Please Advise Me On Companies, Rates, Etc.

pinzon · 11-02-2009, 02:38 PM

I'm only interested in term life insurance. USAA is giving me the rate of about 70/month for a 500k, 30 year plan. The originally quoted me 40/month but because I had bilateral gynecomastia they bumped it up. The procedure was very simple, purely cosmetic (no underlying condition) and done 10 years ago. They said they could take it down to the lower rate if I could provide documentation of this. Unfortunately, I don't have any medical records and don't remember the doctor or clinic's name.

Is it worth trying with a different company? What other companies are there. Please advise.

souldeux · 11-02-2009, 02:55 PM

Originally Posted by pinzon

I'm only interested in term life insurance. USAA is giving me the rate of about 70/month for a 500k, 30 year plan. The originally quoted me 40/month but because I had bilateral gynecomastia they bumped it up. The procedure was very simple, purely cosmetic (no underlying condition) and done 10 years ago. They said they could take it down to the lower rate if I could provide documentation of this. Unfortunately, I don't have any medical records and don't remember the doctor or clinic's name.

Is it worth trying with a different company? What other companies are there. Please advise.

Tons of other companies - what's your date of birth? Do you use any tobacco products? Any medications or health issues?

dgoldenz · 11-02-2009, 03:20 PM

Originally Posted by souldeux

Tons of other companies - what's your date of birth? Do you use any tobacco products? Any medications or health issues?

x2

Also, what state are you in and what is your height/weight? Any family history of cancer/heart disease before age 60?

pinzon · 11-02-2009, 03:41 PM

I'm 28, male, WA state. All my health was fine. BMI, blood tests, heart rate, etc. I'm a non-smoker. I only take an OTC anti-acid and propecia for hair loss. Problem is I have moved around a lot so don't have records. Does $75/mo sound like too much for this kind of policy? What are other top companies (trustworthy - won't try to screw over my beneficiaries)?

CHUMPS FROM OXFORD · 11-02-2009, 03:54 PM

"trustworthy - won't try to screw over my beneficiaries"

I would assume that all of the major carriers will not do that.

souldeux · 11-02-2009, 03:58 PM

You can do much better. Assuming you pass the paramed just fine, West Coast Life will likely give you Preferred Plus - that's $38.50/month, or thereabouts.

Genworth is cheaper by about $4/month, but man, I like WCL soooo much better.

pinzon · 11-02-2009, 07:58 PM

Originally Posted by CHUMPS FROM OXFORD

"trustworthy - won't try to screw over my beneficiaries"

I would assume that all of the major carriers will not do that.

What about all the stories where the insurance company digs up some minor thing that you forgot to tell or declines payment on some technical snag or goes bankrupt and can't pay?
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Originally Posted by souldeux

You can do much better. Assuming you pass the paramed just fine, West Coast Life will likely give you Preferred Plus - that's $38.50/month, or thereabouts.

Genworth is cheaper by about $4/month, but man, I like WCL soooo much better.

Thanks. You're an agent right? Does that mean you get a cut of referalls? Is everyone on here an agent?

arnguy · 11-02-2009, 08:07 PM

Originally Posted by pinzon

Thanks. You're an agent right? Does that mean you get a cut of referalls? Is everyone on here an agent?

No, but almost everyone is an agent. Sounds you don't like insurance agents. The premiums are the same whether or not you use an agent, but you will get personalized service from an agent! Agents are paid commissions from the insurance company. Do you expect free personal service?

souldeux · 11-02-2009, 09:40 PM

Originally Posted by pinzon

What about all the stories where the insurance company digs up some minor thing that you forgot to tell or declines payment on some technical snag or goes bankrupt and can't pay?
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Thanks. You're an agent right? Does that mean you get a cut of referalls? Is everyone on here an agent?

What about all of the stories where the insurance company pays the claim on time? You never hear those because "All is normal" doesn't make a good headline. If you are honest on the application, then there's truly no reason to worry about that. Seriously.

And yes, I'm an agent as well as just about everyone else on here. As arnguy said, if you buy an insurance policy then the rate is set by law: buy that same policy from an agent or directly from the company, and it's the same price. The only difference is that an agent...well, an agent can show you where to get a policy for $38.50 instead of $70 per month.

Unless you contact me directly and buy a policy from me, I'm not making a cent from quoting and helping you. To be honest, even if you did I'd just refer you to a Washington agent - I'm all the way out in Georgia.

dgoldenz · 11-02-2009, 10:07 PM

I'm licensed in Washington state, but if you don't want the help of an agent...

souldeux · 11-02-2009, 10:14 PM

You know, if the thing you're most worried about is a company digging up something twenty years from now and rescinding your policy, one of the best things you can do to keep that from happening is to work with an agent. We know how to catch that kind of stuff before it sneaks past.

I'll personally vouch for dgoldenz - one of the best life insurance agents I've ever spoken with. You'd have a hard time going wrong with him.

dgoldenz · 11-02-2009, 11:05 PM

Originally Posted by souldeux

You know, if the thing you're most worried about is a company digging up something twenty years from now and rescinding your policy, one of the best things you can do to keep that from happening is to work with an agent. We know how to catch that kind of stuff before it sneaks past.

I'll personally vouch for dgoldenz - one of the best life insurance agents I've ever spoken with. You'd have a hard time going wrong with him.

