Worried about Fully Underwritten Plans

BiggitySwat · Sep 1, 2008

Folks,

I have a client who I've encountered lately who wishes to have some insurance. I've already found the products, prices, etc. and everything is set to go. Here's the only thing though:

They currently have simplified issue TERM life insurance (15 year terms) that is costing them nearly $1,000.00 a month in premium. I can replace these policies with my own ULs (which is what they want instead of the term), which will ALSO save them money, but here's the thing:

The UL products I have in my arsenal are all fully medically underwritten, requiring a paramed exam/blood/lab test. I am VERY VERY worried that they will get rated hard or even declined with my ULs.

I have copies of their term policies and it was apparent that the writing agent "cleansheeted" the app and sugarcoated things. I don't like lying to my own carriers, and even if I did, the para-med for my ULs would show the issues.

The issues are that the gentleman, who is in his early sixties, has: 1) high BP (controlled with oral meds) 2) High Cholesterol (control with oral meds) and 3) Enlarged heart, treated with oral blood thinners. He has had the enlarged heart for more than 15 years, though.

So I'm thinking, even if the other agent cleansheeted the simplified issue app, how did he get approved standard issue? I thought that simplified issue products are HARDER to get approved if the client already has had long-standing medical conditions?

FYI: The ULs I'm thinking about are from IndyLife/AVIVA USA. Are they exceptionally strict with their underwriting?

BiggitySwat · Sep 1, 2008

Re: Worried about Fully Underwritten Plans....

Another thing - I do know from my illustrations and experience that much of the time, we can save clients money even on standard ratings if we go for a full paramed policy than simplified issue.

I would love to do more fully medically underwritten policies to save my clients some money, as every single one I've talked to so far would love to take the para-med exam if it meant substantial savings.

Here's the thing though: I am nervous about doing more paramed policies because of their potential to expose many pre-existing health issues to the insurance carrier that would have NEVER been detectable via simplified issue policies. I want to give good deals, but not if it creates a huge risk for my client to get all-out declined or heavily rated by the insurance carrier.

Your thoughts?

Alston · Sep 1, 2008

Re: Worried about Fully Underwritten Plans....

I don't do a lot of life insurance, but I don't think your client will have a problem getting coverage.

You should be able to get him a policy. The enlarged heart may be an issue, but hopefully not enough to keep your client from moving to a better policy. Neither hypertension nor hypercholesterolemia should keep a client from getting coverage so long as both are under control with meds.

The Rabbi · Sep 1, 2008

Re: Worried about Fully Underwritten Plans....

I would call the carriers and get pre-screens. The blood thinner sounds bad.

The non-meds pull MIBs. Everything would show.

BiggitySwat · Sep 1, 2008