While it may be too late for those of us who grew up in the 50’s and 60’s, wearing our sunburns with pride, using sunscreen can certainly cut down on future cases of skin cancer.
We have gone over the life insurance underwriting differences of the three types of skin cancer in previous posts, but just to re-summarize, there is basal cell carcinoma, squamous cell carcinoma and melanoma.
In general one instance of basal cell or squamous cell can still get you best rates with several companies. Multiple instances can still get you better than standard rates with a few companies, but standard rates seems to be the low spot where most companies are settling.
With melanoma it’s all about stage and grade. A very low stage and grade could bring standard rates a year after treatment. A middle of the pack stage and grade could be standard rates after 3 to 5 years. During that period the company would charge what is called a flat extra. That is a dollar cost per thousand dollars of insurance per year. For instance, on a $100,000 policy with a $7.50 flat extra for 5 years, you would pay the standard rate plus $750 for the first 5 years. After that you would pay the standard rate.
A high stage and grade, if it didn’t kill you, will likely be uninsurable for some years and then it will have a flat extra after that.
With all that said, avoiding skin cancer is really the best idea. Sunscreen really beats going to the beach in long pants and a long sleeve shirt with a hat and gloves and shoes. So, SPF 60 and you’re good to go, right?
Not according to the FDA, quoted in a New York Times article today. According to studies by the FDA, SPF 30 blocks out 97% of the harmful sun stuff. So, being the rocket scientist that I am I come up with SPF 15 blocking out 48.5% and SPF 60 blocking out an astounding 194%. Apparently they don’t use rocket scientists to make sunscreen. The study showed that SPF 15 blocked out 93% and SPF 60, which the FDA recommended be labeled SPF 30+, only blocks out 97-98%.
Bottom line. Use your sunscreen and more sunscreen is better than more SPF’s. And, if you’ve had skin cancer, don’t buy your life insurance off the shelf. Find an independent agent who can cut through all the underwriting jungle and find the best possible rate for you.
August 7th, 2007
There is a misconception in life insurance that there is a common thread running through all the companies and kind of like buying hamburgers, they’re all pretty much the same and all of them charge about the same. The truth is that the differences between life insurance companies is as stark as going through “It’s a small world” at Disneyworld. You know they’re all singing about life insurance, but every corner you turn brings a whole new view of it.
I will provide one common thread through this whole thing. We’ll use my birthdate, 3/14/53. So, we’re talking about a 54 year old male. (218 shopping days until my birthday). We’ll use a $500,000 policy as a basis.
If I am shopping for the best term insurance policy, the price could be as good as $785 annually for a 10 year term with North American or as much as $1700 annually with Western-Southern. No difference in those policies except that one company makes a lot more than the other and, I suspect, the agent for Western-Southern gets a higher commission rate.
On a 15 year term the rate could be as low as $1055 annually with American General or as high as $1955 with Americo Financial. On a 20 year guaranteed level term it could be as low as $1360 with Banner Life and as high as $2940 with Provident Life and Accident.
So, why would anyone buy term insurance from Western-Southern, Americo Financial or Provident? It happens all the time when people don’t use an independent agent and are never told that they could pay more than twice as much as they need to. Just a clue about independent agents. We represent a lot of companies so that we never have to offer a customer anything but the best possible deal.
Let’s assume next that I have type 2 diabetes. All of my risk factors are good and the diabetes is well controlled with an hbA1c of 6.2. It was diagnosed two years ago. The best offer in the business is going to come from Banner Life. The price for that $500,000 of 10 year term will be $1305. The 15 year term will be $1665 and the 20 year term will be $2155. One of the consummate leaders in the term race, Genworth Life and Annuity would take a whole different view of the same situation with a 10 year term price of $2245. Their 15 year term would be $2775 and the 20 year term would be $3525. This, by the way, was not a best case/worst case scenario. While Genworth certainly takes a harsh view of well controlled diabetes, there are a couple of thousand companies out there that would have higher rates than those, if they would insure you at all.
There is a huge difference from company to company on price and on underwriting.
One more example that is stark to say the least. Now I am clean as a whistle except that I have mild obstructive sleep apnea. I use a cpap and the apnea is well controlled. Prudential is my company here because they will allow their best rate. My $500,000, 10 year term is $795, the 15 year term is $1090.00 and 20 years is $1375.00. In contrast, if I used North American the 10 year term would be $1580, 15 years would be $2225 and 20 years a whopping $2875.
But, in all fairness to North American, there really isn’t a company around that does a better job for private pilots. It’s a small world after all!!!!!!!!!
Bottom line. If you’re not using an independent agent who stays on top of underwriting changes, you’re leaving money on the table.
August 7th, 2007
