When you are looking at purchasing life insurance you should look for various items with the different carriers. You should look at their proposed rates, financial ratings, conversion options, and specific underwriting guidelines.
The proposed rates are important as that is the amount that you will pay if you qualify for that rate. It is important to understand that a quote is just a guestimated rate. You could come back with a better rating and a better rate or a worse rating. Make sure you understand the underwriting rating that has been assigned to you for the quote. For example, did you get quoted preferred even though you have diabetes.
The financial ratings and strength of the company that will underwrite your business is important. You want to make sure they have good strength and will be able to pay the claims. It is great to get the best premium rate, but if they won’t be able to pay the death benefit, who cares.
Do the insurance companies that you are looking at have good conversion options. When I say conversion options, I mean good permanent insurance options. Conversion allows you to convert from term to either whole life or universal life with no proof of insurability. This can be a very valuable option and make sure to consider this.
The last thing to consider when you are looking at multiple carriers is how each company underwrites for different underwriting issues. For example, is there a carrier that underwrites better for smokers or high blood pressure
Let me tell you the good news and the bad news. The good news is you got approved and the bad news is you got a worse underwriting rating due to your medical exam. This really can be good news as you received approval and have the life insurance that you had sought out. It is unfortunate that you will have to pay more premium than initially was estimated. If there was a reason for the insurance company to rate you, then it may be a blessing that you were even insurable. Insurability can be fleeting and you can be insurable and healthy today and sick and unisurable tomorrow.
Don’t worry as there are often options that you can pursue to modify the premium. One options we offer our clients is the ability to shop the policy with other life insurance companies for them. S0me companies underwrite differently for certain underwriting risks and that could be helpful. The more issues that you can reveal to us up front before we apply the better. For example, if you have type 2 diabetes, there may be a company that we would have you apply to for the most favorable results. The medical exam can catch certain underwriting risks that can be a huge blessing. One of my clients didn’t know that they had high blood pressure until they did the medical exam and no are seeking doctor’s care for it. This may have saved their life, because it would have continued to go untreated.
