When people think of an Insurance Agent especially one that sells life, long term care and disability they think of a middle-aged guy in a leisure suit or Alec Baldwin’s character in A Long Came Polly. That couldn’t be further from the truth. In-fact the truth is insurance planning is financial planning.
A pillar of a solid financial plan is risk management. It is just important as the retirement and other planning goals in the plan. A premature death, an extended disability and or a long-term care event can drastically impact those goals. A solid financial plan considers the coverage you have in-force or through work and identifies those gaps that could impact the fulfillment of your financial plan.
Earlier in my career an advisor told me that her clients look at implementing the insurance part of the plan like going to the dentist. They know that they need to do it but are dreading it. The process has a reputation of being invasive and intimidating. The good news is that underwriting for life, disability, and long-term care have made strides in recent years to be more efficient and less invasive.
Life Insurance
Accelerated underwriting programs are more common now with higher face amounts. An applicant can possibly be approved without having to do an insurance exam or need medical records under accelerated underwriting. The applicant completes an online health questionnaire. Based on their answers and review of financial and medical databases, the applicant can be approved within a few days. The age range is typically ages 18 to 50 up to $3,000,000 of coverage and age 51 to 60 the amount of coverage drops to $1,000,000.
Long Term Care
Traditional long-term care and hybrid products have accelerated underwriting programs available. They run typically to age 69 depending on the carrier. The process is like life insurance. The applicant completes an online or by phone health history interview. Based on their answers and review of financial and medical databases, the applicant can be approved within a few days.
Disability Insurance
Disability Insurance has simplified underwriting programs that entail health questions and income verification. The age of the applicant and the amount of the monthly benefit determine the underwriting requirements.
The fear of a complicated and invasive underwriting process should not be a reason to avoid obtaining the coverage to fill the risk management gaps in you or your clients financial plan.
Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.