Will I Qualify for Life Insurance After Bankruptcy?

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By now, you are probably aware that your credit score follows you, affecting insurance rates and your ability to lease an apartment. Oftentimes, it’s even part of the job qualification process. It is safe to assume, then, that a bankruptcy would negate your chances to obtain life insurance, right? The short answer – wrong. While your life insurance underwriter will consider your bankruptcy when reviewing your application, it does not automatically disqualify you.

Before we delve into the specifics of bankruptcy and life insurance, let’s talk about WHY this is even a concern for your underwriter.

Heightened Risks Associated With Bankruptcy

The bankruptcy process is long and arduous. It is a stressful time. One that forces us to reevaluate both past and current decisions and calls for a restructuring of virtually every aspect of our lives. From an underwriting standpoint, this is a valid concern, as stress and anxiety directly affect one’s overall health. As a result, some consumers battle depression and thoughts of suicide, both equally concerning to a life insurance underwriter. As a consumer, it’s important to remember that most life policies contain a suicide clause, barring death benefit payout should the insured commit suicide in the initial years of the policy.

When applying for a new policy, the insurer faces a great deal of upfront costs. From the medical exam to underwriting and agent commissions, it takes several years of premiums to recoup those fees. Therefore, the insured’s financial stability is a consideration. If they believe you to be financially unstable, the insurance company will not want to take on that risk, recognizing there’s a chance they may never break even on your policy.

What Steps Should I Take When Applying for Life Insurance After Bankruptcy?

When some of the major carriers chose to shy away from insuring individuals with a bankruptcy on record, a number of insurers seized this opportunity, tapping into a new pool of risks. Assuming you meet the rest of the underwriting guidelines, you should, hopefully, have several options available to you.

There are a few things you should keep in mind before starting the process:

– As a general rule of thumb, wait at least one year after your bankruptcy has been cleared, discharged, or settled. This is particularly true when filing Chapter 7.
– Work with an independent agent. Their duty is to guide you through the process, which starts with identifying the policies that best fit your unique situation and needs.
– Be upfront with your agent from the start. Provide them with information regarding your bankruptcy including: clearance date and any medical issues that might have contributed to your decision to file.
– Have a clear understanding of what your current budget is and how much coverage you and your family need.

Keep in mind that a bankruptcy can follow you for seven to ten years. So do not assume that, because it has been three years, it is irrelevant to potential insurers.

How Will Bankruptcy Affect My Current Life Policy?

If you already have a policy in force, you’re probably wondering how filing could affect that policy. The answer depends upon what type of policy you have in force.

If your in-force policy is a term policy, filing for bankruptcy should not affect the policy at all. As long as you are able to make your premium payments on time, the policy will remain in force.

If you own a permanent policy, things may get a little trickier. If your policy has been in force long enough to build cash value, there is a possibility that those assets could be assessed. We recommend that you seek the advice of a licensed attorney practicing in the state in which you reside, as bankruptcy rules vary from state to state.

If bankruptcy (or any other issues) is a part of your past, seek the assistance of a licensed independent life insurance agent. At Vista Life, we work with a number of life insurance carriers, ensuring the best possible outcome for your particular situation. If you have any further questions, do not hesitate to contact us at 866-450-2424 or via email.

Life Insurance for Those Living With HIV

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Those individuals living with HIV have, more than likely, found the life insurance market difficult and limited in scope in the past. Fortunately, this reality is beginning to change. More recently, insurance agencies have begun offering greater coverage options for HIV positive customers. With more powerful and effective treatment opportunities becoming available and the overall life expectancy of HIV patients extending, many companies are creating plans to effectively cover these at-risk individuals.

With more than one million Americans currently living with this disease, it is impossible to ignore this segment of the population any longer. The affected individuals are no longer being categorized as having a life expectancy too short to be offered coverage. And, as with most medical and social advancements, insurance companies are evolving to offer the insurance coverage these individuals need and deserve.

When AIDS and HIV first became a National, as well as International epidemic, most insurance companies saw affected individuals as too risky to cover. Indeed, the initial mortality rates were often so high and life expectancy so short, that insurance companies couldn’t properly calculate the risks and reasonable pricing needed to provide coverage. If coverage was available, it was often priced too far out of an individual’s budget. But, with advancements in the effectiveness of the pharmaceuticals available and the overall quality of life of HIV positive individuals improving rather dramatically, insurance companies are re-tooling their business plans to give even more coverage.

Still, you may be wondering what coverages are really available. Is my case unique? What can I expect to pay for a premium? Where do I even begin? Call us today so we can begin to lay out the available plans. At Vista Life, we look to provide the best coverage for each customer.

