Tag Archives: underwriting

Electronic Underwriting Coming To Life Insurance

At Insurance Shoppers, we’re big fans of things that can be done electronically. ?We switched to an electronic fax system years ago, and long ago made the change to electronic application for all of our health insurance clients. ?So we’re excited about Hooper Holmes’ new iParamed e-Exam, which can create a complete digital case file for any life insurance applicant in the US.

Roy Bubbs, President and CEO of Hooper Holmes, noted that life insurance carriers spend an average of $500 to underwrite an application, and he believes that his company’s product that reduce that amount by half. ?My guess would be that it will also speed up the underwriting process, much as the electronic application process for health insurance policies reduced underwriting times for some policies from weeks to days over the last decade.

The iParamed e-Exam technology will come out in four stages over the course of the next several months, and will be fully operational by the end of 2010. ?Nine life insurance companies (hopefully including some that we work with here in Colorado) will be using the technology initially, and my guess is that the rest will soon follow, either with the Hooper Holmes product or with a similar electronic system.

Do You Have Enough Life Insurance?

Earlier this year, Louise and I came across this forum thread about a family and their life insurance situation. ?It’s a sobering conversation for sure, but one that inspired us to increase the amount of life insurance we have. ?Before we read that thread, we were content with our relatively small face value term life insurance policies. ?They would be enough to pay off the mortgage with some left over, but we weren’t really looking at the big picture. ?We have a toddler now, and if one of us were to die young, it’s important to us that the surviving parent would be able to focus primarily on raising our son, rather than scrambling to make a living while taking care of him at the same time.

If you have life insurance through your employer, be sure you know how much coverage it provides and how far that would go. ?If you need to add additional life insurance coverage, a basic term policy of 20 or 30 years will probably do the trick. ?Premiums are based on age at issue, so the younger you are when you get your policy, the less you’ll pay for the life of the policy. ?And since life insurance policies are medically underwritten, the healthier you are, the better rate you’ll get. ?The time to make sure that your family is protected is today.

Extreme Sports And Life Insurance

Many Americans get life insurance as a benefit from their employers, but the amount provided is often not enough to really provide for a family. ?For this reason, a lot of people seek out additional life insurance coverage on their own. ?Term life insurance policies are very inexpensive, especially when compared with the cost of things like health insurance and long term care insurance, but those prices can increase dramatically if a person is unhealthy or participates in anything that life insurance companies deem to be risky activities.

As an example, if you’re a very healthy 35 year old, you’ll probably find it relatively easy and inexpensive to secure several hundred thousand dollars worth of term life insurance. ?But if one of your hobbies is rock climbing, the premium on the life insurance policy can easily be tripled or quadrupled by most carriers. ?The standard underwriting action in a case like this is to bump the rate from “preferred best” to “preferred” and then to add an additional annual amount ($2 – $2.50, for example) for every thousand dollars in life insurance coverage. ?So a half million dollar policy can easily increase in premium by more than $1000/year if the applicant participates in “risky” activities.

However, underwriting does vary from one insurance carrier to another, and some are more lenient than others for specific activities and health conditions. ?If you’ve applied for a life insurance policy in Colorado and received a rate increase because of health or lifestyle, there may be other options that would allow you to purchase the same amount of insurance for a lower premium. ?We can compare options for you and help you find the best value for your insurance dollars, and there is never a charge for our services.

Why Use Insurance Shoppers?

Why Use Insurance Shoppers to Buy Life Insurance?

about We are independent life insurance brokers, with no allegiance to any particular company. This gives us the freedom to help our customers choose the life insurance that truly fits their financial situation and risk tolerance. We can look at a wide variety of Colorado life insurance companies and get quotes on many types of insurance and different risk classes. By letting us know your health, driving, and family history up front, we can let you know what life underwriting class you will be classified into and get you the right quotes the first time.

We have a relationship with each of the life insurance companies that we represent. This allows us to serve as advocates for our clients, and help them get in touch with the right person when they have a question about their policy.

We have a very good working knowledge of the companies we represent:

  • benefit options
  • stability of the life insurance companies
  • underwriting and health class guidelines for each company in Colorado . Each company has a different set of underwriting guidelines to determine what classification you will be. From preferred plus, ultra preferred, preferred, standard, and many different smoking classes, we will know what company will benefit you the most based on your health history. This can save you a lot of time and frustration getting this figured out before actually applying and jumping through the hoops for each company.

We’re free. We get paid commissions by the insurance companies so the quotes are the same if you use a broker or go directly through the insurance company. Most life insurance in Colorado is done with the help of brokers because there is no disadvantage and there are many advantages to using a knowledgeable broker to guide you in the right direction. You will always get the lowest premium for the same coverage by purchasing your Colorado life insurance through us because we can shop for the life insurance plan that fits your financial situation and tolerance for risk using our expert knowledge of how each company grids pricing, underwriting guidelines, and takes risks with their money. We will also give you more personalized attention, and a balanced perspective about the advantages of choosing one policy over another. We can also act as a liaison between you and the insurance company if you ever have any questions or problems.
The Colorado Division of Insurance polices the pricing of life insurance, so no insurance company or agency is allowed to sell at a price that is any different from the price set by the commission. So we can find the best plan for you at no cost. For years, we have been highly recommended in Colorado as a no hassle agency able to find the best life insurance for your financial plan.

We continue to be there for our customers after their policy is in force. We can always analyze different options as your financial needs change and keep you current. This will always help you know that you are getting the best deal available and that you have the best coverage you can get for your family.

We have designed this interactive web site where our customers can compare prices, get details on various Colorado life insurance policies, download applications on their own, and even apply online. We shop over 75 companies such as American General (AIG), Zurich/Chase, Banner Life, Empire General, First Colony, Transamerica, Lincoln Benefit Life, MONY, Protective, Prudential, Transamerica, Travelers, West Coast Life, United of Omaha, Fidelity & Guaranty, and many more. Get as far as you like by yourself until you would like our assistance. We will always be there to answer questions or help with applications if needed. but we have the web site in order to provide a no-pressure setting for clients to compare options that are available for them. Colorado Life Insurance disclaimer