A telephone solicitation through Direct Merchants National Bank, a credit card provider, yielded two insurance programs provided through Guradian Life Insurance.
One, an excess medical coverage, $50,000 deductible, and one year term limit from a covered loss for $10.00 a month. Problem:
Ask a reputable broker, the effective rate for this program, considering the extremely limited terms, high deductible and one year limitation make it extremely unlikely that anyone accepting coverage could ever make a claim. And remember this program is excess, it only pays where your primary coverage doesn't.
Two, a one thousand dollar limit per occurence coverage for medical expenses arising out of auto accidents for $5.95 per month. Rip-off? Well, most every auto policy already includes a coverage commonly known as "med-pay". Again, ask any reputable broker/agent, you will find that the duplicative coverage means that virtually no one would ever collect under the program.
Looking at these two programs, one wonders how the states regulators allow such programs. Clearly situations exist where the offered programs could pay benefits; however, prudent consumers with access to reasonable comparison shopping among available should easily identify more cost effective solutions, and frankly because both programs are essentially excess coverage and highly limited, many risk managers would likely do without these kind of policies at any price.
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