Alikos Financial & Insurance Services

Alikos Financial and Insurance Services is a full service insurance brokerage and financial services company located in Astoria, NY with clients in Queens, Brooklyn, Manhattan, Nassau, Suffolk and Westchester County. With 25 years insurance industry experience, Helen C. Kyrillidis and Alikos Financial and Insurance Services analyze clients' risks, give sound, cost effective advice and offer quality insurance products.

We pride ourselves on our personalized service - all sizes do not fit all. First, we review and analyze your individual situation and then tailor a Financial and Insurance program specifically designed for you personally or for your business. We can help you fulfill all of your personal and business insurance needs.

Whether its a $5,000 life insurance policy or a $5,000,000 one, health insurance for 1 or for a group of 1000, Alikos Financial and Insurance Services offers the very highest level of quality insurance products and customer service.

Here are just some of the companies that we are affiliated with:

What is Life Insurance?
Life insurance is used to replace in whole or part the economic value of human life for either family purposes or business purposes. In exchange for premium payments, the life insurance company agrees to pay a death benefit upon the death of the insured to the beneficiary named in the application for the policy. Life insurance policies may provide other uses and benefits as well.

Do I need life insurance?

You need life insurance if you want to provide financial protection for your dependents (or to your creditors) in the event of your death. A business may want to use life insurance to fund its employee benefit plans, protect against the premature death of a keyperson or to provide for business continuation.

The following are typical examples of family and business purposes to consider when assessing the need for life insurance:

Dependent children.
Dependent spouse, parent or grandparent.
Credit enhancement.
Key person indemnification.
Business continuation.
Employee benefit plans.

Should one or more of these examples apply to you, the purchase of life insurance may be suitable for your needs.

How much life insurance do I need?

The amount of life insurance a person needs will depend on their own particular circumstances and the reasons for purchasing the policy.

One approach to determine how much life insurance you should purchase is to analyze the various needs of your family in the event of the death of a family member. Life insurance may satisfy a number of these needs by providing a fund that can be used to:

Pay off an individual’s last debts such as medical bills and funeral expenses;
Meet estate taxes and other expenses in settling an estate;
Provide life income for the spouse;
Pay off a mortgage;
Pay for the children’s education;
Provide funds for retirement;
Provide an income for the policyholder’s spouse to give the family time to readjust to a new standard of living;
Draw interest to provide funds for some special purpose; or
Provide a monthly income until the children are grown and out of school.

Thus, the current and future financial needs particular to your family can be a significant consideration in determining the amount of life insurance that is right for you. Another factor that may be taken into consideration in determining how much life insurance you need is the amount of your annual salary and your future earning potential based on your current age.

What are the main types of life insurance products available for purchase?

While there are many types and variations of life insurance products available in today’s marketplace, there are basically two types of life insurance: term insurance and permanent insurance.

Term life insurance provides death benefit protection for a certain period of time such as one or ten years. Death benefits are paid to the beneficiary only if the insured dies during that term period. Generally, term policies do not build up any cash values.

Permanent life insurance can provide death benefit protection for your lifetime and the policy will provide for the build up of a cash value. The cash value may be used in several different ways e.g. you may borrow against the cash value by taking a loan. Permanent insurance includes several different types of policies such as whole life, universal life and variable universal life.

What factors should I consider when selecting a life insurance company?

There are two types of life insurance companies i.e. stock companies and mutual companies. Stock insurers are corporations owned by the shareholders of the corporation. Mutual insurers are owned by their policyowners who may receive a yearly dividend if one is declared by the company’s board of directors. Both stock insurers and mutual insurers offer suitable policies for purchase.

Some factors you may want to consider when selecting a company include the following:

The types of life insurance policies the company sells.
The company’s reputation for treating policyholders fairly (especially with respect to discretionary items such as the crediting of additional interest or dividends)
Financial safety and financial ratings given by rating companies such as A.M. Best
The company’s history and experience in the life insurance industry.
Insurance companies must be licensed by the New York State Insurance Department to operate in New York State; however, the Insurance Department does not rate the financial condition of insurance companies. There are private rating services that conduct financial analyses and grade insurance companies.

