Do you believe you are Uninsurable?
THE UNINSURABLE/HARD TO INSURE MARKET PART 1 OF 3 (LIFE INSURANCE)
With technology and advancements in the life insurance industry, people who were thought of as uninsurable can now procure affordable and comprehensive insurance (life, disability and/or critical illness insurance) that was not available to them just a few years ago.
In this first article, we would like to focus on life insurance.
GUARANTEED ISSUE INSURANCE:
Who is it for? It is designed for individuals who would not qualify for insurance due to their health or lifestyle history
Issue Ages: 18 to 80
Type of contract: Permanent
Application Process: No medical or lifestyle questions required
Approval: Acceptance guaranteed
Restrictions: 2-year deferral*
Maximum face amount: up to $50,000 per contract per company
Why choose this type of coverage:
- Truly uninsurable, would not qualify by answering any questions. (Examples: someone who is quadriplegic, someone who was recently (less than 1 year) diagnosed with cancer or life-threatening disease or illness, etc.)
- If the individual does not want to answer or share any medical/lifestyle information at all.
- It’s a form of self insurance for the first 2 years that becomes a regular insurance thereafter.
NO MEDICAL EXAM INSURANCE:
Who is it for? It is designed for individuals with a certain medical and/or lifestyle history that would be either heavily rated, offered exclusions and/or declined when applying through the traditional medically underwritten insurance process.
Issue Ages: 0 to 85
Type of Contract: available in Term and Permanent options
Application Process: YES/NO questions, no medical exams
Approval: Automatic Approval, type and conditions of approval are dependent on how eligibility questions are answered
Restrictions: depend on how eligibility questions are answered.
- no deferral period / no restrictions; or
- a modified deferral period (example: year 1: deferred; year 2: half payout; years 3+: full payout); or
- a 2-year deferral period
Maximum face amount: up to $500,000 per contract per company
Why choose this type of coverage:
- Ease, simplicity, and efficiency of application process
- Minimal medical/lifestyle information required
- Typically, the amount of coverage available is much higher and the insured can benefit from more affordable premiums and potentially less restrictions than the Guaranteed Issue Insurance contracts offer
At Kelvin Chong & Associates, with our years of experience, we are able ascertain the risk by getting to know you and your situation. We do an initial field assessment to determine which insurance process would be most suitable and advantageous for you. This will allow us to offer you the best solution for your needs while reducing as much as possible the unnecessary delays and frustrations that may arise while going through the traditional insurance application process.
Our services include Insurance Audit, Life Insurance, No Medical Exam and Simplified Issue Insurance, Living Benefits Insurance, Critical Illness Insurance, Disability Insurance, Long Term Care Insurance, Health and Dental Insurance, Travel Insurance, Creditor Insurance, Group Health Benefits, Segregated Funds and Annuities, and other Life Insurance services.
*Definition of deferral:
During the first 2 years after the contract takes effect or 2 years after the last reinstatement, the death benefit is equal to the cumulative sum of premiums paid (plus interest in some cases) if the death results from a non-accidental cause. Consider it like a savings account for the first 2 years. After the 2-year waiting period, the full amount of coverage is paid out as a death benefit to the named beneficiary(ies). In the event of an accidental death, the full amount of coverage would be paid out, regardless of when it may occur. Some companies may offer a multiple of the face amount in the event of an accidental death.