FAQ
Q. Are there any upfront fees or charges for your services?
A. No, never. We will provide quotes, proposals and submit your application for you with the appropriate insurance company or companies for underwriting to see if you qualify. We are compensated strictly on a commission basis from the insurance company if you purchase a plan with us. At that point, you will receive a rebate of a portion of those commissions based on an agreement with us.
Q. Is rebating legal?
A. Yes. Proposition 103, enacted by the California State Legislature in 1988 made it legal for licensed agents in the state to offer rebates.
Q. How can you rebate commissions when most other agents do not?
A. Because our marketing is predominately an online based internet business, our expenses and costs of doing business is far less. We pass that savings on to our clients in the form of a rebate.
Q. Is the money from the rebate I receive taxable to me?
A. You will receive a 1099 for the amount rebated to you. It is our understanding that this rebated amount should be classified the same as a policy annual dividend - a return of unused premium and therefore not taxable. However, we do not give tax or legal advice. You should consult your own accountant or tax attorney for an official position on this.
Q. Can I receive a rebate if I am not a resident of California?
A. Yes, but you must purchase you policy through a licensed agent in the state of California. You must also meet to complete the application with that agent physically in the state of California.
Q. Are there any states other than California that allow rebating?
A. Currently, only the state of Florida although rebate regulations in that state are much more restrictive.
Q. Are the insurance companies you work with reputable, reliable and financially stable
A. As brokers, we deal with most any life insurance company in the country. If you have a company you prefer to buy from not on our list, we can utilize them. We have a large number of companies we currently represent. In either circumstance, we deal only with the highest rated and most reputable companies. We can provide you with the ratings and financial information on whatever company you are considering for review by yourself, accountant or attorney.
Q. Can you provide tax or legal advice on the plans you sell or any of the legal trusts that are linked to them?
A. No. Discount Insurance and Annuity Services is not licensed to, nor do we provide any tax or legal advice. You should consult your own accountant or attorney. We will be happy to coordinate our efforts with your advisors on any plan you purchase through our firm.
Q. Why not just buy no-load insurance?
A. A few companies do offer no-load products. Aside from the difference in the commission, they differ very little than the regular plans. Some, in fact, are more expensive than a full commission product. We invite you to compare for yourself to see which option will provide the most competitive plan for the least expensive outlay of your premium dollars.