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Top 10 Underwriting Myths That Could Be Hurting Your Clients
Advisors come to me all the time and say “I’ve got a guy…” Each person presents a different set of challenges and, like fingerprints, no two are ever the same. So every case and every individual is unique. And, since underwriting guidelines vary by company, the result is confusion for many of your clients.
With that in mind, let’s demystify 10 of the most common life insurance underwriting topics you may come across:
MYTH: I’m taking blood pressure medications; this will prevent me from getting the best rate.
Someone with well-controlled BP -- regardless of whether or not medication is taken -- may qualify for best class. MYTH: I’m HIV positive, but I’m told I can still get life insurance.
Insurance companies are constantly researching advances in HIV diagnosis and treatments that may lead to the availability of limited life insurance products for some HIV-infected applicants. At the moment, however, someone infected with HIV would be declined. MYTH: My total cholesterol is high and I’m on cholesterol medication; I will pay more for my life insurance.
Age, level of total cholesterol, and cholesterol ratio have more impact in qualifying for best class than whether or not a person is taking medication. MYTH: I’ve had diabetes for about 20 years now. I can’t get life insurance.
Most diabetics are insurable. Your client’s age, age at onset, along with the degree of diabetic control, medical compliance, and presence of complications will help determine insurability. MYTH: Because I had cancer, I’m uninsurable.
Not all cancers are uninsurable. Your client’s age, age at onset, type of cancer, stage, and prognosis are all taken into consideration. Just because your client has had cancer does not automatically mean that he/she will not be approved for life insurance. MYTH: It’s not necessary to fast for at least 6-8 hours before my insurance lab work.
Fasting for at least 6-8 hours is recommended for optimal levels from lab work. Reasons include:
- Caffeine and salt can elevate blood pressure
- Fatty foods can increase cholesterol
MYTH: I had a heart attack; I am uninsurable.
There’s typically a postpone period (6 months to 1 year) then, depending on age, overall health, and the cause of the heart attack, there’s a possibility that your client is insurable. MYTH: Commercial pilots are uninsurable.
Some may even qualify for best class. MYTH: I’m in Mexico for vacation and since I’m completing an online application, I can electronically sign it while I am here.
All insurance applications must be signed in the U.S. and policies must also be delivered in the U.S. MYTH: I’m a firefighter; I’m uninsurable.
Firefighters are insurable. Premiums will depend on duties (e.g., smoke jumpers vs. municipal).
Because every person is different, it is important to give each case the individual attention it deserves. Asking the right questions and demystifying common life insurance underwriting misconceptions for your clients is a good place to start.
Someone who was declined in the past may actually have been “postponed,” which means that person could get insurance today. But unless you ask the right questions or have someone on your side who knows how to navigate the underwriting matrix, your client’s opportunity (and therefore, yours) may be lost forever.
For more information about underwriting, please contact Peachie Thompson.
Copyright © 2014 Low Load Insurance Services, Inc. Contents may not be copied, reproduced or redistributed without prior written permission of
Low Load Insurance Services or its affiliates.
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