Help with using a broker to acquire tern life Insurance

[Molecularblonde]

My husband is a physician who practices Emergency Medicine in WA state.
He had a twenty year term life Insurance policy that is about to expire. I had used a company called "Financial Designs" to acquire this policy. This company specializes in helping physicians attain life insurance and other products. We both are trying to attain news policies. But the prices for one million dollar policies seem quite expensive for two relatively healthy non-smokers.

 

I came across this forum/site after a google search. It's very informative and well-written. Dr. Dahl has vetted several brokers. Do you think it's worth while to start the process of getting a better quote on life Insurance again with a broker that was recommended here? Does it "look bad" to use another broker? Financial Designs deals with many A plus carriers. We were not denied coverage. But my husband takes meds for his shift work, and for narcolepsy and his premiums for one million dollars have gone up.

I'd appreciate advice you could give to us.

Thanks in advance.

[adventure]

Molecularblonde wrote:

Do you think it’s worth while to start the process of getting a better quote on life Insurance again with a broker that was recommended here?

Does it “look bad” to use another broker?

Click to expand...

Yes to maybe. This post (from WCI) helps. term4sale.com can give some estimates, probably worth checking with them (or any other of a number of sites) to get an estimate of coverage, to make sure your quotes are inline. Some of the vetted folks here might be happy to have a discussion with you, even to validate that what you have is sufficient.

No.

Molecularblonde wrote:

But my husband takes meds for his shift work, and for narcolepsy and his premiums for one million dollars have gone up.

Click to expand...

Rates do seem to go up over time. I think I'd want to ensure the coverage you have is sufficient, not just "more coverage". Do you still need $xxx of coverage? or do you just need $yyy? Or do you need any coverage?

I'd say there are great vetted folks here, and there are great non-vetted folks in the world too.

This post (from WCI) helps. term4sale.com  can give some estimates, probably worth checking with that (or any other of a number of sites) to get an estimate of coverage, to make sure your quotes are inline. Some of the vetted folks here might be happy to have a discussion with you, even to validate that what you have is sufficient.

 

 

[adventure]

Perhaps some of the other life insurance forum contributors can chime in, but I'm curious how many folks need life insurance after 20 years? I also have a million policy now, but I don't expect to need it in 20 years. Is it common (real world here, not just what we'd hope to need!) for folks to need the same amount of insurance 20 years later?

[Scott at MD Financial Services]

Most of the reps on here use the parent company of Term4sale which is  CompULife for the quote process.  There are some reasons (ratings of the company, accelerated benefits, projected level vs. fixed rates) to not always choose the absolute cheapest rate since the difference might be an absolutely stripped product from a 'B' rated carrier at $1-2 less than a product from an A+ carrier.  When clients engage us we give them these options and them decide what they want for their family or business coverage.

Let me know if we can help further.

[Molecularblonde]

Adventure,

You're probably right: one million is sort of steep in this time of our lives.

Dr. Danle seemed to say that terms4sale was pretty good. But I believe it just gives a formula for rates, and doesn't take into account any meds or minor health issues that one might have. Not sure though.

I'm just very confused now. My husband is now an independent contractor with no benefits. I used to be a scientist and had benefits of my own, but I no longer work outside the home.

Thanks for your response.

[Molecularblonde]

So far, we have received quotes from Banner, and American General. They seem to be highly rated.

Which company do you work for Scott? You have MD financial listed?

Thanks

[Scott at MD Financial Services]

MD Financial Services is the name of the firm I own but we brokers and place the coverage/risk with the insurance carriers directly for both life and disability.  As for who we work with, it is pretty much all of them.  Typically when we run our CompULife quotes we end up with 400-500 quotes so we then sort for rating, size, and excess capital on their books.  Once we have a clients date of birth, state of residency, benefit amount desired, duration, current health status then that allows us to make a carrier/carriers recommendation that really fits your specifics.  Those carriers along with 6-10 others end up getting the bulk of the term life business unless there is something unique in the medical history.

To get specific to your situation, my email is at the bottom of my signature here and I am on Jim's recommended list.

 

[Molecularblonde]

Thank you Scott, I did see that you we rated under Jim's vetted companies. I wrote down your contact info.

 

Rex, you're right. I'm probably not as healthy as I would hope to be. Despite having fantastic blood work, being a runner, thin, and non smoker, there are a few minor issues that I think took precedence.

 

 

[ajm184]

Both my wife and I each obtained new $1 million 15-year level term premium policies this year.  We used Select Quote as our insurance broker and ended up getting our respective policies from Banner.  For my wife the premium over doubled relative to an identical face value 20 year term policy we had purchased about 12 years ago.  The process through the broker/Banner was very smooth from doing the paperwork, arranging the exam, and getting approved.    We were both in the Ultra Preferred category, though the obvious preference is to never have to make this type of claim.  My wife was most upset that my blood work was 'better' than her despite a 'diet' she says I need to change (tend a bit more towards the cookies vs. veggies)  :P .

[Molecularblonde]

Ajm,

thank you so much for your reply.

i had to laugh, my husband doesn't eat as healthy as I do. And yet his blood work is as good a mine. He thinks fruit comes only in popsicle form, lol!

 

It was a bit..reassuring to hear that your wife's policy went up. I don't mean that this is a good thing, but my husband's rate will triple at the very least. It's shocking. This is my first time applying for life insurnace.

