Lou Holtz says, "Ladies and gentlemen, you are not selling life insurance. All you're trying to do is help people solve problems before they arise."

 

 

The Non-Medical Term Life Decision


All to often when a client goes to buy Life Insurance they are submitted to MEDICAL UNDERWRITING and they find out they have un-diagnosed high blood pressure,  high cholesterol,  borderline diabetes etc. The time to find out you have a health problem is NOT when your trying to buy insurance. Your MEDICAL test results are submitted to the MIB (Medical Information Bureau) and will now be available for all the other Insurance Carriers to see. Once those results are submitted it is impossible to reverse the results and get lower rates. Since Medically Underwritten Term Life Insurance is priced based on health it is important to make sure you are matched to the proper policy. You can check your health underwriting class to see if your rated better than standard and if your willing to undergo a blood, urine test and physical then get a fully underwritten term policy quote. 

 

Most clients find this out when it is TOO LATE. We recommend using common sense before submitting yourself to such dangers. If you don't see a Doctor on a regular basis getting annual blood work and physicals you might want to consider purcahsing a NON-MEDICAL policy so that you don't have to worry about having to go through the medical underwriting normally requiring urnine test, blood test, EKG's and paramed visit by a nurse to gather your vital signs height, and weight.

The rates often quoted are not rates you will receive once you go through medical underwritting. Our experience is that over 50% of clients rates are higher than they were quoted once the medical underwriting is complete. Most clients that have normal health conditions that have been diagnosed and are currently being treated (high blood pressure, cholesterol, etc) will only qulify for a Standard Rating not the preferred or preferred best rating they were quoted. Since NON-MEDICAL Term Life Insurace starts at a Standard Rating already the client need not worry about finding anything un-diagnosed during the MEDICAL REVIEW there by rating the client at a higher rate or possibly delcined emlinating the clients ability to qualify for Life Insurance. Check the Underwriting Guidlines or talk to a LCSA (Licensed Customer Service Agent)

 

 

Non Medically Underwritten Life Insurance

 

Non-Medical Term insurance is the simpliest insurance of all insurance. It is life insurance that pays a choosen beneficary a lump sum payment (other distribution methods may be available on certain term policies) upon the death of the Insured with NO cash value buildup. The policies are written for a definite time frame known as "TERM" of one or more years. When considering Term Life Insurance we recommend first looking at the "TERM" needed.

Too often clients buy life insurance based on the cheapest price without considering the "TERM" . The shorter the "TERM" the lower the cost since the Insurance Carrier has less risk. But, the main problem to the client in choosing a short "TERM" (1, 5, 10) is that when the policy matures or expires you the client are now OLDER and possibly not as HEALTHY as you were when you originally took the plan out. Insurance cost is based on 2 main factors AGE and HEALTH. We normally don't get healthier as we get older and every year we get older our rates go up because we are that much closer to our mortality age.

Most Term Life Policies are renewable but, not afordable. BUYER beware when buying Term Life Insurance. Things to consider when looking a buying Term Life Insurance is

  • how long you will need the coverage?
  •  Are you looking to cover a long term Mortgage 1, 20 or 30 yrs?
  • Maybe you need a plan for 20 yrs to get your children through college. 
  • Cover a High Value Employee
  • Cover Buy Sell Agreements

Depending on your budget you might consider buying ONE plan for 30 yrs instead of having the expense of having TWO plans or needing to buy additional insurance in 20yrs when your rates will be much higher assuming you would still qualify based on your age and health.