What is underwriting?

Underwriting is the process an insurance company uses when it selects applicants it is willing to insure and determines the cost of providing coverage. There are common factors that insurance companies may use to decide how much to charge you for the kind and amount of coverage you want to buy, such as:

your age,
your gender,
your health and health habits (smoking for example),
your family health history,
whether you are engaged in a hazardous occupation, or
dangerous hobbies (auto racing or sky diving for example).

The insurance company receives this information from your application, and may ask you to fill out a health questionnaire or have a health examination or certain medical tests. In addition, the company may request that you consent to the preparation of an investigative consumer report or a Medical Information Bureau (MIB) report.

It should be noted that there are varying levels of underwriting including full underwriting, simplified underwriting and guaranteed issue. Each type of underwriting impacts the premium rates to be charged. Ask us which type of underwriting is applicable to the policy you are interested in purchasing and what type of medical information, if any, needs to be provided.

Often group life insurance is subject to different types of underwriting. In some cases, employees actively at work do not need to provide any medical information if they enroll within a specified period of time.

How do I compare cost?

To compare the costs of purchasing a life insurance policy, it is recommended that consumers obtain quotes for similar policies from different companies. Comparing costs only makes sense if you are comparing similar policies.

Comparison of costs can become increasingly complicated when products include such non-guaranteed features as dividends or additional amounts. There is no guarantee that a company’s past practices with respect to non-guaranteed features will continue.

Quotes for various products can be readily obtained from many sources, including local agents and brokers, telephone quote services and the internet.

Make sure that you can afford the amount of coverage you intend to purchase.

Premiums for some products can change over time and your circumstances i.e. your ability to pay the premiums over an extended period of time may change as well. When comparing the costs of policies be sure to ask if the premiums, death benefit, or cash values can change over time.

Do I need a sales illustration?

A sales illustration is a detailed projection of future policy values based upon the variables selected by you and your agent in conjunction with the purchase you are considering. The illustration can help to show you how the policy is expected to work. The illustration will show you what costs and benefits are guaranteed and what costs and benefits are not guaranteed. It is recommended that consumers request a sales illustration if available, prior to purchase.

Can I change my mind after I purchase a policy?

You will have a period that can be anywhere between 10 and 30 days, depending on the terms of the policy, after you receive the insurance policy to return the policy if you are not satisfied and receive a refund of premium. This period of time is called the “free-look” period, and a “free-look” notice is required to be displayed on the cover page of the policy. Use the free look period to read your policy carefully. If there is something in the policy you do not understand call us or contact the company for an explanation.

Should I replace my existing life insurance policy?

Replacing an existing life insurance policy can be costly and may not be in your best interest. When you apply for a life insurance policy you will be provided with a “Definition of Replacement” form which will explain what constitutes a replacement. If you intend to replace your policy, than no later than when you sign an application for a policy to replace your current policy with a new policy, you will receive a copy of a "Important Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts," and a “Disclosure Statement.” These documents give you information to think about before replacing your life insurance policy or annuity contract.

Some factors you should take into consideration if you are thinking of replacing your policy:

Contact your present life insurance company to discuss the proposed replacement of your current policy. Your company may be able to help you make a change to your current policy that is more favorable than replacing your existing coverage.
Since you are older than you were when you purchased your original policy it is likely the premium for the new policy will be higher due to your age.
If your health status has changed for the worse the premiums for the new policy will be higher.
The contestable and the suicide provisions will begin again in the new policy.
If your policy has a cash value you should know that the initial costs for such policies are charged against the cash value in the earlier years. The replacement of such a policy by a new cash value policy results in you sustaining these costs again.
Your present policy may also include surrender charges which you will incur if you surrender your policy during the surrender charge period. Alternatively, there may be a surrender charge period which has already ended on your present policy. You will want to find out if you will be subject to a surrender charge period in your new policy.

What is Term Insurance?
Term life insurance provides death benefit protection for a period of one or more years. The death benefit of the policy is paid only if the insured dies during that period. If the insured lives beyond the term period, no death benefit is paid. Typically, there are no cash values or loan values for term life insurance.

