment to the customer before anything else. As more consumers choose to research or purchase insurance online, there is an increased risk that they will find information that is not intended to inform, but to sell. We understand that buying insurance is not a one-time commitment, but a matter of trust. You trust your insurers to preserve your livelihood, should you need it, and we take this trust very seriously. Policy Penguin is different because we are not affiliated with any one insurance company, which means that we’ll stand by your side as you look through policies to find the one that fits you best.

3. How do I know that Policy Penguin puts my interests first?

The reason you can trust the Policy Penguin is because the motivation behind the company’s creation was to do the right thing by customers. The way that insurance is bought and sold has been in place for so many years that the industry has no reason to change, even as the process grew increasingly inconvenient for consumers in our modern, technology-driven world. So the reason you can trust Policy Penguin is because we have experience in the industry, but we consider ourselves to be on the side of the consumer. Our mission is to streamline the process for customers, not to help the companies on their own terms. We don’t work for the insurance industry—we work for you.

4. What is the purpose of making an account with Policy Penguin?

It is completely optional to make an account with Policy Penguin. We are dedicated to building a mutually beneficial and trusting relationship with you, which is why you are not required to keep an account with us. Joining our little online waddle is solely for the purpose of streamlining your experience: you can store any quotes you receive on our website, so that you do not need to answer the same questions repeatedly, and you may also use the same payment information on our website if you wish to purchase a different type of insurance, or insurance for a family member. Finally, as a member of our waddle, you will find it easier to access all of your information and make any adjustments to policies if needed, as our professionals can make themselves familiar with your case before you consult them.

5. How does Policy Penguin make money?

Policy Penguin does not charge you any kind of service fee for purchasing insurance through our site, nor will you pay increased prices for products that you find on our site. We make money through the insurance carriers that wish to make their products accessible through our website.

6. Policy Penguin is such a new company; how do I know that it’s credible?

Although Policy Penguin may be a newer website and concept, you can trust us because of the many years of experience that our insurance professionals bring with them. You can find client testimonials from people who have consulted our various professionals personally here. Not only do we know the industry exceptionally well, we’ve also researched the companies we work with extensively to ensure that all the information you gather from our site is accurate and reliable. Policy Penguin was not a business built in a day. The amount of thought and consideration poured into its foundations is the reason we feel comfortable asking you to trust us, even as we are just starting.

7. What makes the Policy Penguin website special?

We created our website with your experience at the forefront of our minds. Every detail of our site is designed to make your experience more comfortable and efficient. We thought about every minor annoyance we’ve had on other websites, and took care to avoid those. We consulted people without knowledge of the industry to make sure that our information was understandable. And we are committed to making any changes that are necessary to satisfy you, as a customer, which is why we promise to constantly check and maintain this website so that we can help you with all of your insurance needs.