Life Insurance Q&A - w/ FAQ Section

[hjello]

Sounds reasonable to me.

We're one of the odd ball companies that do Term 25 and not Term 20.
For 400k each (minus the child rider), Non Smoker rates - ranges from 61.38 to 83.34 for 25 year renewable term.

Can you tell me what company this is with? And Would these rates be each for my husband and I or combined?

[wesboag]

Sounds reasonable to me.

We're one of the odd ball companies that do Term 25 and not Term 20.
For 400k each (minus the child rider), Non Smoker rates - ranges from 61.38 to 83.34 for 25 year renewable term.

Reasonable? I'd say those are some of the best rates one can get given the OP's criteria. Without the child riders, the Manu policy is $72, thats tough to beat from any company for a t-20.

Which company did you quote that 25 year coverage from? is it convertable? I'd imagine the renewal premiums would be sky high as the OP would be renewing at 58 and 57 for another 25 years.

[Sprite_TM]

Can you tell me what company this is with? And Would these rates be each for my husband and I or combined?

I am with the Co-operators. The breakdown would be:

400K M 38 $38.07-$50.67 Non Smoking
400K F 37 $23.31-$32.67 Non Smoking

It is convertible to a permanent policy up to your nearest age 70.

Reasonable? I'd say those are some of the best rates one can get given the OP's criteria. Without the child riders, the Manu policy is $72, thats tough to beat from any company for a t-20.

Which company did you quote that 25 year coverage from? is it convertable? I'd imagine the renewal premiums would be sky high as the OP would be renewing at 58 and 57 for another 25 years.

I am with the Co-operators. Yes, it is convertible to a permanent policy (We do not offer non-convertible policies). Yes, renewable premiums would be sky rocket because the company discourages renewals.

The logic is that people whose health have deteriorated over the years would definitely renew (so the company is on the hook for it) and a healthy individual would usually get a new policy with the good rates (because they would have to go through another medical).

I've been following this thread for quite some time now and I see some really good stuff. I really like how you guys post the rates for other life insurance companies because I've been curious regarding how the Co-operators fair against the market.

[wesboag]

I am with the Co-operators. The breakdown would be:

400K M 38 $38.07-$50.67 Non Smoking
400K F 37 $23.31-$32.67 Non Smoking

It is convertible to a permanent policy up to your nearest age 70.



I am with the Co-operators. Yes, it is convertible to a permanent policy (We do not offer non-convertible policies). Yes, renewable premiums would be sky rocket because the company discourages renewals.

The logic is that people whose health have deteriorated over the years would definitely renew (so the company is on the hook for it) and a healthy individual would usually get a new policy with the good rates (because they would have to go through another medical).

I've been following this thread for quite some time now and I see some really good stuff. I really like how you guys post the rates for other life insurance companies because I've been curious regarding how the Co-operators fair against the market.

I have a few questions for you as im curious.

Why are the quotes that you supplied over a range? If the insured is of a standard rate, why the range?

Do you guys only sell t-25?

What are the planned renewal rates after 25 years?

[Sprite_TM]

I have a few questions for you as im curious.

Why are the quotes that you supplied over a range? If the insured is of a standard rate, why the range?

Do you guys only sell t-25?

What are the planned renewal rates after 25 years?

For non smokers, there are sub rate classes: N1, N2, N3, and N4, it depends on how healthy you are. We would usually quote N4.

We also offer Term 10, and Level Premium to Age 75.

Renewable premium is $1675 so it is actually wiser to convert it to a permanent policy because it is cheaper if your health isn't as good and you would get the permanent policy at the same rate class of your initial policy at your current age rate without going through a medical. Or if you are healthy, you would get a new policy.

[wesboag]

For non smokers, there are sub rate classes: N1, N2, N3, and N4, it depends on how healthy you are. We would usually quote N4.

We also offer Term 10, and Level Premium to Age 75.

