For the sake of this post let’s assume that from a life insurance perspective we would all live to about 90, well above the average mortality rate at least for Americans. And we’ll call that perfect! So life insurance should be free, right, if we all live past the average mortality, in fact past any actuarial significance. That is to say that for the truly odd duck that dies prematurely in an accident or whatever, it isn’t enough to skew the numbers and make life insurance cost anything.
Gosh. To be blissfully right just once in my life, but no, not in this case. Even crossing out any accidents, we still average dying somewhere (in this case 90) and life insurance companies would have to charge for the administrative work which would go on much longer than it does now, the complication of tracking down beneficiaries because the further from the beginning we are the harder it is, and the absurdly high cost of insurance, well, just because. Because even though we are going to die at 90 or more, at least in my scenario, we would start dying rapidly at that age.
Who knows where I was headed with that idea, but reality is that we aren’t all perfect so the best we can hope for is that we will stumble upon an intelligent agent who knows how to discern and use the right life insurance company. Given that, no matter whether you’re 40 or over 50 or 60 your life insurance agent is going to cover the required bases to make sure you’re paying no more than you need to. Also given the right life insurance agent and right company, any health issues will be considered up front and shopped so there are no surprises and you receive the product to do the job you expected at the price that you had budgeted. What a novel concept. Did you catch my Friday post where I shared a client’s surprise and appreciation when he found us and got his life insurance reality turned around from a decline from one company to a best rate class approval?
Bottom line. There was a day when this business, this impaired risk life insurance business, had as much to do with who you knew and what strings could be pulled than the actual medical facts with mortality and actuarial data. We’re sure it’s no longer about who we life insurance agents know. Our world is fresh out of favors. Now it’s about knowledge and hard work on the part of the agent and life insurance company. There is still a way to stack the deck in your favor by researching and picking the right agent, an agent that understands your needs and any health impairments and respects your budget, so shop for life insurance with confidence. If you have questions please call or email me directly. My name is Ed Hinerman. Let’s talk.