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What You Need to Know About Tobacco Use and Life Insurance

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If you’re a smoker, you already know all the health risks that have been linked to this expensive habit. You’ve probably tried all the recommended methods for quitting; maybe even a few times. We aren’t here to lecture you – you’re probably surrounded by loved ones that can handle that. Our job is to educate you on how smoking could effect your ability to obtain life insurance.

It’s a common misconception that tobacco smokers are unable to get life insurance. Or, at the very least, that smoking pushes the premium into the “unaffordable” category. The truth is, purchasing a term life insurance policy as a smoker is a fairly painless and affordable process. There are a few things you need to know to insure the best possible outcome.

Cigarettes Aren’t the Only Products Underwriters Are Looking For

Many consumers assume that cigarette smoking is the only thing that is considered in the underwriting process. The truth is, there are a number of other tobacco products that are frowned upon.

  • Chewing tobacco
  • E-cigs/Vape pens
  • Cigars
  • Nicotine replacement, such as gum or patches

If you use any of the above, prepare to pay a higher premium than you would as a non-smoker. When speaking with a life insurance agent, be honest with them about your tobacco intake. Each insurance carrier has a different set of rules regarding what is acceptable and how much additional premium they charge for your habit. In fact, many will even charge a non-smoker’s rate for individuals who partake in a “celebratory cigar” every now and then.

”I Quit Smoking Last Month. Doesn’t That Make Me a Non-Smoker?”

Unfortunately, no. Most carriers require you to be tobacco-free for at least twelve months before offering a non-smokers rate. Two to five years nicotine-free qualifies you for Preferred or Preferred Best rates, assuming all your other medical exam results are in order.

The great news is, just because you only qualify for the Smoker’s class right now, doesn’t mean you’re stuck there forever. Most companies will consider you for a better rate once you’ve hit that one year mark. So, if you have a current policy, talk to your agent about your specific insurer’s requirements for lowering your premium payments. It could be as simple as a blood or urine test.

Marijuana Usage Can Effect Your Premiums Too

When we think of smoking, we naturally think of tobacco. While there have been many changes in public opinion and legalities when it comes to cannibas, it is still illegal in many states. This, coupled with the fact that the federal government still classifies it as a Schedule I controlled substance, leaves a lot of gray area for the life insurance underwriting process.

If this is a concern for you, don’t get discouraged. Each insurer has their own set of guidelines regarding how they underwrite marijuana usage. Frequency of use, reason for use, and method of intaking are all factors that could affect your eligibility and rates. Best plan of action – be honest with your agent. They can assist you in identifying the right policy for you.

How Long Does Nicotine Stay in One’s System?

There are a number of ways to test for nicotine. Cotinine, the predominant metabolite of nicotine, can be detected in the system for longer than nicotine. Therefore, most medical exams bypass the nicotine test altogether, testing for cotinine instead. How long this metabolite is detectable varies, depending upon a number of factors. A menthol smoker’s body expels cotinine at a slower rate than non-menthol smokers.

Additionally, urine tests provide a more accurate reading, while blood and saliva tests are less sensitive. If you enjoy the occasional celebratory cigar, it’s a good idea to wait at least a week before going in for your life insurance medical exam.

Looking for coverage and have no idea where to start? We understand that each client’s situation is unique. To accommodate our customer’s diverse needs, we have partnered with the very best in the industry. One of our agents would love to help you find the best coverage, at the most affordable rate, to fit your needs.

5 Common Reasons Why a Beneficiary Could Be Denied Death Benefits

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One of the most caring things you can do for your family is ensure financial security after your death. For most, this is done through a life insurance policy. In most cases, the death benefit is paid without any issues. Unfortunately, there are situations where the beneficiary is denied pay out, leaving them both financially and emotionally stressed.

Here we explain the most common mistakes consumers make that lead to the denial of a life insurance claim:

1) Material Misrepresentation

Once you enter into your contract/life insurance policy with the insurance company, your two year contestability periods begins. If you pass away during that time, the claims representative will conduct an investigation to ensure everything on your insurance application was truthful and that nothing was left out. If you lied or omitted on your application, the carrier has the right to refuse pay out, regardless of the cause of death.
Once you’ve survived the contestability period, the beneficiary’s risk of being denied due to misrepresentation is significantly reduced.

