Archive for January 22nd, 2008
I was watching a program last night on the History channel called Life After People. The premise was that some event, such as a pandemic, would occur that would finish off all the people but leave the plants and animals intact. With people out of the way, animal, plant and fish life would make a comeback and rule the earth unfettered by man and all of the pollution and over use of resources that come with him.
I, of course, turned the title around in an attempt to once again address the issue of what happens when a person of responsbility dies without life insurance. What happens to the people left behind after that life ends?
Usually we are talking about the primary breadwinner of a family, or at least one of the two breadwinners that keep the boat afloat. What is immediately felt is a drain on any savings as the final expenses are dealt with. Keep in mind that the day of $5000 final expense bills has long since gone. It is now very common, with a funeral, estate probate costs, and final medical bills, for $50,000 to be a moral realistic amount.
Then comes the first missed payday and the reality of the missing breadwinner sets in. There are bills and mortgages to be paid. There is food to buy. There is life to get on with and at best, that challange will be met with only half of what was available before. With 80% of families living paycheck to paycheck, this can be almost instantly devastating.
Choices have to be made. Savings have to be depleted, if there were savings left. Often assets such as retirement accounts and houses need to be liquidated or sold. Extras have to be cut. Things that were once taken for granted are now too expensive. The parent or spouse left behind may have to go back into the workforce, or take a second job.
Life as it was is changed for years, if not forever.
Life insurance can completely change that bleak picture, or at least take some of the pressure off of it.
Bottom line. Whether you are a spouse, a parent of dependent children, or an employer, the responsbility that is yours isn’t going to magically be taken care of should you die prematurely. With the cost of life insurance at all time
January 22nd, 2008
If you have ever had the pleasure of spending a few minutes with me on a health interview, you might think I’m being just a bit too nosy. Not that I ask a lot of questions and I assure you that none of the questions go outside the scope of life insurance relevance, but I start the questions with “Have you ever”……been treated for or diagnosed with……
Most people either don’t care or aren’t paying attention anyway, but there are a few that remind me that their doctor, or their friend, or their mother told them that medical history didn’t matter after 5 years or 10 years, depending on their source.
The reason I ask and all agents should ask “Have you ever” is to get all the cards on the table. It may uncover some things that aren’t relevant to current underwriting, but it may also bring things to the table that you’ve filed as past history that in fact do have an impact on how your policy is underwritten.
A good example of an area where 10 years of history won’t lead to an accurate quote is with a history of cancer. With some cancers there can be an impact past 20 years. It all comes down to a company’s stance on any given issue.
So, why do I ask “forever” questions? My goal is to get you the best rate and I would be failing you if I used company X that cares about your colon cancer 23 years ago when company Y might be ready to let go of the issue after 20 years.
Bottom line. It is the job of the agent to know the companies and know their underwriting guidelines. It’s your job, as a consumer who wants the best rate possible, to arm your independent agent with all the information they need.
January 22nd, 2008
If we have established anything over the past 500+ posts in this blog, it’s that no two life insurance companies underwrite exactly the same. Cholesterol and cholesterol ratios (total/hdl) are carefully viewed in the labwork done for life insurance. Because of the perceived risk of high cholesterol and/or low hdl, benchmarks are set whereby the rates change in conjunction with less favorable results. A few examples illustrate how different companies view this issue.
1. American General - Preferred plus Cholesterol: If HDL < or = to 5.0, 205
If HDL < or = to 4.5, 240 - Preferred If HDL < or = to 6.0, 235
If HDL < or = to 5.5, 260 - Standard plus If HDL < or = to 7.0, 250
If HDL < or = to 6.5, 280 - Standard If HDL >7.0, 250 If HDL >6.5, 280
2. Banner Life - Preferred plus Cholesterol: Levels may not exceed 220; CHOL/HDL may not exceed 5.0 - Preferred Level may not exceed 250; CHOL/HDL Ratio may not exceed 6.0 - Standard plus Level may not exceed 280; CHOL/HDL Ratio may not exceed 7.0 - Standard Level may not exceed 300; CHOL/HDL Ratio may not exceed 8.0
3. Genworth Life and Annuity - Preferred Best Cholesterol (treated or untreated): Maximum cholesterol 240; Cholesterol/HDL ratio cannot exceed 5.0 - Preferred Maximum cholesterol 270; Cholesterol/HDL ratio cannot exceed 6.0 - Select (standard plus) Maximum cholesterol 285; Cholesterol/HDL ratio cannot exceed 7.0 - StandardMaximum cholesterol 300; Cholesterol/HDL ratio cannot exceed 8.0
Bottom line. Three leading life insurance companies with three different views on the issue. I believes this lends some credence to the idea that it really does take an experienced independent agent to find the best rates.
January 22nd, 2008
I have emailed an article I read today to all of the underwriters I work with. While many are on board with the idea that all bipolar is created equal and that all bipolar should be declined life insurance, there are still some hanging on to their worst fears like a security blanket.
This well written article engages in some real life myth busting of bipolar disorder, and probably the “eason it resonates so well with me is that the myths they bust are exactly the reasons that we are placing more and more fairly priced life insurance for the bipolar community every week.
The entire article presents a case for the fact that a compliant, stable bipolar patient is a worthy life insurance risk.
Bottom line. What I hear from the best life insurance underwriters is that someone with bipolar who is compliant with their treatment and, because of that, is stable in their work and family life, is a risk that makes sense for them. While many underwriters get hung up on bipolar being a “mental” issue, the others keep it in context. Compliance and control in diabetes equals fair life insurance rates. The same criteria is used to underwriter hypertension or seizure disorders. The same should hold true for bipolar.
January 22nd, 2008
