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.
Let’s 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 your rates, 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.
Getting Cheap Coverage
Before you apply, you should understand the different ways you can get cheaper rates.
To get started, you should know how much impact your health places on your rates. You didn’t get put in the preferred health class. Getting a standard rating is going to cost you several hundred dollars more. Lose those extra pounds and you can find yourself in the preferred class.
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 more.
Unlike traditional life insurance agents, our agents at Rootfin.com can represent dozens of different insurance companies across the United States. We aren’t contracted by one carrier. We have the ability to sell you a policy from more than 60 of the companies.
Sounds too good to be true? It’s not! Use the quote form or give us a call. As soon as you do, you’ll get access to handfuls of quotes in minutes.
If you’ve been putting off buying life insurance because of the hassle or because of the price, we’ve eliminated both of those hurdles. Not you no longer have an excuse not to buy an insurance plan.
Ready to get started? Use our contact form, fill out the quote tool, or give us a call on the phone. Regardless of which one you use, you’re going to be in touch with our agents who have years of experience helping clients get the cheapest premiums out there.
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