Our team will sit down with you and discuss options for coverage and costs and can design the right policy for you personally.

What to Do If You Can’t Afford to Pay Your Life Insurance: Part 2

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Last week, we shared some options regarding what to do if you have found yourself in a difficult financial situation and are unable to pay your upcoming life insurance premium. Today, we wanted to offer a few more alternatives, as well as review some commonly asked questions.

Before making your final decision, take a moment to speak with your insurance agent. Each insurer has their own set of rules and guidelines – some of our suggested options might not apply to you and, you never know, your agent may have some more tricks up their sleeve that aren’t covered here.

Apply for Consideration of a Change in Health Classification

Remember when you applied for your life insurance policy, you took a medical exam and answered a series of questions? There are a number of conditions that could have impacted your rate classification and, in turn, your annual premium.

Were you a smoker at the time? Did you have cancer, that is now in remission? Depending upon the pre-existing condition, you may be eligible for a change in rate class. If your application is approved, you could receive a more affordable rate on your current policy.

Life Settlement

As defined by the Life Insurance Settlement Association, “A life settlement is the sale of a life insurance policy to a third party for a value in excess of the policy’s cash surrender value, but less than its face value, or death benefit.”

The third party agrees to pay all future policy premiums and receives any available death benefits when the insured passes away. Unfortunately, this option is typically only available to insureds over the age of 65 or for customers whose policy has accumulated enough cash value to sell their policy. Since each insurer (and policy) has their own set of rules, contact your agent to learn more about this option.

Frequently Asked Questions: How Can I Make My Life Insurance More Affordable?

Question: I really want to invest in a life insurance policy, but don’t think I can afford it. What should I do?

Answer: We have a few suggestions that might help make your policy more affordable:

  • Purchase a policy as soon as possible – The younger you are, the cheaper your life insurance policy will be. Plus, you never know what kind of health conditions could pop up unexpectedly. So, if you’re young and you do not currently have a life policy, start shopping now. Our website offers multiple options for figuring a rate quote or, if you prefer to speak with a person directly, an agent would be happy to discuss your options with you. Just give us a call at 1-866-450-2424.
  • Buy a term life insurance policy – Insurers understand that consumers need options to fit every budget. Term life insurance rates are the most affordable option, with term periods lasting anywhere from one to thirty years. Just keep in mind that, when the policy term expires, your rates will be significantly higher than your original investment.
  • Inquire about payment plans – As a rule, your insurance premium will be cheaper if you pay the full annual premium upfront. There are, however, options to pay semi-annually, quarterly, and monthly. These payment plans often have processing fees tacked on to the total, so make sure you have all the information before making your final decision.
  • If you are a smoker, quit ASAP – We aren’t here to judge you; everyone has a guilty pleasure (or two). As a smoker, however, your rates are guaranteed to be higher than as a non-smoker. When you are ready to quit, write your quit-date on a calendar you can refer back to. Depending upon the insurer and policy, you can reapply for a lower rate in one to three years.

Question: What are some of the situations that could cause my life insurance rates to be higher?

Answer: As previously mentioned, smokers automatically earn a lower table rating, which results in higher policy premiums. There are a number of other pre-existing conditions, however, that could affect your table rating. To learn more about what to expect during the paramedical exam and what they are testing for, visit our blog here. If you feel you will classify as a higher risk, discuss your health issues with an insurance professional. They can assist you in finding the best policy for the very best premium.

Question: I’m still not sure I can afford the premium. Is there anything else I can do?

Answer: A term life insurance policy is very affordable. Consider sitting down and evaluating your budgetary spending. According to the National Resource Defense Council, each household spends approximately $529/year on unwanted snacks. Is there anything you can eliminate or cut down on in your monthly spending? Our blog, 7 Everyday Things That Cost More than Term Life Insurance, should be a great place to start getting ideas.

Before making any permanent decisions, remind yourself why you purchased your life insurance policy in the first place. While you may feel lost and desperate right now, this situation is temporary. Work with your agent and/or insurer to identify all options available to you before making your final decision. Best of luck to you!

What to Do If You Can’t Afford to Pay Your Life Insurance: Part 1

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If you own a life insurance policy, you’ve already weighed every option and determined the value it stands to add to your portfolio. You’ve considered the financial strain an unexpected death could put on your family, and defined how much your dependents would need to survive, without your income. While we spend each day educating our clients on the importance of life insurance, we are still conscious of the fact that everyone falls on difficult times. And, when those days arrive, life insurance payments may become one of the first casualties.

