Waiting to ApplyJul 28, 2020
Your personal insurance record and when waiting to buy insurance actually protects you!
A personal story from Dallas, one of our advisors...
Here’s the deal - I have great life, critical Illness and disability insurance for my needs right now, but future life events will see myself and my wife with a greater need for life insurance as we look to upgrade our home and have children.
I shopped the market for the best possible coverage, value and price for the policy I want – same as we do for all of our clients at Parallel Wealth – but my application will have to be put on the back burner for now.
Here are three reasons why:
- I am awaiting the results of some recent medical testing: I injured my shoulder a couple years ago and I just had an MRI completed, for which I am awaiting the results. There’s a chance it will need surgical repair in the future. Even though a shoulder injury has nothing to do with my chances of dying, this is a red flag to an insurance company – they don’t like taking on risk!
- If I were to apply, the insurance company would postpone their decision/offer: The insurance company would need to contact both my family doctor and the surgeon for the results of the above procedures. Because diagnosis and treatment recommendations aren’t possible to be given in the next few weeks, the proverbial decision letter from the insurer would sound something like this, if I applied right now:
“Regrettably, we are temporarily unable to process you the insurance policy that you recently applied for due to medical testing for which results are unknown and/or future procedures. Re-application may be possible in 6 months pending proof of health.”
- I, like you, have a personal insurance record that is worth protecting: Every person has an insurance record that lists all the times private, fully-underwritten (more on this below), coverage is applied for along with the results. If I’m likely to be temporarily denied coverage anyways, I may as well wait to apply altogether until I know my doctor would attest to my 100% clean bill of health and after all of my medical testing results have been given. This protects ability to get insurance in the future for the least possible cost and negates another entry on my personal insurance record.
For the time being, I am waiting to apply for a fully-underwritten insurance policy (willing to have an insurance company go through my medical history in return for the best possible rates) because I am confident that my shoulder diagnosis will be conclusive in a couple of months. However, If there were medical issues that I’d gone through or that a close family member had gone through that made me feel uncomfortable with an insurance company asking about, I would apply for a simplified issue policy. I would gladly pay a bit more for a much-less invasive application and the guarantee that I’d get the coverage without risk of being declined.
Whether it’s the first time you’ve considered purchasing life insurance or replacing your current policies due to changes to life circumstances (buying/upgrading home, having children, retirement & estate planning), we have your best interests in mind as you seek to protect your families, wealth and income.