A. N. Canton Insurance Services

“There are worse things in life than death. Have you ever spent an evening with an insurance salesman?” – Woody Allen

AM I ON THE RIGHT SITE?
Good question. I’m Alan Canton the owner of A.N. Canton Insurance Services, and yes, we’re a small, two-person, one-dog (an Australian Shepherd,) two-cat agency located in Fair Oaks, CA (just east of Sacramento, CA) that provides life insurance, disability, critical illness, annuity, long-term care insurance (LTC) and health coverage serving families and businesses in Fair Oaks, Folsom, Gold River, Carmichael, Roseville, Citrus Heights, Rancho Cordova, El Dorado Hills and Sacramento. I have a fair number of victims (oops, I mean clients) throughout the rest of California (and Virginia… I went to U.Va (BA ’69) and William and Mary (MA ’74) a hundred years ago but still have many friends/clients in the state.)

Yes this is a site about insurance. So, how come you are not seeing the usual pictures of the happy family at the park, or the robust seniors on the cruise ship, or the group of children at the circus?

I don’t have them because most insurance agencies don’t want you to THINK about what you are buying. They would rather you be in some idyllic frame of mind and to think of all the ‘fun’ things in life… family, friends, health, and happiness. They want to “con” you.

Well, I want you to HAVE all of those things, and that is why I am IN the insurance business in the first place. Unlike others, with us, it’s not about the money. And it’s not about trying to ‘snow’ you with a lot of hype and sales bull-%$#@. With me it’s about getting you the right health or life or annuity plan at the right price. Those are serious issues and I want our customers to understand that having the wrong plans can COST them their future or that of their family. How do you put THAT in a picture? You can’t do it with a clown and a happy-face!

There are three, and only three, things you must know about me.

1. I am honest.
2. I know what I’m doing.
3. I am not a crook.

When it comes to health I will tell you what no other agent will tell you, but which you already know. The entire healthcare system is broken… and you can’t fix it and I can’t fix it and Obamacare won’t fix it. The best I can do is “mitigate” it for you.

When it comes to life protection, I won’t try to make a quick buck on a cheap term plan. I will take the time to educate you on what is “right and proper” for your age and stage in life… and that often means venerable “whole” or “permanent” life. (Yes, it is expensive… because it is worth it!) I won’t often write impossible-to-understand Universal Life because most plans end up screwing the client! (Other agents won’t tell you that!)

WHAT YOU NEED TO KNOW
I know (and you know) that you need health, LTC, disability, life insurance, and an annuity. I also know that you don’t want to pay for any of it. (With life and LTC, you don’t even want to TALK to me about it!) And I know that the lure of ‘cheap’ insurance is appealing. There are lots and lots of agents out there who will sell you crap-insurance that will just waste your money.

I want to tell you the truth. The truth is this. Cheap insurance is never good insurance and good insurance is never cheap. This is why I sell plans from the best of the best in the insurance industry. This is why I like Blue Cross, Blue Shield, Ohio National, Genworth, Allianz, John Hancock, Minnesota Life, American Equity, and especially Assurity to name a few. You won’t find me selling that multi-level marketing life insurance company or that “association” health plan or any of the other %$#@ out there. (I’d name names, but they would sue me! Call me and I’ll tell you who sells crap.)

There are cheap plans in life, health, DI, etc., that will bankrupt you if something really bad happens. I won’t sell those… even if you want them.

However, you don’t have to spend a fortune to get good protection. You just need a good agent (but good luck finding one these days!)

There are many, many affordable plans that will protect your assets… your life-savings, the college fund, and your equity (stock and bond) holdings. That’s what I provide: Good, affordable health (group and Medicare,) LTC, disability, annuity, and life plans. In a word (actually three words) I sell peace of mind.

WHY USE AN AGENT?
You’re thinking: “Do I really need an agent? Can’t I just buy something on-line?”