Whether it’s the loss of a job or unexpected expenses, everyone falls on tough financial times at least once in their adult life. This is when we have to analyze the family budget and identify ways to cut back on spending. Since none of us have any plans to pass away anytime soon, life insurance is often the first part of the budget families consider slashing. After all, how can you worry about your family’s financial situation ten or twenty years from now, when you can’t even figure out how to get past today?

If you’re having trouble paying the premium and are considering canceling your life insurance policy, make sure you understand all the potential repercussions. Don’t make a hasty decision now that could significantly impact your family later, just to save a money in the short term.

Life After Death

When a family member dies, those left behind are often left with a great number of expenses. In addition to the mortgage and daily living expenses, there are funeral costs, credit card bills, and taxes. In fact, 62% of consumers polled indicated they would be financially strapped almost immediately, if the primary breadwinner passed away unexpectedly. While most companies are sensitive to a family’s loss, they would go out of business if they absolved the outstanding debts of everyone who suffered the loss of a loved one.

Far too many people allow their life insurance policy to lapse, without considering all their options. Most don’t even realize that they have any options at all. Let’s look at a few ways you can keep your current life policy in place, even when you can’t afford to pay your premiums.

Term Life Insurance

A term life policy covers you for a specified period of time. If you pass away during that period, your beneficiaries receive a death benefit. If you’re still here, once the policy period expires, no one receives anything. If you fail to pay the policy premium when it comes due, the policy will lapse and your beneficiaries will receive nothing.

If you own a term policy, there are a few options available to you:

  • Grace period: While you’ll need to check the specifics of your policy, most insurers offer a 30-day grace period. Just send in your payment within the grace period and the policy will continue on as usual.
  • Payment plans: Most insurance companies also offer the option to pay your premium in installments. If you currently receive a bill annually, or even semi-annually, call your insurer and ask what installment options are available to you.
  • Reinstatement of a lapsed policy: If you failed to make your premium payment within the grace period, the policy will lapse. Don’t get discouraged though, there’s still hope. Most companies will allow you to reinstate your policy after the lapse date. The rules very from insurer to insurer, so check with your agent or the company to find out their specific rules. Some allow for reinstatement up to five years, but do require the insured to undergo the underwriting process again.

Permanent Life Insurance

If you opted to invest in a permanent life insurance policy, you likely had a number of reasons for doing so. Unless your situation has changed drastically and it’s probably a good idea for you to keep the policy in place. Fortunately, there are a number of options for you to consider:

Use your cash value to pay premium: This option is best for insureds who have had a permanent policy in place for quite some time. In the initial years, the policy is slow to build up cash value. As time goes on, however, it does build enough cash value to make a significant impact on one’s financial situation. While we recommend holding off on cashing in until you’ve reach the goals you set when purchasing the policy, we also understand that unavoidable circumstances occur. And using the cash value to pay the premiums is certainly better than allowing the policy to lapse. Before selecting this option, be sure to discuss the long-term implications this could have on your policy. Using the cash value of your policy is considered a loan. If you don’t pay it back, the death benefit your beneficiary receives will be reduced and, in some cases, cause the policy to lapse.

Use your dividends to pay premium: If your permanent policy pays dividends on the policy’s investments, you may be able to use these to offset your premiums.

Reduce the death benefit: Many insurers allow customers to decrease the face value of the policy in exchange for a reduced premium. In some cases this diminishes the premium amount enough for the policy to be considered “paid in full.” In this instance, the policyholder is able to stop paying on the policy entirely.

Waiver of premium: Many policies include a waiver of premium rider, which allows the insured to stop paying on their policy if they meet the disability conditions set by the carrier.

Convert to a term life policy: While you would incur some cancellation feeds, converting to a term policy is another option for those carrying a permanent life policy. In this case, you would cancel the permanent policy, using the cash value to convert to term insurance. If you’re considering this option, just keep in mind that your new policy would only provide a death benefit should you pass away during the defined timeframe.

If you’ve found yourself in a financial predicament, remember – nothing in life is permanent. This too shall pass. Work with your insurance advisor and explore all your options before allowing your policy to lapse. Stay tuned for Part 2, where we explore a few more potential alternatives and answer some questions frequently asked by others in your same situation.

I’m All Set to Retire: Do I Really Need That Life Insurance Policy Anymore?

