At Trans World Assurance, we recognize that we can do better in all areas of business. Our customer satisfaction level is high but we still need to focus on improving our systems and overall customer experience.
San Mateo, CA (PRWEB) September 01, 2011
A number of military regulations currently exist to ensure that representatives from commercial insurance companies give accurate advice to military members and market to them in a way that is clear and straightforward. Unfortunately, a recent report from the DOD Inspector General found that, within the military ranks of E-4 and below, insurance conduct violations still exist.
“It is a large industry with numerous and sometimes conflicting regulations. All companies must constantly work to ensure that all regulations are complied with,” stated a Trans World Assurance spokesperson.
The recent DOD Inspector General report recommended that Military Services "update financial training to increase Service members’ awareness."
“We applaud the military for educating its own population,” stated Trans World Assurance President Charles Royals. "At Trans World Assurance, we have dedicated a number of resources to educate and monitor our agents. We have implemented a number of preventative actions such as a needs assessment, internal education, additional follow-up with new customers, budget reviews, and more closely monitoring agents. A thorough understanding of military rules and regulations are required and are an important part of our fiber. These actions can go a long way in ensuring that infractions are avoided, but we have to look at doing more."
Trans World Assurance has made a number of major changes to help ensure compliance with new DOD and NAIC regulations. One major change was to develop and launch a new life insurance product that provided military members with a higher face amount of coverage at a low cost. The new "Universal Life" product was designed, according to each individual's circumstances, to meet the test of suitability for the servicemen.
“We are constantly working to provide great insurance solutions for military members. Military professionals, young or older, and especially those with families, need to have viable and affordable insurance options,” stated Mr. Royals.
In an article on Military.com entitled "Beyond SGLI," Mike McHugh discusses life insurance options for military members. Captain Mike McHugh graduated from the Naval Academy in 1968, served in the Navy as a Submarine Officer, and retired after 30 years of service. In his article, Mike McHugh discusses how the Service Death Gratuity and Servicemembers Group Life Insurance (SGLI) are temporary life insurance solutions, "Therefore, you are faced with losing $500,000 in financial protection for your family when you leave the service. Do not expect your new employer to replace it. To replace it with an individual life insurance plan, you will need to show proof of insurability. That means a medical questionnaire and a physical exam. Make sure you are insurable. The process takes time so start early."
McHugh goes on to say, "SGLI is not enough protection for a young growing family and it will terminate when you leave the service; long before you need it. For most non-tobacco using servicemembers, it costs you more per month than you should be paying. You would be well served to purchase individual coverage while you are young and healthy and can obtain the best rates. You will then own an insurance plan that will provide you with the increased coverage that you need and a plan that you will be able to take with you when you leave the service. And remember, do not expect a civilian employer to even come close in replacing your active duty survivor benefits -- It is your job for you to protect your family."
The average overall length of enlistment for U.S. military personnel is just under 15 years for all branches calculated together. The average service time for officers is less, averaging about 11 years. When members join the military, they are automatically enrolled in life insurance and premiums are automatically deducted from their military pay. This insurance is temporary and terminates 120 days after service.
“Our primary goal is to help military members supplement their current life insurance, if needed. In addition, we feel strongly that military members should have access to permanent life insurance solutions. Permanent life insurance can help an active duty military member lock in good rates and accumulate some cash for long term or unforeseen expenses, especially when the economy is as uncertain as it is right now,” stated Trans World Assurance President Charles Royals.
"Trans World Assurance is going to stay true to its core objectives of providing only the best cash advantage life insurance available. Our market is a special one and we have put many things in place to support the Inspector General's mandate that all sales be appropriate and done in a compliant way. At Trans World Assurance, we recognize that we can do better in all areas of business. Our customer satisfaction level is high, but we still need to focus on improving our systems and overall customer experience."
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