Life Insurance

[nervousmark]

Hello, All!

I wanted to introduce myself and extend my heartfelt admiration to all those who are dealing with this dignity and life sapping monster known as ALS. I am here because a good friend of mine has ALS and suggested that I share what I have recently discovered in the area of Life Insurance.

I'm a financial representative for a large national life insurance company who shall remain nameless at the moment considering they, like most LI companies, do not accept people after diagnosis. That said, I was recently researching options for a client who is HIV positive and I came across a company who will insure a person without a medical questionnaire or physical exam--meaning it would also work for those diagnosed with ALS. It has some interesting caveats, is certainly expensive, and will not work for everybody, but at least there is an option for some people after diagnosis.

Here are some of the main bullet points.

1) Applicant must be at least 39 1/2 years old at the time of application
2) No medical questionnaire or physical exam is required
3) Policy can be a minimum of $1000 and max of $50K.
4) If the applicant dies within the first 3 years after policy issue, the death benefit will consist only of all premiums paid plus an interest rate of 5% compounded.
5) The applicant cannot be hospitalized or under institutional health care at the time of application.
6) The annual premium starts at $2433.55 (for a full $50K coverage) and can be broken into semi-annual, quarterly and even monthly payments. The premium will be nominally higher for the shorter payment options.

Worst case seems to be that even if the insured dies prior to the first 3 years, they will get all their money back plus money-market interest rates. I researched the company's rating. They are pretty much middle of the pack as far as the rating agencies go.

There are clearly more things to consider and this posting should by no means be construed as a solicitation or offer of insurance or even a complete illustration of the terms and conditions of the policy. My posting was merely intended to inform the forum community that a company does indeed exist that may be able to provide LI benefits.

Sorry for the disclaimer, but I have to make sure that I cover myself for the sake of my insurance license.

Currently I am only licensed to do work in the state of Colorado, but if anybody has a need for this product, I can connect you with an affiliate of mine in your home state.

 

[Al]

I can see where you might be nervous. We have had quite a few discussions here about insurance issues. If you wouldn't mind I am sure some members will have questions. Some might need ins. some might just need some free informed advice. Hopefully you can provide what is needed for the members here.
AL.

 

[mamaoftwo]

Which company? Contact info. I, for one, would be interested. Thanks.

 

[nervousmark]

LI company info

I'm not trying to be evasive, but that company only sells through approved wholesale agents and will not go directly to the public as some will (if they have a retail division).

If you are comfortable doing so, please email me at [email protected] and I can make a good recommendation for your area in New York. It will take me a day or so to find one that I can interview so that I would be comfortable in making that referral, but I promise I will get it to you.

Regards,
Mark

 

[nervousmark]

Age different for NY

just FYI-- the minimum age for residents in NY is 49 1/2. I just saw that you were in NY.

 

[trying to stay positive]

Hi all,
Just thought I'd add my "2 cents". AARP & Colonial Penn both offer LI policies with no health exams or health questions. Similar deals. If the policy holder dies due to illness within the first 2 years, then premiums paid are returned plus interest. If death is accidental within the first 2 years then the policy pays out in full. As if we don't all have enough to deal with!

 

[kelly]

thank you

This is great information..thank you!

 

[nervousmark]

other Life Ins options

Gerber Life also has a similar policy to AARP and Colonial Penn. The difference between those and the one I found is that the death benefit (policy amount) is much smaller.

One more piece of advice...Life Insurance premiums are regulated, so there is no price break by going direct to a company vs. using a broker. AARP usually has pretty good deals on things like regular term life and auto insurance, but since they aren't a life insurance company themselves, they simply re-brand a policy underwritten by somebody else--meaning the price will be the same as going to that underwriting company through another broker. Bottom line: find somebody you trust and work with them.

 

[Al]

So your regular broker that you may have been dealing with will have access to these policies as well? Most people with or waiting for a diagnosis are reluctant to call their broker/agent for fear of being cut off from something else. Do these guys have any confidentiality agreement etc. that they wouldn't rat you out to the other companies you deal with?
AL.

 

[nervousmark]

There is no guarantee against that, Al. Technically, an agent has the responsibility to be the first line of defense against risk to the company. If something is already in place, there are laws against a company excluding you because your health condition changes. The best time to get new insurance is obviously before a diagnosis--but who really knows when and if that'll be until AFTER it happens, right?. Once your medical records start showing trips to a neurologist, you're pretty much done anyway. You may wish to consult a few different brokers about different things to keep it separated. Fraud is fraud and nobody should be engaging in it, but you don't have to go out of your way to volunteer extra information not being asked, either. If there is no formal diagnosis, then don't discuss your suspicions with a broker. It's just common sense really. Once there is a diagnosis, the insurance companies will find it through your medical records even if you don't disclose that you've seen specialists. When you sign an insurance application, you are giving them permission to investigate those records. Medical data is available to them and they will discover it. I wish there was better news than that. Also, if you act too anxious to get insurance, you're likely to raise some flags as well. Play it cool even if you suspect something is wrong. Get it in place NOW before you see a specialist. You can always just stop paying your premiums if it ends up being something else. Just my 2 cents.