Prostate cancer has been on of those life insurance health issues that we’ve been able to help a lot with over the years. Like so many other issues it can be an instant decline with a lot of companies and we can shop it and get better than standard offers.
Recently I wrote about a customer who had called in asking about life insurance. During our discussion I asked about the Gleason grade of the cancer and it was a 9. From previous posts you might remember that a Gleason 6 or below is pretty easily tackled and standard or better rates are often available. A Gleason 7 is tougher but as long as the stage is low, it can be done at times as a mildly rated policy. A Gleason 8 or above has been pretty much a strike out with most companies on a trial giving the stock, “prefer not to offer”.
The Gleason 9 was no exception. But among all the lumps of coal was a surprise gem, an offer from Principal Life. It wasn’t a great offer, but neither the client or me truly expected anything at all so we were surprised and pleased. Their offer was a standard rate and $15.00 per thousand flat extra for 5 years.
I know I’ve covered this before, but a flat extra for a certain period like the proposed 5 years is a way for a company to sort of pad their willingness to accept risk. So, in this case they are essentially saying that they consider this case to be more risky during the first five years and for $15 per thousand dollars of insurance per year for five years they are willing to accept that mortality risk.
To pull that all into perspective, the client wanted $250,000 so the flat extra (250 x $15 = $3750) is $3750 per year for five years. They said they would approve at a standard rate. In this case the $250,000 of term insurance at a standard rate was $4600 annually. So for the first five years the total premium would be $8350. Starting in the 6th year the flat extra would go away and the premium would be $4600 for the remainder of the term.
No one said it would be inexpensive, but then no one said it would be doable at all.
Bottom line. We found this offer on our third round of trial requests. It pays to have an independent agent who is willing to look where others won’t and try where others say it can’t be done.