Our Approach
Price vs. Cost
Is there a difference between the Price and Cost of an insurance contract?
Whether you are buying life insurance, disability income insurance, or considering revisions to your employee benefit package, there is a huge difference between the Price and Cost of an insurance plan. At The Thomas Group, Inc. we recognize the difference and make it our mission to pass this knowledge along to all of our clients. Our approach is to provide options that are based on overall value.
Term Life Insurance
Many people make the mistake of shopping for the lowest price possible when purchasing term life insurance, assuming that this is the "best deal". Typically, the cost of maintaining this outlook exceeds the value of attaining a lower price. How so? The Thomas Group, Inc. does not recommend our clients saving $50 on $1,000,000 of term life insurance by purchasing the coverage from a mediocre financial institution when the higher price will yield the same coverage from a highly rated, superior financial institution. Why? Life insurance is NOT some commodity to be purchased at bulk rates from the lowest priced competitor. There are many factors that must be weighed when considering the real cost of term life insurance.
For example, it has become fashionable for many insurance companies to have as many as 12 different underwriting classes, including "Preferred", "Preferred Select", "Preferred Standard", "Preferred Non-smoker", "Standard Non-smoker", "Standard Smoker", and "Standard Non-smoker". The actual price of a life policy can differ as much as 400% after an underwriting class is determined, yet when many people make their original decision to buy from a particular carrier they are usually told nothing of these differences. At The Thomas Group, Inc., we will advise even the "lowest price" shopper as to what companies are best suited for him or her, and also what contractual features are important to the client.
Permanent Life Insurance
Perhaps no product in the insurance industry is more misrepresented and misunderstood than permanent life insurance. Buying the lowest priced permanent life insurance is usually a very bad idea, because the ultimate cost will be significant. The reason being that permanent life insurance is exactly what it says it is-PERMANENT. It is very important for the purchaser to buy this type of insurance from a company that has demonstrated a track record of financial stability and a commitment to this type of product. There are but a handful of companies that meet these criteria, and The Thomas Group, Inc. can lead you in choosing the right company and the right product for your permanent insurance needs.
Major Medical Insurance
Perhaps no industry in the world has undergone more radical and profound changes in the past 15 years than the health insurance industry. Traditional indemnity health insurance plans are almost a thing of the past, and they have been replaced by managed care in the form of Preferred Provider Organizations (PPO's), Point-of-Service Plans, (POS), and Health Maintenance Organizations (HMO's). Price vs. cost is an extremely important concept when it comes to choosing the method of insuring one's health. Obviously, the price of one's medical insurance and specifically what it covers will in large part determine the cost of one's health care. At The Thomas Group, Inc. we can help you determine the real cost of providing health care to your employees and their families through the use of a comparative analysis process. We analyze benefits, cost, and contract available to employers and provide an easy-to-read spreadsheet format that allows our clients to make simple and confident decisions.