The answer is NO. Health, LTC life insurance, etc. is not like car or home insurance. Most of those are pretty much the same. But personal insurance IS complex and you must have someone on your side who can sort it all out for you. Yes, you could do it yourself, but why would you want to… especially when it cost you nothing.

The big carriers would love for you to go to their pretty web sites and buy coverage on-line and never talk to an agent. If you buy this way they don’t have to pay a commission to agents like us, and they KNOW from experience that most people (like you?) will buy the wrong product at a high price. It’s a great deal for them… a crap-out deal for you. You want to gamble at craps? Do it with dice at the casino, not with your life, health, LTC and DI insurance, and surely not with an annuity. If you want to do a really dumb thing, buy insurance online all by yourself. (Anyone who has done this and been burned, will tell you the same thing!)

Understand this: You will not get a discount or a better rate by buying without an agent. That’s the law in CA (and most other states.)

Look. I have one and only one goal and that is to get you the right plan for your budget. If I do that I do a good service and I earn a good (but not large) commission.

I hear it again and again. “Al, you want us to buy the most expensive plan because you make more in commission.” Sorry to disappoint but it’s just not true. Why is it not true? It’s not true because if you can’t afford the plan you will drop it. (And people say you have to have a Ph.D in quantum physics to sell insurance!! )

It is important to know that you do not pay any fee or commission to any agent. That is the law in this state. I’m going to tell you something no other agent is willing to: what we agents get paid. For individual and family health policies, agents usually get paid by the carrier 9% of the first year premium and a small “renewal” after that. Life pays us anywhere from 50% to 90% but often no renewal. LTC, is about 60%, no renewal. Group health pays a flat 7% each year. Disability pays 50% the first year and a “good” renewal after that. Annuity pays from 4% to 6% of the amount invested, no renewal. Medicare Supplements pay about 15%. Medicare Advantage plans pay about $500 and a nice renewal. (I don’t write Medicare Advantage anymore… I don’t like the plans that are out there now.) Medicare drug plans pay us almost nothing and are not worth my effort.

Most of the time carriers pay agents “as earned.” That means when you pay your monthly premium, the company sends us X% of it… be it 20%, 50%, etc. If you drop the policy, our commission stops. If the agency was paid a year’s commission in advance (a few carriers do this,) the agent has to pay back the part not earned. That’s also the law. There is zero incentive for me to put you in a plan that you will drop.

HEALTH: WHAT A TOTAL MESS!
The health insurance sector is a total mess right now. No one knows what is going to happen with the risk pools or the mandatory coverage in a few years, and all I can say is that I hope it is better than what we have now (I’m the only agent on the planet who hopes Obama-care works… but like most, I don’t think it will.)

On Jan. 1. of 2011 all the carriers cut our commission on individual health by half or more… Aetna went from 20% to 4%. Thus, most agents stopped writing individual health as their “main” product. I’m the same way. I can’t live on 4%-9% comp given the amount of time it takes to write the plans and that half of the people get declined… meaning I worked for “free” most of the time.

This much I know. A lot of carriers are trying to lure people in with cheap prices on crap plans. Once the customer realizes that the policy is junk (usually after speaking to a more ethical agent) they drop it. The carrier made a profit and didn’t have to pay a claim. Good for them. Not so good for the customers who wasted their money (and not so good for the agent… usually a young, inexperienced guy or gal working for one of those “boiler room” insurance companies… you know the one I’m thinking of… starts with the letter “e”.)

Most agents won’t tell you this. I will. If you are healthy I will write you. At 4% to 9% commission I can’t do it if you are not healthy. I can’t take the time if I’m pretty sure you will either be rejected or rated up so high you can’t afford it.

Understand this. Health coverage these days is NOT for cuts and scrapes. Very few people can afford the low-deduct or soup-to-nuts HMO plans. Health insurance is for the “big stuff” that rains down on you… a major car wreck, a hip replacement, cancer, a stroke, etc. The most affordable plans are those “linked” to Health Savings Accounts (HSA). Make sure your agent talks to you about those.

