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Trinity Blog |
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Wednesday, 12 August 2009
While we cannot control everything in our lives there may be some things we can control that relate to the prices we pay for life insurance. Lets review some of the most common issues that can directly influence the premium cost of a life insurance policy and how we can avoid overpaying by being pro-active.
The most common issue that can be controlled is build, BMI or weight. Statistics show that many overweight inactive individuals are at higher risk to eventually experience insulin resistance, high blood pressure, cholesterol and other related health problems. The most important thing you can do is eat a healthy diet and get some exercise. If your chronically obese discuss with your physician what type of plan you should follow. This can not only reverse your mortality rate but also reduce your premiums. Additionally before buying insurance direct speak with a agent who can guide you to a carrier that offers more leniency in underwriting build charts as you may qualify for a better rate class with specific carriers.
Smokers and tobacco users pay more for life insurance, smoking increase chances for emphysema, cancer and heart disease. (Occasional celebratory cigars won't really hurt you.) If you stop smoking for at least 12 months you may qualify for better rates after 36 months you can qualify for great rates. Even though there are carriers that offer healthy smoker rates, you can expect to pay considerably more than non-smokers. Do not try to do the fake out they can tell from the exam if you are actually a smoker.
Hobbies can also be considered a risk for underwriting life insurance, hobbies such as scuba divers, private pilots, hang -gliders and the like will likely be taxed for all the fun when purchasing a life policy. Employment in a hazardous job can have an effect on your rates as well. Many resign from riding motor-cycles and working dangerous jobs when starting a family so if your starting a family consider a more conservative approach to life and find some new hobbies and work. Stress can be a big factor for many consumers who may not realize the influence it is having on their health. Many times we see clients who believe they are healthy and are dumbfounded to learn from the Para-med exam that there high stress career has caused them to suffer from untreated high blood pressure. If in fact you think this might be your case consider a non- med policy first, get that in place then stack a fully underwritten policy on top to make up the difference of coverage you need or replace the non-med altogether if the rates are lower, this way you avoid the red marks on your medical information bureau report and the risk of being rated and being forced to pay the higher premium or being denied altogether.
Family history obviously cannot be controlled but again have an agent review the issue at hand and field underwrite your case prior to submission to the carrier since agents typically know what carriers are familiar with that particular health issue, some carrier ignore a mother or father history of cancer while other will rate it. Last but not least age can affect your premiums, certainly it make sense to have some form of term coverage in force when you have liabilities that depend on you such as a spouse and children. The younger you are at application the better. If you have been considering coverage do not put it off since providers will sometimes rate you up at the 6 month mark from your last birthday , for example if your 34 years and 5 months old start searching!
Wednesday, 29 July 2009
Some issues seem to be making some progress in passing the health reform bill.
According to AHIPP 81% of business owners and consumers are apprehensive about government-managed health care. The anticipated outcome for many businesses would result in more employee lay offs, as they would have trouble providing health insurance for all their employees.
The new legislation being discussed would create incentives for those employers to provide health coverage rather than a forced mandate health plan or tax penalty for employers.
Also apposed is the creation of a new public health plan program and a
Proposed tax on insurance companies offering individual plans valued at more than a certain limit. Many feel that taxing insurers will only cause the tax to be passed down to the insured and cause higher long-term cost of health coverage.
Other major concerns are the cost of this bill on the federal deficit. More expected after the Legislation break or end of the year.
Sunday, 19 July 2009
When you go to search for life insurance online you will see many sites suggesting lowest rates and 40-70% savings. Well the truth is you can save big by comparing rates from among all the carriers as rates for the same coverage can vary from one carrier to the other. Your best bet is to shop a broker/agency who offers the broadest choices from multiple carriers and products. The rates are provided in real time direct from each carrier. In other words when you plug in your age, weight and answer “no” to any serious health issues then yes you are getting an accurate estimate but only if you’re in the right health class which may require more specific detail. A simple quote website is a good idea if your looking for a ballpark figure of what you might expect to pay. Rates are set by carriers and regulated by the state so rates will not vary from each broker/agency if comparing the same product and same carrier for the same search parameters. Most quote aggregator websites simply lump everyone into several rate classes depending on how many health questions are included in the quote form
Agents today are combining quoting websites, underwriting platforms and telephone applications to pre-underwrite proposed insured for accurate rate class estimates and then submitting the application through a automated platform connected to all carriers, The agent can then quote specific to the clients health and direct them to the proper carrier and rate class for a formal application, order the in home health exam and make even the most complicated high risk life applications simple and fast, shaving days off the exam process and expediting the application through the underwriting process.