Renewable premium is $1675 so it is actually wiser to convert it to a permanent policy because it is cheaper if your health isn't as good and you would get the permanent policy at the same rate class of your initial policy at your current age rate without going through a medical. Or if you are healthy, you would get a new policy.

So standard is basically the highest rate you quoted. To qualify for those other rates (the lower ones) is pretty rare. Those classes are the same as most other companies for the most part. For example with Canada Life, Standard is called Gold, then theres Platinum, then Diamond plus. As you move up in health categories the rates drop substantially. I have only had 3 or 4 clients who were healthy non-smokers qualify for anything above standard. One should always quote standard (except in cases where there is a rating apparent) as this is the best ball park for anyone. If they get lower, awesome, but it sucks when you have to tell a client you have applied for something, done all the paperwork and medicals to find out you don;t qualify for the quoted price.

Thanks for explaining your companies product to a certain extent as i've always had questions about them with regards to what you guys offer.

Lastly that renewal premium you quoted...im assuming thats monthly?

[Sprite_TM]

So standard is basically the highest rate you quoted. To qualify for those other rates (the lower ones) is pretty rare. Those classes are the same as most other companies for the most part. For example with Canada Life, Standard is called Gold, then theres Platinum, then Diamond plus. As you move up in health categories the rates drop substantially. I have only had 3 or 4 clients who were healthy non-smokers qualify for anything above standard. One should always quote standard (except in cases where there is a rating apparent) as this is the best ball park for anyone. If they get lower, awesome, but it sucks when you have to tell a client you have applied for something, done all the paperwork and medicals to find out you don;t qualify for the quoted price.

Thanks for explaining your companies product to a certain extent as i've always had questions about them with regards to what you guys offer.

Lastly that renewal premium you quoted...im assuming thats monthly?

N2 rates is pretty common too. We usually quote N4 and let them know there's a possibility that you could get better rates if you are very healthy. These sub rate classes are only offered if coverage is 250,000 or over.

Yes, that renewal premium is monthly. Like I said, the company discourages renewals because people whose health have deteriorated would definitely renew and the company is on the hook for it.

[ltp2k3]

I don't have high blood pressure problem and it's never in any record with my doctor. However when the nurse came for the blood & urine tests, my blood pressure was higher than normal, 154 / 94 and she tried 3 more times, the numbers were simliar. After she left, my blood pressure started to drop and now every night I checked, I am in the normal zone again (not sure what happened that day). My only concern is if they reject my application due to that reason, can I ask them to redo the test? I hate to have a record of being rejected by some insurance company because that would always be the question they would ask when you applying for one. BTW I am 47 yrs old male and non-smoker all my life.

[wesboag]

I don't have high blood pressure problem and it's never in any record with my doctor. However when the nurse came for the blood & urine tests, my blood pressure was higher than normal, 154 / 94 and she tried 3 more times, the numbers were simliar. After she left, my blood pressure started to drop and now every night I checked, I am in the normal zone again (not sure what happened that day). My only concern is if they reject my application due to that reason, can I ask them to redo the test? I hate to have a record of being rejected by some insurance company because that would always be the question they would ask when you applying for one. BTW I am 47 yrs old male and non-smoker all my life.

Its odd to me that you had a medical done for Auto insurance. The only thing I can think of is the bundles the Banks sell to customers with discounts, i.e. Life, auto, etc.

You can probably do a new medical, but that elevated rate may be on your card for a bit. Oh the banks.

[ltp2k3]

Its odd to me that you had a medical done for Auto insurance. The only thing I can think of is the bundles the Banks sell to customers with discounts, i.e. Life, auto, etc.

You can probably do a new medical, but that elevated rate may be on your card for a bit. Oh the banks.

I forgot to clarify, it was life insurance for T20

[wesboag]

I forgot to clarify, it was life insurance for T20

Wasn't your header suggesting "car insurance company"?

