Paying a Death Claim

[JGold814]

I've been pretty lucky, I have never had a problem with DC's

I was big in adding DI riders to MP products but stopped that after a bunch of non payouts.. Nothing worse in the world to have a former client b*tch you out over the phone- had one guy calling me at 2am drunk curssing me.. got so bad I had to change my cell number

Every company is going to excercise their right to the contest clause- even if a client goes down in a 747-

It's their right, I'd do the same if I owned an insurance company.
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Yup, Some companies will even reset the clock if you make an amendment to a policy.. say increase the coverage, or even go from smoker rates to non smoker rates after 2 years and a clean HOS

Reinstatating a policy will also reset the clock in most cases

I would imagine most people trying to go from smoker rates to non-smoker rates just end up replacing the old policy with a new one, thus beginning a new 2 year contestability period.

Are there any carriers that will allow you to change the risk class from smoker to non-smoker during the life of an existing policy? With a letter from a doctor and a blood test or something like that? I haven't encountered that situation yet, but would be good to know in case. Regular life insurance or FE carriers?

 

[TPAAgent]

I would imagine most people trying to go from smoker rates to non-smoker rates just end up replacing the old policy with a new one, thus beginning a new 2 year contestability period.

Are there any carriers that will allow you to change the risk class from smoker to non-smoker during the life of an existing policy? With a letter from a doctor and a blood test or something like that? I haven't encountered that situation yet, but would be good to know in case. Regular life insurance or FE carriers?

By keeping your current policy you still have the old rates- replacing will cause your rates to increase- of course if one wants a new set of years it might make sense (Term)

Yes, most companies require a HOS or urine sample, some require 2 years, but I was told of a company that will consider it after 9 months, cant recall the name of the company tho'.. Im thinking Banner but not 100% sure..No letter from Doc needed..

 

[WinoBlues]

All the PHI does is get the agent some breathing room if there is a claim. It's not just the agents word. Companies that use the PHI do not pay any more claims in the contestability period than ones that don't.

I have had 5 or 6 NA clients dies in the contestability period. They have paid all but one. These were all before they started using the POS interview. i've had two that died in the contestability period with companies that did use the PHI and both claims were not paid.

That is what I meant by moving the agent (me) further from the center of the cross hairs. I have only had two policies not paid in over 25 years. 1 was fraud, I did not write the fraud one. The other was a billing issue. So I do not have much experiance with declines. I work all my own claims so I have been involved in many contestible claims. I have been involved in a lawsuit over a declined claim. It was not fun and I was not the one being sued. I was talking more about moving Lee out of the blast zone. Not if a company is more or less apt to pay a claim.

I do some non PHI if there is a reason, such as the client will not do one, but not as a practice. But then again I am not an FE agent. I think I wrote 6 for the whole month of December. Most of my stuff is fully underwritten, so PHI and know before you go is lightning fast for me. Thre days to issue beats three months.

Lee

 

[Newby]

I would imagine most people trying to go from smoker rates to non-smoker rates just end up replacing the old policy with a new one, thus beginning a new 2 year contestability period.

Are there any carriers that will allow you to change the risk class from smoker to non-smoker during the life of an existing policy? With a letter from a doctor and a blood test or something like that? I haven't encountered that situation yet, but would be good to know in case. Regular life insurance or FE carriers?

I wrote a fully underwritten RNA policy for a guy who had quit smoking 4 months before the application. It was documented during his phone interview. When 12 months of no smoking had passed, I filled out the forms after he had not smoked for 12 months and he was lowered to non-smoker rates the next month.

 

[WinoBlues]

I would imagine most people trying to go from smoker rates to non-smoker rates just end up replacing the old policy with a new one, thus beginning a new 2 year contestability period.

Are there any carriers that will allow you to change the risk class from smoker to non-smoker during the life of an existing policy? With a letter from a doctor and a blood test or something like that? I haven't encountered that situation yet, but would be good to know in case. Regular life insurance or FE carriers?

That is true. On a term policy it may be the best way to go. Term rates may be lower so they can get a longer period and they may qualify for preferred on a new policy. I normally try to keep the paid premiums the same or a bit higher. I will increase value.

Most underwritten policies can be changed. It runs the gambit from full underwriting to just a change form.

Another reason to do one on a term policy is to get non smoker on a conversion. Makes the conversion premium a bit more digestible.