So your physician gives you a clean bill of health, but the life insurance company gives you a standard or sub-standard health class rating, what the heck?
These sentiments are natural and we hear this frustration every time this situation comes up. Many consumers don’t understand that your personal physician and a life insurance underwriter look at your health in completely different ways.
Your physician is there to diagnose and treat medical conditions. A life insurance underwriter's job is to forecast your life expectancy based on all available medical evidence and company actuarial experience.
While certain medical issues that may arise from the medical exam, they may be of no concern to your physician, an underwriter reviewing your case may look at it differently. The life insurance company is looking at what may happen with you 5, 10, 15+ years down the road, which may be a less favorable picture than your current clean bill of health. Although don't get too discouraged, there are options out there for those seeking life insurance that may not qualify for the traditional medically underwritten policy, such as the no medical exam life insurance policy, or a guaranteed issue policy, though they will both come with higher premiums to the insured.
Lets take a current case of ours right now as an example:
74 year old male, non smoker who told us he has a “clean bill of health”. However, he smoked for 20 years (quit 5 years ago), controls his blood pressure and cholesterol with medication and his PSA’s are rising, but still considered within normal range by his physician. If I were in his place, I’d feel good about my health! From a life insurance underwriting standpoint, they are looking at what could happen to him in the future and are concerned about his history of smoking COMBINED with his blood pressure meds and family history. They are also concerned with the rising PSA’s. While our client is healthy now, medical evidence and mortality tables paint a less favorable picture down the road. Our client didn't receive preferred rates even though he has a "clean bill of health". There are thousands of stories like this one every year of frustrated applicants that assumed they would get much better rates from the insurance companies.
Bottom line: Life insurance underwriters are looking at your health today AND what they expect it to be in the future. Your physician's records showing your health situation today is just part of the formula an underwriter uses. They use just about every part of your life to calculate how much of a risk that you are, even your driving record. For example, if you have several moving violations on your driving record in the past several years, you’ll pose more of a risk to the insurance company. This could be one of the reasons that so many people receive ratings less than preferred. If you’re looking to save money on your life insurance, you’ll need to lay off the accelerator on your commute to work.
There are dozens of different factors that the life insurance company is going to look at to calculate your rating, which is going to translate into how much you pay for your policy. If you want to get the best rates possible, there are several lifestyle changes that you can make to ensure that you get the best rates possible. Maybe you are needing a small policy or a million dollar policy. Let us help!
One of the first things that you can do is improve your health through diet and exercise. Both of these are going to drastically improve your health through lowering your blood pressure, lowering your cholesterol, lowering your blood pressure, losing weight, and much more. All of these are going to help you get the best rates from insurance companies.
Another way to get better rates is to quit any tobacco usage. Being a smoker is going to cause your life insurance rates to shoot through the roof, regardless of the rest of your health. You could be in perfect health, but if you use tobacco, you’ll pay double for your life insurance versus someone who doesn’t. In some cases, smokers could pay as much as three times what a non-smoker is going to pay.
The best way to ensure that you’re getting the lowest rates possible for your health is to work with an independent agent to help you find the perfect policy. Unlike traditional life insurance agents, our agents at Rootfin.com can represent dozens of different insurance companies across the United States. We don’t work for one specific company, which means we won’t try and sell you lack uster coverage, or try and sell you expensive coverage that doesn’t’ fit your needs. We can help you find a company that is going to give you the lowest monthly rates to keep more money in your pockets.
Every insurance company is different, and all of them have various ways that they calculate insurance premiums. You could receive drastically different ratings from one company versus another. It’s easy to see why you’ll need to receive quotes from dozens of companies before you pick the one that works best for you. It could save you hundreds of dollars on your life insurance. Because there are hundreds of companies, you could spend weeks and weeks calling agents from highly rated companies, or you can let us bring all of the best quotes directly to you.
Working with an independent agent will not only save you time, but it will save you money as well. If you have any questions about life insurance, or about the rating system, please contact us today. We would be happy to answer those questions and ensure that you’re getting the best rates possible. We know that finding a life insurance policy can be a long and frustrating process, trying to compare all of the policies and companies, but we can make it easier for you.
Life insurance is the best way to ensure that your family will be protected if anything tragic were to happen to you tomorrow. Don’t wait any longer to get the insurance that they deserve. While you can’t predict the future, you can plan for the worst. We can help you find the perfect policy at an affordable rate.
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