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Each of us has a different vision of what retirement will look like. Some plan to travel, while others hope to volunteer in their community or spend more time with family. You’ve spent all these years focusing on building a nest egg for your later years, it’s time to sit back and reap the rewards. For many, this means doing away with their life insurance policies. After all, there’s little to no income to replace should you pass on and your dependents are out of the house, right?

In many instances, this is true. However, what you do with your life insurance policy should be carefully considered before making any rash decisions. Let’s look at a few questions you should ask yourself when considering your options.

Have You Considered Estate Planning?

When a family member dies, those left behind are often left with a great deal of expenses – funeral costs and federal and state estate/inheritance taxes leave some heirs scrambling to sell off assets.

For individuals whose goal is liquidity, a life insurance policy such as an irrevocable life insurance trust can prove beneficial. The policy cannot be modified, revoked, or terminated for as long as you’re alive. Upon your death, proceeds are protected against creditors and estate taxation.

If this is something you’re considering, be sure to seek the guidance of an experienced life insurance agent or financial advisor.

Are You Still in Debt or Working?

Many consumers reach retirement age and are still in debt. Whether it be from failed business ventures, credit cards, or mortgage, this outstanding debt will still need to be paid once you pass away. Retirees who are still facing outstanding debt should consider their life insurance options. A guaranteed level-premium term life policy is a great way to protect your family against a mountain of debt upon your death.

Again, be sure to speak with a licensed professional before making any changes to your current policy, or committing to a new one.

Do You Have a Disabled Child or Other Dependent?

A retiree whose children are out of the home and spouse is self-sufficient might not have a need to continue their life insurance. However, if you have a special needs family member, their care after your death should be a consideration. Additionally, will your spouse lose a significant amount of your pension or other monthly income? If so, a life policy can help fill that gap.

Do You Wish to Leave a Charitable Legacy?

While consumers often choose to make annual donations to a charitable organization, many are now realizing the benefits of leaving a charitable legacy in the form of life insurance. When structured properly, your gift can benefit both you and the recipient, at a lower out-of-pocket cost to you.

Do You Own Your Own Business?

Business owners have a responsibility to more than just their family. They have employees and business partners to consider and, for many, their death could have a significant impact on those left behind. If you’re unfamiliar with key man life insurance, visit our blog for more details regarding this critical business tool.

As you approach the finishing line for your retirement planning, it’s important that you have the full picture regarding where you stand financially. Ask yourself:

  • What sources of income will I/we be reliant on?
  • What are our outstanding debts, including a mortgage?
  • Am I in good health? How is my spouse?
  • Who is dependent upon me and how?

Many view life insurance after retirement counterproductive, until they’ve considered these questions. While it may not be a necessary investment, you owe it to your loved ones to take a moment to examine your situation from every angle. And do not ever cancel an existing insurance policy without speaking with an insurance representative first.

Life Insurance Paramedical Exam: What Are They Testing For?

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Last month, we shared with you the details of what to expect during the life insurance application and paramedical exam process. Some of you may be wondering “But what exactly will they be testing for?” So, to add that last piece to the puzzle, we thought we’d provide some specifics regarding what underwriting is looking for.

If you have any health issues that come up on this list, please do not let this intimidate you. Negative results do not guarantee you’ll be denied coverage. However, if you’re feeling uneasy, please take a moment to share your concerns with us. Our job is to arm you with all the information and assist you in finding the very best policy, at the best possible rate.

Heart Conditions

According to the American College of Cardiology, cardiovascular disease (CVD) is responsible for almost 800,000 deaths in the U.S. each year, with one person dying every 40 seconds. Your blood work will offer underwriting insight into the health of your heart and arteries, through the following tests:

Cholesterol

Cholesterol is fatty matter that your body needs to keep everything lubricated. Your blood holds “bad” and “good” cholesterol. If it’s storing too much of the bad, it can cause serious health complications. The specifics regarding how much is too much varies from insurer to insurer.

  • HDL– High-Density Lipoprotein is that “good” cholesterol we mentioned earlier. It wards off LDL build-up in your arteries.
  • LDL – Low-Density Lipoprotein is what’s labeled as “bad” cholesterol. Accumulation of LDL in your arteries typically leading to blockage and, potentially, heart attack or stroke.
  • LDL/HDL Ratio – This ratio is used to define your risk for heart disease. The lower number = lower the risk.
  • Cholesterol/HDL Ratio – This is also an indicator of your risk for heart disease. Ideally, this number should read 5 or lower.

Triglycerides

Triglycerides are fat lipids found in your blood. Higher levels indicate an increased risk for heart disease. Levels of 150 or lower are preferred.

