The Truth about Substandard Impaired Risk Life Insurance Underwriting

By | January 20, 2009

Substandard Term Life Insurance Policies – How to get the best rates

Substandard Impaired Risk Life Insurance is an industry term used to describe insureds that do not qualify for standard or better rate classes.  Life Insurance carriers each have their own rate classes where potential insureds would be classified in and that is how the premiums are calculated.  So if you are a preferred or preferred best rate class then your rates will be cheaper than someones who is a standard or substandard rate class. 

If you have been offered a policy at substandard rates it means that there is something going on with you either health or lifestyle and you will not qualify for standard rates.Don’t be discourage if you obtain a rated offer from carrier because another carrier could come back with a better offer. 

This is why it is so important to work with a broker that is specializes in these types of cases. Locating the right agent that works with a brokerage general agency will be a great advantage to you in your search for inexpensive insurance.  It’s not to difficult to find a good agent, use the Internet to start with and type in substandard life agency or broker.  Or try Impaired Risk life insurance also, impaired risk is another industry name used more by the broker and brokerage to identify the type of case. 

In the past it used to be that some carriers would specialize in substandard impaired risk underwriting.  Today that really isn’t the case, some carriers do better than others.Remember a big part of your success is to work with and agency that has access to a multi-carrier brokerage platform to shop your particular case.Anymore the underwriters will consider your complete and full health file.  You get debits for whatever health issues you have but then you might get credits for having good control of blood pressure or your weight.  This is why you really need to work with a brokerage agency so they can help you with navigating all the different carrier underwriting requirements. 

Diabetes Life Insurance
is a very common type of substandard life case.  The key with this health issue for the underwriters is they really like to see good control and compliance of the health issues.Cancer probably is one of the most common types of substandard impaired risk issues, in which the underwriters will want to see a evidence of remission and no re occurrence.  There are hundreds of issues that can affect your underwriting offers speak with your broker about your case and give them as much detail as possible.  The more information the better and the quicker you should go through underwriting.

If you are a smoker and have other health issues combined this will not help make your case in the eye of the underwriters.  Smoker Life Insurance plans without other health issues are quite affordable though.  So if you smoke don’t let that deter you from getting a free quote from your agent.

Make sure and have your agent complete what’s called a quick quote inquiry with the carriers underwriting staff they can write business with.  How this works is you simply give detailed information to your broker about your condition or avocation.  They will then send it to the underwriters preliminarily for a review and quote base off the information provided.  What this does is it gives you an idea upfront of how the carriers might view your health and your broker can then run some illustrations.  The illustrations should give you an idea of how much your premiums might cost.  This strategy is all done informal so you still will have to go through complete underwriting for a formal offer.  The quick quote method is a huge time saver and helps you in getting a general idea of how much your new life insurance policy may cost.

Hopefully our guide here has been beneficial to if you currently have health issues or been declined or postponed for life insurance in the past.  The big key is to make sure you have a great broker that understands your health issues and they have the much needed access to a number of carriers. 

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