 

May I ask, why did you call Banner directly and not go with a broker? I just mean, how would you compare Banner's rate to other similar products with an "n" of just one?

 

Thanks so much!

[Molecularblonde]

Ajm,

I'm sorry, I misread your reply.

You wrote that you used select quote as a broker. When I went to their website I had only seen home and auto insurance products....

[Jason Veirs]

Molecularblonde wrote:

My husband is a physician who practices Emergency Medicine in WA state.
He had a twenty year term life Insurance policy that is about to expire. I had used a company called “Financial Designs” to acquire this policy. This company specializes in helping physicians attain life insurance and other products. We both are trying to attain news policies. But the prices for one million dollar policies seem quite expensive for two relatively healthy non-smokers.

 

I came across this forum/site after a google search. It’s very informative and well-written. Dr. Dahl has vetted several brokers. Do you think it’s worth while to start the process of getting a better quote on life Insurance again with a broker that was recommended here? Does it “look bad” to use another broker? Financial Designs deals with many A plus carriers. We were not denied coverage. But my husband takes meds for his shift work, and for narcolepsy and his premiums for one million dollars have gone up.

I’d appreciate advice you could give to us.

Thanks in advance.

Click to expand...

Hi Molecularblonde - It's hard to tell by your initial post, but it sounds like you are referring to your husband's ART (Annual Renewable Term) premium on his existing 20 year term policy, which is about to expire? After the initial level term period on a term policy (in your case 20 years), most all term policies then go into the ART period, in which, premiums drastically inflate (in your case at year 21), and then continue to increase on each policy anniversary thereafter. In addition, these premiums will continue to increase as your husband continues to get older, as our mortality risk increases with age. This is precisely why both you and your husband will want to evaluate your life insurance needs sooner rather than later.

I wouldn't pay much attention to these ART premiums, as they're only really relevant in the event that your husband cannot medically qualify for a new term policy and is declined coverage, which doesn't sound like it will be the case. Also, in the even that your husband cannot qualify for a new term policy (again, not likely), he should have a Conversion Option on his existing policy, which although costly, is a great last resort sort of an option, in the event that you definitely still need life insurance coverage.

Also, I'm not sure who gave you the quotes for Banner Life and American General, but these carriers are two of the only carriers on the market who rate their substandard (aka: "Table Rated") rates off of the Standard Plus vs. the Standard health class/risk. Most applicants with a history of narcolepsy will rated as a Mild Substandard/Table Rate, assuming the narcolepsy is well-controlled and no major issues. In some fairly rare instances, Standard rates are possible, but your husband will most likely be rated around Table B/2 rate. With Banner Life and American General basing their premium cost off of the Standard Plus vs. the Standard rates, this means lower rates to you, the consumer.

As far as using a different broker than the "Financial Designs" outfit that you used 20yrs ago, that is not a problem at all. To be honest, in a situation such as your husband's, it's extremely important to work with an independent broker who represents all of the top "A" or better A.M. Best rated carriers on the market, and is very familiar with the underwriting nuances of every individual carrier. This is where working with an experienced broker, who represents all of the main insurance carriers and is familiar with your specific health risk is worth its weight in gold.

Since we specialize in life insurance and specifically high-risk life insurance, we always get all of the details upfront and then send an anonymous quick quote email to over 30+ different carriers/underwriters beforehand, in order to give them the full picture of the situation. The insurance carriers/underwriters then respond back to us with a tentative offer/health class in writing, based on all of the details which we initially provided, and we then compile all of the pricing in order to determine with which carrier to apply. This is where being thorough and providing us with all of the specifics and individual health history is extremely important, as it's a sort of "garbage in, garbage out" situation. Although it is much more work on our end to do this legwork upfront, this ensures that you're always getting the best rate/policy possible, from a high quality "A" or better rated insurance carrier. Also, since we are an independent broker, we can even shift to another carrier, should the initial carrier that we apply with not give you the rating that we're looking for - You wouldn't even have to complete another medical exam, which is extremely convenient.

To be honest, Select Quote is a great broker and they represent most all of the main insurance carriers on the market, but where they tend to lack is that they are not as "hands on" like some other smaller agencies - They're just too big to provide the personalized service (especially in higher risk situations) and they also have sales quotas to meet, which isn't necessarily a bad thing, especially if you're extremely healthy. It's the sort of adage where you're just a number with them, and they may not be as willing to do the extra legwork, as there's another phone call waiting for them to pick up and make another sale. I'm not trying to bash them, but I have had people contact me after initially applying with Select Quote, and have been able to get them much better offers/rates. I have also had friends who have worked there who attested to all of this.

Hopefully this is helpful and I don't mean to bash Select Quote, but this has been based on my actual first-hand experiences with clients. As I stated previously, I think they're great for someone who has no health issues going on and is extremely healthy, but just my two cents. Also, whether you go with a smaller broker or a broker like Select Quote, the process is the same and it shouldn't be any longer or shorter with one or the other. The beauty of a site like www.Term4Sale.com is that the rates are all there and fully transparent, so that you can get a rough idea of the price based on your current age and the amount of coverage that you're looking for. Of course, you will then need to speak with a few independent brokers in order to see who you would like to work with, and who sounds the most knowledgable, but that's the easy part. This is also where it's important to check their online reviews, etc. in order to make sure that they've had success with other previous clients.

Hope this helps!