Those who follow my blog have seen this battle going on for years. I will admit that the steady stream of “no ways” that I have received occasionally dampens my enthusiasm, but an email I received this morning has prompted a resurgence in my efforts.
The email. “I am a mother trying to find life insurance for my 7 yr old daughter who is type 1 diabetic. She was diagnosed last July and we have been very cooperative with her doctors to keep her under control. We have been turned down by Gerber and Globe. Please let us know if we can receive coverage to ensure she can have insurance as an adult.”
I sent out the following email to all of the life insurance companies I represent and a large number that I don’t. I think it is a feasible thing for a company to take on, but for the fact that they are forgetting that compassion and success aren’t oxymorons.
“Rich and I have been pursuing this for years and it may be one I take to my grave with me, but please send this out again.
What I would like to see is a company that will step out of the box and offer a simplified issue life insurance policy for children with juvenile type 1 diabetes. I have been told that companies don’t want to touch this because they don’t know the mortality risk with children. I have also been told by the American Diabetes Association, the ADA, that the mortality risk for children diagnosed with type 1 diabetes is extremely low. The majority of children who die from type 1 diabetes are diagnosed on an autopsy. It isn’t those that know they have it, but those that don’t who present the larger mortality risk.
What I envision is a product that is simplified issue with a doctor’s letter stating that the diabetes is controlled and stable. It would be the responsibility of the agent to acquire the letter at no cost to the company. It would be, like most children’s life insurance, a term to 23 for say $10,000 with the ability to convert to $100,000 at that time. It would cost more than that for a healthy child and would be non commissionable.
I realize that what I am asking for is outside the box, but what I am asking for is not going to cost a company much, in fact it will more likely be a small profit center. What’s in it for the company? Other than a small profit, they would be perceived as THE company that finally showed the compassion it takes to reach out to a group who, quite frankly, are only being denied because of a lack of statistics, not a block of statistics showing adverse selection.
Frankly I don’t believe the numbers will be huge as far as policies sold. We are talking about a small group of children and a higher cost. We are talking about a product that won’t make a dime for the agent. Honestly I suspect the companies could figure out a way to write it off as a charitable contribution if it did cost them, by offering it through a non profit organization.
Finally I would ask that this goes to medical directors and chief underwriters or presidents of the companies. I already know what the book says and if the answer is no, I want to know why. If not, why not? What would it take for a company to take this on? A partnership? I already know what the book says. I want to know what it would take to make it happen.
Thanks in advance for your time.”
Bottom line. The fight continues. It may take some wealthy person stepping forward to provide the initial reserve requirements for this type of product. The insurance companies have the money but getting them to feel the need and act hasn’t proved very fruitful in the past.
I emailed this post to the ADA to see if they won’t help reach out on behalf of the children.