Life Insurance

    I primary help my clients purchase term life insurance.  I work with Lenz Financial, a firm in Portland that has some of the best companies and rates, and super back-office support.

    Life insurance planning is a complex issue regarding some guidance. The first issue is determining how much coverage you should have.  If you are replacing a bread-winner's income, a decent rule of thumb is to buy a death benefit equal to 5-10 times your current income.  More adequate is for you to do a formal 'needs analysis'.  A good non-profit calculator can be found at the web link below:

http://www.lifehappens.org/insurance-overview/life-insurance/calculate-your-needs/

 Preparing quotes

    Before applying for coverage I would like to ask you about your recent health history and prescriptions you take.   This will help me pre-screen to recommend a company that works well for your history.

Applying for Life Insurance process

    Once we get an idea of what you would like the death benefit (like $500,000), the guaranteed term you want your premiums guaranteed for (10, 15, 20, 30 years), and the likely underwriting level you will qualify for (Standard, Preferred, etc), we're ready to apply.

   I can email you various quotes, we can select a company, then make application electronically, which is a pretty easy process today.  Once the application is submitted the insurance company will likely order an in-home paramedical exam.  The examiner will come out, ask you the medical history, take a blood and urine specimen, and sometimes a EKG--at no cost to you.  If they have questions on your health history, they may request medical records from your doctors offices.

    Once all this data is collected an Underwriter looks at it all, decides on an tier of coverage to offer you (Preferred rate, Standard), then issues a policy for you to examine with a 30 day free look period.   If they have health concerns they may offer you a plan with a 'rating' which could be double what you were expecting, but an offer never the less.

    At that point you can either accept the insurance offer, reject it, or ask for a lesser coverage.

For example:  Bob applies for a $500,000 Term life plan with a 15 year rate guarantee, and was quoted a 'Preferred Rate' of $50 per month.   In the Underwriting process they uncover an untreated high blood pressure issue and Bob is offered a $500,000 plan with a Standard rate of $60 per month.

Bob can then:

1.  Accept the plan as offered for $60

2.  Request a lower benefit, like $400,000 of coverage for $50 per month (if that's his budget)

3.  Say no thanks and reject the coverage without obligation.

HOW LONG DOES THE LIFE INSURANCE APPLICATION PROCESS TAKE?

It can take from 2 weeks to 3 months, depending on whether medical records are required.

updated 11/16/2022