Should I replace my current Term Insurance policy?
The truth is you may be paying more than you should be for Term life insurance. With rates now guaranteed for as long as 30 years, your current policy may not be as cost effective as a new policy. Call us for a free no obligation review of your current policy.

When should I consider buying a term life policy?

Term insurance is generally used when the need for death benefit protection is temporary or if you are unable to afford the premiums of a permanent life insurance policy. Term insurance typically provides for the largest immediate death benefit amount for each premium dollar. It is appropriate if you are seeking protection for a specific need that will end at a future date such as to pay for a child’s college education expenses, to repay a loan or to replace income should death occur prior to retirement.

How does term life insurance differ from permanent life insurance?

Permanent life insurance is intended to provide protection for your entire life. Generally, the premiums for permanent insurance are higher at least initially than for the same amount of term insurance. A portion of the permanent life insurance premium is used to build-up a cash value in the policy. The cash value can be used in a number of different ways including allowing you to take out a loan against the cash value. Term insurance, as described in question one, provides protection only for a specified period of time and typically does not build up any cash value.

What are the main types of term life insurance available for purchase?

In general, there are three main types of term insurance available:

Level term insurance

The amount of death benefit protection you purchase will remain the same for the entire term period. The premiums you pay for this level amount of death benefit may also be level for the entire period, may be level only for a specified period, or may increase over time.

Decreasing term insurance

The amount of the death benefit protection you purchase will decrease over the term period. Premiums for a decreasing term policy usually remain level throughout the term period. Decreasing term insurance is generally purchased by those who have financial obligations that decrease over time such as a mortgage or a personal or a business loan.

Annual renewable term insurance

The amount of the death benefit protection you purchase will remain the same for the term period. The premiums you will pay for this level amount of insurance will increase each year.

What is “renewable” term life insurance?

Many term life insurance policies are described as being “renewable”. This feature allows the policy to be renewed for another term period without having to show that the insured is in good health. As long as you pay the premium due, the policy will automatically renew for another term period subject to a maximum age limit. The premium due upon renewal will most likely be higher than the premium you paid for the initial term period.

In most cases, term policies in New York currently cannot be renewed beyond age 80.

What is “convertible” term life insurance?

Some term life insurance policies are described as being “convertible”. A conversion provision allows the owner of the term life policy to convert from the term life insurance policy to a permanent life insurance policy during a specified period of time without having to show that the insured is in good health. The conversion period is shorter than the duration of the term insurance coverage.

How long will coverage under a term policy continue?

How long coverage under a term policy will continue will depend on the type of and duration of the term policy you purchase. For example, if you purchase an annual renewable term policy your coverage may be renewed each year up to a specified maximum age limit. If you purchase a 10 year level term policy you will have coverage for 10 years. If you purchase a 10 year renewable level term policy you will have coverage for 10 years and then have the right to renew your term coverage for another 10 years.

Will the premiums due for term life insurance change over time?

Whether or not your premiums remain level for the entire term period or increase over time will depend on the type of term policy you purchase. Premiums for a term policy may be either level or increasing. Premiums can also be guaranteed in the policy to remain level for a specified period of time and may increase thereafter. In general, for most term policies the premiums will increase over time.

Some term policies provide for what is known as “indeterminate” premiums. This means that the policy will set forth a schedule of maximum guaranteed premiums. The insurer can never charge more than the maximum premiums in your policy. However, the insurer intends to charge you what is know as the “current” premiums which are less than the guaranteed maximum premiums in your policy. Ask to see both sets of rates before you make a purchase.

Term insurance is very competitive with respect to premium rates. Shop around and compare.

Can an insurer cancel term life insurance?

A term life policy will stay in force as long as you continue to pay the premiums due. If you miss a premium due date you will have a 31 day grace period to pay the premium due. Your policy will remain in force during the grace period.

An individual term life policy can be canceled by the insurer only for non-payment of premium. If you do not pay the overdue premium payment within the grace period your term policy will terminate. The policy cannot be canceled due to a change in your health status.

