The Secret to Securing term life insurance with Multiple Sclerosis
Multiple sclerosis is an autoimmune disease that affects the brain and spinal cord. In securing term life insurance with multiple sclerosis you must do this one thing:
You must work with an independent life agent who has the knowledge and experience in dealing with individuals with multiple sclerosis.
Independent life agents who specialize in this type of protection should have many carriers to choose from. Agents that are captive or that are limited to only a couple of companies hinder your chance for the best rates.
An independent agent offers you the absolute best chance of securing term life insurance with multiple sclerosis.
Special Risk Life Underwriting
Special risk life underwriting is a niche of insurance companies who have the expertise and the willingness to underwrite risks such as multiple sclerosis, cardiovascular disease, diabetes, high blood pressure, etc.
These companies are sometimes not as well known as others, but surprising to some people are large companies like Prudential, Mutual of Omaha, Lincoln Financial Life that are among the special risk carriers.
All life insurance companies underwrite and evaluate risks differently. It is up to your agent to deliver the companies that do the best job on your particular situation.
The difference between standard and a rated policy offer
Most life insurance companies offer typical risk classifications such as preferred best, preferred, standard plus and standard. Each class has a criteria that must be met in order to qualify for that class.
Someone with a history of controlled blood pressure may qualify as a preferred best risk with one insurance company but preferred or standard plus with another. The difference in qualifying for these rate classes can mean big dollars over the life of your policy.
If an individual does not qualify for one of the (4) above mentioned rate classes they can then be qualified as a substandard or rated policy class. These policy classes typically are referred to by table ratings such as table A, table B, table C and so on. Each rating class above the standard risk class typically adds 25% more to the premium.
For instance someone who qualifies at a Table B risk class would pay 50% more in premium than someone who qualifies at the standard risk class.
This is why it is so important that you work with an agent that can get you the best rating class possible.
Let’s look at a couple of scenarios to better understand how this might work:
Debbie is a 45 year old female applying for $500,000 of guaranteed 20 year level term coverage:
- Diagnosed at age 25 with MS
- Diagnosed with mild primary-progressive MS
- No other conditions found
- Visits doctor regularly
- non-smoker
The case is submitted to 4 different insurance companies to evaluate for an offer.
Company A comes back with a rating of Table D and a premium of $2,000 annually
Company B comes back with a rating of Table C and a premium of $1,700 annually
Company C comes back with a rating of Table B and a premium of $1,500 annually
Company D comes back with a rating of Standard and a premium of $1,000 annually
It is obvious that Company D has the best offer. Over a 20 year period Debbie would save $20,000 in premium over Company A. This is important because only an independent agent can shop your coverage with all 4 carriers.
A captive agent or perhaps the company that handles your home and auto coverage may only offer one carrier and what if that one carrier is Company A. This can be a costly mistake.
What plan is best for someone securing term life insurance with Multiple Sclerosis?
When purchasing term life insurance it is important to purchase not only the correct amount of insurance but also the correct plan of coverage.
Here again a trained agent can help you decide. But, keep in mind that MS is a progressive disease and typically does not get better from an underwriting standpoint as you get older. Therefore, it is important to buy as much coverage as you can afford and lock in the level rates for as long as you foresee needing the coverage.
It is also important to make sure that the term coverage that you purchase as a guaranteed conversion option. This option allows you to convert any or all of the portion of the death benefit to a new level premium policy with no medical exam or health questions.
Although this may not seem important now, down the road your needs may change and you want to be sure you have this option to continue coverage for as long as you feel necessary.
Keep in mind term life insurance is temporary coverage. At some point the level period of rates will end. At the end of the term the rates will begin to increase tremendously.
Fortunately, nowadays term life polices are available that can lock in level premiums for 20, 25 and 30 years depending on the issue ages. But, if you are a 35 year old and purchase a 30 year term, this only takes you to age 65. Will you want coverage after 65? And if so, will you be able to qualify based on your medical history. This is where the conversion option can be so useful.
TIP– Be sure you have a conversion option on your term policy.
Conclusion-
Securing Term Life Insurance With Multiple Sclerosis is possible. But, you must work with an expert or you could waste not only your time but also thousands of dollars in premiums. This is a specialty market. Make sure you work with a specialist.
If you have a need for term life insurance and would like to discuss your situation please call us at 1-888-393-9003. You will speak with the owner of the agency and someone with 30 years experience working in the special risk life insurance market. Thank you for reading this blog.
