Insurance 101

A few things you should know about applying for life insurance.

As a consumer you would think shopping for life insurance would be an easy process. It can and should be. Certainly anyone 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 us when we tell you – insurance companies don't give up the cheapest rates without a fight.

When we started direct marketing insurance sales in 1977 pre-Internet and 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 80s and the requirement of blood tests, insurance companies became more competitive by 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 website doesn't determine your cost.

So what's with all these classifications of risks? What do they mean?

We could bore you with actuarial charts and graphs, but in layman's terms here are the top 4 classes your will see everywhere:

Preferred Best

Sometimes called “Preferred Select” or “Preferred Plus” and by many other names for the best available insurance.

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.


Everyone comments on how healthy you look, but you know on the inside you’re not perfect, so you take some medication for blood pressure and cholesterol, but you keep EVERYTHING in check. If you get this classification, you did well.

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.


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 us how healthy they are, and then they mention the by-pass last year, and due to the extra 50 pounds, they 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 that 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, and you can't just go to the dealer on the nearest corner. You need someone who knows the insurance companies that specialize in the "Impaired Risk Market". And yes, that would be us.

If you’re interested in learning more about obtaining affordable term life insurance, even if you’re considered at-risk, contact us today at (800) 400-5940, ext. 3.

*Premiums illustrated are for male preferred non smoker classification paid monthly preauthorized checking. Annual, Semi Annual and quarterly modes available. Female preferred non smoker rates are lower. Other classes, ages, and face amounts for males and females may be higher or lower and are available upon request. Your actual premiums will vary, depending on your health history, company determined underwriting status, age, height, weight, sex and coverage preferences. All pricing and eligibility subject to underwriting with a paramedical or medical exam. Additional reports from Primary care physicians and specialist may be required. Products may not be available in all jurisdictions. Premiums increase annually beginning in year 11 for Ten year term. In most states, in the event of suicide during the first two policy years, death benefits are limited only to the return of premiums paid. Application resulting in declines or ratings by insurance companies may be reported to MIB. State complaint Insurance buyer guide supplied with each policy.

No insurance is to be consider in force until the insurance applied for, has been approved by the carrier and all delivery forms and payment are received while the insured is alive during the delivery time period allowed by the carrier.


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