2) Policy Lapse Due to Nonpayment of Premiums

This is probably the most common reason for claim denial. While premium payment is required for the policy to remain in force, there are times when nonpayment of premium isn’t a sufficient reason for denying a claim. Beneficiaries who are denied for this reason should confirm with the carrier that premium-due notices were sent in a timely manner, to the correct address, and that the notice very clearly warned the insured that a policy lapse was imminent.

3) The Type of Death Isn’t Covered

Historically, life insurance carriers excluded death from dangerous activities such as skydiving, war, or scuba diving. While this is no longer the norm, many carriers will still exclude death by suicide. Many carriers now waive that exclusion once the policy’s contestability period runs out.

4)  Beneficiary Designation Not on File

When filling out the application, be sure to designate both a primary and secondary beneficiary. If no one is designated, your loved one could be denied pay out. Every policy has provisions regarding who should be paid out in this situation, as do most states. While a claim will, eventually, be paid, non-designation of a beneficiary will, at the very least, prolong the process.

5) Post-Divorce Beneficiary Changes

In many divorce cases involving minor children, life insurance is ordered by the court. The ex-spouse is to be listed as the beneficiary on the policy and must be maintained until the minor child is of age. If the parent later violates this court order by changing beneficiaries, the new beneficiary could be denied coverage.

In a perfect world, every life insurance claim would be paid out without delay or question. If you find yourself in this unfortunate situation, be sure to consult with a professional immediately. Make sure you understand your legal rights and obligations and do not accept the denial without going through the appeals process. More often than not, it’s worth the battle.

Is It Possible to Obtain Life Insurance After a Cancer Diagnosis

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Years ago, receiving a cancer diagnosis signaled the beginning of the end. Recent medical advancements, however, have lead to more positive outcomes, turning many victims into survivors. With almost 14 million people in the United States still facing this diagnosis, though, many of us are aware of the unpredictable nature of such a disease. A cancer diagnosis reminds us all that life is unpredictable, forcing us to face the possibility of death at any moment. The welfare of our families becomes top priority, and shopping for a life insurance policy suddenly feels urgent.

But, can one even obtain a life insurance policy after a cancer diagnosis? Many assume the answer is “no.” While navigating the application process may be a little challenging and time-consuming, there are reasonable options available. If you’re considering shopping for life insurance, don’t let your cancer stop you from getting the protection you need.

What is Underwriting Looking For?

Most insurance companies have access to the National Cancer Institute’s “Surveillance, Epidemiology, and End Results” (SEER) database. This database offers information on cancer patients based on tumor locations, diagnosis stages, initial treatment plans, follow-up procedures, demographics, and morphology. This, coupled with information gathered from you personally, will help the underwriter in assessing the risks.

Potential insurers will request the following information:

  • Diagnosis date
  • Type of cancer
  • Treatment plan
  • Length of time in remission
  • Stage and grade of cancer
  • Tumor mass
  • Lymph node involvement
  • Start and end date of treatment
  • Current and past medications

While most insurers require applicants to be cancer-free for at least five years, this is not a hard and fast rule. In some cases, if the prognosis is good, patients have become eligible for a policy before completing their treatment plan.

Underwriting for Specific Cancers

There are several forms of cancer that insurers will closely consider when reviewing an application:

Melanoma – Melanoma is a more aggressive and dangerous form of skin cancer, resulting in the majority of skin cancer deaths. The insurer’s concern is this form of cancer’s tendency to metastasize and spread throughout the lymphatic system and organs. As with basal cell carcinoma and squamous cell carcinoma, patients with no complications during removal, and who have been cancer-free for one to two years, are often eligible for an insurance policy. Patients whose cancer required chemotherapy and/or radiation as part of their treatment plan could have to wait as long as ten years before obtaining a policy.

Breast cancer – Underwriting will ask breast cancer survivors a series of questions to determine eligibility. The longer the applicant has been in remission, the better their chances of getting approved.

Prostate cancer – Prostate cancer survivors are often approved for a life insurance policy shortly after treatment, assuming they are willing to pay at a higher rate. Underwriting will examine the applicant’s Prostate Specific Antigen (PSA) levels and Gleason score. The Gleason score determines the likelihood of the cancer spreading. This, coupled with the number of years cancer-free and the type of treatment a patient has undergone, will all be factors in determining both eligibility and rates.