Diuretic In Urine

Your urine sample will be used to test for diuretics, which is an indicator that you’re currently on blood pressure medication.

Beta Adrenergic Blockers

Some insurance companies will test for beta adrenergic blockers, which shows if you’re on any blood pressure medication or being treated for heart defects or arrhythmias.

Liver

The liver is one of the primary producers of protein and cholesterol in your body. In fact, contrary to popular belief, only 20% of the cholesterol in your blood stream comes from the foods you consume; the other 80% is produced by your liver. These tests offer the underwriter insight into your risk for liver or muscle disease.

Alkaline Phosphatase

Elevated levels of this enzyme could indicate liver or some types of bone disease. Target readings are 30 to 100.

Aspartate Aminotransferase

(AST) Increased levels of this enzyme in your blood signals the potential for heart, muscle, or liver disease. Target readings are below 40.

Alanine Aminotransferase

(ALT) You may be at risk for liver disease if elevated levels of this enzyme are present. Target readings are 45 or lower.

Gamma Glutamyl Transpeptidase

(GGT) Higher levels of this enzyme are often present with liver disease and excessive alcohol consumption. Target readings are below 65.

Bilirubin

Elevated levels of bilirubin are an indicator of liver or gallbladder disease. Target levels range from .3 to 1.8.

Protein

Another indicator of liver disease; target levels range from 6 to 8.

Albumin

Lower levels are an indicator of severe liver disease and could be a sign that additional disorders exist. Target levels are between 3.8 and 5.2.

Globulin

Readings lower than 2.1 or higher than 3.5 could indicate an issue. Increased levels could be a sign of infection or immune system problems.

Pancreas

The pancreas works to produce hormones and enzymes that are responsible for regulating blood sugar levels and food digestion.

Glucose in Urine

The presence of glucose is an indicator of diabetes.

Hemoglobin A1c

This test provides a measurement of blood glucose over the last 90 days. Target level is 5.7 or lower. If your reading is 5.7 – 6.4, you’ll be considered pre-diabetic by the life insurance underwriter. If your levels are 6.5 or above, underwriting will view you as diabetic.

Fructosamine

This provides a measurement of your blood sugar levels over the past 2-3 weeks. Target levels are between 1.5 and 2.5.

Kidney and Bladder

The kidney and bladder are responsible for removing waste from your urine.

Leukocyte Esterase

This enzyme’s presence enzyme could indicate an infection.

Blood urea nitrogen

(BUN) This reading is used to calculate your overall health. Target levels are 10-25.

Urine PH Screen

This tests for the acidity of your urine. Target levels are 4-8.

Hemoglobin Screen

The presence of hemoglobin could indicate kidney infection or a UTI.

Creatinine

Elevated levels signal the possibility of kidney disease. Target levels are 0.7 to 1.5.

Proteinuria, Urine Creatinine, and/or Microalbumin

Presence of these in your urine indicates you may be at risk for kidney disease. Normal levels of urine creatinine are 25-250. They’ll also test your ratio, which should be between 0.0-0.20. Levels of 0.30 or lower are considered normal for microalbumin.

Serum HIV

Your blood will be tested for HIV, which is the virus that causes

AIDS.

Cotinine

Cotinine is the primary byproduct of nicotine. Presence signals possible tobacco use, ranging anywhere from 2 days to 3 months.

The paramedical exam is the underwriter’s tool for getting a picture of your overall health. This, combined with your application, helps the insurer identify you as a risk and set your premium. Regardless of what you fear these tests could uncover, don’t let this keep you from exploring your life insurance options. Discuss your choices with a licensed life insurance agent; we’re here to help you find the very best solution to fit your family’s needs.

What to Expect From the Life Insurance Application Process

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We’ve spent the last few weeks educating you on the life insurance underwriting and paramedical exam process. But, what about the steps leading up to the medical exam? What can you expect from the application process and how long does it all take? Today, we’ll review each step in detail, hopefully preparing you for what lies ahead.

Step 1: Compare Quotes

Once you’ve spoken with an insurance agent and identified how much coverage you need, it’s time to start comparing quotes. Your goal is to identify the most financially secure company with the most affordable rate. While many quotes can be obtained online, it’s often time-consuming and overwhelming. Working with an independent agent is the easiest and most efficient way to comparison shop.

Tip: Don’t base your final decision on price alone. Only consider insurers who are rated A- or higher by A.M Best. Hopefully, your loved ones won’t need to cash in on that insurance policy for many years to come; you need a company that will still be around in 30 – 40 years.

