Underwriting/Rating Question

[DHK]

STI - You criticized the PRODUCT (and the OPs reasons for buying it) and then suggested that he should've looked at Term & GUL because of "better underwriting".

Now you're criticizing the AGENT whether he's 'captive' or not.

You're a disgrace.

BTW, 'standard' IS a good underwriting choice and decision. The OP feels that he's entitled to a better underwriting decision. Why? Because insurance companies like to run "specials" on a preferred risk basis. Also, because insurance companies like to run "bait and switch" tactics by advertising their Superman-preferred rates... therefore consumers WANT those rates.

It takes a mature agent to understand this, relate it to the client, and not join into the madness that the industry created for itself.

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At least LGilmore answered the question that was asked directly - without criticizing the product or the agent.

 

[BNTRS]

47 is young for CAD death, but not unheard of. How much of this was explained when the application went to underwriting? Remember, the underwriter doesn't know you, so for all we know the underwriter only knows that dad died young <60 from heart disease, that's a common knock out for preferred and preferred plus.

But, there is more to this story. Dad was a chain smoker who imbibed too much ethanol (as the doctors like to put it) which are two risk factors for coronary artery disease. He was overweight, another risk factor. Now how about his lipids and glucose levels? And what about additional family history? Dad's parents and dad's parent's parents.

Also keep in mind that most underwriters have little discretion when it comes to bending the rules. On paper dad died from heart disease way sooner than he was supposed to, which means you are standard. A lot of underwriters do not have the authority to say otherwise. But they have bosses who do.

The problem, however, is that it's sometimes difficult to hit underwriting with this information after the fact. The good news is you didn't hide it (I hope) so giving them additional information shouldn't be all that difficult.

And yes, there are companies that would be willing to give you preferred based on the information you've provided, so if this company won't, you could look elsewhere.

I can't help but think that sometimes, some people know too much about their family history...

 

[Full Throttle]

STI, the carriers are tighter on underwriting for term and GUL, not the other way around.

 

[LGilmore]

One thing I should add to the OP is some companies standard rates are better than other companies preferred rates. Depends. Some companies that have excellent pricing also have underwriting that wipes the excellent right out of the situation. I was recently surprised by a table rating 2 for a client. Tried it elsewhere at table 2 rates and the one we choose came back with a table 8 on the same underwriting information.... The main thing is your agent should take a look for you and provide you the information to make the best choice possible for what you want.

 

[tlmarketing]

I applied for an IUL policy and was approved with a standard non-tobacco rating. I am a 27-year-old male, I am a health/fitness nut, never smoked, clean MVR, blood tests came back impeccable. BUT, because my father passed away at age 47 from coronary artery disease, I am told I can never be rated higher than standard unless I live to age 60. My father was an overweight chain smoker with a history of alcoholism, so it wasn't like he just dropped dead at a young age for no reason. I, on the other hand, take better care of myself than the vast majority of people, yet I can't get a preferred rating. Are there any situations where insurance companies will reconsider (i.e. the causes that led to my father's CAD) or should I just accept it and move on?

Prudential and John Hancock will both consider "preferred" rate class based on your family history. What company did your agent have you apply to?

Family history is insurance underwriting 101...your agent should have/would have known that the standard rate was the best available with the company they had you apply to.

 

[rrg426]

Prudential and John Hancock will both consider "preferred" rate class based on your family history. What company did your agent have you apply to?

Family history is insurance underwriting 101...your agent should have/would have known that the standard rate was the best available with the company they had you apply to.

Western Reserve Life, which I believe is a Transamerica company.

 

[WinoBlues]

I applied for an IUL policy and was approved with a standard non-tobacco rating. I am a 27-year-old male, I am a health/fitness nut, never smoked, clean MVR, blood tests came back impeccable. BUT, because my father passed away at age 47 from coronary artery disease, I am told I can never be rated higher than standard unless I live to age 60. My father was an overweight chain smoker with a history of alcoholism, so it wasn't like he just dropped dead at a young age for no reason. I, on the other hand, take better care of myself than the vast majority of people, yet I can't get a preferred rating. Are there any situations where insurance companies will reconsider (i.e. the causes that led to my father's CAD) or should I just accept it and move on?

As others have mentioned. Your agent should be shopping the case. This can all be done informally. Also as mentioned one companies Std is another's Preferred.

This is assuming he did not know about the Parent death. Which of course he would have asked before he quoted you.

Lee

 

[tlmarketing]

Western Reserve Life, which I believe is a Transamerica company.

WRL guidelines state standard would be their best rate...If your agent represents more than one company, they need to show you comparisons of the WRL standard rate to other companies who will offer their preferred or standard plus rates. If WRL is their only company, you should shop elsewhere.