There are two problems with individual plans these days. The first is that if you have a pimple on your tush, you will be rejected. The second is that since commissions have been so drastically cut, many agents have stopped selling it. It’s not worth their time. It worked at 20% comp when half the clients got rejected… but it does not pencil-out at between 4% to 9% commission (of first year premium.)

Call me. I’ll advise you. I’ll write you if you are healthy. If not, I’ll send you to someone else who will write for lower compensation than what I can accept. I can’t afford to write individual health for sick people anymore. I have a very expensive wife!

DISABILITY: IF YOU CAN GET IT… YOU SHOULD GET IT!

A word about disability insurance (DI): This protects your paycheck if you can’t work. It’s that simple. Everyone in CA thinks that the state plan (SDI) will cover them. Wrong. It’s for one year and has a low pay-out. It’s crap, but no one thinks so… until they see what the (bad) deal is.

Here is how agents are taught to sell DI… and it works because it is true: DI will cost you about 3% of your gross pay a year and will pay you about 60% of that gross if disabled. You are offered two jobs. One pays $100,000 a year and if you get disabled (you wreck the car) you receive a get-well card from me. The other job pays $97,000 a year and if you get disabled you get a check each year for $60,000 from me… for as long as the policy runs and you are still unable to work. That’s my entire sales pitch. Either you “get it” or you don’t. (And DI is hard to get so get it when you are healthy and have it for life… benefit stays the same even if laid off or you change jobs. And guess what… you can’t get it when you need it! Duh!) As they say where I gre up (NY), “Whadayawant?” A check for 60 percent of your pay… or a Hallmark card? Your choice. Don’t be an idiot. If you can get DI, get it… and sleep better at night. I wish I had taken it when I could have.

LIFE: PLANS AND PLANS AND MORE PLANS
We both know there are a zillion life plans out there from ten-zillion companies. I quote a lot of Ohio National, Midland, and Assurity. Why? Because they are all honest, they are financially strong, and they have great service. I can (and do) sell other carriers, but Assurity, ON and Gen “fit” for so many clients in so many good ways. I also like the Lincoln Moneyguard plan whick is a life/LTC combo… two products in one… good value.

Yes, I sell term, lots and lots of it… but I don’t really like to. Term has its place and is “right” in certain situations, but it is a “wasting asset.” You have heard “Buy term, invest the rest.” Fine. I’m all for it. However, most folks either LOSE the rest or they SPEND the rest.

I believe that whole life is still a sound method of savings and protection. If that can’t be afforded, then Guaranteed Universal Life (GUL) is the next best thing. Last comes term. It’s cheap for a reason. 95% of term policies expire worthless. The carriers take all your money and never pay a claim. What a deal (for them!) I’d rather see you get something for your money, not just a letter of termination.

But in this economy term coverage is all that people can afford and term life is so much better than no life to your widow(er) or children!

ANNUITY: YOUR OWN PRIVATE PENSION

If you think Social Security will be enough for you to live some 30 years in retirement, you are, as Dr. House says, “a moron!” No one is going to be able to exist on Social Security (assuming it is still there) and their current savings account.

There are several different kinds of annuities but they are all designed to work the same way… you put some money in now and later on you get paid a sum of money each year for as long as you live. There are variations, but that’s the short answer of what an annuity is.

Annuity is your security blanket for the later years. I like to call annuities “7702 Private Pensions” after the IRS Code that ‘regulates’ them. An annuity will keep you from outliving your assets and waking up broke and having to live with your kids… or sleep on a park bench.

I won’t let you put ALL your money into annuities (as some con-artist agents will) but I will suggest you have at least some of your money in one… so you can count on a couple of thousand a month for the rest of your life after you turn 70.

I don’t know what two thousand dollars a month will buy years from now but with a properly structured annuity plan, you will NOT end up in a tiny one-bedroom apartment in Reseda, CA, overlooking the dumpster, eating cat food four times a week!

