Life Insurance

Discussion in 'The GatorTail Pub' started by fubar1, Aug 21, 2013.

  1. fubar1
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    fubar1 Premium Member

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    Would appreciate any insight from the resident Life Insurance experts. I currently have life insurance through my work, but it's not portable if I leave. So, I'm thinking of applying for a ~$500K term life policy and curious as to the medical exclusions.

    I'm 45, married, no kids and relatively healthy. Not overweight, decent cholesterol, normal BP, normal blood sugar, etc. No craziness like alcohol or drug use and no chronic conditions.

    But…I had a cardiac ablation performed two years ago to correct an atrial fibrillation, i.e. irregular heartbeat. I was told my heart muscle is perfectly healthy and well functioning, but the ablation needed to be done as a long-term solution. I've been symptom free since and was also advised the condition/surgery would have no long-term impacts on life expectancy.

    Would this be something that would/could cause a denial, or would i just pay higher rates?

    Thanks in advance.
  2. ThePlayer
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    ThePlayer VIP Member

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    Don't even mention the ablation procedure.
  3. g8orbill
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    g8orbill Gators VIP Member

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    you have to mention it-if you don't and then you die from a related issue then they will not pay out
  4. GolphinGator
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    GolphinGator Well-Known Member

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    Unlike health insurance, life policies do not exclude conditions. The policy is either written or declined. Depending on the health of the person the rate can change. Most companies have several rate classes like preferred and standard and then can rate the policy up from there depending on the situation. The best thing to do is find a good agent to check with underwriting to get an idea of how they treat the illness you had. From what you are saying it does not sound like it would be a big issue. A life agent that represents several companies can shop it for you better than one that only works for one company.
  5. dadx4
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    dadx4 Well-Known Member

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    I am thinking you would be rated. I think some one will write you. It won't be cheap. Are you married and do you have kids? If so, for every $40,000 in income you need $1million in coverage. For instance, let's say you make $80k per year. You would need $2mil in coverage, I would suggest term,s (again won't be cheap because of the condition you had), I would go with term. You need to project our your 401k or retirement plan to see when it will be at the same $2mil. So hypothetically let's say that your 401k is projected to hit $2mil in say 12 years. I would only go out with the $2mil in term for those 12 years because once your retirement hits $2mil the $80k can be replaced. ($2mil x 4%= $80k)
  6. ThePlayer
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    ThePlayer VIP Member

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    Did not mean to sound deceitful, Bill....but I've never heard of a company
    refusing to pay a beneficiary claim due to a lifelong irregular heart beat.
    And if the irregular rhythm was treated and no longer became an issue,
    why would that be causation for death?
  7. GolphinGator
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    GolphinGator Well-Known Member

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    Player, to buy that amount of life insurance an application will need to be completed. If you do not disclose the operation, I can promise you they would not pay the benefit if a claim was made on the policy and the death could have any possibility of being related to his heart. They might pay after two years , but not if they considered the application fraudulent. There is also a possibility that it would be found in the MIB report or the report from the nurse that does the paramed. For that amount of insurance at his age many of the companies also require a EKG. These companies are very good at what they do and any operation would be hard to hide these days with a fully underwritten policy.
  8. exiledgator
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    exiledgator Gruntled Premium Member

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    Every 40K = MM$2

    That seems outrageous to me.
  9. ThePlayer
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    ThePlayer VIP Member

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    I understand Gol...and I really wouldn't take such a chance either.
    Those likely harmed would be my own family members...not good.
    Just adds to my already ill feelings towards insurance companies.
  10. gator7_5
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    gator7_5 Well-Known Member

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    Yeah, especially with no kids. Hell, I would think 250-500k would be plenty as long as you weren't buried in debt and your wife is capable of an income.

    Unless you want her set up for life in a sweet pad and a new Mercedes.
  11. demosthenes
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    demosthenes Well-Known Member

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    And pool boy.
  12. GolphinGator
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    GolphinGator Well-Known Member

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    Player,

    Not really sure why you have ill feelings for a life insurance company. The cost of life insurance has gone down over the years because people are living longer. There are hundreds of companies to choose from so that in itself will keep the prices in line. I sure don't want to buy a life policy from a non profitable company as they would have a hard time paying claims. Life insurance is for responsible people that care about their family and dependents.

    No one that I know of is going to make you buy life insurance, so if you don't want it don't buy it. If you want a big business loan and the lender makes you buy some then hate on them not the insurance company.

    It is not like car or auto insurance where you may never need it if you are lucky and never have an accident or a fire. It is 100% you will die.
  13. dadx4
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    dadx4 Well-Known Member

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    The idea of $1mil for every 40k.....Hubby makes $40k...has $500k. He dies. Wife comes to me and says here's the $500k I want income. If we go mutual funds, let's assume we average 6%, if I am paying her 4% she is getting $20k per year. Her lifestyle would change. To replace the $40k in earnings she would have to take an 8% payout which we won't get going forward which would mean she would be eating principle which eventually she runs out of money.
  14. neisgator
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    neisgator Belligerent Gator

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    8-10 times annual income is plenty.
    At 40K, 400K in life insurance is plenty.
  15. JohnC1908
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    JohnC1908 Well-Known Member

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    If you lie on the application, then die, what will happen is they will then recalculate the premium to what it would have been. The insurance company will then pay the beneficiary what is owed minus the miscalculated premium.
  16. ThePlayer
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    ThePlayer VIP Member

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    How depressing.
  17. GolphinGator
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    GolphinGator Well-Known Member

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    Not true. That is for things like misstatement of age or sex something like that. If it is medical that could have caused the policy to be declined they will only return the premium that was paid on the policy.
  18. JohnC1908
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    JohnC1908 Well-Known Member

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    My bad. Has been a long time since I took the 2-15 exam. I only deal with health, so I'll keep quiet.
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  19. gtr2x
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    gtr2x Well-Known Member

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    Life ins has actually become pretty cheap as noted above. Might as well fess up on the application, no point in taking any chances. Plus with all the medical info flying around the internet these days, Im not sure that the insurance company wont find out anyway.

    However, a mill of coverage per every $40K in income is way over the top imo, especially if there are no kids. Her next husband will thank you tho.
  20. G8trGr8t
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    G8trGr8t Premium Member

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    agreed, in my case the house is insured for payoff, kids tuition is already paid for, youngest will be 18 in 8 years, work pays for 500k, carry 500k on the side on a 30 year term I got at age 35, and they will get SS till kids graduate. If they can't make it on that with no mortgage, a nice SS check every month, and $1M cherry they are SOL. have no intentions of leaving a legacy $$ when I die, got traveling to do and experiences to share.
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