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CPS Midwest Life Underwriting

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LTC Underwriting V.S. Life Underwriting

Long-Term Care and the cost of care can be overwhelming for most. In the past, traditional stand-alone LTC policies were the only way to insure long-term care expenses.

These days, there are more ways to obtain this valuable coverage – including LTC riders on Life Insurance policies.

Underwriting long-term care risks can be very different than underwriting for life insurance. LTCi underwriting takes into account medical impairments that impact ability to perform daily living activities. Whereas, life underwriting is more concerned about impairments that affect mortality, or life expectancy.
 
In some cases, your client may be eligible for life insurance at a favorable rate class, but may be rated or declined for long-term care.
 
This recent case study shows how different underwriting mortality vs. morbidity can be:
  • 62 year old female
  • Seeking $1 million of UL coverage with a Long-Term Care rider
  • Non smoker; normal build
  • Hypothyroidism diagnosed in 1980; well controlled on medication
  • Was seen once by a chiropractor for back pain with improvement
  • Diagnosed with scoliosis
Final underwriting decision: Super Preferred for life coverage; Standard for the LTC rider due to scoliosis and back pain history
 
Non-traditional long-term care insurance and chronic illness riders are the perfect solution for those impairments that would be declined for traditional LTC riders. These alternative riders are automatically available on eligible permanent products with little to no additional underwriting.
 
Whatever the case may be, there is a product we can pivot to, to cover long-term care needs. Contact your Underwriting Specialist, we’re here to help you sort through the different options and pre-qualify your client for this much needed coverage.
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A Healthy Lifestyle Will Give You Wellness Credits!

Wellness crediting programs can help give clients who maintain a healthy lifestyle the potential to be upgraded to a better underwriting offer and price.

For example, one program is open to:
  • All Ages
  • All Face Amounts
  • Most of their product line (some product exceptions apply)

An insured may be credited up to two classifications, including from Preferred to Preferred Plus. This crediting program can improve substandard ratings, too.

Some of the criteria includes:
  • BMI range of 22-29 (ages 18 and older)
  • Untreated blood pressure < 120/80
  • No incidents of CAD, diabetes or cancer in parents or siblings prior to age 60 years, or both parents live to age 75 or older
  • Normal routine colonoscopies, mammograms, pap smears, CBCs, skin checks in the last 3 years
  • Hemoglobin AIC readings 5.0 – 5.5 range in the last 12 months

Call the Underwriting Department to discuss your client’s health history and this program for the best possible outcome!

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Can You Get A Sweet Deal For Challenging Cases?

Diabetes, there’s no way to candy-coat it – this all too common yet serious disease can present some challenges in life underwriting.

An estimated 1.7 million Americans are diagnosed with diabetes each year. Complications can include heart attack, stroke, cardiovascular and kidney diseases.

The good news is diabetes can be well managed with proper diet, exercise and medication and in turn helps to reduce the chances of developing complications.
 
There are several factors that underwriters look at when reviewing diabetes cases.
 
These include the type of diabetes (Type 1 or Type 2), the current age of the client, age at time of diagnosis, A1c levels (average blood sugar), treatment and any diabetic complications. Type 2 diabetes is the more common form in which the body is resistant to insulin. Ratings are generally more favorable for Type 2 than they are for Type 1.
 
Some top carriers have programs that could be the icing on the cake to getting the best possible offers for your diabetic clients.
 
Take a look at these examples:
  • Type 2 Diabetes: 75 year old male non smoker, diagnosed with 10 years ago, A1c levels have averaged 7.0 or better, 5’10 207 lbs, blood pressure is 143/90 and cholesterol is 270 with a cholesterol ratio of 6.0 – PREFERRED rating!
  • Type 2 Diabetes: Age 50 and older with excellent diabetic control, treated with diet and oral medication only, no complications – STANDARD PLUS is possible!
  • Type 1 Diabetes: Over age 50 with excellent control and no complications – TABLE B is possible!
Our Underwriting Team is ready to help get you the sweet deals you need in order to get your impaired risk cases placed – contact us today.
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Credit Where Credit Is Due – Helping You Make The Sale!

Diabetes is a metabolic disease in which a person has high blood sugar either because the body does not produce enough insulin or because cells do not respond to the insulin that is produced.
 
The most well known types of diabetes are:
  • Type 1 (treated with insulin)
  • Type 2 (treated with a combination of diet, exercise and oral medications) and
  • Gestational diabetes (a type of diabetes which occurs during pregnancy.)
When diabetes is coupled with a client who is not an ideal weight, the underwriting class will increase.

Crediting programs can help give credit where credit is due – applying health and lifestyle credits to provide the best possible offer.

Let’s take a look at this case study:
  • 54-year-old female
  • Non-tobacco user
  • Applying for $1 million of Term Life
  • Has type 2 diabetes; treated with Metformin
  • Build is 5′ 3″, 220 lbs
Initial work-up – Table 4
 
The client received credits for:
  • Lifetime non-smoker
  • Income > $100,000
  • Preferred or better driving record
  • Negative cardiac testing
  • Controlled blood pressure
Once those positive credits were applied, this client went from Table 4 to an Underwriting Offer of Table 2.
 
Contact our Life Underwriting Team today – let’s work together to make your next sale!
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Key To Success: Answer Your Underwriter’s Questions Before They Ask

If you were an underwriter and received the following application on your desk, what questions would you have?
 
  • Female, age 35
  • Noted to be retired with no annual income; Net worth left blank on the app
  • Seeking $8 million of term coverage; Purpose of coverage left blank on the app
I know you’d be scratching your head wondering why is this woman retired at such a young age and why is she looking for $8 million of coverage?
 
