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Insurance Underwriting – “On the Fence”

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As many of you know, 2016 is a big year for life insurance. Tax rules are changing at the end of the year and anything issued before then is grandfathered under the current, more favourable rules.

We continue to see an increasing number of clients with odd combinations of health issues through our Private Underwriting service. Perhaps a borderline cholesterol issue, a suspicious ECG, some family history of cardiovascular disease. The issue at hand is that the client doesn’t actually have a diagnosis of anything but several small things that potentially add up to a big thing.

The re-insurance manual says there should be a rating of 100% for a cardiac condition. That means double the cost of insurance. Pretty significant increase considering the client is measuring the performance of the insurance policy based on long term expected internal rate of return. This could kill the opportunity.

Getting to the bottom of each issue, getting clarity with your doctor, retesting or even implementing a proactive lifestyle change could result in millions of additional dollars to your family.

So be thorough. Take control of your insurance health profile. The results will be worth it.