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- What are Simplified Issue or Guaranteed Issue Products:
These are permanent life insurance plan designs for the otherwise uninsurable. Simplified issue programs often ask a few simple health questions, such as if the proposed insured could work full time. True guaranteed issue products typically ask only two or three questions and exclude only those with AIDS or those terminally ill. Most simplified or guaranteed issue products offer a graded and limited death benefit. Some products only provide for a refund of premium during the first year of coverage. Thereafter the death benefit increases in specific increments, perhaps 1/3 per year, so that a full death benefit is payable beginning in four or five years. Some of these products provide for a death benefit of up to $1,000,000 although the $25,000 to $100,000 death benefit offer is more common considering the premium cost for such a policy.
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- Internet Products Versus Agent Sold Products... is there a Difference?
Insurers are manufacturers of products and many of them have multiple distribution channels. Direct Internet term life products typically would be the non-medical policy, these policies usually do not require a medical exam to qualify, only a few simple health questions during the online application. The insurer groups' insured's into a risk pool from preferred plus down to standard and average the premiums across the board. The product has the same features a typical term product would including guaranteed premiums for the length of the policy. The difference is the internet product has less information, like blood and urine to determine approval and may cost slightly more, yet the insured benefits more from the speed and service of having the policy go into effect immediately and avoiding going through a medical exam and risk discovering an unknown health issue that would cause a rating
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- What are Rate Classes and How Can I Determine Mine
Determining Yuor rate class can be complicated , the most effective solution is to have a licensed life agent pre-underwrite or field underwrite your case, you can also submit the case for a final determination before accepting the policy. here are some basic guidelines.
Preferred Best or Super Preferred: You're impeccable when it comes to mortality risk
You have no health issues, do not use any medications, balanced height and weight, All your records are clean, in regards to credit, criminal, driving history. You have been to a physician in the last 5 years, you don't smoke, have healthy parents, and are not involved in risky sports or occupations.
Preferred: You're in good condition overall but perhaps you take medication to control blood pressure. Maybe you're slightly overweight, have slightly elevated cholesterol levels, or have a skeleton in your closet when it comes to family history. Preferred is good... but some very minor risk factors are present.
Select or Standard Plus: You're above standard health, Typically people fall here when they are slightly overweight or have a family history of early death from a potential hereditary health issue. You may have been a smoker but quite 24-36 months ago.
Standard: You're average you may be healthy but may use medications for Cholesterol, Hypertension or other treatable condition and your ratios are still slightly high with treatment.
Preferred Tobacco and Standard Tobacco: Smoking rates are usually significantly higher. Even when you are otherwise healthy you will be placed in the smoke category either healthy smoker or unhealthy smoker
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- What are Table Ratings
Life insurance applicants are placed in the table-rating category when unqualified for the more favorable set health classes. Typically when you have several health issues that lower your rating such as hypertension, cholesterol and diabetes. Which is a precursor for cardiovascular disease. You may have also experienced more serious health condition, cancer treatment, heart surgery, Crohns' Disease or other condition. Table ratings are flat extras added to the standard rate anywhere from 15-50% for each table level added typically measured in numbers or letter from 2-8 or B-H
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- Why does Impaired Risk Underwriting Take So Long?
The impaired risk agency's job is to insure a "best possible" offer is obtained for a given risk. This often requires the ordering the more current or additional APS information, possibly following new testing, in order to obtain the most favorable clinical evaluation of a particular impairment. The length of time in underwriting is usually a result of the depth of the impairment or health issue, the more details or tests that show the impairment is under control the quicker the underwriting process
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- How long must I be Smoke Free to Qualify For NonSmoker Rates?
Typically a minimum of 12-24 months. However there are some carriers who specialize in providing low rates for oherwise healthy smokers
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