Archive for October 19th, 2007
When you hear about life insurance company concerns with foreign travel, do you ever wonder where they draw the line?
I recently shopped for coverage on a corporate jet pilot that did a fair amount of overseas flights. The best offer came back with the caveat that “Flights to locations considered safe and not on any US travel warnings list”. Well, one company’s safe is another company’s worst nightmare. I remember a client being declined a few years ago because he was helping develop a golf course and resort in Belize and was spending too much time there.
Anyway, first stop is the State Department International Travel Site . Interesting place! From there to their International Travel Information, Travel Warnings section.
Some are obvious. I’m thinking that insurance companies aren’t going to be real wild about offering good rates to someone that will be flying into a place where surface to air missiles are a form of currency.
Others I will admit I’ve never heard of and have a bit of trouble pronouncing, like CôTE D’IVOIRE.
Not a name I’ve seen on the evening news. I did notice that Belize is not on the list. Whew! I personally think they should leave countries off the list if the snorkeling is good.
There is some travel that should be an obvious concern to the person going there and anyone considering insuring them. The truth is that the mortality experience getting to and from your own airport is probably higher than going to most of these Travel Warning destinations.
Bottom line. Like so many underwriting guidelines, the only thing you can count on is that no two companies will see it the same way. Time to check in with your independent life agent and shop the market.
October 19th, 2007
Over the years, North American Ccmpany for Life and Health has moved in and out of the impaired risk spot light. Overall though, they would have to be judged as one of the better small companies out there.
North American isn’t one of the big boys, but they are still here after 120+ years and there is something to be said for not going away. Having said that, there is a pretty significant rumor milling around that Midland National and North American will be merging soon. Attached is a summary of ratings and stats on both companies.
north-american.pdf
midland-national.pdf
North American has proven to be consistently formidable with the private pilot market. Other companies come and go, but North American has been steady there for years. They also underwrite toward the top of the stack on strokes and some cardiac issues.
In recent history they were leaders in the industry in underwriting type 2 diabetes and cancer, but have become more conservative on that in the past year or so. They have also taken a step backwards on sleep apnea. They are pretty middle of the road on these issues at this point. We are in the process of finding out what direction they will take if they do merge with Midland.
In my memory they have never been good with type 1 diabetes, multiple impairments such as diabetes and heart disease combined, or foreign travel.
Bottom line. One of the reasons that independent agents can be a valuable partner in your search for life insurance is that when a company changes their view on a certain impairment, we’re not stuck there. The winds are always shifting and flexibility is a good thing.
October 19th, 2007
Whether it type 1 diabetes and your choice of insulin types, or type 2 diabetes and your choice of the 5000 oral medications on the market, all anyone with diabetes is looking for is a way to take the stress off their body.
In a post yesterday, Allie Beatty wondered out loud (that is the only way she wonders), why doctors aren’t suggesting vitamins and other natural supplements at the very least, along with the prescribed medication.
I think she makes an excellent point. Whether it is diabetes, heart disease or cancer, adding vitamins and natural supplements certainly isn’t going to hurt. Since they have proven benefits for perfectly healthy people, they are bound to have even more benefits for people who’s bodies are struggling to fight off a disease.
Bottom line. Life insurance underwriters may not be impressed with the fact that you take vitamins, but if you happen to be healthier than someone else with the same disease, they will reward that.
October 19th, 2007
I cited a study not too long ago that made it clear that many people pass away these days not having used significant portions of there retirement finances. While this money can be passed on through wills or probate, consider this.
I know that many people in this situation know well ahead of time that they won’t be using that money, and the intent is to pass it along. For three reasons you may want to consider using that pool of money to purchase life insurance.
- You can leverage your assets into a larger inheritance. With permanent products like universal life being so affordable and guaranteed these days, buying insurance could very well make more money to leave behind than traditional investments like annuities.
- Once you have moved your inheritance into life insurance it avoids all income tax to the heirs.
- Life insurance is not subject to probate, so there is no holding up the inheritance and there is no chance that your wishes can be misconstrued.
Bottom line. If you intent is to leave money behind and you’re sure you won’t need it for yourself, consider life insurance as an inheritance vehicle.
October 19th, 2007