Step 2: Application

Now that you’ve selected the policy that best fits your needs, it’s time to fill out the paper application. This is usually a fairly simple and quick process, lasting for 10 to 30 minutes.

You’ll be asked some basic information regarding:

  • Your health history
  • Family’s health history
  • Prescription medications you’re taking
  • Criminal and driving record
  • Dangerous hobbies you participate in

You’ll also want to come prepared with the following information:

  • Beneficiary information, including social security number and date of birth
  • Contingent beneficiary information
  • Your social security and drivers license number
  • Latest tax return income information
  • Your primary doctor’s contact information

Tip: Lying on an insurance application is considered fraud and could result in some serious penalties. Don’t offer any information that isn’t asked, but never lie.

Step 3: Paramedical Exam

Once your application has been submitted, a medical technician will contact you to set up your paramedical exam. You’ll be asked for additional information regarding your health and the nurse will check your weight, height, and blood pressure. They’ll also take urine and blood samples. This process should take between 15 and 30 minutes, depending upon the specifics of the policy you’ve applied for.

Tip: If you’re concerned about the medical exam, our blog goes into greater detail on what to expect and what steps you can take to better prepare yourself.

Step 4: Phone Interview

Some insurance companies require applicants to undergo a phone interview. This is a fairly painless and speedy step; plan on spending 15 to 20 minutes on the phone.

Tip: Again, don’t volunteer information that’s not asked of you. Answer the questions honestly and briefly.

Step 5: Underwriting

Once you’ve completed these steps, all the information that’s collected is forwarded to the underwriter. While this is typically the longest part of the process, it doesn’t require any action on your part. The underwriter will review the details of your application, medical, and personal history and assign you a health/rate class.

Tip: This can take anywhere from 3 – 6 weeks, sometimes longer if they have to request medical records from your doctor. It doesn’t mean there’s anything wrong or that you’ll be denied, so don’t start thinking the worst.

Step 6: The Decision

Once the underwriter has had an opportunity to review your information, the company will come back with a decision. Hopefully, your policy will be accepted at the rate you applied for. If it comes back “other than applied,” it can mean one of two things – you either qualified for a lower rate, or a higher rate.

Tip: If it comes back at a higher rate, discuss your options with your insurance agent. Some applicants choose to reduce their coverage amount or drop the policy term, while others opt to go with another carrier entirely.

Step 7: The Policy Takes Effect

Upon making your decision, notify your agent or the insurance company. Your policy will then be processed and forwarded to you for review. Once your signed policy and first premium payment have been received, the policy is officially in force.

Tip: Inquire about using a conditional binding receipt, which would put your policy in force immediately. Additionally, make sure you notify the beneficiaries that they’ve been named on your policy.

If your worst fears come true and you’re denied coverage, schedule a meeting with your agent to discuss your options moving forward. Don’t make the assumption that you’ll be denied with another carrier, as each company has their own set of underwriting guidelines. Many even offer policies that do not require a medical exam for a slightly higher policy premium.

Preparing for a Life Insurance Medical Exam? Find Out What to Expect

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While it’s possible to secure a life insurance policy without a paramedical exam, there are some instances where one could be required. If you’ve never had one before, you probably have some questions, and even a little anxiety.

Today, we’re going to walk you through the process and provide answers to some of the most commonly asked questions. Hopefully we can put your mind at ease. Worrying about the exam only puts undue stress on your body, potentially harming your exam results.

Scheduling Your Paramedical Exam

Once your life insurance application has been received, a licensed medical professional will contact you to schedule the exam. They’ll come to either your home or office, whichever is most convenient for you. The average exam lasts 15-30 minutes.

An important tip to remember – The examiner will be taking several vials of blood, so you’ll need to fast for at least 8 hours leading up to the exam. If possible, schedule your appointment for first thing in the morning. When you wake, your fasting will be complete and you’ll be ready to take the exam. It’s ok to drink a glass of water that morning, but wait until after the tests are complete before eating breakfast and drinking your morning coffee.

Stages of the Life Insurance Medical Exam

The medical exam will be broken down into two steps:

A medical questionnaire, where the examiner will ask you a series of questions about your health.

A physical exam, where the medical professional will draw blood and collect a urine sample. He/she will also record some basic measurements, including your height and weight, blood pressure, and pulse.

If you’re applying for a face amount or are 60 years of age or older, the insurance company may require an EKG. When scheduling your appointment, ask the technician if this will be required of you. If so, plan on the exam taking 30-45 minutes.