An annuity may be the your last best chance to repair a broken nest-egg, after the horrific market downturns of the past couple of years. But every year you wait, the wider that crack will get and the harder it is to patch.

LONG-TERM CARE
No one wants to talk about long-term care… until they have seen how it devastates a family when it is needed and they don’t have it. I can tell you horror story after horror story about what happens when dad or spouse is diagnosed with Alzheimer’s but you won’t believe me… until you experience it with your parents or you see what happens to the family of friends or relatives. It’s ugly… really ugly.

“What happens if I don’t need it? I lose all that money, right?” There is a solution to that… you buy a product… a life policy or an annuity that has a LTC rider. If you assume room temperature, you make your wife/husband/child wealthy. If you live and need long-term care you may get to stay in your own home instead of having to go to a nursing facility (maybe assigned to you by the MediCal people after you are penniless.) Or you go to the Ritz-Carlton of assisted living centers instead of beat-up, old, ‘residence center’ run by Nurse Ratched.

Yeah, I know. You don’t want to discuss it… but you will in time… because eventually you will see what happens to families that don’t plan for this… and it will scare the be-jabbers out of you.

WHAT ABOUT GROUP HEALTH FOR SMALL BUSINESS?
Are you an employer or self-employed with a spouse or partner? You may not know that in California group health insurance is ‘guarantee issue,’ meaning that there are no declines due to health problems or pre-existing conditions. And in California a group of two is legal, and a group is basically defined as a for-profit business.

Do people who can’t get individual coverage start small businesses with their spouse or friends so that they can get group coverage? Yes. Is it legal? I’m not a judge or lawyer. Most carriers have rules stating that a business can’t exist for the sole purpose of getting insurance. But if a business is formed legally, and real commerce is conducted (services are rendered or items are bought/sold) and the business shows a profit and it pays taxes… to the best of our knowledge it can get group coverage. (It’s not cheap, but it’s available.)

In the past, group rates used to be close to or lower than individual rates. And in the past many companies paid 100% of the premiums. Not so much anymore. Rates are not lower than individual policies and these days some employers are forced to cut back to 60% or less. Many employers have abandoned group health entirely.

What is true (and what most agents won’t tell you) is that they hate writing really small groups, say under 10. Why? Because the commission (7%) is low compared to the work involved. It’s great if the agent can land a “whale” but it’s a ton of work for very little money when doing small “mom/pop” groups.

I write small groups. Why? Because its not about the money, it’s about the service. I’m in this business to help people. Yes, it’s a trite expression, but it’s true. You can’t be successful in this biz if it’s just for compensation. That’s why the failure rate is so high (same for real estate agents.)

I like to write the California Choice product. Or I like the Anthem Blue Cross or Kaiser products. All are too long to explain here, but call and I’ll explain “why” to you.

I write the small groups that others won’t bother with because I do “well” by doing “good. What goes around comes around. It’s true.

VOLUNTARY BENEFITS (QUACK, QUACK)?
These are plans offered to you at work and paid by YOU on a voluntary basis. You know the leading company in this area! For a small segment of the working population these plans can be OK, but very often they are overpriced and the carriers are not the easiest of companies to deal with if a claim is made.

Voluntary benefits (usually term life, short-term DI, hospital indemnity, accident) are great if you are an employee and if the boss is paying for ALL of it, but often these are not “portable” when you leave your job. These days very few bosses pay even 75% for anything, much less overpriced voluntary benefits.

I used to write for one of the two largest voluntary (employee paid insurance) companies… no, not the one with the water fowl… the other one… so I know what I’m talking about. Most often you will get a better policy from your OWN agent instead of some insurance-drone who sits with you for 15 minutes (that’s all the boss usually allows) and high-pressures you into taking a term life or accident plan… that you don’t fully understand! Yeah, that’s how that business is sold! “Get ‘em in, sell ‘em hard, get ‘em out!”

