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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.

WHAT IS THE PROCESS OF APPLYING FOR LIFE INSURANCE.

    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), 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 either electronically or old-school paper.  Once the application is submitted the insurance company will 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 comes back, a Life 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.

 

    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.