Underwriting a $250,000 life insurance policyt without at least a para-med, blood, and spec is a joke - and we should all know that. God help the poor consumers who get sucked into this diabolical scam and get financially hurt by it. I feel sorry for them.
How exactly is it a joke? Insurance carriers have very accurate statistics and it's a common fact that most term policies lapse. In addition, when you factor in the 2 year incontestability period, carriers have an easy out in case they missed something, but it's not indefinite.
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Really though, how could a company ever afford to issue large policies without complete underwriting? Maybe they'll hire the Tooth Fairy to head their compliance department.
I'll send you over a legal document for you to sign and you can write me a check for $50. I'll use that money to find out about your medical history. That's how insurance carriers operate, although I'm being facetious.
We're not to a point yet we're medical records are online and accessible (Thanks to lovely HIPAA), but you would be amazed the type of medical information that can (should) be obtained. In reality, non-paramed has it's place, just like traditional term. There are a few companies that are very competitive with the traditional term products. An ethical agent will know when to use what type of product.
You have an interesting site. _________________ You can catch me here: insurancesaleslibrary.blogspot.com
In our country, we offer non medical life insurance policies but within the age limit and based on what kind of occupation the client is engaged in. I think the non-medical insurance policy can be issued up to the age of 50 (I'm not really sure about this). There is a reason why insurance companies can offer this kind of life insurance policy. There is what we call contestability period of 2 years. If the policy owner died within 2 years time upon approval of life insurance application, the company has the right to investigate about the cause of the client's death. If they found out that the policy owner died with cancer (for example) and the client did not state it upon application that he or she has cancer, the company can contest it and may not pay the life insurance premiums because of misrepresentation. But given fact that the policy owner died after 2 years upon application, the company cannot contest it so they would pay for the insurance proceeds.
I don't really know what is the real score about online life insurance application. When applying for life insurance online, just be careful. There are many websites that are not legitimate. Be sure to choose the right company. _________________ Free Insurance Quotes
Joven222; if I may ask, which country are you referring to in this message? Here in America, there are a number of companies which offer life insurance policies without much more than an MIB inquiry. Blood, spec, and a paramed are usually required on the majority of other plans. As you obviously know, as the face values increase, so do the requirements.
I guess I'm a bit confused by the way you referred to the Contestability Period. This is an industry standard that I'm pretty sure applies to every policy I've ever seen - or investigated.
Are you active in the life insurance industry? Are you a licensed rep? _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
Blood, spec, and a paramed are usually required on the majority of other plans.
I am from the Philippines and I have a life insurance policy but I have not undergone blood, spec, and paramed as you have stated as a usual requirement. I got it in an early age so all I need is to fill out the form and state may physical conditions.
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I guess I'm a bit confused by the way you referred to the Contestability Period. This is an industry standard that I'm pretty sure applies to every policy I've ever seen - or investigated.
What made you confused about the contestability period? Am I wrong in stating the nature of it? I believe that there is a 2-yr contestability period on every plan, right?
I was an agent but now I am not. I have stopped for 2 yrs already. If I'm wrong with what I have said, please correct me. I will review my insurance policy to confirm about this. [/quote] _________________ Free Insurance Quotes
Hello Joven222,
Then quite possibly, the requirements for life insurance policies sold in the Philippines are different than those of policies sold in the U.S.
No, you were not wrong in your explanation of the contestibility period.
This provision applies to life insurance sold in the U.S. as well as, I now understand, life insurance sold in the Philippines _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
Probably some people have valid reasons not to go for medical examinations when applying for insurance.
I always believe going for medical examination is one of the most important things we should do twice a year. I wonder if anyone out there would disagree with me that medical examination is important.
Many of us just take lame excuses for not going for a health check quoting reasons such as no time, too afraid to know the findings of the health check etc.
When applying for insurance, you have another good reason to go for health check. Besides, some insurance companies are willing to bear the examination fees.
Essentially there are only two possible outcomes at the end of a health check, i.e. you are still in perfect good health or your health is in questionable conditions.
If you remain in good health, very likely the insurance companies will accept your application at standard rate. If you health condition is not favorable, you need insuance more than other people do, you only hope your insurance application does not come too late and the insurance company would still accept your application.
This is an interesting topic. I worked at two "captive agency" (career) life insurers before becoming independent. Both had Guaranteed to issue products available for sale. There were a few (less than ten) medical questions to answer and qualify.
I remember training sessions where the concerns raised in this thread were raised to the trainers (sales managers and product specialists). After being pressed by concerned agents we were told that it was possible that some underwriting could be done at death. We were also told that we could not give ANY advice on how to answer the questions (which were open to some interpretation). For example - what is a heart condition? What is a lung condition? Have you ever had ....?
Anyone buying these products are well advised to read the terms and conditions carefully, and ask their Doctor to help them fill out the form.
The easiest way to buy may be the most costly in the long run.
Just my 2 cents _________________ I am an insurance broker from Ontario licensed for all types of insurance.
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