Prostate cancer has been on of those life insurance health issues that we’ve been able to help a lot with over the years. Like so many other issues it can be an instant decline with a lot of companies and we can shop it and get better than standard offers.

Recently I wrote about a customer who had called in asking about life insurance. During our discussion I asked about the Gleason grade of the cancer and it was a 9. From previous posts you might remember that a Gleason 6 or below is pretty easily tackled and standard or better rates are often available. A Gleason 7 is tougher but as long as the stage is low, it can be done at times as a mildly rated policy. A Gleason 8 or above has been pretty much a strike out with most companies on a trial giving the stock, “prefer not to offer”.

The Gleason 9 was no exception. But among all the lumps of coal was a surprise gem, an offer from Principal Life. It wasn’t a great offer, but neither the client or me truly expected anything at all so we were surprised and pleased. Their offer was a standard rate and $15.00 per thousand flat extra for 5 years.

I know I’ve covered this before, but a flat extra for a certain period like the proposed 5 years is a way for a company to sort of pad their willingness to accept risk. So, in this case they are essentially saying that they consider this case to be more risky during the first five years and for $15 per thousand dollars of insurance per year for five years they are willing to accept that mortality risk.

To pull that all into perspective, the client wanted $250,000 so the flat extra (250 x $15 = $3750) is $3750 per year for five years. They said they would approve at a standard rate. In this case the $250,000 of term insurance at a standard rate was $4600 annually. So for the first five years the total premium would be $8350. Starting in the 6th year the flat extra would go away and the premium would be $4600 for the remainder of the term.

No one said it would be inexpensive, but then no one said it would be doable at all.

Bottom line. We found this offer on our third round of trial requests. It pays to have an independent agent who is willing to look where others won’t and try where others say it can’t be done.

Post from: Ed Hinerman On Life Insurance

Yes Ed, There Is A Santa Claus!

It’s been at least a year since I last shared my dismay with both the readers of this blog and the ADA about the ADA choice to just ignore the subject of life insurance for those with diabetes on their website.

Whether you have type 1 diabetes or type 2 diabetes, there is a wealth of help and information on how to successfully find and get accepted for life insurance. You just can’t find any of it on the website that of the organization whose mission statement is “Our mission is to prevent and cure diabetes and to improve the lives of all people affected by diabetes”.

I’m thinking anyone with diabetes who has ever applied for life insurance would find their lives improved greatly by the sharing of up to date, real life information on how to find life insurance when so many companies stand ready to block that effort and so many agents don’t even know what the difference between type 1 and type 2 is, or what your hbA1c is and how it impacts underwriting.

Any advocacy group that has ever been in my sights knows that I have no love loss or tolerance for groups that claim to represent your best interests but spend more time fund raising and dispensing warm fuzzy information than they do researching and sharing real life, money saving, family saving information. Shoot me if I’m wrong but I think that information about things that might cause diabetes (why would you be on the ADA site to see what might cause diabetes anyway?) probably isn’t as useful or timely as knowing how to get affordable life insurance.

Bottom line. Since I am blocked from sharing information on the ADA forums, I want those who should be able to find the information there, to be able to find it somewhere.

Post from: Ed Hinerman On Life Insurance

American Diabetes Association Still Falling Short!

Once upon a time life insurance underwriting wasn’t as cut and dried, and frankly brutal, as it is today. There was room for flexibility and negotiation and even compassion when working with underwriters.

That was way back then….about 4 years ago. Competition thrived in those days and one company would literally snatch a piece of business away from another company by offering a better approval. It was great for the customer. It ripped their case right out of the textbooks and put it on the block for the most aggressive underwriter to win.

I’ve talked about this shift before that came when there was a great consolidation of re-insurance companies, decreasing the number from about 20 to the present day 6. When there were 20 there was real competition between the “re’s” and if you didn’t like the answer you got from one, there was generally another that would fill the order for you. Sounds a little risky on the surface, like maybe insurance and re-insurance companies were offering rates lower than they should have been, but that really wasn’t the case.

Mortality risk and experience was still the driving force behind all approvals. Underwriters weren’t going out on fractured limbs and putting the risk pool in danger, but the competition was alive and healthy.

