Drug use and Life Insurance

Krono · 06-28-2008, 12:08 PM

I have a biz owner that had a cocaine problem 18 years ago. What Life carriers are more favorable towards former drug users?

SportsNut · 06-29-2008, 07:24 PM

Quote:

Originally Posted by Krono

I have a biz owner that had a cocaine problem 18 years ago. What Life carriers are more favorable towards former drug users?

Looking at AIG's u/w guide, they show postponement if within 3 yrs. Rating A-C and D-H otherwise... So I would take from this that they would rate him Tbl B even though it has been 18 yrs since last usage.

This would be potentially a someone that might benefit from a Fidelity rapid decision term, as the issue wouldn't be raised unless criiminal activity was involved, and even then it might not be an issue due to the length of time that has past.

Depends sligthly on the health of the individual, what you are attempting to accomplish, coverage amounts, etc... But that is my best thought thus far.

Winter · 06-29-2008, 08:18 PM

Quote:

Originally Posted by SportsNut

Looking at AIG's u/w guide, they show postponement if within 3 yrs. Rating A-C and D-H otherwise... So I would take from this that they would rate him Tbl B even though it has been 18 yrs since last usage.

This would be potentially a someone that might benefit from a Fidelity rapid decision term, as the issue wouldn't be raised unless criiminal activity was involved, and even then it might not be an issue due to the length of time that has past.

Depends sligthly on the health of the individual, what you are attempting to accomplish, coverage amounts, etc... But that is my best thought thus far.

Maybe if the client only wants 50,000 but if he wants more complete coverage then a B rating from AIG is still going to be more affordable than Fidelity's even though I am not familiar with that company as they are not in my state. Keep in mind that these non-med policies are already rated at about a Table D regardless of what they call their rating.

The other thing is that you have to look at what is actually going on with a client. Underwriters make a big distinction between someone who says thay used 18 years ago versus they used and were also in treatment 18 years ago. Same with DUI. Getting nailed for DUI bumps your rating up but if the person was also treated for alcoholism then they may be denied. Mileage varies according the carrier.

Winter

bluemarlin08 · 06-29-2008, 10:26 PM

A complete outline of the client's situation in the agent report goes a long way. He might be able to get a non rated policy if applied properly.

Steve · 06-30-2008, 02:28 PM

Quote:

Originally Posted by Winter

...Getting nailed for DUI bumps your rating up but if the person was also treated for alcoholism then they may be denied. Mileage varies according the carrier.

Winter

Interesting, but on the other hand I was speaking with an underwriter a couple of weeks ago and they said the opposite. It was for a DUI less than two years ago though, and their stance was the DUI knocked them out until after two years had passed, or, if they had gone to an eval and a safe driving school they could get written now with a two-year flat extra added to the standard rating, or, if they had completed the above, gotten treatement, quit drinking, and attend AA, they might consider writing at standard today. (first offense, no other questionable history, stable family and employment)

Different companies can be very different.

LGilmore · 06-30-2008, 04:46 PM

How big of a problem?

Treatment? reoccurrance? I thought most questions stopped after 10 years.

18 years ago without reoccurrance shouldn't be a problem I would think.

Winter · 06-30-2008, 04:59 PM

Quote:

Originally Posted by Steve

Interesting, but on the other hand I was speaking with an underwriter a couple of weeks ago and they said the opposite. It was for a DUI less than two years ago though, and their stance was the DUI knocked them out until after two years had passed, or, if they had gone to an eval and a safe driving school they could get written now with a two-year flat extra added to the standard rating, or, if they had completed the above, gotten treatement, quit drinking, and attend AA, they might consider writing at standard today. (first offense, no other questionable history, stable family and employment)

Different companies can be very different.

Yup, and the subtleties of client scenarios can make a big difference. If a guy gets a DUI and then goes for alcohol treatment and related programs then that is in his favor. If on the other hand, the guy has been treated for alcoholism but is getting a DUI then that is different. In both instances, the client has been treated for alcoholism but it plays out differently. On person looks and acts chronic, the other like he took charge of an incident and owned up to it.

Winter

Steve · 06-30-2008, 05:19 PM

So many different variabilities and ways that we can help underwriting look at things. I haven't done very many DUI/Drug cases, but this is a good example of how a detailed cover letter with an app can really benefit the situation. Thanks for the insight Winter.

fjman · 07-01-2008, 01:03 PM

MetInvestors just approved my client for 500k. He still goes to NA and AA after 15 years being sober. He recieved a nonsmoker standard rating.

SportsNut · 07-01-2008, 01:08 PM

Quote:

Originally Posted by fjman

MetInvestors just approved my client for 500k. He still goes to NA and AA after 15 years being sober. He recieved a nonsmoker standard rating.

Good job... This is the type of story that you can relate to other potential clients (leaving out the exact details of your clients problem), to relate that you pulled the rabbit out of the hat for them... and you will work hard to do the same for them... (prospect).

Similar situation stories, told with conviction are a powerful tool from which to build additional business.

fjman · 07-01-2008, 01:38 PM

Quote:

Originally Posted by SportsNut

Good job... This is the type of story that you can relate to other potential clients (leaving out the exact details of your clients problem), to relate that you pulled the rabbit out of the hat for them... and you will work hard to do the same for them... (prospect).

Similar situation stories, told with conviction are a powerful tool from which to build additional business.

Yeah everything was disclosed on the app. Treatment, rehab, etc...
MetInvestors is a bit intimidating though. Their med questions start with "Have you EVER....." Not "within the last X number of years" Needless to say this app was very filled in.....

Krono · 07-01-2008, 01:45 PM

Quote:

Originally Posted by fjman

MetInvestors just approved my client for 500k. He still goes to NA and AA after 15 years being sober. He recieved a nonsmoker standard rating.

MetInvestor is who I will be using also...good to know.

My client hasn't used in 18 years, but he has some other challenges. He has no bank account and no regular doc.

This is gonna be fun.

TXINSURANCE · 07-01-2008, 03:13 PM

Quote:

He has no bank account and no regular doc.

This is not a valid prospect.

Do not walk away - run!

fjman · 07-01-2008, 05:12 PM

No bank account, no cell phone.... if either of those are not possessed by a prospect it is unlikely to work out in my experience. I would question his "business" if he has no bank account... MetInvestors is one of Mets life companies (I think there are 6 companies on the top of their apps.)

Steve · 07-01-2008, 05:28 PM

Quote:

Originally Posted by fjman

No bank account, no cell phone.... if either of those are not possessed by a prospect it is unlikely to work out in my experience.

Why the cell phone? I've never taken that into consideration. I've always figured that some people (like myself) don't want to give out their cell phone numbers. I don't really know (or care) if they have one. Or should I...? Please explain.

fjman · 07-09-2008, 01:28 PM

Just an observation... You have a cell number but only call you at home, thats fine...

I don't own a phone, problem! Either can't pay the bill or credit is so bad no one will give them one.