Website quote engines have their place in providing information to consumers online
However, to obtain the most accurate life insurance quote it is to your advantage to provide as much detail to a licensed life insurance agent who can research your health profile against the best choices of carriers and products. Insurance prospects, that open up about the details of their health profile and impairments if any, will receive a better indication of what final rate they can expect, expedite the approval process and policy issuance, reduce their long-term premiums, and prevent the worse scenario of being declined.
Monday, 15 June 2009
What affects will High Blood Pressure have on my Ability to Obtain Life Insurance|
The leading cause of death aside from cancer is heart disease high blood pressure many times lead to more serious health issues like heart disease and heart attacks due to hardening of the arteries and lack of oxygen to the heart. A person with hypertension has an increased risk of stroke, aneurysm, heart failure, heart attack, or kidney damage, especially if the hypertension is not well controlled with medication, diet and exercise.Qualifying for a life insurance policy with hypertension can be complicated, but still possible. When evaluating a diagnosis of high blood pressure and mortality risk for life insurance, the following factors will be carefully considered by the carrier’s underwriters to determine insurability and rate. Supportive evidence that you are stable with treatment under a physician’s monitoring or on the road to recovery will determine insurability. Common reviews will include the following:
· Blood pressure readings in the past 12 months?
· Are there other cardiovascular risk factors involved? (ECG readings, cholesterol levels, diabetes, family history)
· Are you currently under supervision with a physician?
· Are the symptoms being managed with medications?
· Are you in the normal weight and build chart range?
· Do you smoke?
How can You Assist in Obtaining a Good High Blood Pressure Insurance Rating
Take all medications as directed by physician
Routinely check blood pressure
What Life Insurance Underwriting Offer can I Expect to Receive?
Well-controlled hypertension can expect a possible Preferred rating with some of the carriers. Uncontrolled hypertension will bump it up several table ratings added to a standard rate, depending on the blood pressure readings
Tuesday, 09 June 2009
The leading cause of death aside from cancer is heart disease. High cholesterol and high blood pressure many times lead to more serious health issues like heart disease and heart attacks due to hardening of the arteries and lack of oxygen to the heart. A person with prolonged high cholesterol levels has an increased risk of stroke, aneurysm, heart failure and heart attack if the cholesterol levels are not well controlled with medication, diet and exercise. Qualifying for a life insurance policy with elevated cholesterol is still possible. When evaluating a diagnosis of high cholesterol and mortality risk for life insurance, the following factors will be carefully considered by the carrier’s underwriters to determine insurability and rate. Supportive evidence that you are stable with treatment under a physician’s monitoring and diet will determine insurability. Common review questions will include the following:
- Cholesterol levels and Cholesterol / HDL ratios in the past 12 months
- Are there other cardiovascular risk factors involved? (Hypertension, diabetes, family history of coronary artery disease.
- Are you currently under supervision with a physician
- Are the symptoms being managed with medications?
- Are you in the normal weight and build chart range?
- Do you smoke? Do you exercise?
Well-managed Cholesterol can expect a possible Preferred rating with some of the carriers.
Unmanaged choesterol will bump it up several table ratings added to a standard rate, depending
on the readings or ratios. Underwriters will look at cholesterol readings but will most carefully review
the total HDL ratio. Typically if the cholesterol is between 200-240 mg or lower and the ratios are
less than 5.5% you can qualify for the top class rates as long as there are no other impairments. As
both numbers increase from here clients will approved at standard . Cholesterol levels over 280-300
and cholesterol / HDL ratios over 8.0 will result in an added table rating. If you are unsure of your
cholesterol you should definitely discuss the non medical quotes as an initial step in getting life
insurance as you can always get approved then add a fully underwritten policy and stack the two or
replace the first. As many are unaware of an elevated cholesterol level until they actually complete
the para-medical exam and have already been rated.
A knowledgeable agent can assist you by directing you to those carriers and carrier underwriting
guidelines that will give careful consideration to your specific cholesterol levels and measure it
against their current cholesterol table ratings in order to get you approved at a favorable rate. All
carriers have their own table ratings for every impaired risk case.
Thursday, 28 May 2009
How Do Underwriters Determine Insurability For Someone Who is Considered Overweight or Obese?
Underwriters can determine from MIB records, physicians reports and paramedic exams how a person build and health history may affect the outcome; typically they are most concerned with anyone on the way below or above the guidelines for the particular carrier. Insurance companies usually have pre-defined "build " height -weight charts to determine your classification and your classification determines your premium rate.
Here are some Questions that Underwriters use to determine Your Build And Underwriting Outcome
- What your current build Height Weight?
- Have you gained or lost weight in the past year?
- Do you have any other contributing factors that may negatively/positively affect your underwriting approval when combined with your current build (exercising, dieting, taking prescription medications that caused weight gain/loss?