If you purchase term insurance through a group such as an employer-employee group your term coverage may terminate when you are no longer an eligible member of that group e.g. your employment ends. Be sure to read the termination provision of your group term life certificate.

What is a “Return of Premium” feature?

A “Return of Premium” feature is a feature that has recently become popular and may be offered in conjunction with term life insurance coverage. The return of premium feature will generally provide for a refund of all or some of the premiums you paid for the term insurance at the end of a level term period or at end of the term coverage period if no death benefit was paid out during that period. The parameters of the return of premium feature will vary depending on the term life insurance policy you purchase. The return of premium feature can be offered by a separate rider to the term life policy for an additional cost. The return of premium feature may also be a provision within the term life policy. Term life policies with this feature will be much more expensive than a term life policy that does not offer this feature. You should consider whether the return of premium benefit is worth the extra cost.

What premium mode should I choose when purchasing term life insurance?

Most companies offer a variety of premium modes including annual, semi-annual, quarterly or monthly. In deciding which premium mode to choose you should consider the following:

If you choose to pay an annual premium and then decide to terminate your policy before the end of the year, the insurer is not required to refund any portion of the premium paid.

Generally, there is a higher cost associated with more frequent premium modes.

Here are some FAQs on Group Health Insurance:

What is an HMO?
A Health Maintenance Organization (HMO) is a benefit plan that has only one benefit level: in-network; it allows enrolled members to use participating HMO doctors in order to receive benefits. HMO members must have all of their care authorized by their Primary Care Physician (PCP). There are minimal copayments for doctors visits such as $10, $15 or $20. There are no out-of-network benefits.

What is a POS?
A Point-of-Service (POS) is a benefit plan that has two benefit levels: in-network and out-of-network. In-network benefits provide the same cost and quality controls of the HMO product with minimal co-payments. Employees are required to select a PCP from the insurer's directory of participating doctors. The member's PCP will coordinate all of the members' health care needs. Members can choose, at the time services are needed, to seek care from an in-network provider or go out-of-network and receive benefits that are subject to deductibles and coinsurance.

What is an EPO or Direct HMO or Open Access HMO?
These benefit plans have one benefit level: in-network. In-network benefits usually require co-payments. Referrals are not required to access in-network benefits. Members must select in-network providers to seek care for needed services. There are no out-of-network benefits.

What is a PPO?
A Preferred Provider Organization (PPO) is a benefit plan that has two benefit levels: in-network and out-of-network. In-network benefits provide benefits to members with minimal copayments. Referrals are not required to access in-network benefits. To maximize in-network benefits, members must select in-network providers to seek care for needed services. Members can choose to seek care from an out-of-network provider and receive benefits that are subject to deductibles and co-insurance.

What is a Co-Pay?
The amount of money the insured must pay to the in network doctor. Usually $10, $15 or $20 per visit

What is a Deductible?
The initial amount the insured pays before any reimbursement is made by the insurance carrier. This term usually applies to out of network benefits only. It sometimes may apply to prescription drug coverage as well.

What is Co-Insurance?
The amount the insured must pay in addition to what the insurance company pays. It is the sharing of the medical care bill. Example: When an insured goes to an out of network doctor, after the deductible has been applied, if the insurance coverage has a 70/30 coinsurance, the insurance company pays 70% of the bill and the insured pays the remaining 30%.

How much must the employer contribute toward the purchase of health insurance?
An employer contribution program allows you to fix your company's insurance costs. You can select a fixed dollar amount, a percentage of premium or whatever financial formula is best for your company. When you decide what the employer contribution will be, you should inform your employees of that amount.

What is the difference between 2, 3 and 4 tier rates and which one should I choose?
Two tier rates are single and family combinations and anyone enrolling other than single will pay the family rate. Three and four tier rates have a combination of Single, Employee with Spouse, Employee with Child(ren) and Family. Rates for 4 tier are based on the status of the employee at the time of enrollment and offer lower rates for the middle tiers while being higher for the family. Which one you choose depends on the breakdown of your employees, based on their status (single, married, single parent, etc.)

What if I have other questions?
You can always call us at 718-932-3300