term life premium...

[Jason Veirs]

 

Hank wrote:

We have a number of good and honest insurance guys who participate on the WCI forum.  Nevertheless, I have to give some credit to Scott for acknowledging the time that Jason spent replying to the original poster’s question.  It’s sort of the opposite of this:

https://www.youtube.com/watch?v=Dj3GH5myc3M

Click to expand...

I couldn't agree more, Hank. Scott and all of the other insurance contributors on the WCI forum are extremely kind and knowledgeable professionals, who are true experts in their field.

What Dr. Dahle has created here is a great community of like-minded individuals and I'm grateful to be a part of it. I have not only learned a wealth of investment and financial advice from this forum, but I still continue to learn from Scott and many of the other insurance professionals on an ongoing basis.

[Hank]

We have a number of good and honest insurance guys who participate on the WCI forum.  Nevertheless, I have to give some credit to Scott for acknowledging the time that Jason spent replying to the original poster's question.  It's sort of the opposite of this:

https://www.youtube.com/watch?v=Dj3GH5myc3M

[Scott at MD Financial Services]

Jason kind of lined it all out for you, why don't you call Jason....

[Jason Veirs]

hospitalist md wrote:

@jason viers : thank you for you prompt reply jason. i did this whole process on my own by going to protective website when somebody recommended the company. but it looks like it would be better to get a broker to look at multiple other options. can i do this online or should i find a local agent.

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No problem! I'm probably biased, but in situations such as these, you will definitely want to work with a broker who knows underwriting and has access to multiple carriers, as it's a little more complicated and not something that you can just buy off the shelf - This will actually save you thousands of dollars, as you are leveraging the broker's knowledge and since all of the rates are set by the carriers, the rates are exactly the same. If there are no health issues, then you can usually just purchase online, though there's always an agent somewhere in the mix.

Nowadays, there are many brokers like myself who work with agents across the country (via screen share, etc.), but www.Term4Sale.com is always a good place to start. I'm listed on there as well, and the agents/brokers are usually pretty knowledgeable.

Lastly, just because you're working with a broker vs. taking out the policy online, doesn't necessarily mean that it's a real long drawn out process. Everything can usually be handled in a 15 minute phone call, so it's not like it's a complicated process.

Please let me know if I can help further.

 

[hospitalist md]

@jason viers : thank you for you prompt reply jason. i did this whole process on my own by going to protective website when somebody recommended the company. but it looks like it would be better to get a broker to look at multiple other options. can i do this online or should i find a local agent.

[Jason Veirs]

hospitalist md wrote:

thank you for all your answers. i have mild psoriasis for which i use topical medication. the first time i got a quote, they said i was anemic when my hgb was at 11 and gave me the standard non tobacco rate as above. i was just coming off of pregnancy then. so i waited a few months, improved my blood counts and asked for quote again. they repeated all the tests and came back for the same quote , now citing psoriasis. they never mentioned that as an issue the first time.

will all the insurance companies consider psoriasis as a negative point if i am other wise in perfect health. if so, then should i still shop around or should i proceed with this one.

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It looks like they dinged you previously for your labs, due to your pregnancy throwing off your figures. Now that shouldn't be a problem, so I would definitely shop it out.

Also, psoriasis is usually not an issue and you should be able to get at least a Standard Plus NT rating, which would lessen your premium cost. Protective unfortunately only has 3 UW classes - Select Preferred, Preferred and Standard NT and no Standard Plus NT. Protective is also pretty "tight" when it comes to Underwriting (UW) and there are other carriers who should easily give you a Preferred Plus NT rating, depending on the severity of your condition. From what you've previously stated, it sounds very minor.

The best way to do this is to shop out your policy via an anonymous email to multiple carriers and underwriters, with the specifics of your condition - You basically give them a full picture of the situation, and then they reply back with a tentative UW class. This usually ensures that you're always applying with the best carrier out of the gate for your situation and any good broker should know how to do this. It's a lot more work, but you always do what is in the clients best interest.

Hope this helps!

