Insurance 101
A few things you should know about applying for life insurance.
As a consumer you would think shopping for life insurance should be an easy process. It can and should be. Certainly any one you go to will say it's easy, but you will quickly find out that the insurance companies are trying to categorize you , and believe me Insurance companies don't give up the cheapest rates without a fight.
When I started direct marketing insurance sales in 1977 Pre Internet and PC computer era, There was no discount for non smokers , and there were NO blood tests either. There were no Preferred Rates, Just Standard or Rated. But since the 80's and the requirement of blood tests, Insurance companies became more competitive cutting rates, but only for the select few who qualified. And it's progressed into the frenzied fractioning of prices we have today.
Anyone who has applied in the last 5 years knows this.
This could be good for you or bad depending on what classification you fit.
That's where we come in. You see it doesn't matter what the agent thinks your classification is, it's the insurance companies that make that decision. We don't waste time; with one medical exam we can go to a plethora of insurance companies armed with your medical and complete health history obtained from your Doctors with HIPPA compliant forms to shop for you. Filling out a form on a web site doesn't determine your cost.
So what's with all these Classifications of risks? What do they mean?
I could bore you with actuarial charts and graphs, but in layman's terms here are the top 4 classes your will see everywhere. And Everyone quotes the lowest. Preferred best, or whatever fancy name they give it.
Preferred Best
Sometimes called Preferred Select, or Preferred Plus and by many other names for the best available.
If you qualify for this class you are in the company of people that can't think of going a month without competing in a marathon, or you just have extremely good genes. Also being very young helps. Got the idea.
Preferred.
Ok every one comments on how healthy you look, but you know on the inside your not perfect, so you take some meds for Blood Pressure and cholesterol, but you keep EVERYTHING in check. If you get this classification, you did good.
Standard Plus
What is it they say - we gain a pound a year. Time to get back to the gym, and listen to the Doctor. Don't look at the Preferred best rates.
Standard
PLEASE, keep in mind all of these 4 classes are for " healthy people" (with no major history). It's just how healthy are you as defined by insurance companies?
Over 34 years people will call and spend 10 minutes telling me how healthy they are, and then they tell me about the by-pass last year, and due to the extra 50 pounds have a high sugar count, but they don't call it diabetes.
They of course want the preferred plus rates quoted. If you have some past or current conditions that insurance companies find hard to fit in the above 4 categories you might be rated, or worse declined. Don't worry if that happens, we can help. Its call the impaired risk market, and for that you need a pro.
Rated policies ( a whole other world )
Means that for you, Insurance could be expensive, if obtainable.
You're going to have to look hard to find the right company to insure you. Don't be discouraged if you get rated, or even declined by some. There could be a company out there that wants your business more than the next one. It's like shopping for a Ferrari, it's a VERY select market, you can't just go to the dealer on the nearest corner. You need someone who knows the insurance companies that specialize in the " IMPARED RISK MARKET". Yes, That would be us.