Saving You Money For Life

Finding and the right life insurance coverage can be a time consuming and complex process, especially if the individual looking to secure coverage has outstanding health issues and/or a lifestyle that includes activities deemed to be “high-risk.”  Clearly, this is not a “one-size-fits-all” proposition.  Depending on the specific medical condition or high-risk activity, it is not uncommon for one insurance company to charge significantly more than another.

That being said, you need not be in perfect health or live like a saint to get affordable life insurance coverage.  An educated consumer can still make the right choices by utilizing the best resources available to find the best values.  Often, the process can be a simple one and is just a matter of knowing the right places to look.  Asking the right questions of knowledgeable experts who are familiar with multiple carriers’ underwriting rules is critical.  Such experts will also know which carriers will bend their rules, and when.
For example, is it possible for a cigarette-smoking skydiver to get the lowest price on term life insurance?  Probably not, but it is no longer true that most types of bad habits, risky hobbies or medical conditions will automatically disqualify you for the lowest rates.  Both aggressive competition for customers and longer life spans have driven down the price of term life insurance, the simplest kind of coverage that lasts for a set amount of time and has no cash value. These are well known facts within the insurance industry.  What’s not well known is that many insurance companies grant individual exceptions for certain types of customers, effectively allowing them to qualify for lower rates than would seem possible, when other companies may not offer the same low rate.

Some of these carrier-specific underwriting rules are well known, but most are not, and don’t even show up in the carrier’s rate books or product brochures.  The only way to know about them is to deal with a broker who does a lot of business with several carriers – and is in a position to know what each will or won’t do.  This experience is critical because industry-wide, only about 30% of individuals qualify for the “preferred plus” rate class.

Another sector of society that is often affected by life insurance rates today are those who smoke cigars.  Many carriers typically will charge cigar smokers the same rate as cigarette smokers.  The good news is that there are still many well-known, highly rated, reputable life insurance companies which treat cigar use more favorably than cigarettes.  Some even offer these applicants their best “preferred” non-tobacco rates, assuming the applicant (1) discloses their nicotine use, and (2) can provide a nicotine-free urine specimen during their insurance exam.

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