Qualifying for term life insurance policy after being turned down due to abnormal CDT test

[RunnerDude]

I am working with a 54-year-old female who was recently turned down for $1 million 10-year term life policy due to an elevated CDT test result. Other than that, she is in perfect health (perfect labs) and well within her height and weight limits. She is a drinker, but only consumes 6 to 10 alcoholic beverages per week. She did make the mistake of telling a physician that she has on occasion consumed three drinks in one day. She was turned down by Bonner Insurance. She did say that she was with friends the weekend before the test and had more drinks than usual. I am going to try applying with American General for the same amount. Will they just run the test again and see if she passes, or will the fact that she was denied coverage with Bonner due to the abnormal CDT test prevent her from being approved (even though the application will state that she only consumes 6 to 10 drinks per week and not more than 2 per day)?

 

[Tahoe Ray]

I am working with a 54-year-old female who was recently turned down for $1 million 10-year term life policy due to an elevated CDT test result. Other than that, she is in perfect health (perfect labs) and well within her height and weight limits. She is a drinker, but only consumes 6 to 10 alcoholic beverages per week. She did make the mistake of telling a physician that she has on occasion consumed three drinks in one day. She was turned down by Bonner Insurance. She did say that she was with friends the weekend before the test and had more drinks than usual. I am going to try applying with American General for the same amount. Will they just run the test again and see if she passes, or will the fact that she was denied coverage with Bonner due to the abnormal CDT test prevent her from being approved (even though the application will state that she only consumes 6 to 10 drinks per week and not more than 2 per day)?

No easy answer but I would get her examined again by another carrier after she has abstained for at least a few weeks.

Maybe the other carrier will just chalk it up to the weekend thing. No way to know without trying again.

If she can't abstain for at least a few weeks (that test normally returns to normal after a while) then you have a whole other issue there.

 

[SoCalAdvisor]

Read the application to see if it asks, using language such as, "within the last year (or 2) has the proposed insured had life insurance coverage declined, postponed or limited, or been denied reinstatement or asked to pay extra premium by any insurance company?". Most likely that information is now in the MIB database.

 

[Tahoe Ray]

Most likely that information is now in the MIB database.

Sure it is. But why does that matter? I get clients who were declined/rated approved with other carriers all of the time. So do most agents I know who work with f/u products.

It's just part of the deal.

 

[PrivClientSG]

The decline is most probably now part of her MIB. In addition, any new application is going to ask if she's ever been rated or declined, so she will have to answer that. You also don't know what is in her APS's/medical records, although she told you what she did tell a doctor. In all likelihood, this is probably going to be an issue. At this point, deal with it head on, do damage control if there is unfavorable reporting in the APS's/medical records and aim for favorable CDT test results next time. All the best!

 

[WinoBlues]

All of the above suggestions.

Also, manage expectations. Cover placing a rated case. $500,000 rated is a win compared to $1,000,000 declined.
I would fill out an alcohol use questionnaire as well. I would keep it in my file of course. One, is to help the underwriter approve the case and two, for my own protection in case of a contested claim later.