March is full of awareness. Days for some things. The entire month for others. As we prepare for these 31 days of March, let’s gain some awareness of what they mean for you and your clients in the world of individual life insurance, long term care insurance (LTCi), disability insurance (DI),  and hybrids.

The major underwriting factors that insurance companies use to evaluate risk and determine premium cost are health, family history, lifestyle, occupation, and finances (this differs by insurance type). By type, underwriting considerations look like this:

Permanent life insurance: mortality (with liberal guidelines)

Term life insurance: mortality (with strict guidelines)

DI: morbidity and financial

LTCi: morbidity, lifestyle, and mobility

Hybrid Life/LTCi & Hybrid Annuity/LTCi: similar to traditional LTCi underwriting

Do you know when your clients can get coverage (despite certain medical conditions many think make them uninsurable), when they will be declined, when you should recommend they apply, or when to send them to LLIS to determine their eligibility?

Here is a list of some March awareness observances and Q&A about each. Read the questions, then click for the answers. How many will you get right?

The month of March

National Colorectal Cancer Awareness Month 

Your 56-year-old male client has a history of colorectal cancer (diagnosed six years ago, treated with radiation only), and was diagnosed with Type 2 diabetes three years ago (controlled with diet and exercise).

1. Is he insurable for term life insurance?
2. Is he insurable for DI?
3. Is he insurable for LTCi?
4. • (click for answer)

   • Term life: Yes, he would be rated at a Table 4*. Table 4 premiums would be about double the Standard rate class premiums. This coverage is more valuable to him, despite the higher premium than someone in perfect health would pay, because he already has a health concern, he has kids in high school and college, and he’s in his prime income earning years now.  
   • DI: No
   • LTCi: Clients in early stages of colorectal cancer may be insurable

   
   

Multiple Sclerosis Education Month  

Your 54-year old dentist client was diagnosed 13 years ago with MS. She is stable with no limitations in activities, no complications, and is fully at work.

4. Can she get the $1M 15-year term she wants?
5. • (click for answer)

   • Yes, at Standard rate class! (Note: depending on limitations, issues, and complications that may arise during underwriting, her rates may be higher.)

Sleep Awareness Month 

Can clients who have been diagnosed with sleep apnea get coverage for:

5. Life insurance?
6. DI?
7. LTCi?
8. • (click for answer)

   • A special questionnaire will be required for all types:
   • Life: Yes with optimal control and compliance, Preferred rate class may be available
   • DI: Yes. If compliant for 3-5 years, they may be eligible for a 5-year benefit period and receive a rated premium
   • LTCi: If C-pap compliant, they may be eligible for coverage

National Nutrition Month & National Athletic Training Month 

It’s easy to forget a few pounds, and under- or overestimate your height or weight.

8. Is build important in a client’s underwriting?
9. • (click for answer)

   • Yes, build matters. The height and weight in their medical records, application, and paramed exam should nearly match. Here is a general overview of Preferred build at unisex rates (for life insurance). Note that this chartable information varies by company

   • 

National Bleeding Disorders Awareness Month

9. Does hemophilia mean an automatic decline for life insurance?
10. • (click for answer)

    • No. It puts a client in a higher risk category, and we know insurance companies highly consider risk when accepting an application. However, no two people are the same, and no two cases of hemophilia are the same. Insurance companies will evaluate the severity of the condition, the treatment plan, hospitalizations, lifestyle, and date of diagnosis.

Days in March

March 10: National Women and Girls HIV/AIDS Awareness Day

10. Are female clients diagnosed with HIV/AIDS eligible for life insurance coverage?
11. • (click for answer)

    • Yes. With some companies. While in the past this has been an automatic decline, recently some insurance companies began offering both term and permanent life insurance solutions to clients living with HIV. There are specific “rules of engagement” and there are ratings, but premiums are still within reach of many budgets.

March 20: National Native American HIV/AIDS Awareness Day

11. Are Native American clients diagnosed with HIV/AIDS eligible for insurance coverage?
12. • (click for answer)

    • Yes. With some companies. While in the past this has been an automatic decline, recently some insurance companies began offering both term and permanent life insurance solutions to clients living with HIV. There are specific “rules of engagement” and there are ratings, but premiums are still within reach of many budgets.

March 24: American Diabetes Alert Day

A diagnosis of diabetes means an automatic decline for LTCi, DI, and life insurance.

12. True or False?
13. • (click for answer)

    • False.
      LTCi applicants with Type 1 and Type 2 diabetes taking less than 50 units of insulin a day may be eligible for coverage.
      DI: Type 1 diabetics typically are uninsurable for DI. Type 2 diabetics (controlled) may be eligible for DI coverage with a rating and a limited benefit period.
      For both LTCi and DI: clients who have had the diagnosis for more than 20 years would be uninsurable. This is another example of why clients should consider coverage while relatively young.
      Life insurance applicants with Type 1 may be eligible for coverage with a rated premium. Controlled type 2 can be considered for Standard (or better).

How did you do?

LLIS used a qualitative data analysis tool to determine these rankings. (Translation: a series of quick online searches done at 2:00 am).

Acutely aware: 10 to 12 correct

Trainably aware: 6 to 9 correct

Awareness deprived: 1 to 5 correct

Unconscious: 0 correct.

Learn more by calling our solutions specialists or by reviewing our insurance glossary and advisor tools.

1. DI specialist: Kathy Bilodeau
2. LTCi specialist: Jill MacNeil
3. Annuity/Hybrids specialist: Jerry Skapyak
4. Permanent life specialist: Mark Maurer
5. Term life specialist: Brian Ciccarelli

As we tell your clients in our e-brochure "What Underwriting class will I get?": the more we know, the more we can help. And the more transparent they are, the better we can match them with the right insurance company and coverage. While you, as their financial advisor, may not know your clients' health issues, teamLLIS needs to find out. (Translation: "She looked healthy when she came to our office" usually isn’t an accurate evaluation of their health status.) It is our firm commitment to you and your clients that we will not sell, trade, or give away personally identifiable or personal health information to anyone, except those specifically involved in the insurance application processing. And personally identifiable information is securely stored while in our possession.

*table ratings: Charges added to standard class when health issues exist that, in the eyes of the insurance company, require a higher premium. Most insurance companies will offer policies with table ratings up to Table 12.