This one was downright FUN.
Chris is an extremely healthy and successful Silicon Valley executive. His Start Up company is poised to change his industry forever—it just hasn’t happened yet. The company wanted a $6M Key Man policy.A brief history of some of the hurdles we overcame:
- He likes to do “poker runs”, where he and his friends take their super-fast speed boats out on the open water in what can be defined as races.
- He likes to SCUBA in places like Thailand, French Polynesia, the Caribbean, Micronesia, and Fiji. (I’ve never even HEARD of some of those).
- He had a “whole in his heart” fixed LAST YEAR.
- Oh, and the company is ‘losing’ millions of dollars a year.
But we pushed, and pushed, and pushed. Working closely with the agent AND the client, we uncovered more and more financial information, and went back to the underwriter no fewer than 6 TIMES before she changed her mind. We put the policy in force, at a Preferred Non Smoker rate.
HD Mooers and Company is a small agency. It’s what makes us BETTER. We will do WHATEVER it takes to place your case.
When it comes to underwriting diabetics, it’s ALL about CONTROL. There are many contributing factors, but control is the most important, by a long shot.
And that control is measured by the “A1C”. Think of it this way—an average glucose reading is like a snapshot—a GIF, I guess—while the A1C is more of a video. Glucose readings can change drastically in the course of a donut, while an A1C measures diabetic control over a period of time.
So if you’re talking to a diabetic, here’s what we need to know:
- The most recent A1C. We’re looking for something in the 7.0 range. If you’re client can tell you theirs, that’s a good sign. Shows awareness, compliance. If they don’t—and most don’t—that might be a concern.
- Average glucose reading. The 100 range is great, but again, since this measurement can vary, some outlying tests can still be considered. Glucose is something diabetics tend to know, as they often test it themselves.
- Age at onset. Adult onset is much better from an underwriting perspective, but adult onset with lousy control can be worse than childhood onset with great control.
- Method of treatment. This can range from diet and exercise, to oral medication, to insulin. Insulin-dependent diabetics used to be an automatic decline, but today, we can write most of them.
- Other symptoms. Watch out for ways the diabetes is rearing its ugly head—protein in the urine, neuropathy (numbness of the limbs), retinopathy (vision issues resulting from the diabetes). These are tougher to write.
My father died from diabetic complications. By the time he died, he had a glass eye, a prosthesis, and had received a kidney/pancreas transplant. He lived for nearly 50 years as an insulin-dependent diabetic.
So we KNOW THIS IMPAIRMENT, and NOBODY works diabetes cases better than we do.
Some sample results:
- Female, 64. Diabetic since age 13, insulin-dependent. Tough case. But she shows tremendous compliance. Most recent A1C was 6.4, glucose 135. We got her a Table B offer.
- Male, 72. Big guy—6’2”, 225. Insulin dependent for the last 5 years (oral meds prior to that), A1C in the 7.9 range, glucose in the 160 range. And some mild neuropathy. We got this one Standard, believe it or not. Because with diabetics, older is better. The harsh truth is that something else will probably kill him first.
- Male, 42. Insulin-dependent since age 10, good control—Table D range.
- They both live in Tahoe. I am jealous of this.
- Their dad bought them both Whole Life Policies. In 1973.
- Premiums on these policies were either paid, or they weren’t.
- Today, each policy has about $300k of benefit, with about $130k in Cash Value.
- Ann is married with 2 teenage kids. Mark is single with no kids. But he really loves his dog.
- Ann has a need for life insurance where Mark really doesn’t.
- Ann’s Whole Life policy has a small loan attached.
- For Ann, we did a 1035 exchange into a John Hancock IUL plan. She won’t have to pay any further premiums, and we got her OVER A MILLION DOLLARS of life insurance, designed to last until she’s 100 years old. The small loan will soon be wiped out.
- For Mark, we got him a Long Term Care plan that will provide him LTC for 6 years. If he goes on claim at 65, he’ll get OVER A MILLION DOLLARS in LTC reimbursement benefits. Oh, and his plan also has a Death Benefit should he die, and a Return of Premium rider, should he change his mind.
Then his agent died. After Joe died, we offered to help his clients. We do this selfishly, I guess-helping people makes us feel good.
He said thanks, and he’d buy a big policy, just as soon as he got that Trust done. You know the Trust. That trust.
Fast forward 8 months. Trust is now forgotten, but the need is still there. But he’s older, so other carriers are now less expensive. So we go to both of the now less expensive carriers. One says Standard Plus (that darn Sleep Apnea again), the other wants a blood test to get to Best Class (testosterone, ferritin, glucose, cholesterol).
So we go back to Pru, they stick to their original offer, and we place $4MM at Best Class. Then we get an application for $10MM more.
Is it because the agent worked so hard for the client? You be the judge. (yes).
(And the Best Class part. And the need for coverage. And the premium affordability.)
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