Depending upon the findings on your application and medical questionnaire, further checks into your personal history may be required. If you have a history of drug or alcohol abuse, a criminal record, or engage in any dangerous hobbies, be prepared to provide additional details. Remember, the purpose of this exam is to determine eligibility AND rate class. So don’t assume, just because you jump out of planes on the weekend, you’ll be denied coverage.

An important tip to remember – To verify your identity, the examiner will ask to see your driver’s license. So, make sure you have it easily accessible before getting started.

What Happens Now?

Upon leaving the exam, the medical professional will submit your lab work for processing. Samples will be screened and the results will be sent to the underwriter for consideration. If necessary, underwriting may request additional medical records from your private physician. After a thorough review, the life insurance company will assign you a rate class, which is what determines your premium amount. Should you accept their policy offer, a policy will be sent to for you to review.

An important tip to remember – Within 7-14 days, your lab results will be completed. Be sure to ask for a copy of the results for personal review.

Frequently Asked Questions Regarding a Life Insurance Medical Exam

What is the insurance company testing for? Blood and urine samples are collected to test for irregularities in your:

  1. Heart and Arteries
  2. Kidney and Bladder
  3. Liver
  4. Pancreas

Additionally, they’re looking for traces of Cotinine, the main byproduct of nicotine, which can remain in your system for up to 3 months and Serum HIV, the virus that causes AIDS.

How much does my paramedical exam cost? Your exam is part of the life insurance underwriting process. The company absorbs all of the cost. And don’t forget to ask for your free copy of the results!

What if I believe the results are inaccurate? If you feel some of the results are off, contact your agent. They can contact the insurer to see if they’ll accept a second medical exam. If the results of the second exam offer different information, the underwriter will consider both when determining your rating.

If I die before the results are in, will the beneficiary receive payment? There’s no set rule for this scenario. Generally speaking, if underwriting comes back that you would have been accepted, the beneficiary would receive the death benefit. For more detailed information, consult with your agent. They can help you understand the intricacies of the policy you’ve applied for.

Once I’ve applied and taken the medical exam, am I obligated to purchase the policy?No, you’re not obligated to purchase the policy, even after you’ve taken the exam. In fact, if you’re considering another carrier, you can even avoid a second exam by sharing a copy of the results with them. They just require that the paramedical exam was taken in the last 6 months.

As you can see, the life insurance paramedical exam is a fairly quick and painless process. If you’re still concerned about the exam, there are No Medical Term Life Insurance policies available. Because the insurance company collects limited health information from you for these policies, the premiums are typically quite a bit higher.

Stay tuned next week, as we offer some tips on how to prepare for your life insurance paramedical exam.

Key Man Life Insurance: What Is It and Who Needs It?

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Often, the difference between successful and unsuccessful businesses can come down to the determination and vision, as well as financial backing, of primary individuals within the company. These individuals become key to the success of the company, as a whole. But, what happens if that person suddenly and unexpectedly dies? A crew without a captain will sail off course, if they aren’t unified in a plan of succession.

Morbid as it may be, it is a fact of life and an unavoidable topic for businesses. Although you can never replace a “key man” you can propel their life’s work to greater heights through insured financial support and agreed-upon courses of action. Still, none of this will miraculously occur without careful planning and frank discussions with all invested parties. Let’s explore some of the FAQs of this type of insurance to see if your business is a likely candidate and what steps you can begin to take to secure your legacy.

Which Businesses Benefit From This Kind of Coverage?

By and large, small and developing businesses are the most likely candidates, as much of their revenue may be tied to their growth and expansion, whereas established businesses may have insulated themselves for the potential of a key man loss. Small business models often rely on re-investment, both financially and individually as part of their winning strategy. They are dependent on certain individuals and their contributions to make the machine operate correctly.

How Does the Coverage Work and How Much Is Needed?

Just like most insurance, a policy is acquired, the premium is paid and, if the policyholder passes, the company collects and is hopefully given a lifeline to manage the loss of their key person. Which brings us to the question of how much insurance is needed. For most businesses, the worth of a key man needs to be assessed, based on how much they add to the company, as a whole. Therefore, the more key they are, the more coverage the company should purchase. And don’t just consider what they bring to the company, but what the company would need to survive, if this person was suddenly lost. Overall business debt, investors’ returns and employee retention are some of the most common concerns and questions businesses purchasing this insurance will discuss.

What Are the Potential Drawbacks?

Overall, key man life insurance is an excellent safety net for smaller businesses, but there are some potential disadvantages to be considered. or instance, premiums aren’t tax deductible and, when a key person passes, creditors could make a claim to the premium pay out. In addition, if a key man leaves a business, their coverage can’t travel to their new business. However, there are some options becoming available to alleviate the potential of wasted premium payments. Talk to an agent today to see what your business’ options might look like.

