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 ‘rescue’ pup fromNorCal Aussie Rescue)agency located in Fair Oaks, CA that provides life insurance, disability, annuity, and health insurance serving families and businesses in Fair Oaks, Folsom, Gold River, Carmichael, Roseville, Citrus Heights, Rancho Cordova, El Dorado Hills and Sacramento. We 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 we are 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 us it’s about getting you the right health or life or annuity plan at the right price. Those are serious issues and we 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 two, and only two, things you must know about us.

1. We are honest.
2. We know the insurance business.

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

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!)

WHAT YOU NEED TO KNOW
I know (and you know) that you need health, disability, life insurance, and an annuity. I also know that you don’t want to pay for any of it. (With life, 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 insurance that will just waste your money.

I tell you the truth. The truth is this. Cheap insurance is never good insurance and good insurance is never cheap. This is why we sell plans from the best of the best of the insurance industry. This is why we like Blue Cross, Blue Shield, Ohio National, Genworth, Allianz, John Hancock, Minnesota Life, American Equity, and West Coast Life to name a few. You won’t find us 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!)

There are many, many affordable plans that will protect your house, your life-savings, the college fund, and your equity (stock and bond) assets. That’s what I provide: Good, affordable health, 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 and life insurance 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, 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.)

We have three goals. First is to get you the right plan for your budget. Second is to get you the right plan for your budget. (Guess what the third goal is.)

We 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 get paid. For individual and family health policies, agents usually get paid by the carrier 20% of the first year premium and a small “renewal” after that. Life pays us anywhere from 50% to 80% plus a small renewal (sometimes.) Group health pays a flat 7% each year. Disability pays 50% the first year and a small renewal after that. Annuity pays from 4% to 6% of the amount invested, no renewal.

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 us to put you in a plan that you will drop.

HEALTH: YA GOTTA BELIEVE!
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.)

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”.)

There is something else that you should know… and if you give our small agency the opportunity, we will prove it to you: Good healthcare insurance can be affordable.

Affordable is defined as a plan that fits your budget and that allows you to accept the level of risk that you are comfortable with. You need to be able to sleep at night.

Good is defined as a plan that will be there when you need it, one that will pay for the big items and which does not have artificial caps or low lifetime maximums or plans missing important coverages (like physician visits or brand-name prescription drugs.)

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. HSAs are about 85% of what I sell these days and I don’t see that changing anytime soon, no matter what the government does.

We wrote a short FAQ on healthcare insurance. There are others on the web. After you understand the basics all you need to remember is what agents call “good” and “best.”: A “good” plan is the one that meets your needs and fits your budget. The “best” plan is the one that is in force when you need it!

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. 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!) A check… or a Hallmark card? Your choice.

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, Genworth, and West Coast. Why? Because they are all honest, they are financially strong, and they have great service. I can (and do) sell other carriers, but Gen, ON and WC “fit” for so many clients in so many good ways. I also like the John Hancock plans WITH their long-term-care rider… two products in one… good value.

Yes, I sell term, but I don’t 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. However, most folks either LOSE the rest or they SPEND the rest. We believe that whole life is still a sound method of savings and protection. If that can’t be afforded, then guaranteed universal life (UL) 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!) We’d rather see you get something for your money, not just a letter of termination.

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 along 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.

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 huge differences between HMOs, PPOs, EPOs, managed care plans, and the new HSAs… Health Savings Account plans (which we like very much for all our clients, not just business owners.)

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

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

For life, I could sell the cheapest plan-of-the-week term policies from “B” rated companies. Lots of agents do that.

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

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? We’re not judges or lawyers. 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.)

We like to write the California Choice product. Or we like the Anthem Blue Cross products. Both are too long to explain here, but call and we will explain “why” to you.

I write the small groups that others won’t bother with because I do “well” by doing “good I’ll do a COBRA-to-HIPAA transition even though the carrier will pay me only $50. Most agents would give the client a phone number to call and say “Good luck.” Not either of us. What goes around comes around. It’s true.

GROUP LIFE?
Group life is great if you are an employee and if the boss is paying for it, but often it is not portable when you leave your job and the plans tend to be low… under $100,000. I don’t write any group life these days as I’d prefer to deal one-on-one with each employee instead of a one-size-for all plan for the business.

Group life is almost always term insurance and as we said above, term is a “wasting asset.” I think you should own permanent insurance, either whole life or universal life… not rent term life.

INDIVIDUAL HEALTH IS ALWAYS BEST – IF YOU CAN GET IT!
An interesting thing is happening these days in health. With layoffs, downsizing, and off-shoring, a lot of employees are declining their company’s group and buying their own individual health and life plan. Yes, it may cost more since they have to pay the whole fare, but they are masters of their destiny (and ‘domain’ if you are a Seinfeld fan ). They are not bound to a job in order to keep their insurance. And they get the plan that is best for them. Often the company health plan (available via COBRA ) is not cost effective where an individual one might be.

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.

And whatever you do, do not, do not, do not buy insurance on-line or from one of the “we-sell-all-carriers” sites (we 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. Why do we say this?

No agent or agency can offer you a “special price.” Prices are submitted to the individual State Departments of Insurance for approval. A “captive” agent (one who works exclusively for one insurance company) cannot offer you a lower price for the same insurance policy than any other “general” agent who is licensed to sell insurance and represents any number of companies.

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. 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.

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 US
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, disability, annuity and life insurance. I wont 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