Now with the recession and the new economic belt tightening, insurance companies are a little less likely to go that extra rate class to win a case. They aren’t, because of the small number of re-insurance companies, likely to do much outside of the re-insurance manual guidelines unless they are within their own retention limit.

So, is all lost? Do we have to accept all decisions as final? The answer is no. It is tougher than it used to be but what I’ve seen is that underwriters, while not as likely to cut slack for anyone that asks, are still willing to discuss and negotiate with agents who have proven themselves to be worth their trust over the years. A case that kind of drives home what can still be done is one I am wrapping up now where a client with bipolar disorder went through another agent and got a table 2 approval. The client read one of my blog posts and called to see if I could do better since I had more experience with bipolar.

I shopped the case and got a standard trial offer through the same company that had approved him a table 2 through the other agent. I was able to negotiate, after reviewing all the records, a new approval at standard. They didn’t really go out on a huge limb. They just allowed a review and a reconsideration. Good company.

Bottom line. The tighter things get the more important it becomes that you choose an independent agent with the experience and knowledge to get the job done and get it done right the first time.

Post from: Ed Hinerman On Life Insurance

Underwriting Flexibility Gobbled Up By Recession!

It’s that time of year when fall starts giving way to winter and we get those giant wet snowstorms that turn many from sedentary leaf peepers into snowplows.

It’s also prime season for people to visit the ER with heart attacks or heart attacks symptoms that turn out to be some other thing they’ve strained. Case in point, me! Not too long ago I broke my left arm and post surgery was told to let it rest in a sling for 3 weeks before starting anything other than some simple motion therapy they had outlined. My wife and I went on a trip and I convinced her I could drive part of the way without straining anything.

The day after we got back I woke with tightness in my chest, shortness of breath and pain in my left arm. After heart and blood clot issues were ruled out we decided that I had actually strained my chest muscles driving. Caused a lot of cardiac symptoms but fortunately not any issues.

Others are not so fortunate. I had plenty of life insurance and no immediate need for it. We’ve lost a few people in our community lately for which the opposite is true, an immediate need and no life insurance.

Whether it’s shoveling snow or hunting or cutting wood, or just doing the list of honey-do’s that you’ve been putting off for a long time, putting a strain on an under exercised body is a prescription for disaster.

What about life insurance for those who survive heart attacks? Count on it being more expensive than before, but generally a year out from the event and a good stress test will get you back in the game. Factors like your age at the time of the event and how many vessels were involved will play in to how good the rates can be, but with the help of a knowledgeable independent agent, you should be able to get on the road back to cardiac and life insurance health.

Bottom line. Take care of yourself. Let prudence guide your life. Don’t be like me and you’ll get better life insurance rates.

Post from: Ed Hinerman On Life Insurance

It’s Heart Attack Season!

There is a common misconception, especially among those who have pretty extreme weight issues, that life insurance simply isn’t available. With most, but not all, companies they would be right.

Obesity carries with it a lot of mortality baggage that most insurance companies would really rather not deal with. They see the glass as half empty so to speak. When they see an application for someone, say 5′10″ and 370#, even in the absence of any other health issues they can’t seem to get past the fact that obesity is in fact a risk factor for a lot of problems such has high blood pressure, heart disease, cancer and stroke.

Some companies can’t get past that and see their way to an approval. That is not to say that the companies that will approve a policy on a severe weight issue are ignoring the potential consequences, but they are giving some leeway for the fact that those problems haven’t shown up yet. This gives some advantage to younger applicants as, just like diabetes, obesity tends to wear your body down over time. You are far less likely to have been impacted by obesity in your 30’s and 40’s than later in life.

The good news whether you are in your 30’s or in your 50’s or older is that if you have managed to maintain good health, other than your weight, reasonable rates are available. Some companies, like Prudential, even bump their build scale up after age 65 sort of acknowledging that not all of us can hold our stomach in forever.

Bottom line. There are times when you really won’t qualify for traditional insurance based on height and weight, but in most cases that isn’t true. A good independent agent can guide you to the right company for your build.

Post from: Ed Hinerman On Life Insurance

In Most Cases Obesity Shouldn’t Be Uninsurable!

