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Does Your Life Insurance Need Special Handling? Answers to the Most Commonly Asked Questions

writing life insurance policy

If you have ever purchased a life insurance policy or even just researched the requirements to start the process, you probably had many questions along the way. Obtaining life insurance can be a difficult endeavor with numerous challenges that arise when going through prequalification and underwriting, which we discussed in Parts One and Two of this series. Let’s take a look at some of the most common questions asked by people who want to buy life insurance.

Life Insurance Q&A

These questions address the particular concerns of those who are considered high-risk or who have needs that require special handling.

1. Do You Represent A Company That Takes Higher-Risk People?

There is no one company that specializes in “higher-risk” candidates. Personally, I represent dozens of top-rated carriers, such as American General, John Hancock, MetLife, Prudential, and others.  Each one of these companies specializes in underwriting certain types of risk. My job is to know which companies like which risk and build strong connections with them so your application has the highest chance of success.

2. How Will You Know Which Company Is Right For Me?

I will take you through prequalification. This means I will obtain thorough and accurate quote information through personal interviews as well as any necessary medical record documents. Every underwriting risk you pose will be identified so we are aware of potential challenges at the outset of the process.

My prequalification team, headed by my general agent, will then identify the carrier or carriers that would be most competitive for you. We will then report back to you with a summary of rates the market has to offer, along with our recommendation of the carrier with whom you should apply.

3. Will I Then Be “Pre-Approved” For Coverage?

No. There is no such thing as pre-approval in life insurance underwriting. You receive official

approval only after you submit a formal application and go through underwriting. What prequalification does offer is a quoted rate of which I am confident you will be approved. You can submit a formal application confident of the outcome.

4. Can You Guarantee You Will Find A Company For Me?

There are few things in life that are guaranteed, and unfortunately, some people are simply not insurable. Whether it’s severe organ failure, a hard drug habit, or other extreme medical, lifestyle, legal or financial risk factors, there are certain risks insurance companies will not be willing to take. But these cases are few and far between. The vast majority of people are eligible for coverage immediately.

5. Will I Have To Pay A High Premium Because I Am Considered “Higher-Risk?”

Not necessarily. The key, as I mentioned above, is finding a carrier with a high degree of comfort in underwriting the particular risk you represent. Because of their level of expertise, they may not consider you a very high risk at all. Often, people get charged exorbitant rates because they apply with a company that does not specialize in their risk. Once you choose the right company for you, the underwriting becomes much more intuitive.

Knowledge Is Power

My hope is that you feel much more informed and at ease with what is involved when acquiring life insurance. In our next installment of “Does Your Life Insurance Need Special Handling?” we will continue examining questions about the life insurance marketplace. In the meantime, if you have a specific question about your situation or would like more insight about one of the topics mentioned above, please do not hesitate to contact me at skobrin@stevenkobrin.com and download our free guide to educate yourself further.