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  • Quotes for new term life policies...wow!

    So every few years, I look into seeing if I can get lower premiums for my laddered term life policies. My current policies have been in force since 2016, and they're fine, but I just check occasionally to see if I can save some on costs. I figured I had a good chance this year, losing a bunch of weight since the pandemic started and just generally trying to be healthier. So I go through one of the affiliate links on WCI and they figure that Protective will give me the best rates - I'm just looking at the exact same term length and benefits that I currently have.

    Go through the medical interview and blood draw and everything, I check the lab results and everything looks really good. I'm thinking I'm easily going to save a few hundred bucks a year on my premiums. Last week they finally get back to me with the policies, and the cost is...over $1,000 more per year combined, a more than 50% increase relative to what I'm paying now!? And the reasoning they give me for knocking me down a tier? Contact dermatitis! In fairness, I'm no dermatologist, but at no point when I had a rash in 2017 was I ever told to get my affairs in order.

    So either eczema is a heck of a lot more dangerous than I thought, or is there something else going on here? I know I'm 4-5 years older than when I got these policies, but I wouldn't expect such a huge jump in premium prices over contact dermatitis. You guys think it's possible that due to Covid, those in "high risk" careers like physicians, dentists, optometrists, etc. are going to be looked at differently by underwriters? That was the only thing I could really think of.

    This isn't a huge deal to me; I'm still covered adequately. But it's interesting to think of the state of the insurance industry at this point in time. Anyone have a similar experience?

  • #2
    Based on my n=1, I don't think insurance companies know how to interpret medical records.

    Comment


    • #3
      Interesting thought re: COVID. If I were an underwriter (and I have no clue as to their approach or correct way of underwriting) I would absolutely factor COVID into the equation.

      Comment


      • #4
        It could be overall caution about writing new policies during a pandemic. Could be the market moved. Could be you crossed an age band.

        I would shop much wider than just an independent agent. They can only work with a subset of companies. Many of the largest insurers in the country use their own captive agents. You will miss them entirely if you limit yourself to independent agents alone. You will not know their rates unless you ask.

        If all sources come back with the same rates, then you will know that you cannot beat the rates you have. At least, not right now.

        I also don't get the contact dermatitis thing. Maybe a misunderstanding somewhere?

        Comment


        • #5
          Originally posted by Vottomatic View Post
          So every few years, I look into seeing if I can get lower premiums for my laddered term life policies. My current policies have been in force since 2016, and they're fine, but I just check occasionally to see if I can save some on costs. I figured I had a good chance this year, losing a bunch of weight since the pandemic started and just generally trying to be healthier. So I go through one of the affiliate links on WCI and they figure that Protective will give me the best rates - I'm just looking at the exact same term length and benefits that I currently have.

          Go through the medical interview and blood draw and everything, I check the lab results and everything looks really good. I'm thinking I'm easily going to save a few hundred bucks a year on my premiums. Last week they finally get back to me with the policies, and the cost is...over $1,000 more per year combined, a more than 50% increase relative to what I'm paying now!? And the reasoning they give me for knocking me down a tier? Contact dermatitis! In fairness, I'm no dermatologist, but at no point when I had a rash in 2017 was I ever told to get my affairs in order.

          So either eczema is a heck of a lot more dangerous than I thought, or is there something else going on here? I know I'm 4-5 years older than when I got these policies, but I wouldn't expect such a huge jump in premium prices over contact dermatitis. You guys think it's possible that due to Covid, those in "high risk" careers like physicians, dentists, optometrists, etc. are going to be looked at differently by underwriters? That was the only thing I could really think of.

          This isn't a huge deal to me; I'm still covered adequately. But it's interesting to think of the state of the insurance industry at this point in time. Anyone have a similar experience?
          They just goofed up, shop it across other carriers to see what say, you should get the results you are looking for. That would be like a carrier charging a client more on life insurance because of a knee surgery.
          Scott Nelson-Archer, CLU, ChFC
          281-770-8080 Direct / [email protected]

          Comment


          • #6
            It's all based on risk and they try to spread their risk as much as possible. During a pandemic is probably not the best time to get a life insurance policy. Plus, we won't know about any long term effects for years or even decades.

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            • #7
              Having eczema is a risk factor for cardiovascular disease.
              https://www.bmj.com/content/361/bmj.k1786.abstract

              Comment


              • #8
                Originally posted by nephron View Post
                Having eczema is a risk factor for cardiovascular disease.
                https://www.bmj.com/content/361/bmj.k1786.abstract
                So is having a heart...and vascular system...

                Comment


                • #9
                  Originally posted by Scott at MD Financial Services View Post

                  They just goofed up, shop it across other carriers to see what say, you should get the results you are looking for. That would be like a carrier charging a client more on life insurance because of a knee surgery.
                  One could argue, even a knee surgery is worse than contact dermatitis.

                  Comment


                  • #10
                    Originally posted by nephron View Post
                    Having eczema is a risk factor for cardiovascular disease.
                    https://www.bmj.com/content/361/bmj.k1786.abstract
                    OK but OP presumably had contact dermatitis, not atopic dermatitis? Not a dermatologist but..

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