There is a tendency for people to just hold on to life insurance once it is in force, even when opportunities to improve on the rate or the term length come up. Most often this happens when their isn’t a servicing agent around to find the better deals and encourage the change.
This week I’ve provided three posts that really shout “out with the old and in the with the new”. These are opportunities that weren’t there two or three years ago so if a person in any of these situations took out a policy more than two years ago, they can likely reapply at this point and either pay less for what they have, get more for the same price, or extend the term length without paying more.
The first opportunity was for private pilots with a VFR rating. Until this past week the best they could find would have been preferred rates or, as I mentioned, ING’s preferred plus and a $.48 flat extra, which in most cases comes out slightly higher than preferred rates. Now a major term insurance player will write up to $10 million of term insurance or universal life at their best rate class if the pilot has 100+ solo hours and flies right side up from 26-150 hours a year. It’s huge.
The second opportunity came in family history underwriting where another major insurance company, in the absence of any other risk factors, will overlook a parent’s cardiovascular related death if the parent at ages 58 or 59. This opportunity may seem rather narrow but I can assure you that it could impact the rates of tens of thousands in a positive way since almost anyone whose parent died of a heart attack or stroke at those ages is currently paying standard plus rates, the third best rate class. For them a jump to the best rate class would be outstanding savings.
The third opportunity is the addition of another major player, ING Reliastar, in aggressive underwriting of sleep apnea. For a lot of years the best case with sleep apnea was a standard rate class. Now with both ING and Prudential allowing best rate underwriting for mild to moderate sleep apnea, another door is open.
Bottom line. A very small percentage of life insurance applicants get the best deal possible right from the get/go. This fact makes it imperative that your agent review annually your situation always with an eye toward improvement of the price, term length or product. Insist on it.