Home » Blog » Eligibility and Underwriting » POWER TO THE POLICYHOLDERS



How much power do you think you can handle?

What would be the first thing you would do if you were granted more power?

How about reducing the rate on your life insurance?

Might as well start at a place where you could save some money!

A Fitbit Update

At this point I am sure you have heard about the partnership between John Hancock and Fitbit.

They are using this technology to allow policyholders to qualify for lower rates as they get healthier.

You plug into the company computers and let them monitor your progress.

I was discussing this new development with a friend of mine. He told me that he did something similar on his own:

“I did something similar to that when I applied for my insurance, except that I used advanced diagnostic testing to affect underwriting outcomes. So, when I started, I planned 6 months out – cholesterol was a bit high. So, I partnered with a cellular biologist (my fiance) and a health coach, and changed those numbers. The research proved pretty powerful and efficacious. The outcome went from preferred with credits to ultra-preferred after a chat with the underwriter.”


The policyholder has increased control over the outcome of underwriting.

This could be a very good thing.

Don’t you think that any and all things life insurance applicants are doing to qualify for better rates should be factored into their risk assessment?

Why not give insureds every opportunity possible to control their eligibility for coverage?

“Power to the Policyholders!”

First – a word of caution.

People sometimes are under the false impression that improved health alone will qualify for better rates.

This is simply not true. There are many other underwriting considerations, such as motor vehicle record, financial record, family history, hobbies, etc.

Nonetheless, improved health can be a major influence on rate reduction.

Here’s why:

  • Underwriters can be extremely receptive to information provided by applicants.  Look, they have to get paid too. They need the business. You just have to give them a good reason to take take it – and to put their absolutely lowest price on the table.
  • Communication lines between insureds and underwriters could and should be established to allow applicants to advocate on their own behalf. Underwriters need to know you as more than just a file number and a questionnaire. They need to get a sense of who you are and what you are up to. Providing them with consistently accurate health data is a good way to accomplish this.
  • This is a double-edge sword, however: while improved health can result in lower rates, poorer health can result in higher rates. The data you provide can and will be used against you if merited. That only makes sense. Once you are plugged into a life insurance company’s underwriting department, you have invited the life insurance version of Big Brother into your life. They will assess all the data you give them: the good, the bad, and the ugly.

Who’s ready?

Net-net, this could be a good thing.

People are entitled to as much control as possible over their lives.

Certainly in business, clients should be given every opportunity possible to get better value for their dollar.

And as with any form of power, you need to exercise good judgment when using it.

What do you think? Are you ready for more power as a policyholder?