So, you have this life insurance policy and you don’t know if it’s a good deal or not, but it’s in force. That’s a good thing and actually far better than most folks have done. But what if there is a better deal out there?

I am amazed at the loyalty that people have to life insurance policies. The thing that amazes me is that there is generally not an agent that is actively staying in touch and servicing your business and in so many cases the loyalty isn’t to the company for their stellar financial ratings. Clients have often expressed to me that they kind of don’t feel right about switching because, I guess, they feel like that makes them a bad customer.

Let me try to put some perspective on this. The agent who sold you the policy was paid a commission. While most agents don’t agree, in this office that means you get our service for the life of that policy. Some customers feel a certain loyalty to me because I do stay in touch and help them with their questions. Some don’t.

But the norm is that you will buy a policy, be thanked for your business and you will never hear from the agent again. They made their money and they are done with that sale. Nothing personal. They just really don’t see the value in being their for their customers.

You should have no second thoughts at all about replacing a policy through me, good service and all, if you find a better deal, and you should certainly have no loyalty to someone who doesn’t remember your name after the commission check is cashed.

As for the company, let’s really get a grip. It’s going to happen one of two ways. Let’s say you have a policy for $500,000 for which you are paying the company $1000 a year. Let’s say 8 years into the policy you find a better deal. The company has been paid $8000, more than enough to pay for underwriting and any cost associated with putting the policy in force, and then some. So they make, say, $6000 and you cancel your policy and go elsewhere.

Now true, they would have loved to continue to get $1000 a year, but what they won’t miss is the chance to pay your family a $500,000 death benefit. Don’t take that wrong. Insurance companies stand ready to pay and pay without a fuss, but from a profit and loss standpoint, keeping the half million on their side of the ledger is a good thing. The longer you are a customer the higher the risk that they will pay out the big one.

So, are you hurting their feelings or messing them up when you replace their policy? The answer would be nope.

Bottom line. Whether your cholesterol has gotten better or you’ve lost weight and your diabetes is better controlled, or if you just got your last policy through one of those over priced no exam companies, shop it and don’t be bashful about replacing it if you find a better deal.

One other thing to keep in mind. A better deal isn’t always just price. How long the price is guaranteed is a huge factor also.

Post from: Ed Hinerman On Life Insurance

Don’t Be Bashful About Replacing Your Life Insurance Policy!

I got a call from a prospective client last week wanting to see if I could find anyone who would offer him life insurance.

His issue is prostate cancer with a Gleason 9. He had a radical prostatectomy, chemotherapy and is currently on hormone therapy Lupron. His PSA has been undetectable for a year and a half. While we certainly haven’t had much luck with a Gleason grade greater than 7, I told him I would shop it and see. One thing about this business is you really never know.

I got the first round of responses in yesterday and for the most part they were the typical “No way” answers that the reinsurance manuals would lead them to. No harm. No foul. There are companies that will not deviate from reinsurance guidelines even when the death benefit is within their retention limit. I think it’s kind of woosy, but I’m not their CEO so what can I do.

I did get two interesting responses though. Western Reserve Life said no for now but that they would consider coverage December 2010. I suspect at that time it would come, if they approved it, with a substantial flat extra, but that’s OK. We’ll keep that one bookmarked. The other was Lincoln Financial who said they would consider coverage once he was not on Lupron. That may or may not work because we don’t know if Lupron will go on for the rest of his life or not, but again it was not an absolute no.

Generally prostate cancer with a Gleason grade 6 or less is not a big issue as long as the treatment has brought the PSA down to essentially 0 with a radical prostatectomy and less than 0.5 if the treatment was seed implant. Approval at standard or standard plus is a target that can generally be hit. Even a Gleason 7, depending on the stage of the cancer is generally not insurmountable in the life insurance search. A Gleason 7 would probably be a rated policy, higher than standard rates.

But Gleason 8 and above is indicative of a fairly aggressive cancer. I have reached out to more companies on behalf of this client and will post all of the results by each company once they all respond.

Bottom line. Prostate cancer is the second most common cancer amongst men but with early detection and treatment, it is a very survivable cancer.

Post from: Ed Hinerman On Life Insurance

Prostate Cancer Not Insurmountable With Life Insurance!