I’m sorry if you disagree and you have one of these plans, but in my experience it’s a crappy way to get coverage and is expensive to boot. But if it makes you feel better to pay what they ask… knock yourself out! Just don’t cry to me when you have a claim and they don’t pay it because of some loophole in the contract that was never explained to you. It wouldn’t happen if you had REAL coverage from a REAL agent (who’s neck you can always strangle if things go “bad” at claim time!!)

MEDICARE: LOTS OF CHANGES
I do a lot of work in the senior market with Medicare (Medigap) Supplements. I don’t write any Medicare Advantage (MA) plans anymore.

I don’t care what anyone tells you, the tried, true, and venerable Medigap Supplements are better than Medicare Advantage. However, they cost money and many MA plans are zero-premium. I always try to put someone in a Plan-F Supplement if they can afford it.

If not, there are a couple of Medicare Advantage plans that may work, but I don’t write them because as I said, Supplements are better… and I’d rather see someone give up cable TV and get a Supp than take a “free” MA plan.

If you don’t know the Medicare mess, talk with someone like me… who does! You’d be really stupid to try to figure out the Medicare-maze on your own because you will make a poor choice. Ask me how I know this. I’ll be happy to tell you some horror stories!

As for Part-D drugs… there are a zillion plans out there and most agents won’t write them… because the liability is too high and the compensation is too low. I get paid maybe $5 a month for Part-D and it can take me 5 hours to decide what is “best.” For folks who are not taking any meds, I’ll write a Part-D. For others I tell them how to make their own decision by using the www.medicare.gov website.

CRITICAL ILLNESS: DISABILITY FOR THE REST OF US!
Critical Illness (CI… sometimes called “dreaded disease”) coverage is the fastest growing coverage in the US. It is being brought down to the U.S. from Canada where it has always been very popular.

I call CI “DI for the rest of us. Now, it is not as good as disability coverage but it is far better than nothing. DI benefits are based on your income. CI is a flat-amount deal. There is a whole laundry-list of illnesses (cancer, heart attack, stroke, etc.) that will pay you if you are diagnosed… and live! (Your beneficiary will get your premiums back if you die.)

I have $100,000 of CI with a company called Assurity on myself and my wife (who is already on Social Security disability.) CI is far easier to get than DI. No, it won’t cover you for an accident, but if you have, say a $50,000 policy and you have a heart attack, I’ll bring you a check and you can use it for anything you want. (Get well and go to Rio!)

CI is affordable (especially when young) and I can write you up until age 65. Here is a link to some info on this excellent coverage. CI is “sleep better” insurance. I know I do.

CHOICE IS GOOD
One size does NOT fit all. This is why the really good carriers have a plethora of plans, sometimes too many! And this is another reason you need an agent.

In health there are important differences between HMOs, PPOs, EPOs, managed care plans, and HSAs.

In the life sector there are ways to tailor a plan to fit each budget, often by offering the client a mixture of term and permanent (whole or UL)… with often complex concepts that would never occur to the average person… but which professional agents are trained in.

There is also the choice of carriers that agents choose to write for.

Yes, I could write for second and third-tier health and life, LTC and DI companies; carriers who have cheap plans, low coverages, huge deductibles, and who make you go through root-canal to get a claim paid. Sure, I’d sell a ton of them. I could make a lot more money because a lot of them pay better commission.

I could sell the cheapest plan-of-the-week term policies from “B” rated companies. Lots of agents do that. Why? They pay better commission.

But I won’t do it. Scroll up and re-read the 6th, 7th and 8th paragraphs again.

A FEW MORE WORDS OF ADVICE
I advise clients to find an independent agent, one who is not beholden to only one carrier. It’s the only way to get an objective opinion and a fair choice.

If you want to pay through the @$$ for the “blue company from a large state” or for “that cute cartoon dog” or for some similar company where the agents can ONLY sell that company, fine. Your choice. They are all good carriers. They all advertise a lot. Guess who pays (through that same @$$) for it? Yeah. You.

