I got a call from this 66 year old male who had prostate cancer two years ago, and he also had a melanoma removed eight years ago. Recent cancer cases can be tough for life insurance companies to make an even semi-decent offer. For anyone having more than one cancer diagnosis, this is an even bigger problem.
This gentleman indicated he wanted $150,000 of 20 year term because he purchased a home in Florida and wanted to cover the mortgage. Because his mortgage was for 30 years and because of his age, I assumed longer coverage may best fit his need and that he also may get a better offer on permanent insurance, so he indicated he’d consider that also.
I had my work cut out for me because his prostate cancer was so recent and he’d also had a melanoma. I made inquiries to a bunch of different insurance companies, and here are the results of my preliminary inquiries:
American General– Possible Standard on permanent, Standard plus $5 flat extra for two years on term
Banner Life– Decline
Genworth– Standard plus $5 flat extra for two years
Met Life– Standard plus $5 flat extra for two years
Nationwide– Standard plus $5 flat extra for two years
Lincoln National– Standard plus $5 flat extra for two years
North American Company for Life & Health– Standard plus $5 flat extra for two years
Columbus Life– Decline
Protective Life– Decline
United of Omaha– Standard plus $5 flat extra for two years
Minnesota Life– Decline
Cincinnati Life– Decline
Principal Life– Standard possible on permanent
Because American General and Principal Life both indicated a Standard (also called “Regular”) rate was possible, I ran rates for them first on their best GUL product, which has a guaranteed level rate for life and will also provide coverage for life. American General’s $150,000 GUL rate was $418 per month, and Principal’s was even higher.
Since both Lincoln National Life and North American Company for Life & Health had the most competitive GUL rates at this man’s age, I ran rates for both of them with the $5 flat extra, and North American’s rate was $380 per month, while Lincoln National’s was $381. Both of these were better than American General’s standard rate.
The best $150,000- 20 year term rate with the $5 flat extra was $375 per month, which is only $5 less per month than the best GUL rate above. If this gentleman did purchase the 20 year term and outlived the 20 years, he’d get nothing back.
This gentleman opted for the GUL rate, which I also felt was his best option, considering that if he no longer wanted the coverage in 20 years, for example, he could always sell the policy through a life settlement. By selling the policy when it was no longer needed/wanted, he’d recoup some or all of the premiums that he paid into policy, or possibly more than he paid into policy. While not only providing valuable life insurance coverage, the GUL policy could also be looked at as an investment.
What’s interesting about this case is that many agents, myself included, may originally have thought that American General or Principal Life’s offers would have been best because they were the only companies that indicated they would offer without charging an additional premium. This did not turn out to be the case.
I’ve learned many times in this business that you can never assume anything. Whether it’s assuming that any one insurance company may not make a good offer on a tougher case or that any one product may be better than another, you can just never assume, as I’ve been surprised too many times.
Many people, insurance agents, and the general public have the assumption that term insurance is always much less expensive than permanent life insurance. This is just not the case, especially for people ages 60+, and this is a perfect example of that.
I/we have shopped thousands and thousands of really tough life insurance cases to every quality life insurance company in the country.
If you’ve had cancer and you’d like me to shop your case, please click the link above to get an accurate quote, call me at 1-800-380-3533 and ask for G3 (Gordon, III), or email me at firstname.lastname@example.org. I will get you the best offer possible.