What Every Cancer Patient Should Know to Ensure Eligibility and Lower Life Insurance Rates

  1. Keep all medical records together and organized. Be sure to include initial diagnosis and pathology report, as well as the prescribed treatment plan.
  2. Leave the treatment plan to the professionals. WebMD is filled with some valuable information. It does not, however, make you a doctor. Follow your doctor’s treatment plan.
  3. If possible, wait until you are in complete remission and your health has stabilized.
  4. Don’t apply for the first insurer that offers you a rate quote. Find a trusted life insurance agent that can help you shop around. Each insurer has their own set of underwriting guidelines; your insurance professional can help sift through your options and help you find the very best policy for your situation. They can also help you negotiate with potential insurers and educate you regarding additional options.
  5. Consider a graded policy, which offers increased death benefits, as you age.

Have you applied for a life insurance policy post-diagnosis? If so, what challenges have you faced? What was the end result? We would love to hear your story in the comments below.

Does Family History Really Affect Life Insurance Premiums?

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Once you have applied for life insurance, an underwriter will review your application to determine eligibility and identify your rate class. There are several factors the underwriter will consider during this process. They will include: age, current health status, extracurricular activities, and family history.

Yes, that’s correct, your family history does play a factor. You could be in the greatest of health, but still be affected by a family history of poor health. If your family’s health history is less than stellar, this probably raises a lot of questions for you. The purpose of today’s blog is to answer those questions. So, let’s get started.

Why Do They Care About My Family’s Health?

Modern advances in medicine have revealed that many disorders occur more frequently in some families than others. If an immediate family member (father, mother, and/or siblings) have been diagnosed with a serious medical condition, the underwriter will delve a little deeper into their history post-diagnosis. Depending upon the severity, as well as a number of other factors, you could be facing higher policy premiums. In extreme cases, an applicant could be denied coverage.

What Are They Looking For?

While there are a number of health conditions your underwriter will consider, two in particular raise the most concern. Dubbed “The Big Two,” a family history of heart disease or cancer will send up red flags to your life insurance underwriter. Both have been linked to early mortality and are the leading causes of death in the United States. If several family members have been diagnosed with either condition before the age of 60, you will likely be placed in a higher rate class, resulting in a higher premium.

In addition to “The Big Two,” a family history of the following diseases/medical conditions could result in higher premiums:

  • epilepsy
  • cystic fibrosis
  • eye disorders
  • deafness
  • motor neuron disease
  • kidney disease
  • blood disorders
  • liver disease
  • Alzheimer’s disease
  • musculoskeletal
  • bowel disorders
  • Tay-Sachs disease
  • neurological/psychiatric
  • PKU
  • drug dependency
  • respiratory
  • alcoholism

While it is possible that your family’s health history could result in a denial of coverage, do not let that discourage you. The Vista Insurance Group specializes in helping high-risk clients obtain the coverage they need.

What If I’m Adopted?

If you are adopted, finding out your family history could prove difficult, if not impossible. You will not be penalized for this. Note this information on your application and the underwriter will work solely off of your medical history.

Can’t I Just Leave That Information off My Application?

Falsifying or omitting information on your application is considered insurance fraud. If discovered, you could face probation, community service, fines, or even jail time. And, since life insurers have access to MIB (Medical Information Bureau) reports, it’s highly likely that they will uncover the truth.

While most insurance companies will not take the time to prosecute in these cases, the lies will have consequences. It can slow down the underwriting process or, in some cases, cause them to decline the application altogether.

Should you make it all the way through the underwriting process and the policy is issued, you and your family are still at risk. Before paying out, insurance companies investigate death benefit claims. If your lies or omissions are discovered, the insurer has every right to deny or reduce payout to your beneficiaries.

Does Every Insurance Carrier Follow the Same Set of Rules?

No, each insurance carrier follows their own set of underwriting guidelines. Some may place more emphasis on an applicant’s parents’ medical history, while others place equal importance on both parents and siblings. One may deny coverage when both parents have a history of kidney disease, while another may only qualify you for a Standard rating.

