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Thread: Since someone raised the life insurance question (m, sibs)

  1. #11
    Join Date
    Jan 2006
    Posts
    39

    Default Actually I'd prefer you did not.

    I'm not an agent, and people should be seeking advice from their own independent licensed agents who are familiar with their needs and their family situations, not from underwriters. I'm more than happy to share my personal experiences with life insurance underwriting and snks on this board, but it would be irresponsible of me to try to pass myself off as a licensed expert.

    That is actually what I was trying to say wrt how someone may answer a question on an application- don't start trying to bend the rules on advice from someone on an internet parenting forum when an agent is licensed to advise you on the legal side of insurance. That would be as irresponsible as you or I trying to dx someone else's kid w/ASD just because our kids have spectrum disorders. Obviously that's a job for the child's doctor, not for someone on an internet community. How irresponsible would that be?!!!

    Do you owe someone an email? Sounds like there's somebody out there waiting for one from you, but it isn't me! I'm hardly online anymore, but when I do get over here, I try to add what I can. This board really provided some excellent support for me over the past few years.

    Glad to hear you're doing well, and I just had a thought. I saw you mentioned that your dh is a licenesed agent- maybe you could have him write up something for your newsletter?

    Good luck!



    Quote Originally Posted by mickey2
    thank you soo much for responding!!! i knew you had valuable insight on this matter. how are the kdis doing? i havent had time to respond to your email btw. i have my hands for getting our school opening planned for 2008-9. im soo excited!!!

    i would love to ask though b/c this subject comes up often IRL support groups, may i have your permission to share/quote what you wrote with them? and to be printed in a local support group newsletter (www.graysons-gift.org) hugs girl!!!

  2. #12
    Restless is offline INCIIDer - A Community Creator
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    Default Thanks! Even if you aren't Di-Bo, this is

    Quote Originally Posted by debmc1
    I'm not Dibo, but I'll jump in since I'm a life insurance underwriter. First of all, when I started my job I was shocked to learn that food allergies aren't even *IN* our manuals yet. I thought ds would be declined or rated based on his severe allergies, but life insurers don't even consider them at this point. So, if your child has a serious food allergy, get them coverage now before the insurers get caught up with it!

    Asthma is extremely common, but many insurers won't touch a child w/asthma until after age 6. Sadly, the number of children who die each year from asthma is rising and the numbers are astounding!

    As for AS, ASD, ADD, etc. Our manuals are getting caught up, but they're still not where I'd like to see them. AS and ASD are still classified together in most manuals. Interestingly, a few years ago Aspergers was a straight decline. Now once a child has reached 8 years old, they can be considered if it is the only problem. If you start mixing AS with OCD, tourettes or another problem, they'll probably be a decline. Classic autism is still a decline, so if you have that gut feeling, but not an official dx, get your child insured NOW.

    ADD and ADHD are looked at differently, with ADD rated more favorable than ADHD. In both situations it is preferrable in a child over an adult. Some insurers are *very* harsh on adult ADD or ADHD, so again a policy established as a child can protect insurability as an adult.

    Something many people aren't aware of is an organization called the Medical Information Bureau. Basically when you apply for life insurance, your carrier checks you out w/MIB. It's very much like running a credit report, only it's representative of your medical hx. So if someone applies for insurance and maybe lists their weight as 5.2.130, but I see a MIB report is out there for that person at 5.0.230, I'll send a paramed examiner to get height and weight to make sure I'm underwriting appropriately. Or maybe you listed that you had mild depression and I order medical records to make sure there is no hx of suicidal ideation, and when they arrive I find out you have severe depression, diabetes, a seizure disorder and high blood pressure. I am to report the discovered conditions to MIB, so the next insurer will know right away that those conditions have been discovered in the past. Why this is so important in the context of our children is that insurers almost NEVER order or issue MIB reports on children, so they are working with a clean slate. The first time they complete an app at age 18 though, all medical hx is free to go straight to MIB where it can follow them for life.

    Regarding your ability to NOT disclose ADD, ADHD, etc on your application because it is not considered a "mental disorder". Life apps will ask if you have specific conditions, but they also have an open ended question re: being diagnosed with or treated for any other conditions. If you purposely leave off a condition, it can be treated as fraudulent material misrepresentation. Insurers won't generally send the FBI after you, but if you have a claim, or the policy lapses and the condition is discovered at reinstatement, the insurer will typically void the policy and return all paid premiums. Seriously- if you have questions about how to answer a question on a policy, don't split hairs and omit diagnosed conditions. Speak with your independent insurance agent and make sure your are completing your child's application completely and legally. Not doing so can cost you down the road.