As for agents who might call you, there are a lot of crappy insurance peddlers out there. Most could not spell “CAT” if you spotted them the “C” and the “T.” Why? Because in most states anyone who can fog a mirror can get a license. You have people who never got past junior college because they have a 10th grade reading level giving advice on serious financial issues… to people who don’t know what they don’t know about insurance or finance. So choose your agent wisely. If they screw you, you only have yourself to blame… assuming you have read this far!

And whatever you do, do not, do not, do not buy insurance on-line or from one of the “we-sell-all-carriers” sites (I can’t mention the name but you’ve probably seen their ads on the web and TV… they often start with the letter ‘e’.) Most are phone-bank operations where you will get pressured into buying whatever “the deal of the day” is, and you will probably pay through the lower part of your anatomy to get it.

Saving money by “buying direct”… like for books and household items is generally possible – but it is not with insurance! Many online sites say that you are “buying direct” and “cutting out the agent”. The truth is, you aren’t saving a dime! The truth is… you are being screwed.

Any entity that offers insurance must be licensed as an agent/agency by the State in order to offer insurance. The only thing you ‘cut out’ is knowledgeable input and personalized service.

No agent or agency can offer you a “special price.”

Regardless of what agent you use, you pay no more… so don’t be fooled by the “Buy direct and save” bull$#@!. You need to focus on the bottom line – what the policy is going to cost you compared to another company with similar benefits and features… and you need a good agent to sort it out for you (especially if you have medical issues (aka impaired risk.) You ALSO want to work with someone you LIKE… someone who will educate you, not pressure you.

Most agents will just SELL you. I won’t. I’ll QUALIFY you and if you are a good candidate I will EDUCATE you. You will sell yourself… or you will walk away… and we’re still friends.

I don’t use high-pressure tactics… they don’t work anyway. You talk, I listen… then I make a suggestion and you take it or leave it. It’s not all that difficult to make that decision… and I try to make it as pleasant as I can.

Look. Reality check here. This is not fun. This is why I don’t have the pretty pictures and bright colors and the hype and ‘excitement’ on this website. This is all about protecting your ASS(ets.) This is serious business, and I treat it so. If you want an agent who will sugar-coat all of this, there are plenty of them out there. Find one and don’t waste my time… or yours… because I take it all very seriously.

If you are just looking around or just want to “kick some tires,” call someone else. I have a busy practice with serious clients. When you are ready to hear the truth (and sometimes it is not all that pretty) and ready to move forward… call me. I use a method called High-Probably Selling. Maybe you’ve heard about it. You can learn it yourself by reading this.

Bottom line, I only work with clients who are serious.

I can’t make it fun, but I can make it easier because I have a simple system that is written down and which I read each day. That system is:

1. Find the best options for risk-level of client.
2. Educate the client on his or her options.
3. Never let client buy a ‘bad plan’… even if they want it.

PLEASE CHOOSE ME
If you give me the opportunity to serve you I will do an excellent job. I will assess your needs, find you several options, and I will help get you through the underwriting process. That’s the service…. it’s what I do.

I don’t really sell insurance. The carriers do that. I educate you and you make your own choices. I sell me. You buy me.

Twenty-four/seven, I’m here.

Need to change your policy? I’m here.

Get sick and need help with a claim? I’m here.

Want to call and just chat? I’m here.

Anyone can (and will!) SELL you health, LTC, disability, annuity and life insurance. I won’t SELL you “a policy.” I will give you the opportunity to BUY what I sell… peace of mind… knowing that you received the best plan for your money, one that will cover your assets and which you can keep from year to year.

I will earn your business and referrals to your friends, family, and colleagues.

I’m good at this, I like doing a good service for my clients, and if you choose me, I will be proud to have you as a client… and a friend.

Thank you,

Alan N. Canton, Owner

A.N. Canton Insurance Services
“I don’t have clients… I have friends.”
Fair Oaks, CA
916-962-9296
CA Lic # 0F31110