Background

Securing comprehensive life insurance coverage for a client with impaired risks can be daunting, and obtaining the right policy requires a strategic approach. A financial advisor reached out to the Modern Life team for assistance after his 65-year-old client faced obstacles securing a $5 million permanent policy for estate planning, including rated offers and carrier declines. The client's health conditions and previous rejections from insurance companies made it challenging to find suitable coverage. 

Challenges faced

The client had previously applied to two carriers, only to be met with rejection from one due to a positive carbohydrate-deficient transferrin (CDT) test, which can indicate heavy alcohol use. The client was rated nicotine rates from the other carrier due to nicotine found in the insurance company’s urine sample because of regular cigar use. The client’s health profile presented additional challenges, including elevated A1C levels, obstructive sleep apnea, and mild coronary artery disease (CAD).

Our approach

In response to the challenges presented, our team aimed to address each obstacle while advocating for the client's best interests, including:

• Carrier selection: Recognizing the importance of selecting the right carrier, we researched and identified a few insurers who did not view a positive urine sample, excluding cigarette use, as tobacco rates to get him reclassified as a non-smoker at more favorable rates. 
• Health advocacy & management: Leveraging our client's stable and normal liver function tests, we argued against the negative implications of the positive CDT test. While acknowledging the presence of obstructive sleep apnea and mild CAD, we highlighted that the client was proactive in managing these conditions, including compliance with CPAP therapy.
• Utilization of carrier programs: We identified a carrier crediting program that could reduce the client’s premium costs by bringing him from a table three to a standard rating based on his active health management.  

The results

Through planning, advocacy, and a commitment to the client's best interests, Modern Life was able to secure the client’s desired coverage with:

• Transition from smoker to non-smoker rate: We successfully secured non-smoker rates, significantly reducing premium costs.
• Mitigation of health factors: Through comprehensive advocacy and documentation, we effectively mitigated the impact of the client's health factors, leading to a more favorable underwriting outcome.
• Improved underwriting classification: Leveraging a carrier crediting program, we successfully navigated our client from a table three rating to a standard rating, further enhancing overall affordability.

Modern Life’s strong carrier connections, digital underwriting capabilities, and brokerage expertise highlight how combining technology and white glove service helped the client secure the coverage he needed for a strong estate planning strategy. 

Next steps

Schedule time with us to learn more about Modern Life's underwriting capabilities or get a second opinion on a challenging case.