- Do You have any other conditions related to weight that could affect morbidity in a group such as hypertension, diabetes, sleep apnea, or a disease causing weight loss
What Underwriting Outcome Should I Anticipate if I am Overweight?
This really come down to if you have other health issues or not if you are simply a little overweight you can still qualify for select and preferred rate classes in most cases. As I mentioned before since all companies have their own height -weight "Build Charts" you may only qualify for "Standard" with one company and qualify for "Select" with another. This is why it is imperative to use a knowledgeable agent . As you can see Company "A" would provide a broader spectrum of underweight and overweight individuals to qualify for "Select", If an agent just placed you with company "C" you would fall into the "Standard" class and potentially be paying more for essentially te same coverage.
Example
Company "A" Female 5'4 between 96 lbs and 192 lbs would qualify as Select
Company "B" Female 5'4 between 110 lbs and 186 lbs would qualify as Select
Company "C" Female 5'4 between 102 lbs and 184 lbs would qualify as Select
Company "D" Female 5'4 between 111 lbs and 180 lbs would qualify as Select
Company "E" Female 5'4 between 163 lbs and 176 lbs would qualify as Select
Wednesday, 20 May 2009
When you Apply for a life insurance policy a life insurance carrier typically requires what is called a para-medical examination. The Para-med exam is usually scheduled during the application process or within a few hours of completing your medical question interview. The exam is brief and is usually completed at your home at your convenience in 20-30 minutes and consist of blood, urine samples, blood pressure and if needed an EKG. Not to worry it is a quick process. The insurance company you have applied to for coverage pays for this service and there is no obligation on your part. The following is a list of things to do that are intended to improve your chances of completing a successful medical examination.
- if you are not feeling well or are not well rested it is best to reschedule the appointment.
- A good nights rest for the several days prior to exam will insure adequate rest and low stress levels.
- Avoid alcoholic beverages for 8- 12 hours before the exam just to be safe from alcohol in your urine.
- Avoid all tobacco before the exam if possible
- Avoid caffeine at least an hour prior the exam (this can potentially elevate blood pressure)
- Consume as little salt intake and high-cholesterol foods as necessary. (Choose whole natural foods.)
- Don't engage in strenuous exercise or physical activities for 24 hours before the exam.
- For best results take the exam in the morning before breakfast and after an 8-12 hour fast.
- Consume 8-16 ounces of water at least 1 hour prior to the exam.
- If something unreasonable turns up in your medical exam that will cause the insurer to reduce the face amount or increases your premium, you may dispute the outcome. In some cases, volunteering for further medical tests could result in reducing the premium or increasing the face amount closer to what you applied for. Many time the carrier will adjust the results after further review
If you are afraid you might not do well or have not had a physical you may opt for a non medical insurance policy where the carrier allow you to apply without a para-med exam. If you are reasonably healthy or have not more than two health issues that are under control with medication and medical supervision then you can usually just qualify by answering a few medical questions.
Wednesday, 06 May 2009
Introduction of the Income Replacement Term Policy
What if there were a policy that would bear the burden of both your families immediate and long-term expenses in the event of a death of a family income provider and simultaneously reduce the out of pocket cost in today’s current financially difficult times. In comes the recent term life insurance introduction that provides for families to purchase a death benefit face amount that is paid out over a certain number of years 5,10,15.20,30 rather than in a lump sum at an evident discount over a straight lump sum benefit policy. Technically you could back your benefit out of what you could afford in premium.
By breaking it down a insured purchases a $300,000 Term Life Policy with level premiums over 20 years then at death the beneficiaries receive that benefit in a payout over 20 years resulting in a 15-30% savings in premium in comparison to the same face amount of coverage paid in a lump sum payout. Even more spectacular you can add a lump sum rider to the income replacement policy to cover big expenses like a mortgage if you so choose and convert the policy prior to age 75 to a universal life policy without additional underwriting. I think we will see a lot of consumers reviewing this plan and purchasing a lump sum rider for half the total face amount and taking a payout on the second half to save the premium. Should the spouse also pass away the contingent beneficiaries will receive the remaining payout on the policy.
Example1 Traditional Term:
Male 39 Years Standard Health $600,000 Lump Sum Benefit
Premium $798.00Annual / $69.83 Mo
Example 2 Income Replacement Term with Lump Sum Rider:
Same Male 39 Years Standard Health $300,000 20 Year Payout
Plus a $300,000 Lump Sum Rider
Premium $638.40 Annual / $55.86Mo
This could equate to a savings of approximately $159.60 annually for essentially the same coverage. Keep in mind shorter payouts will result in smaller savings and also be aware that tax laws will affect a portion of that payout taken as an income stream. This income replacement insurance can definitely be of value when determining cost, and a families protection needs since many that have life insurance rarely have enough and of course the possibility that the benefit will not go as far as expected
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