The cruxt of bipolar disorder is simply highs and lows. One day you’re up, sometimes very up and the next you might be down, sometimes very down.
This is, from a simplistic view, a good description of a lot of life insurance underwriters. They will get all fired up and getting everyone excited to jump on board with their latest idea and then they will go south and you’re left wondering if it was a mirage.
These are the same group, in many cases, who are so viciously against fair underwriting for bipolar disorder. Kind of ironic.
The good news is that there are some stable, solid underwriters out there who aren’t bouncing back and forth so fast that you never know what to tell a client. At the head of that class, I would put Prudential. They have been around for the last 10,000 years or so and have been producing consistent, no nonsense, fair underwriting for at least the last 100 of those. They look seriously at clients with bipolar, as long as they are stable and compliant with their treatment. They understand the huge difference between controlled and uncontrolled bipolar and they know a good risk when they see one.
Bottom line. Are life insurance underwriters really bipolar? Well, probably some are, but that doesn’t explain the erratic decisions that come from so many companies. What’s really going on is that, when faced with a risk they don’t know how to assess, they bury their head in the sand and all you hear is a muffled decline. Fair rates are out there. If you have bipolar and are historically stable, don’t give up.
January 9th, 2008
I’ve explained in plenty of detail how life insurance rates are effected by smoking. In general, a person who smokes will pay 2-3 times more than a non smoker in comparable health. There is just no question that underwriters believe that there is a significant mortality risk connected to smoking.
But, what about when you quit? We hear all the time that from a medical standpoint, once you quit the negative impacts begin to reverse themselves fairly quickly. I thought I would give a quick overview of how a dozen or so insurance companies view the subject. In question will be what different company’s stances are when you have been nicotine free for a year, 2 years, 3 years and 5 years.
American General - Standard after 1 year, standard plus after 2 years, preferred after 3 years and preferred plus after 5 years.
Banner - Standard plus after 1 year, Preferrred after 2 years and Preferred Plus after 3 years.
The picture is already painted. When you quit smoking it makes a huge difference what company you go to.
Genworth - Standard after 1 year, Select after 2 years, Preferred after 3 years and preferred best after 5 years.
Indianapolis Life - Preferred after 1 year, preferred plus after 4 years.
John Hancock - Preferred after 2 years and preferred plus after 5 years.
Mass Mutual - You can get their best rate after just 1 year as a non smoker. Unfortunately their rates make up for their attempt at compassion.
Liberty Life - Preferred plus after 1 year and their rates are competitive unlike Mass Mutual.
West Coast Life - Preferred rates after 1 year and preferred plus after 5 years.
Your focus and that of your independent agent, once you have met the 12 month nicotine free threshhold should be seeking out the best possible rate and locking it in. Keep in mind that once that non tobacco rate is locked in, even if you insanely go back to smoking, they can’t change anything. Even though you are a smoker again, your rates will remain tobacco free.
Bottom line. Quit smoking! It’s bad for you. It’s bad for people around you. It’s bad for your health and your life insurance rates.
January 9th, 2008
