Life Insurance Acquired
Do you remember my life insurance calculations? Probably not, because I posted these back in September 2007 when we started the application process to get life insurance. Can you believe that it’s taken until April 2008 to finally complete that process? It’s insane that it’s taken this long and I’m surprised I had that much patience to wait it out.
In September, we placed an inquiry with SelectQuote (SQ) to help us select a life insurance company. After looking at the options and quotes provided, we went with Banner Life Insurance company. In October, a mobile medic came to our home to collect basic physical data and blood samples. It took another month, maybe longer, to get our blood lab results back – we were healthy. At this time Banner rejected my coverage due to additional information I provided on the final application. I was disappointed, but not surprised, by their decision and realize that I’ll probably never be able to get life insurance – thats just life. Then the marathon wait to complete the partner’s application began.
The partner is a cross your t’s and dot your i’s type of person – he fills everything out in detail. And, for life insurance purposes, this is probably a good thing. On his application, he noted visiting a doctor within the past two years. These companies like to know you are indeed healthy, so they follow up with your doctors and will review your medical records (you have to sign a release for this). We should have known this might cause a problem – not for medical reasons, but because of issues with the doctor’s office. He went in for a test based on a concern he had and then never heard back about the results. For a couple weeks, he would call and always be told the results were not in. This went on for a month or so, life happened, and then when he called again several months later, they said his records were moved to off-site storage. So, we never found out the results and didn’t worry about it.
When the life insurance company tried contacting this doctor’s office they ran into similar problems. From November through April, they called and wrote repeatedly to get a copy of his records and was always put off and told the records were in storage. Finally, last month, the partner stopped by their office in person, after the SelectQutote agent had called up for what seemed like the millionth time to follow up, and the office claimed to have never received any requests or anything. Finally, Banner sent us a notice saying that the application was canceled for lack of information. Our SQ agent was still working to help us get this completed, even after the application was closed. Within less than a month of the partner’s visit, we got notice from Banner that the application had been approved – guess they re-opened it – and payment is due. Upon review of the paperwork from Banner, I think our SQ agent finally convinced them to drop that requirement and the doctors office still hadn’t responded.
So, now we finally have life insurance for the partner, at a rate less than what were originally quoted, and I can rest better knowing that if something happens to him, I won’t be drowned financially. I am not upset over the fact that I don’t, and probably never will, have coverage and will simply need to make financial plans knowing that life insurance is not an option for me.
Also, I’m not sure what the going rate for health insurance is for many people, but in light of putting real numbers out there, we’re paying a little less than $500/year for a 20-year $750,000 term life insurance for a healthy, never-smoked, forty-year-old male. Based on the quotes provided by SelectQuote, this seemed like a good price, but I’ve never talked life insurance with friends since most are not supporting anyone else. I also like the fact that the rate will not increase over the next 20 years, a nice comfort when starting life insurance at 40.