Your Professional Advice

[TXTXTX]

I will start by saying I have read language around fraud, et cetera, and realize the impact such fraud can have when a carrier attempts to deny payout. I have worked long enough in the insurance business (not in placement), I annoy everyone I know with the mantra that a carrier will spend 9K not to give you 10k.

I also wouldn't ask any of you to violate professional conduct nor policy T&C, so this is of course a request for general advice.

So here's the hypothetical: I am applying for a big term policy with USAA. I have in the past smoked both cigarettes and marijuana, clean now by several years and very stable - family, good income, et cetera. I also know that USAA tends to be very strict about uprating policies based on certain conditions/criteria. I have never had legal issues with my habits, and only really had allergy related asthma that went away 90% once I realized cats should (and can!) live outside. I am certain that my smoking came up when my asthma was first diagnose (2003) so I know disclosing that is no brainer - and will take my lumps. But, in regards to marijuana, there is only a slight chance I mentioned it offhand to my current physician - so no idea whether or not it shows up in my record - and if I did it would have been over 5 years ago at least.

So which is the most prudent decision: shop around with full disclosure with independent agents or take my chances with a lower term with USAA - with or without full disclosure? I've already started, but not finiished, my application with them and was very confident in my full disclosure choice until I started weighing the impact of a rejected application/MIB.

Since this is of course hypothetical, what would be your advice?

I would love to bring my business to a local agent, but I think/hope USAA rates may preclude that.

Thanks,

Tex in TX

 

[STIBROKER]

So which is the most prudent decision: shop around with full disclosure with independent agents or take my chances with a lower term with USAA - with or without full disclosure?

Sorry....but you are going to have to go full disclosure.....if not could give a reason not to pay the claim....now you know you can put in two applications....

 

[TXTXTX]

Two applications? Please elaborate? One for USAA and one for another company?

 

[STIBROKER]

Two applications? Please elaborate? One for USAA and one for another company?

yes......have done it several times with big cases to get the best rate...

 

[TXTXTX]

I may do that, looking for a million term - 41, in good health otherwise. Debating asking my doctor - looked at my electronic medical records and there's no mention of the grass - no escaping the tobacco use.

Thanks,

Tex

 

[moonlightandmargaritas]

...now you know you can put in two applications....

You can do a lot more than two...

 

[TXTXTX]

I knew that, it just dawned on me recently that the good deal USAA offers might not be the good deal it would be if I didn't have these 'issues'.

 

[sman]

Have you looked at other carriers rates? Do you know that USAA is the cheapest or are you just assuming they are? What are the rates being quoted by USAA for the $1,000,000 of coverage you are wanting?

 

[STIBROKER]

I knew that, it just dawned on me recently that the good deal USAA offers might not be the good deal it would be if I didn't have these 'issues'.

I checked usaa site and a rate on a 20 yr for a mil is $69.99 for a 41 male and SBLI is $61.77......

 

[TXTXTX]

I am operating under the assumption they are going to be the lowest because that's typically what happens anytime I shop anything against USAA - silly I know. They're quoting me 115 a month, but those are just estimates, so clearly that figure could go way up once we're done with application/exam.

And I can save about 1.50$ paying yearly - that made me laugh.