A part of the reason I have created some of these videos is to provide education and insights for you based on some common situation sand conversations I have to have with our clients on an ongoing basis.
Here is something I have to address more often than not, and that is when a client applies for some life insurance, disability insurance, or for some form of long-term care benefits, and for some reason or another does not qualify for those preferred or super preferred rates. When this happens, it becomes like a blow to our egos and you will be tempted to say, "Well, if they're not going to give us their lowest rates, then I don't want their policy," which I'm telling you is a big mistake, because really, it's not worth going without insurance for the sake of your pride.
Hey, I know how it feels. When I was in my thirties, I had to take a standard rate for my life insurance policy because my triglycerides were through the roof. But when I got into my forties, I cleaned up my diet, started exercising regularly and lost some weight, and I was eventually able to get those super preferred rates. When that happened, I made sure I got the maximum insurance that I needed and locked the rates in for a very, very longtime so I don't have to re-qualify, which was probably a good move on my part because now that I'm in my fifties, I couldn't outrun our family genetics and recently got diagnosed with diabetes, which means that I can pretty much kiss those super preferred rates goodbye if I want to get another policy.
Now, I'm not saying that you can never get preferred rates with diabetes, but chances are very slim. If you can get your A1C down to under6.0 without any meds and be able to show you can do it consistently over a year or more, who knows, you might qualify for those lower rates. But the prudent thing to do is get what you can now and work towards improving your health overtime, because we all know that lasting change is very difficult and it's better not to risk the wellbeing of your family based on your bruised ego.
Also, keep in mind, your rates are based on many underwriting factors, including your height, weight, family history, the amount of international travel you do, as well as your driving record. A few years ago, I had a client who got rated because he had three car accidents in one year, and none of them were his fault. Apparently, he was rear ended each time and the insurance company saw this as a pattern of bad driving, which could present more risk from their perspective.
Then there are times when we have been able to get people qualified for lower rates. One time we had a client who was a smoker and he needed to be one year without smoking in order to qualify for the non-tobacco rates. Surprisingly, he did it. He gave up smoking and a year later we got him preferred non tobacco rates.
If you find yourself rated for whatever reason, one thing you can do is ask your broker to shop your policy with other insurance companies, with the same blood work, medical records and exam they have on file. Who knows, you might get lower rates because all insurance companies have different underwriting criteria.
There was this one time we had a client who was rated standard by one insurance company and we were able to get him super preferred rates with another one. In his case, it was due to family history of heart disease, but when the new insurance company saw that he's in excellent health and he also takes good care of himself, they were able to give them their best rates.
Also, let's say if you know that standard is the best rate you're going to get. One thing you can do is to shop to see who's got the lowest standard rates. In our case, we have a quote engine that compares 175 different companies to help us find the lowest rate so we can see who's got the lowest standard rates and see if we can get that for you. With that said, if you've been rated for your life insurance policy, my recommendation is that you take the policy while working towards improving your health. I know there's some things that are out of our control, like family history, but sometimes we just have to take what is available to us.
If you would like to discuss your life, health or long term care insurance needs with me, schedule your discovery call today and let's talk. Be sure to subscribe to our channel for more educational videos like this.