Ed Hinerman On Life Insurance

Farm Bureau Life Insurance! What Are They Thinking?

I think I’ve made my position pretty clear when it comes to where the best values on life insurance can be found and the fact that your local auto and homeowners agency is not that place. I feel the need to expound today.

You see advertisements all the time with the lead “save up to 70% on your life insurance”. That would be great if you knew that you could really find those kind of savings. Seems like one those just a little too good to be true things, doesn’t it? Well, if you have your life insurance through Farm Bureau, based on the last several cases we have written to replace their product, it appears that you are paying over 100% more than you need to.

Their hook is of course that they will offer you a discount on the auto or homeowners. As a consumer I often question why, if they can offer a discount, shouldn’t they just sell the auto and homeowners at better prices to start with. And then they offer you a discount because you have turned around and purchased another grossly overpriced product from them. This can only be construed as a win/win situation if you want Farm Bureau to be both winners.

I know I always look at these kind of numbers skeptically, so be skeptical. These are the results of some very recent Farm Bureau replacements. A Florida executive with health issues had $1,000,000 of 20 year term insurance with Farm Bureau for $12,000+ per year. His rate with West Coast Life is $6085.00. His wife had the same amount with Farm Bureau for just over $3000 per year and is now paying $1005.00 through Western Reserve. Some young friends of mine with two young children had $100,000 of 10 year each through Farm Bureau which was running $54 per month. They now have $250,000 of 20 year term each with Banner for a total of $31 per month.

Bottom line. What is Farm Bureau thinking? I may be wrong, but I think that they think they will make a huge profit if they can find people to buy their overpriced life insurance. Don’t fall for that discount nonsense. If they can afford to discount their auto and homeowners, rest assured that it is for sale somewhere else, straight up, at that discounted price. Seek out an independent agent today.

Add comment August 19th, 2008

Bipolar Life Insurance Success…Almost!

WE have been blessed with great success in getting good, competitive life insurance rates for those with bipolar disorder and really had another success on the way, but the client derailed it. Fortunately this is a rare situation because, frankly, working as hard as we do to get good rates where good rates are not easily available really requires the full cooperation of the client. It is a team effort.

I won’t dwell on this particular case but I do want to point out one sure way to nuke your chances of getting the rates you want. In this case there were a few notes in the records that the underwriter wanted clarification on. Most underwriters don’t ask for clarification, but rather put a worst case connotation on the notes and make an offer based on that. This underwriter did make that offer, but said they would consider a better offer, the rate class originally quoted, if the client got a letter of clarification from the doctor. The client refused.

This action meant there was no chance for the better than standard rates originally quoted. And the client refused to accept the other offer which, by the way, was $1000 a year under the offer I was tasked with beating. Ok, no dwelling!!

This still doesn’t change the fact that we have been very successful in placing affordable life insurance for those with well controlled bipolar disorder. Just a quick review of the points that underwriters look for in order to qualify for those rates.

1. No suicide attempts
2. No hospitalization for bipolar in the last 10 years other than for the purpose of diagnosis.
3. Compliant with treatment. No taking meds when you feel bipolar and slacking when you don’t.
4. Stable work history. You can’t be on disability for bipolar. That is not a stable work history.
5. Stable family/social life.
6. No alcohol abuse.
7. Cooperate with the underwriter in clarifying any information they ask about.

Bottom line. The rates are there. The underwriters are willing to approve them, but keep in mind that they represent companies that are putting hundreds of thousands, if not millions of dollars of life insurance on you. They certainly have the right to ask whatever questions they want in order to make sure they are not subjecting the company to an adverse risk.

2 comments August 19th, 2008