Key man insurance is an excellent way to safeguard your small or medium-sized business from the catastrophic loss of a vital member of the business. It may be something that people avoid discussing because of the sensitive nature of the decisions, but it is much less comfortable or possible, when an actual loss occurs. Have these discussions and make rational decisions when all parties can contribute and develop a plan for the near and distant future of your company.

11 Things You Should Consider Before Purchasing Life Insurance

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For most American families, purchasing life insurance is an important financial purchase. Upon the named insured’s death, the beneficiaries will receive a death benefit that will, hopefully, ensure their financial security for years to come. With over 2,000 life insurance companies to choose from, and a myriad of policies to sift through, choosing the right coverage can prove to be a daunting task. With that in mind, we’ve put together some tips to ensure you get the best value for your money.

1) Evaluate Your Insurance Needs

Most consumers are under the impression they only need life insurance if they have dependents. The truth is, most of us stand to benefit from owning a life insurance policy. Whether you’re young and single, the primary breadwinner, or a stay-at-home mom, you should consider all the facts before making such an important decision. If you’re unsure, meet with an insurance agent. He or she can assist you in evaluating both current and future needs and provide you with the information necessary to make a decision that helps you rest easy at night.

2) Take the Time to Really Consider How Much Coverage You Need

How many individuals depend on you financially? Are you the primary source of income for your family? If you’re a stay-at-home-mom, what does the family depend upon you for from day-to-day? What does your family’s financial portfolio currently look like? How will your loved ones pay for final expenses and outstanding debts upon your death? These are all questions you should consider when determining how much coverage you need.

3) If You Have a Current Life Insurance Policy, Assess it Carefully

Do you currently have a life insurance policy through your employer? Or perhaps your parents purchased one for you when you were a child? Speak with your agent first before canceling anything. There may be an option to change your policy to fit your current needs. Or, it could have hidden coverage that adds significant value to your portfolio.

4) Term vs Permanent

There are currently two basic types of life insurance: term insurance and permanent insurance. A term policy typically offers you more coverage for a lower premium. Coverage is offered for a set time period and the policy does not build up cash value. Permanent policies come with a higher price tag, but remain in place for as long as premiums are paid. They also build up cash value, which can be borrowed against at any time. Each policy has its own set of pros and cons that should be considered carefully before purchasing.

5) Evaluate the Future of Your Policy Before Purchasing

When evaluating potential policies, ask your agent to generate a year-to-year display of values and benefits for each. How quickly does the cash value grow? Does one beat out the other over time? These comparisons will assist you in determining which policy offers the most value for your dollar.

6) Discuss Your Rider Options

Most policies offer additional coverage in the form of riders. Some offer access to your death benefit before you die, while another allows you to use the policy’s cash value to pay for long-term care expenses. When considering policy options, be sure to inquire about these riders, as many are very low in cost compared to the benefit they provide.

7) Get to Know the Companies You’re Considering

When applying for a policy, you’ll be asked several questions regarding your health. It only makes sense then, that you should do the same. Research the companies you’re considering. How financially stable are they? How long have they been in business? Hopefully your insurance policy won’t be needed for quite some time, so it’s important that you partner with a company that is in it for the long haul. A.M. Best is a great resource, as is your state insurance department.

8) Understand the Policy Before Purchasing

It’s important that you read the fine print before signing on the dotted line. Are there certain instances where death benefits can be denied? If so, what are they? Are premiums level, or do they vary from year to year? How long before cash value starts to build? What portion of the benefits or premiums isn’t guaranteed? Meet with your agent to clear up any confusion before making your final purchase.

9) Consider Your Beneficiary Carefully

Choosing a beneficiary sounds simple, right? While it’s pretty straightforward most of the time, you do want to consider it carefully, as there are instances where the wording could result in unexpected tax or legal issues. Check out our blog Tips for Choosing a Life Insurance Beneficiary for some helpful advice.

10) If You’re Turned Down for a Policy, Don’t Give Up

Don’t get discouraged if you’re turned down for a policy; there are plenty of other options out there. In fact, the Vista Life team specializes in finding a policy for consumers who’ve been turned down in the past. While there are some instances where an individual is uninsurable, this is not the norm.

11) Review Your Policy Every Few Years

Life happens and family dynamics change. If you’ve had any major changes occur, meet with your agent to discuss. This will help ensure the policy serves it’s purpose should the unexpected occur.