I'm confused. Was the rejection for life insurance or car insurance?

[ltp2k3]

Wasn't your header suggesting "car insurance company"?

I'm confused. Was the rejection for life insurance or car insurance?

Sorry for the confusion, it was life insurance all along. Bank actually hasn't rejected yet. It's 2 weeks since I took the test so I am still waiting for the result. I was just curious if my high blood pressure at the time of the test could cause them to reject the application

[wesboag]

Sorry for the confusion, it was life insurance all along. Bank actually hasn't rejected yet. It's 2 weeks since I took the test so I am still waiting for the result. I was just curious if my high blood pressure at the time of the test could cause them to reject the application

I see, okay. Well if it does come back with an impact for high blood pressure, you will most likely be rated or even possibly declined. If you are rated, by how much? I’m not sure, as all insurance companies, although they use similar underwriting measures, will vary on their approvals or on what they constitute as normal and/or risky.

You can have another medical, but if it’s already in the system as a risk, you can’t do much. What do you think the reason for the abnormally high blood pressure was? Nervous? Anxious?

In all honesty, although I am not an underwriter, many times we see elevated blood pressure on the paramedical or medical exam that may lead to a rating or decline. With physician follow up and/or treatment and investigations, we have found that clients can usually reconsider within six (6) months in most cases.

Did your advisor write a cover letter? I have found that a covering letter can do wonders for an application, especially one like yours with no medical history of high blood pressure. It would suck to be rated because of simply being anxious. This accompanied by an attending physician statement is pretty rock solid.

How much was the policy for?

Why did you go through a bank? the rates?

Which medical accompany did they use? you have an idea?

[ltp2k3]

I see, okay. Well if it does come back with an impact for high blood pressure, you will most likely be rated or even possibly declined. If you are rated, by how much? I’m not sure, as all insurance companies, although they use similar underwriting measures, will vary on their approvals or on what they constitute as normal and/or risky.

You can have another medical, but if it’s already in the system as a risk, you can’t do much. What do you think the reason for the abnormally high blood pressure was? Nervous? Anxious?

In all honesty, although I am not an underwriter, many times we see elevated blood pressure on the paramedical or medical exam that may lead to a rating or decline. With physician follow up and/or treatment and investigations, we have found that clients can usually reconsider within six (6) months in most cases.

Did your advisor write a cover letter? I have found that a covering letter can do wonders for an application, especially one like yours with no medical history of high blood pressure. It would suck to be rated because of simply being anxious. This accompanied by an attending physician statement is pretty rock solid.

How much was the policy for?

Why did you go through a bank? the rates?

Which medical accompany did they use? you have an idea?

RBC gave me 10% discount as I have car/home insurance with them. It's cheaper than anywhere else I checked $98/month for $500K with T20. I think I might have been nervous. My current T10 will end in April so I try to get a new one

[wesboag]

RBC gave me 10% discount as I have car/home insurance with them. It's cheaper than anywhere else I checked $98/month for $500K with T20. I think I might have been nervous. My current T10 will end in April so I try to get a new one

Cheap isn't always best. Without that discount, its average (most insurers will be within a few dollars of this) I'm not a believer that these insurances should be bundled, nor bank writen insurance in general. What happens if you cancel your car insurance or home insurance? Will you lose your 10% discount? I’m assuming so. Craziness.

I guess what I would suggest is wait for the results and go from there. Don’t cancel your t10 until you see the medical results and your subsequent approval/rating or decline. If you are declined, you still have your t10 for renewal (although at elevated costs). If you are rated, but that rating will make it less than your t10 renewal now and in another 10 years, go with that.

As much as people on this site dismiss using an advisor, this is a good example to where they can bring you value. Simply dealing directly with a bank can be problematic, as you have just experienced. It’s terrible that a simple bout of nervousness/anxiousness can have a huge effect on your underwriting outcome.

Report back here after the underwriting and let us know how it went.

good luck