Tag: Phone

1. Completing The Application

Application information is taken over the phone in an easy 5 minute interview. 

Do not misstate your medical history in order to get a better insurance rate classification. Insurance companies will investigate your medical history through the results of your medical examination and inquiries to the Medical Information Bureau (MIB), which is a clearinghouse of medical information for all insurance companies.

2. Completing The Medical Examination
Insurance medical examinations are generally done by para-medicals, who are licensed health professionals, and are independent contractors hired by the insurance company. The basic medical examination can include a physical exam, urine specimen, and blood work.
For higher amounts of life insurance coverage, a treadmill, EKG, and X-ray are usually required.

– Get a good night’s rest the night before your exam.
– Fast for at least eight hours before the exam.
– Don’t smoke or chew tobacco for at least an hour before the exam.
– Avoid coffee, tea, or other caffeine drinks prior to the exam.
– Avoid alcoholic beverages for at least 36 hours prior to the exam.
– Limit salt intake and high-cholesterol food 24 hours before your exam.
– Don’t engage in strenuous physical activities 24 hours before the exam.

3.  Medical Underwriting
Each insurer sets its own underwriting standards. Then each application for insurance is reviewed to determine if the applicant meets those standards. Life insurance underwriting requires total medical underwriting and risk classification.  Medical underwriting involves assessing the applicant’s risk of death.  An underwriter reviews your life insurance application and the results of your medical examination. Underwriters have the option to order whatever additional medical tests they deem necessary  Life insurance applicants are grouped together into risk classes and charged premiums relative to their risk classification. Applicants in a higher risk classification are charged a higher premiums.  The insurance company wants to see if you have any health condition that could eventually affect the insurance company’s
risk. Blood samples will test for the presence of antibodies or antigens to the HIV virus; cholesterol and related lipids; liver or kidney disorder; diabetes; antibodies to hepatitis; prostrate specific antigen; and immune disorders. Urine samples screen for tobacco/nicotine use, certain medications, cocaine, and other drugs. Remember, medical underwriting differs only slightly from company to company.

4.  Risk Classifications

Preferred
If you are a better-than-average risk, have not used tobacco products in the past 5 years, have an excellent lifestyle and excellent medical history, no significant disease in your family history, with no dangerous hobbies or extended foreign residence,  you may be charged a preferred or super preferred rate.

Standard
If you are considered a typical risk, you will be charged one of the standard rates.

Rated
If you pose an above-average risk, you may be classified as an increased risk and charged a higher premium.

Declined
If you are rated as uninsurable, you may be denied coverage entirely.

Options if you are rated or declined?
More than 90 percent of life insurance policies are issued as applied for. If you are rated or declined, the rating is not always permanent. Quitting smoking, weight lose, bringing down your cholesterol or blood pressure will change your rating as an insurance risk and may change your risk classification.

5.  Quoting A Premium
If a medical problem is discovered, you may be offered a rated, or substandard premium. This means you won’t be declined but you’ll have to pay a higher premium if you want the
life insurance. There are two types of risk ratings.   They are flat ratings and table ratings.
For instance, the underwriter will usually issue a flat rating for a short time after a major surgery. However, a person with high-blood pressure would usually receive a table rating.  Table ratings are a percentage of the standard premium. For example, a Table B rating
might be 140 percent of the standard premium.  an underwriting decline becomes part of a permanent record with the Medical Information Bureau which is then available to all insuring companies.