Thanks - also, for the OP, you don't have to worry about anything 20 years down the line. There is a two year contestability period for the insurance company to contest a death claim. After the two years, they cannot contest the claim. If you are honest on the application, they will have no reason to contest a claim.

tozzo51 · 11-02-2009, 11:06 PM

Very simple, there are 3 types of life insurance, term which is crap. universal which is ok if nothing goes wrong, and something always goes wrong, and then there is whole life. which is all someone should buy.

souldeux · 11-02-2009, 11:29 PM

Originally Posted by dgoldenz

Thanks - also, for the OP, you don't have to worry about anything 20 years down the line. There is a two year contestability period for the insurance company to contest a death claim. After the two years, they cannot contest the claim. If you are honest on the application, they will have no reason to contest a claim.

You're right. The only thing that can be corrected after contestability is a misstatement of age (and that's certainly not ground to rescind - they'll just adjust the DB or premiums accordingly as the situation demands).

Robert Barney · 11-02-2009, 11:38 PM

Originally Posted by souldeux

You're right. The only thing that can be corrected after contestability is a misstatement of age (and that's certainly not ground to rescind - they'll just adjust the DB or premiums accordingly as the situation demands).

So if you overstate your age your beneficiary will get a bonus.

Is no one going to give this individual a link to a reputable comparison web site where he can run his own comparisons?

Dare I suggest www.term4sale.com. Is there a better web site?

Just put in your information and run the quote for free.

If that helps, and you appreciate the advice I have just given you, then please consider taking one more bit of advice.

I highly recommend that you find an agent. It costs no more to buy from an agent than if you were to go direct to the company, and if you go direct, the person at the company that you would be buying from is an... you guessed it... AGENT.

And I would always talk to more than one agent and make sure you give the agent who gives you the best advice your business. Agents make nothing if you take their advice then buy the insurance from someone else. And if someone does help you, they deserve the commisions that will be generated by your purchase.

Incidentally, I am not an agent but I do own the software company that owns Term4Sale.

dgoldenz · 11-02-2009, 11:48 PM

Running his own quotes won't do him any good. USAA went from preferred plus to standard (most likely). Other carriers may do the same. The key is to find which carrier(s) may offer a better risk classification. Without checking with underwriters, he'd just be throwing mud on the wall and hoping one of the apps sticks. Never a good idea if you ask me.

pinzon · 11-03-2009, 10:16 AM

Originally Posted by dgoldenz

Running his own quotes won't do him any good. USAA went from preferred plus to standard (most likely). Other carriers may do the same. The key is to find which carrier(s) may offer a better risk classification. Without checking with underwriters, he'd just be throwing mud on the wall and hoping one of the apps sticks. Never a good idea if you ask me.

Yes, that's what they did because of a procedure I underwent that was not a health threat at all,. but I have no records to prove that.

The reason I'm leery of an agent's advice is not that I think it will cost more, it's cause they have motive to be biased towards certain companies.

Dave020 · 11-03-2009, 10:28 AM

Originally Posted by pinzon

The reason I'm leery of an agent's advice is not that I think it will cost more, it's cause they have motive to be biased towards certain companies.

Captive maybe, independent, no. There are many term companies out there all with different underwriting criteria. That criteria is available to agents, not to the public. An independent can shop it out and try to find a good underwriting match BEFORE an application is submitted.

Also, because of the way you did it with USAA, you will now have to disclose on future applications that you were issued a policy at other than preferred rate. That can be a red flag for future underwriters.

dgoldenz · 11-03-2009, 10:34 AM

Originally Posted by Dave020

Captive maybe, independent, no. There are many term companies out there all with different underwriting criteria. That criteria is available to agents, not to the public. An independent can shop it out and try to find a good underwriting match BEFORE an application is submitted.

Also, because of the way you did it with USAA, you will now have to disclose on future applications that you were issued a policy at other than preferred rate. That can be a red flag for future underwriters.

If the policy was issued at a standard rate, he would not have to disclose it unless the question was something to the tune of "have you applied with any other insurance company in the past 12 months?" If the question is only about a policy being rated, postponed, or declined, the answer would be "no" assuming there was no table rating, which it doesn't sound like there is.

Originally Posted by pinzon

Yes, that's what they did because of a procedure I underwent that was not a health threat at all,. but I have no records to prove that.

The reason I'm leery of an agent's advice is not that I think it will cost more, it's cause they have motive to be biased towards certain companies.

An independent agent has no bias towards any given company. Their job is to help you find the coverage for the most favorable rates given the underwriting criteria. The fact that you do not have the physician's information for a company to order medical records may be working against you as the condition you cited can have a number of side effects if it is more severe. It would be best to have an independent agent shop your case among a number of companies to find you the best possible risk classification. If you continue going from company to company putting in applications, you are probably wasting your time. You want to know ahead of time what the offer may be before doing the application. If you want some help, you can e-mail me at dgold@goldfinancialgrp.com or visit our website at Goldenzweig Financial Group as we are licensed in your state and can help shop the medical history for you. We're licensed with about 50 different carriers.

souldeux · 11-03-2009, 10:38 AM

Originally Posted by Dave020

Captive maybe, independent, no. There are many term companies out there all with different underwriting criteria. That criteria is available to agents, not to the public. An independent can shop it out and try to find a good underwriting match BEFORE an application is submitted.

Also, because of the way you did it with USAA, you will now have to disclose on future applications that you were issued a policy at other than preferred rate. That can be a red flag for future underwriters.

Well, hang on, was the policy actually ever issued? If he didn't actually put in an app but was just quoted that rate off of an informal prescreen, no official underwriting decision was ever made.

West Coast Life's app asks: Has proposed insured had a request for life or health insurance declined, postponed, rated, canceled, or restricted in any way? I read that to be effective only after an official UW decision. And it sounds like he went from SP to standard, not a table rating, which isn't a huge deal on an app.