Mutual of Omaha and Transamerica Underwriting Question

[David88k]

I got a call from a 33 year old female looking to get insured and I just wanted to make sure to give her the best option possible. Im new to the insurance business so I want to make sure that I dont mess anything up. I have an indy contract under a GA with MoO and Trans and I wanted to see what the best option would be for her.

She's interested in MoO and she was asking about a 100k term but I showed her how affordable it actually is, if she qualifies for fully underwritten but Im just not sure if she will. She gets state disability and she has bipolar disorder, her height and weight are about 245lbs around 5 5". Would she qualify for fully underwritten standard? or should I just go straight to simplified issue?

She has 5 kids ages 19,18,16,14,12 and I feel really bad about her situation and I want to help her out as much as I can.

I quoted her 300k for 30 year term which came out to $37.76 and I also quoted her 100K GUL to age 90 which was $46.84

Her total premium came out to $84.60 and she agreed to that. I filed out the application and went back to the office and my GA told me that because of her income (around 11k) she can only qualify for about 100,000k. Now lets say I offer her Simplified issue GUL for 100k can I also offer her another 100k in term life through Transamerica? And again would she qualify for Fully Underwritten or should I just not waste my time and go straight to SI?


I am trying to put together the best solution for her and I also want to make sure that she doesn't pay more than she has too. Im willing to go the extra mile for my customers and thats never been a problem but I want to make sure that I am going in the right direction before I do anything else.

Any help would be greatly appreciated.

 

[DHK]

First, your GA is correct. There is usually a maximum amount that is approved based on a multiple of net income. In your case, it's about 10x.

Being in her early 30's, the maximums are usually around 25-30x her income... but you also want to be sure that you recommend an affordable policy.

Is she compliant with any/all prescribed medications?

As far as height/weight considerations, every company should have a build chart for you to reference. Check that out. If you can't find it, ask your GA.

Since she's on state disability... it's probably unlikely that her future income situation will change much. What I'd do is show BOTH policies - a non-lapse GUL and a non-medical term... and let the client choose. Clients like making choices. Just make it simple for her to understand the differences and the premium commitments.


For $100k death benefit... I personally would NOT bother with a medical exam, if I could help it. A non-medical term product would probably be the best bet. Take the app, get a check, and let the company handle it from there so you can find another prospect.

 

[David88k]

First, your GA is correct. There is usually a maximum amount that is approved based on a multiple of net income. In your case, it's about 10x.

Being in her early 30's, the maximums are usually around 25-30x her income... but you also want to be sure that you recommend an affordable policy.

Is she compliant with any/all prescribed medications?

As far as height/weight considerations, every company should have a build chart for you to reference. Check that out. If you can't find it, ask your GA.

Since she's on state disability... it's probably unlikely that her future income situation will change much. What I'd do is show BOTH policies - a non-lapse GUL and a non-medical term... and let the client choose. Clients like making choices. Just make it simple for her to understand the differences and the premium commitments.


For $100k death benefit... I personally would NOT bother with a medical exam, if I could help it. A non-medical term product would probably be the best bet. Take the app, get a check, and let the company handle it from there so you can find another prospect.

Thanks DHK your always very helpful.

As far as medication goes shes not taking anything at the moment and she doesnt have anything prescribed.


My goal for her is to get the most amount of insurance while her children are young and than keep the GUL for the death benefit to be used for final expense.

I'll go ahead and get her going with a Simplified Issue GUL with MoO for 100k (no chance she will qualify for fully underwritten?)

And I also want to get some cheap Non-Med term going for her through Trans just because when I initially offered her to go with MoO Gul to age 90 +30 year term she wasn't opposed to it and she actually liked the idea. (Her mother passed away at age 41 so a combined policy seems like a good fit for her in case something happens to her in the near future) She does have 5 children so I want to make sure she has good amount of coverage.

One more question, if she does take lets say 100k GUL from MoO and 100K term from trans than her income shouldn't be a problem because were using 2 different companies right?

 

[DHK]

You're supposed to disclose on the application any existing policies in force as well as any additional insurance being considered.

What you need to do is verify the financial underwriting requirements for both companies. Generally, you should be fine, but since you're new, you should get familiar with the criteria in them.

Also verify if there are any premium limitations based on income. ANICO has this... and I'm glad it's there. In short, for that amount of annual income, you cannot go past 10% for premiums. Other companies may have similar guidelines.

 

[UW Guy]

Thanks DHK your always very helpful.

As far as medication goes shes not taking anything at the moment and she doesnt have anything prescribed.


My goal for her is to get the most amount of insurance while her children are young and than keep the GUL for the death benefit to be used for final expense.

I'll go ahead and get her going with a Simplified Issue GUL with MoO for 100k (no chance she will qualify for fully underwritten?)

And I also want to get some cheap Non-Med term going for her through Trans just because when I initially offered her to go with MoO Gul to age 90 +30 year term she wasn't opposed to it and she actually liked the idea. (Her mother passed away at age 41 so a combined policy seems like a good fit for her in case something happens to her in the near future) She does have 5 children so I want to make sure she has good amount of coverage.

One more question, if she does take lets say 100k GUL from MoO and 100K term from trans than her income shouldn't be a problem because were using 2 different companies right?

Fully underwritten on a non-wage earner on permanent disability for her bipolar for which she takes no meds? Good luck without a good story. Bipolar off meds is EXTREMELY DIFFICULT to justify without extensive records proving stability. And the fact she can't hold down a job doesn't make me feel better.

 

[bluezebra48]

No chance of approval with any SI company. Don't worry about the GUL, that will lapse anyway. Go with ANICO or Trans, under 250k non-med fully underwritten. After she gets declined there (not on her meds, on full disability), then use something like United Home Life, she might qualify. But, IMO, sounds uninsurable.

 

[VolAgent]

No chance of approval with any SI company. Don't worry about the GUL, that will lapse anyway. Go with ANICO or Trans, under 250k non-med fully underwritten. After she gets declined there (not on her meds, on full disability), then use something like United Home Life, she might qualify. But, IMO, sounds uninsurable.

Before giving advice, you really should know what you are talking about. ANICO or Trans is a decline waiting to happen. No reason to do that.

Based on what has been posted here, she can get some SIWL. Sadly, there is probably more to the story such that she may not even qualify for that.

 

[bluezebra48]

That's what I said, most likely a decline