My Dad died just over a year ago after a two year battle with bladder cancer. I say battle, but he was really in good health (other than the cancer) and good spirits right up to the last few weeks. He was 86 and led an amazingly full, blessed life.

When a parent dies sometimes it brings our own mortality a little closer in a way. We’re the next in line. You know the train of thought. But today is one of those days that makes the frailty of life all to clear. A 33 year old man, a construction worker, had a massive stroke today and was airlifted out to Denver. He’s married and has children and is the bread winner. We’re all praying that he survives and comes through OK.

But there are always these times. I’m sure I’m not just the odd duck that knows all the wrong people. My first wife died at age 33 of cancer. That stuff isn’t supposed to happen.

My present (and forever) wife’s first husband died in his 40’s from leukemia. He died when my now step daughters were in their early teens.

A doctor friend of ours was in his late 30’s when he went to a conference out in California. When his wife couldn’t get in touch with him they found him dead in his motel room from a heart attack.

My brother in law’s first wife died in her 50’s from cancer. There have been a lot of deaths in my church family of the past 13 years. Some, like my Dad, lived a good long life, but too many were young. Too many died way too soon.

How close it’s been through my adult life. I bought life insurance long before I ever considered being in the business. Too many people I knew were left with huge holes in their lives and I didn’t want my wife or children to have financial problems added to an inexplicable loss.

Bottom line. How close does it need to come before you get it?

Post from: Ed Hinerman On Life Insurance

How Close Does It Need To Come?

I’ve talked recently about the United of Omaha “Fit test” crediting program where a person’s health habits and lifestyle can help reduce the price of their life insurance. Well, they bowled a strike on a bipolar disorder term insurance case I was working on today, approving it at the rate they quoted on the trial offer and then lowering that price by about 25% using Fit test credits.

In this case my client was looking at $500,000 of 20 year term at $2360 annually. Once the credits were applied her new guaranteed rate for 20 years is $1762.00.

And these aren’t killer requirements to qualify for credits. It’s not like they want to know if you can run a 10k in under 30 minutes or spend more than 2 hours daily in aerobic exercise.

There are some serious savings to be had for people that have been rated by other insurance companies or have an impairment like type 2 diabetes or bipolar where we know up front that best case is going to be a moderately rated approval. United of Omaha’s crediting can reduce the premium 25% to 50%.

Bottom line. Not being rewarded for your life style is one of the primary complaints people have about life insurance underwriting. United of Omaha just might be the right Fit for you.

Post from: Ed Hinerman On Life Insurance

United Of Omaha Goes For A 300!

Ah, but for the immortal! I’ve long picked on men for their “it won’t get me” attitude when the statistics show differently, but while women do live a bit longer on average, I still wouldn’t take those odds. 1 in 6 men and 1 in 9 women will die between the ages of 25 and 64.

I’m sure there must be a certain “beat the system smugness” if you don’t buy life insurance and your assets grow to the point of self insurance. Didn’t have to spend that money! But ladies and gentlemen, this isn’t a system where attempting to beat the system and making the wrong assumption is very forgiving. Life insurance is very affordable these days and the money you would save over the years where you have real responsibility pales in the face of the burden you impose on your surviving family if you die prematurely.

If you’re married and especially if you have children, you know that trust is at the core of a successful marriage and tops the list in the parenting column as well. Whether you’ve been brave enough to discuss it or not, your spouse and your children trust that you would never intentionally let them down. All of us who are married and have children know how it can rock the boat when we fail at something small. That is the result of inadvertently dropping a rock in the trust pond.

Never mind life insurance for a minute. If you die prematurely kids feel abandoned. You left them when you promised you would always be there for them. Your spouse will go through the same feelings, just more on an adult level. Now add in the fact that you broke that promise and also left them without a replacement for your income and a way to pay the mortgage, or a way to dream of college, or a way to have fun on a vacation.

Bottom line. Responsibility is a tough thing. We seem born to think about ourselves first and it is an adjustment to actually put the welfare of someone else first, but that’s life.

Post from: Ed Hinerman On Life Insurance

1 In 6 Of You Won’t live Long Enough To Brag About Not Buying Life Insurance!