If members of your family have been diagnosed with a serious medical condition, the best thing to do is be honest and up-front. The Vista Insurance team is here to assist you in finding the very best coverage at the most affordable rate. We have built relationships with a number of reputable carriers and are here to ensure you obtain the coverage you need for your unique situation.

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!

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.

Paramedical Exam Tips to Help Achieve the Best Life Insurance Rating

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Last week, we walked you through the life insurance paramedical exam process and answered some of the most frequently asked questions. Now that you know what to expect, we thought it would be helpful to share some tips to help ensure the best possible outcome. While you can’t control how chronic illness impacts the underwriting process, there are ways you can prepare to keep your rates affordable.

Here are some basic tips to help you prepare for the paramedical exam to ensure the best results:

1) Watch Your Diet Carefully

A week before your paramedical exam, pay close attention to the foods you consume. Since elevated blood pressure and cholesterol levels are the primary reason life insurance underwriters come back with an offer for a lower rate class, it’s important to control these numbers as much as possible. Reduce or eliminate your sodium intake, as it can elevate your blood pressure. Cut back on your sugar consumption, as it has the potential to increase your blood sugar levels. Avoid processed foods as much as possible, as these are typically high in sugar, fats, and sodium.

Instead, focus on foods that can positively impact your blood work. Leafy greens, such as kale, spinach, broccoli, and salads work to lower your cholesterol and blood pressure. Avocados, apples, oranges, olive oil, peanut butter, oats, orange juice, and fish are great options for raising your HDL (good cholesterol) level. While the underwriter reviewing your application will consider both your total cholesterol and your HDL ratio, they’ll offer some leniency on your total cholesterol IF your HDL ratio is excellent. Thus, focusing on improving your good cholesterol could help save you a lot of money in the long run.

2) Drink as Much Water as Possible

I’m sure, by now, you’ve heard the benefits of drinking water. This is not the time to slack on your water consumption. It will clean out your digestive system and urinary tracts, as well as increase blood flow. Additionally, drinking plenty of water ensures full veins, which makes it easier for the medical examiner to find a healthy vein to draw blood from.

3) Avoid Alcohol and Exercise Leading Up to the Exam

Elevated alcohol levels in your bloodstream could send a signal to the underwriter that you might have an issue with alcoholism. To avoid this, do not consume alcohol for at least 24 hours before the exam. If weight is a concern for you, consider eliminating alcohol for an entire week before the exam. This should help stabilize your weight going into the exam.

Normally, daily exercise is something we all strive for. It’s important to remember, however, that exercise can potentially elevate your blood pressure and protein levels in your urine. Twenty four hours before the exam, take some time to relax and shelf your exercise regimen. Once the exam is over, you can go back to your regular workouts.

4) Fast for at Least 12 Hours

When setting up your paramedical exam, the nurse will likely instruct you to fast for 8-12 hours. Doing so helps avoid false positives on your blood sugar and blood pressure levels, which can significantly impact your life insurance rates. If you’re concerned about fasting for that long, schedule your appointment for first thing in the morning. Once you’ve finished your exam, you can have that cup of coffee and bagel and get on with the rest of your day.

5) Advice for the Morning of the Exam

  • Drink a glass of water the morning of the exam. This will not only help you get through providing a urine specimen, it will also help hydrate your veins, making it easier for the examiner to draw blood.
  • For many, the very idea of having blood drawn can elevate their blood pressure. If you’re feeling a little anxious, ask the examiner to draw your blood first and check your blood pressure last. The time in between these two events is typically enough to let your anxiety subside and lower your blood pressure.
  • When it’s time to get your blood drawn, keep your arm straight and your elbow locked. This allows your veins to pop out, ready for the needle, and reduces any pain you might experience.
  • Wear light clothing and stand tall. It sounds crazy, but sometimes the difference between one rate class and another is a pound or two. By standing tall and dressing light, the examiner will get an accurate reading of your weight-to-height ratio.

If you’re still concerned about the findings on your medical exam, share your worries with your agent. They can match you with an insurance company that won’t penalize you as heavily or set you up with a policy that doesn’t require a medical exam.

Once you’ve completed your paramedical exam, it’s time for the rest of the process. Visit our blog next week as we prepare you for what to expect throughout the application process.