Chicago –The Blagojevich Administration has launched a comprehensive public education program to help consumers better protect their families’ homes, cars, lives and health.
Financial advisors recommend that families periodically re-assess their insurance needs and the Illinois Department of Financial and Professional Regulation (IDFPR) Division of Insurance, in coordination with the National Association of Insurance Commissioners (NAIC) is offering several tools to help Illinois families decide how much and what kind of insurance they need.
Under the banner of Insure U, Illinoisans can help consumers understand how insurance needs change at different life stages. Insure U will also help Illinoisans avoid being scammed by fake insurance companies. The Insure U curriculum includes a basic introduction to the four major types of insurance – auto, home, life and health – as well as special considerations for young singles, young families, established families and empty nesters/seniors. Consumers can test their knowledge about insurance by taking an online quiz. Upon successful completion, they can download an Insure U diploma.
“Too many families in Illinois don’t have the insurance coverage they needed when disaster struck. By making Insurance U easily accessible to Illinoisans, we are giving people the tools they need to understand how the right insurance coverage can protect them,” said Dean Martinez, Secretary, IDFPR. “With the recent storms across the state, and the life changes facing graduates and newly-weds, now is a very good time to assess the protection your family needs.”
Recent consumer research conducted by the NAIC identified troubling perceptions and misunderstanding about insurance at every life stage, according to Michael McRaith, Director, Division of Insurance. Key findings of the research are these:
- 20 percent of young singles say they would let their auto insurance policies lapse to save money and 18 percent would decline employer health insurance to save money.
- Fewer than half of young families have life insurance purchased on their own for either spouse.
- More than half of respondents in established families did not understand the terms under which they can elect to continue their health coverage under their old employer’s policy if they leave a job, as stipulated under COBRA law (Consolidated Omnibus Budget Reconciliation Act).
- Only 12 percent of empty nesters/seniors think they are very likely to need long-term care, and they significantly underestimate the cost of such care.
- Only 45 percent of consumers overall get suspicious about the number one warning sign associated with fake insurance: a policy that costs significantly less (i.e. 15-20 percent less) than other policies with comparable coverage.
“Working with my counterparts across the country, it became obvious that too many people have misunderstandings about insurance and how it works for them. Insure U offers a simple way to improve that understanding and help consumers avoid being duped by insurance scams,” explained McRaith.
Illinois consumers also have access to a comprehensive set of consumer brochures, complaint data and a toll-free hotline if they have questions about licensed insurance companies and producers in Illinois. By clicking on the Division of Insurance, questions about coverage levels, types of policies and how to file complaints are readily available. For general insurance questions and complaints, Illinoisans are urged to call this toll-free phone number: 1- 866-445-5364
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