[hospitalist md]

thank you for all your answers. i have mild psoriasis for which i use topical medication. the first time i got a quote, they said i was anemic when my hgb was at 11 and gave me the standard non tobacco rate as above. i was just coming off of pregnancy then. so i waited a few months, improved my blood counts and asked for quote again. they repeated all the tests and came back for the same quote , now citing psoriasis. they never mentioned that as an issue the first time.

will all the insurance companies consider psoriasis as a negative point if i am other wise in perfect health. if so, then should i still shop around or should i proceed with this one.

[Jason Veirs]

cgossage wrote:

Jason Veirs wrote:

cgossage wrote:

I don’t sell insurance, but I refer clients for life frequently.  Do you need a 30 year term?  I’ve been recommending a lot more 10 year term or 10 year Universal with a declining Face Value option on the back end if you want to keep some life after the 10 years.

As a point of reference, I recently got a quote for a $2mm 10 year term policy on a 37 year old physician and the premium was $500/year.  The Universal Life options was only $5 more per year which allowed the client to keep the coverage after the 10 year period and at the same rate, but the benefit would decline each year thereafter.

Click to expand…

This product that you’re referring to sounds exactly like the Custom Choice Universal Life (UL) product from Protective Life that the OP is referring to, where the death benefit decreases after the initial 10-30yr term period, but the premium amount stays the same – It is the only product on the market (that I’m aware of) which has this decreasing death benefit feature, and it is pretty unique. It’s also typically priced within the top 5 lowest carriers, therefore, it’s definitely something to look at when shopping for a Term policy.

With that being said, the death benefit usually drops by about 1/2 and keeps decreasing every year thereafter, depending on the client’s age, underwriting class, and the death benefit of the policy, so oftentimes, you are better off layering multiple policies at different term lengths and death benefits in order to accomplish a lessened need for life insurance over-the-years. Of course, everyone’s situation is unique.

Based on what the OP provided, it sounds like she was rated as a Standard NT, which is really going to hammer her on the price. This is why her broker should be trying to get her up to the better/lower risk Underwriting Class of Preferred Plus or Preferred NT.

Click to expand…

I looked back and yes, it is the Protective UL Policy.  My question to her was whether or not 30 years is necessary or if she could get by with something with a shorter term.

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Yeah, that's definitely a great question and something that she should consider, as a 10-25yr term will definitely be less expensive based on her mortality risk, but it may not fit the bill coverage-wise.

As I mentioned previously, she should be able to get a better Underwriting Class, which would allow her to buy more death benefit at a lower cost. If she's young and healthy, then she should be able to get PPNT or PNT rates - it's just a matter of shopping it out.

Attached is the guaranteed death benefit values and pricing for a $1MM 10yr Term (technically a UL chassis) with Protective, based on her STD NT rating. As you will notice, the face amount drops by about 40% after the 10yr level Term period.

[cgossage]

Jason Veirs wrote:

cgossage wrote:

I don’t sell insurance, but I refer clients for life frequently.  Do you need a 30 year term?  I’ve been recommending a lot more 10 year term or 10 year Universal with a declining Face Value option on the back end if you want to keep some life after the 10 years.

As a point of reference, I recently got a quote for a $2mm 10 year term policy on a 37 year old physician and the premium was $500/year.  The Universal Life options was only $5 more per year which allowed the client to keep the coverage after the 10 year period and at the same rate, but the benefit would decline each year thereafter.

Click to expand…

This product that you’re referring to sounds exactly like the Custom Choice Universal Life (UL) product from Protective Life that the OP is referring to, where the death benefit decreases after the initial 10-30yr term period, but the premium amount stays the same – It is the only product on the market (that I’m aware of) which has this decreasing death benefit feature, and it is pretty unique. It’s also typically priced within the top 5 lowest carriers, therefore, it’s definitely something to look at when shopping for a Term policy.

With that being said, the death benefit usually drops by about 1/2 and keeps decreasing every year thereafter, depending on the client’s age, underwriting class, and the death benefit of the policy, so oftentimes, you are better off layering multiple policies at different term lengths and death benefits in order to accomplish a lessened need for life insurance over-the-years. Of course, everyone’s situation is unique.

Based on what the OP provided, it sounds like she was rated as a Standard NT, which is really going to hammer her on the price. This is why her broker should be trying to get her up to the better/lower risk Underwriting Class of Preferred Plus or Preferred NT.

Click to expand...

