Life Insurance for Disabled

Apr 3, 2007

  1. clk1206
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    clk1206 Expert

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    I am a new licensed agent and i have a friend who is says she is having trouble getting life insurance. She has been in a wheelchair for over 10 years due to a gunshot wound and is paralyzed from the waist down. She is 29 years old and only has a small amount of coverage on her job. She recently gave birth in October and she has a sense of urgency to get some additional life insurance. If several companies have turned her down, does this mean that most likely she will not be able to get coverage from any insurance co? Does anyone know who might take her, if any?
     
    clk1206, Apr 3, 2007
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  2. djs
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    djs Super Moderator Moderator

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    You'll need to work with a company that will let you work with an underwriter. My guess is any computer check will be an automatic decline, but I checked my companies underwriting guidelines, paralysis can be submitted for individual consideration. With the gunshot, especially if the bullet is still there, I wouldn't hold my breath, and even if it is accepted, it's probably very heavily rated.

    I would recommend more coverage at work, make use the the group life rules.

    Dan
     
    djs, Apr 4, 2007
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  3. Cenla Agent
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    Cenla Agent Guru

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    If she cannot be underwritten, then the last resort is a guaranteed issue, "graded benefit" policy, where there is a waiting period of 2-3 years before the death benefit kicks in. If the client passes away before the end of the waiting period, the premium is simply refunded, plus a little interest.
     
  4. Winter_123
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    Winter_123 Guru

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    ===========================================

    We can't tell from the info provided and neither could the insurance company without seeing her records. I would work it a little though just to be sure that she is getting fully reviewed and has the best answer to work with. The point is that she has a newborn and wants coverage. Also, assuming that she is a non-smoker, she might still might still be able to afford some level of coverage even if she is rated up because she is still relatively young.

    I have gotten coverage at a reasonable level for clients with disabilities and it is a case by case situation. It depends on whether the disability is of a nature that could actually increase the clients risk of dying. It depends on whether a person has incurred a disability and now is basically okay except for that limitation or whether that condition still requires them to seek treatment that could still go downhill. Things like that. Some people are paralyzed and simply can't walk. Others are paralyzed and have poor circulation which causes other problems. Etc.

    You need to be working through a brokerage organization or the like that can work it around a little for you. If you are just appointed with one or two companies then that is not much to work with. I would approach it with the goal of getting the best possible consideration or offer for your client that you can. That might include a decline but at least it is a quality decline.

    Winter
     
  5. arnguy
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    arnguy Guru

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    There are some FMO's that specialize in "impaired risk underwriting" or at least have a department within the organization that does impaired risk. You may wish to try www.undspec.com (Underwriting Specialists, Inc.) located in Fort Washington, PA.;)
     
    arnguy, Apr 4, 2007
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  6. LaffAgent
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    It doesn't specifically answer your question, but here is my practical advice.

    Since she's already been declined by several companies you're going to have to pull a rabbit out of the hat which is tough to do when you're a new agent. In time you will have the experience to know what can or can't be done, and you'll have the connections to know where to go to do it.

    Since she's your friend, you probably want to put in the effort. If she was just a prospect, you're time would be better off spent looking for better prospects.

    One thing that you didn't mention is how she got shot. If it was anything other than a combat wound that may be the reason for the decline. People generally don't get shot and you can understand why an UW is going to be concerned.
     
  7. Winter_123
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    Winter_123 Guru

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    If it was anything other than a combat wound that may be the reason for the decline. People generally don't get shot and you can understand why an UW is going to be concerned.[/quote]

    ===============================================

    Let us hope the Vice President is reading this.

    Winter
     
  8. clk1206
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    clk1206 Expert

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    Thanks everyone for your comments. Since she is my friend i am going to do the best i can to find her some more coverage. I thought about the guaranteed life and that was my last option. I will try the underwriting specialists. Im thinking it shouldnt be a problem b/c she doesnt have any health problems. She doesnt smoke. She got shot as an innocent bystander at a middle school bus stop when she was 15 yrs old. She was going to meet her younger sister at the bus stop and one of the school's children's mom shot her close range in the arm ad the bullet hit her spinal cord. The mom was told someone was going to "fight her baby", so apparently she thought a gun was the only protection. I get upset everytime i talk about it. Anyways thanks guys.
     
    Last edited: Apr 4, 2007
    clk1206, Apr 4, 2007
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  9. somarco
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    somarco That Medicare Expert Guy

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    How she was injured has no bearing on the underwriting of the case. It doesn't matter if it was in combat or she was hunting with the Vice President.
     
    somarco, Apr 5, 2007
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  10. somarco
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    somarco That Medicare Expert Guy

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    Para's & quads have all kinds of problems. The longer they are in the chair the more difficult it becomes to stay healthy.

    Sure, Larry Flynt & George Wallace lived a long time after being shot (and Larry is still around) but not without a bunch of health issues.

    Underwriters look at not only current health but potential changes over time. You can have a diabetic in good health (other than the insulin production) but that does not mean things wont change.
     
    somarco, Apr 5, 2007
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