Archive for October 16th, 2007
The Rock!! I bring Pru up every once in a while simply because they seem to be a company that is out to make a difference in the life insurance business. Other companies are competitive, and Prudential isn’t the answer to every life insurance question, but they are trying as hard as any company out there to expand the underwriting box and be just a little more fair. The attached is a two page summary of Prudential Financial’s rating, history and financial strength.
prudential.pdf
So, what are their strengths and what are their weaknesses? They are above average in underwriting for private pilots (including students), sleep apnea, weight (with an extra break if you’re over 65), situational anxiety and depression issues if well controlled, one time dui cases, prostate cancer and family history.
Areas where they come close, but I personally would like to see them be a little more aggressive would be well controlled diabetes and minor cardiac issues (a one vessel angioplasty with no heart attack after age 50).
Where I really wonder what they are thinking is with more involved heart issues and cancer (except prostate cancer).
But, no company can be all things to all people and again, they are a cut well above average in today’s market.
Bottom line. It takes an independent agent to figure out which direction you need to go for the best life insurance value. All of the top companies have an area where they stand out. Pru has several.
October 16th, 2007
A collosal coincidence! It turns out that about one third of all Americans, 65 million, have hypertension, defined as blood pressure of 140/90 or higher. We’ve discussed a number of times how high blood pressure can effect your life insurance rates and the dangerous collateral health issues it can bring on. The silent killer it’s called.
I read an aritcle by Linda Koco in National Underwriter today that points out that about one third of all American adults, 68 million, don’t have any life insurance. I beleive I remember from a previous post seeing a LIMRA International study that said that another one third are underinsured. This is called the Silent Crisis.
The fact that 2/3 of the adults in this country are uninsured or underinsured is probably something that rolls off of most people without much impact, even those that are uninsured or underinsured. The fact that 1/3 of them is hypertensive may not raise that many eyebrows either. That’s the problem!!
The impact of someone dying without life insurance is something that may go unnoticed as a stand alone incident unless you happen to know the family. It is devastating to the wife and children and financially impacts their extended family and community as others come to their aid to help plug the gap left because there was no insurance. A large wave in the family, a splash in the community and a mere ripple in the country. Hardly even noticed.
Until you start feeling all of the ripples from all of the uninsured and underinsured. Remember that 2 out of 3 deaths involve this group. In 2001 the average number of daily deaths in the US was about 6600, so 4400 were uninsured or underinsured. That means that over 1.6 million people annually are leaving families in dire situations by not having adequate life insurance.
After all of that buildup, you would think I was a politician about to launch into a suggestion that the government provide life insurance. I’ll bring that idea up when they have a $50 trillion budget surplus, but for now it honestly appears that the answer is that more people need to connect with more life insurance agents and take care of business. With the cost of life insurance at an all time low, there is simply no reason for these kind of statistics. Of that two thirds, I suspect that most…..yes most, of them spend enough money on entertainment, whether it’s movies, sports, or satellite TV, to adequately insure their family.
Bottom line. Life insurance agents need to do a better job of getting the word out about affordability and adults need to quit living like their death won’t have any impact. Boy, I really rattled on this time……..but the silence needs to stop.
October 16th, 2007
The truth is that most of us, if someone else was paying the bill, would carry more life insurance than we do. When I work with people to come up with a life insurance plan I always insist that they consider budget and do as much as they can within a budget they can maintain.
The problem comes when income fluctuates, or jobs or lost, or unexpected expenses bite into what you thought was a stable budget. I have a recommendation for these situations and for those who really want to carry more, but the cost is just outside their comfort zone.
Let’s say you have decided that $500,000 is what you would really like to have in force. At a hypothetical $110 a month for your 20 year term insurance policy, it works right now, but you are concerned that even a small change in your finances could upset the apple cart and something will have to go. All too often life insurance is the sacrificial lamb and while it eases the immediate situation, it leaves your family at risk and it also puts you in a position, if you have a health change, of not being able to replace the insurance when things stabilize.
Consider this. Rather than a $500,000, 20 year term policy, carry two $250,000 policies, or $400,000 and $100,000. Give yourself a relief valve, a policy that can be dropped if necessary for financial reasons, while still leaving something in place. I understand that the need is $500,000, but if things get tight and you need some relief, this can provide that change that will keep things afloat, and remember, something (in force) is always better than nothing.
Bottom line. Budget has to be considered when purchasing life insurance. Don’t ever let someone talk you into spending more than you know you can afford, and if you are coming close to that line, consider splitting the coverage.
October 16th, 2007
I’m not going to hang myself out there by saying that only overweight people have sleep apnea, but there is plenty of evidence to uphold the idea that most cases of obstructive sleep apnea are caused by excess weight or obesity.
While central sleep apnea is caused by dysfunction of the brain, obstructive sleep apnea, especially in adults, is normally caused by either a collapsing of the airway due to weight or a reshaping of the airway due to fat deposits. Both issues are tied to being overweight.
I know from having worked with hundreds of liffe insurance clients with sleep apnea that there is certainly, in most cases, a link between build and sleep apnea. I have often been told by the clients that their doctors have told them, lose the weight and the sleep apnea will go with it.
I think this may again be an issue where doctors are talking about the primary issue, sleep apnea, and not educating the clients about the collateral health issues that, if left unchecked, can begin to take hold.
Problems such as snoring spouse syndrome are no fun for either spouse, but other health issues related to sleep apnea, several of which involve serious cardiac issues such as high blood pressure, arrhythmia and even heart failure, can lead to one spouse not being there at all.
Bottom line. If your sleep apnea is caused by weight and your doctor hasn’t given you all of the facts about the road you’re heading down, educate yourself. Do something about it for your health and your marriage, and yes, for your life insurance rates.
October 16th, 2007
There may be more than one reason to be upbeat about sleep apnea from a life insurance standpoint. As I’ve mentioned in previous posts, there are offers coming in on life insurance for those with mild to moderate, well controlled sleep apnea that can be as good as the best rates out there, as long as all other risk factors are under control.
If your sleep apnea fits into that scenario, you might also be doing your heart a favor. A recent study showed that control of sleep apnea through committed use of a cpap can be beneficial in holding atherosclerosis (hardening of the arteries) at bay, or even reversing early signs of the disease.
This is sounding like a win/win situation to me. Two of the collateral issues that have always led underwriters to take a serious stance on sleep apnea are high blood pressure and atherosclerosis. Good control on one helps avoid the other two. Good for your health and great for life insurance rates.
Bottom line. Whether it is sleep apnea or diabetes, compliance with recommended treatment leads to good control, which leads to better health and less complications. Hard to find a downside to that!
October 16th, 2007