I looked back and yes, it is the Protective UL Policy.  My question to her was whether or not 30 years is necessary or if she could get by with something with a shorter term.

[Jason Veirs]

cgossage wrote:

I don’t sell insurance, but I refer clients for life frequently.  Do you need a 30 year term?  I’ve been recommending a lot more 10 year term or 10 year Universal with a declining Face Value option on the back end if you want to keep some life after the 10 years.

As a point of reference, I recently got a quote for a $2mm 10 year term policy on a 37 year old physician and the premium was $500/year.  The Universal Life options was only $5 more per year which allowed the client to keep the coverage after the 10 year period and at the same rate, but the benefit would decline each year thereafter.

Click to expand...

This product that you're referring to sounds exactly like the Custom Choice Universal Life (UL) product from Protective Life that the OP is referring to, where the death benefit decreases after the initial 10-30yr term period, but the premium amount stays the same - It is the only product on the market (that I'm aware of) which has this decreasing death benefit feature, and it is pretty unique. It's also typically priced within the top 5 lowest carriers, therefore, it's definitely something to look at when shopping for a Term policy.

With that being said, the death benefit usually drops by about 1/2 and keeps decreasing every year thereafter, depending on the client's age, underwriting class, and the death benefit of the policy, so oftentimes, you are better off layering multiple policies at different term lengths and death benefits in order to accomplish a lessened need for life insurance over-the-years. Of course, everyone's situation is unique.

Based on what the OP provided, it sounds like she was rated as a Standard NT, which is really going to hammer her on the price. This is why her broker should be trying to get her up to the better/lower risk Underwriting Class of Preferred Plus or Preferred NT.

[cgossage]

I don't sell insurance, but I refer clients for life frequently.  Do you need a 30 year term?  I've been recommending a lot more 10 year term or 10 year Universal with a declining Face Value option on the back end if you want to keep some life after the 10 years.

As a point of reference, I recently got a quote for a $2mm 10 year term policy on a 37 year old physician and the premium was $500/year.  The Universal Life options was only $5 more per year which allowed the client to keep the coverage after the 10 year period and at the same rate, but the benefit would decline each year thereafter.

[Scott at MD Financial Services]

When I run your rates I am showing about $42-$47 per month gets you 8 different carrier options on $1 million of death benefit and a 30 year rate lock, assuming great health and Preferred Plus rating.

[Jason Veirs]

karturi wrote:

so I applied for 30 year term life insurance for 1 million with protective. The quote came back as 1164 dollars a year or 97 dollars a month.

I am a healthy 30 yr old female with no medical issues. is this premium appropriate or too high. should i shop around with other companies before i confirm this.

Click to expand...

It looks like you were rated as a Standard Non-Tobacco with Protective Life, which comes to $97.01 per month for $1MM 30yr Term for a 30yo female (SEE SCREENSHOT BELOW). Did you ask your broker why you were rated as a Standard NT? You can also pay the policy annually and save about $30 per year, but you should be able to do much better than a Standard NT rate, assuming you're healthy.

Also, Protective is a great company, but they will ding you for a family hx of CAD or cancer before 60 (parents and siblings), in addition to not being too forgiving with labs that are out of whack. This is why you always work with a knowledgeable broker who represents multiple carriers and is familiar with each of their Underwriting Guidelines - It's essentially, knowing the chessboard, so that you can use their Underwriting Guidelines to your advantage.

Your broker should be able to give you a reason as to why they rated you as a Standard NT and then start looking at other alternate carriers who will then look at you more favorably, in order to give you a better rate - This is a broker's job and if they aren't doing this for you, then you need to shop around.

Please see attached rates which were obtained from www.Term4Sale.com and let me know if I can help further - As you will notice, there are 10 carriers at the Standard NT rating who are also less in price, but you should be able to get at least a Standard Plus NT rating, which Protective Life unfortunately does not have.

 

[ajm184]

Agree with others, seems too high for age/health.  My wife got a $1 million of term insurance last year for less than $900, though she is both older and seeking a shorter tenor (15 years).

[ACN]

https://www.term4sale.com/

insured at 28, excellent health, 2 mil, 20 years. $780/year is what I pay

 

plugging your numbers in above gets you $550/yr on the website as a quote.