    LM does bring up a good suggestion though regarding the Guaranteed Purchase Option rider available on many whole life policies. An example would be if I want to take out a 50K policy on ds and dd w/50K GPO. I'm only paying premiums based on a 50K policy, but at certain designated ages (typically around 25, 30 and 35) additional units of 50K can be purchased, increasing the policy to 100K, 150K or 200K. You only pay for the additional amounts when they are purchased, and they can be purchased w/out evidence of insurability at that time. That is definitely the route we'll be going w/ds when he turns 8!

    Really valuable and appreciated info.

  3. #13
    mickey2's Avatar
    mickey2 is offline INCIIDer - A Community Creator
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    Default

    no problem...thats why i asked your permission. yes dh is a licensed agent but doesnt quite understand the whole underwriting qualification process. so i know he cant explain it as well as you did. he does strongly encourage people to put additional medical info in the other "section" btw.

    must have been another deb that i owe an email to...i have brain farts these days, lol. anyhow, good to see ya again. hugs

  4. #14
    Join Date
    Jan 2006
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    Default THANK YOU so much deb!! m

    I really appreciate your taking the time to answer this post. What a wealth of information! I have a few general questions, if that's okay...but I'll email you.

    Karen







    Quote Originally Posted by debmc1
    I'm not Dibo, but I'll jump in since I'm a life insurance underwriter. First of all, when I started my job I was shocked to learn that food allergies aren't even *IN* our manuals yet. I thought ds would be declined or rated based on his severe allergies, but life insurers don't even consider them at this point. So, if your child has a serious food allergy, get them coverage now before the insurers get caught up with it!

    Asthma is extremely common, but many insurers won't touch a child w/asthma until after age 6. Sadly, the number of children who die each year from asthma is rising and the numbers are astounding!

    As for AS, ASD, ADD, etc. Our manuals are getting caught up, but they're still not where I'd like to see them. AS and ASD are still classified together in most manuals. Interestingly, a few years ago Aspergers was a straight decline. Now once a child has reached 8 years old, they can be considered if it is the only problem. If you start mixing AS with OCD, tourettes or another problem, they'll probably be a decline. Classic autism is still a decline, so if you have that gut feeling, but not an official dx, get your child insured NOW.

    ADD and ADHD are looked at differently, with ADD rated more favorable than ADHD. In both situations it is preferrable in a child over an adult. Some insurers are *very* harsh on adult ADD or ADHD, so again a policy established as a child can protect insurability as an adult.

    Something many people aren't aware of is an organization called the Medical Information Bureau. Basically when you apply for life insurance, your carrier checks you out w/MIB. It's very much like running a credit report, only it's representative of your medical hx. So if someone applies for insurance and maybe lists their weight as 5.2.130, but I see a MIB report is out there for that person at 5.0.230, I'll send a paramed examiner to get height and weight to make sure I'm underwriting appropriately. Or maybe you listed that you had mild depression and I order medical records to make sure there is no hx of suicidal ideation, and when they arrive I find out you have severe depression, diabetes, a seizure disorder and high blood pressure. I am to report the discovered conditions to MIB, so the next insurer will know right away that those conditions have been discovered in the past. Why this is so important in the context of our children is that insurers almost NEVER order or issue MIB reports on children, so they are working with a clean slate. The first time they complete an app at age 18 though, all medical hx is free to go straight to MIB where it can follow them for life.

    Regarding your ability to NOT disclose ADD, ADHD, etc on your application because it is not considered a "mental disorder". Life apps will ask if you have specific conditions, but they also have an open ended question re: being diagnosed with or treated for any other conditions. If you purposely leave off a condition, it can be treated as fraudulent material misrepresentation. Insurers won't generally send the FBI after you, but if you have a claim, or the policy lapses and the condition is discovered at reinstatement, the insurer will typically void the policy and return all paid premiums. Seriously- if you have questions about how to answer a question on a policy, don't split hairs and omit diagnosed conditions. Speak with your independent insurance agent and make sure your are completing your child's application completely and legally. Not doing so can cost you down the road.

    LM does bring up a good suggestion though regarding the Guaranteed Purchase Option rider available on many whole life policies. An example would be if I want to take out a 50K policy on ds and dd w/50K GPO. I'm only paying premiums based on a 50K policy, but at certain designated ages (typically around 25, 30 and 35) additional units of 50K can be purchased, increasing the policy to 100K, 150K or 200K. You only pay for the additional amounts when they are purchased, and they can be purchased w/out evidence of insurability at that time. That is definitely the route we'll be going w/ds when he turns 8!

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