What the producer forgot was a good cover letter explaining the purpose of the coverage. This client just inherited a very large estate and recently quit her job. Estate taxes were a concern. Based on the inheritance, the $8 million applied for was justified.
 
How can we help in this situation?
We are here to provide our expertise when it comes to writing good cover letters. We can even write them for you. We will help explain the purpose of your applications to our carrier underwriters.
 
However, the most important source of information about a proposed insured is you, so we’ll need your help to prove your applications are financially justified.
 
Key information we’ll need includes:
  • What is the purpose of the insurance?
  • How was the face amount determined?
  • Who will be the policyowner and premium payor?
  • What is the current amount of in-force and applied for insurance?
  • Do you have any other pertinent documentation you can provide to explain how the amount of insurance was determined?
Give us the opportunity to help you move your applications smoothly through underwriting. If we answer our underwriters questions before they ask them, who knows?
 
Quicker approvals leading to faster receipt of commissions – then we move on to your next big app waiting to happen.
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Great Underwriting News On A Weighty Issue!

Our Underwriting Department can help you make the sale for your clients whose weight is an issue.

One of our A+ carriers takes an aggressive approach to underwriting build cases.

Some case examples that may surprise you:
  • A man who is 6’ 0” and 300 pounds could possibly qualify for Standard rates with credits for favorable blood pressure and cholesterol levels.
  • A woman can be 5’ 4” and 235 pounds and possible Standard if there are no co-morbidities present.
Next time you have an applicant whose weight is an issue, think of us and you’ll find we don’t think it’s that big of an issue.
 
Contact our Underwriting Team to help uncover more ways to get better offers for your clients and increase your sales !
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Underwriting Credits Help Make The Sale

Carriers use crediting criteria to improve your clients’ ratings. The following case study shows how the identification and application of underwriting credits can significantly reduce premiums.
 
Case Study:
  • Male, age 35, NS
  • Seeking $2 mil of term
Scenario:
  • No tobacco use
  • Build is 5’8”, 204 lbs
  • Blood pressure 130/85
  • Cholesterol 273 with cholesterol/HDL ratio of 5.5
  • Father diagnosed with prostate cancer at age 56, but still living at age 67
Underwriting Rating: Using traditional criteria, this proposed insured would qualify for Standard Plus with a $3300 annual premium.
 
Crediting Criteria: Crediting Criteria added 1 inch to the proposed insured’s height, making him 5’9”, 204 lbs. He was then considered Preferred for build.
 
Final Decision: Case was moved to one class higher and issued Preferred – Annual premium = $2271 and saving nearly 30%.
 
On each case we see, we work hard to identify any underwriting credits your client may qualify for. Contact our Underwriting Department today.

Parkinson’s Disease: Standard Is Possible!

Parkinson’s disease affects about one million people in the United States and ten million worldwide.

The cause remains largely unknown. Although there is no cure, treatment options vary and include medications and surgery.

One of our A+ carriers takes a responsibly aggressive approach to underwriting Parkinson’s disease and can offer favorably on those cases that are well controlled with other favorable risk factors.
 
Take a look at this recent case study:
  • 65-year-old female
  • Applying for $500k of Term coverage
  • Non tobacco user
  • Diagnosed with Parkinson’s disease two years ago
  • On low dose of Sinemet daily with no progression of symptoms
Initial underwriting assessment of Table 2.
 
With the application of the following credits:
  • Controlled blood pressure
  • Good cholesterol ratio
  • Routine physicals and preventative screenings
  • Good family history
  • No tobacco use in the past 10 years
Underwriting offer after credits: STANDARD!
 
Contact our Underwriting Team today to see how we can help you place your next impaired risk case.
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The Underwriting Differentiator

We are ready for the challenge…

Bring us your difficult cases and let us help you turn them into policies for your clients and commissions for you.

Case Study:
  • Female, age 68, non-smoker
  • Seeking $1 mil of UL
  • Two vessel coronary artery disease with coronary bypass surgery performed 3.5 years ago
  • Our offer: Standard!
Our experience and expertise make a difference – we’ll be your advocate.
 
Contact our Underwriting Team today.
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Brain Power For Underwriting Seizures And Epilepsy

Epilepsy is a disorder characterized by recurring seizures. Diagnosis is typically made when a person has had two or more seizures.

Seizures are a result of disturbances in the electrical activity of the brain.

There are many causes including genetics, traumatic brain injury, stroke and brain tumors. Epilepsy is termed as ‘idiopathic” when the specific cause cannot be identified.
 
There are two major groups: focal seizures and generalized seizures. The difference between the two is how and when they begin in the brain.
 
Focal seizures involve activity limited to only one area of the brain:
  • Simple or Partial Focal – affects a small part of the brain without affecting consciousness or awareness. They may alter emotions, smell, feel, taste, sound. Involuntary jerking or sensory symptoms may also occur.
  • Complex or Partial Focal – similar to simple focal, but also involves impaired consciousness.
Generalized seizures involve widespread activity in both sides of the brain:
  • Tonic-clonic or grand mal – involves body convulsions. Muscles will stiffen (tonic phase) and the body will jerk and twitch rhythmically (clonic phase).
  • Absence seizures or petit mal – a milder, brief type of activity that causes unconsciousness without convulsions.
Here are two case studies:
  • A 52-year-old male
  • Has a history of childhood idiopathic epilepsy with mild absence type seizures that started at age eight.
  • Controlled with medication which was stopped at age 20.
  • There have been no seizures since.
Offer: Preferred
 
  • 42-year-old male
  • He began having complex seizures at age 26.
  • His MRI was negative.
  • For the past five years he has been maintained on two drugs with an average of five seizures per year.
  • Does not drink alcohol.
Offer: Low substandard
 
Call our Life Underwriting Team to discuss the specific details of your client’s seizure or epilepsy history. Let’s work together to get the offer you need!

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