Radical Personal Finance 204-A Behind-the-Scenes Look Into High-Risk Life Insurance Underwriting: Interview with Todd Simpson CLU, ChFC from The Stamm Agency
May 28, 2015
Todd Simpson, a veteran life insurance broker with over 30 years of experience, offers a fascinating glimpse into high-risk underwriting. He discusses the dramatic evolution of life insurance products since the 1980s and how various medical conditions, like diabetes and heart disease, affect insurability. Simpson highlights the role of the Medical Information Bureau in the application process and stresses the importance of honesty for those with health challenges. His insights also emphasize the significance of securing life insurance at a younger age for long-term benefits.
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Agency's Origin for Special Risks
- Todd Simpson shares how his agency began by helping agents place cases declined by their companies.
- They focused on underwriting individuals rather than generic group classifications to better serve special risk clients.
Control Diabetes for Better Rates
- Diabetic applicants should manage their condition well and regularly visit doctors.
- Life insurers prefer A1C values below 7; up to 8 is often insurable with ratings.
Apply Early After Heart Events
- Contact a broker or specialist soon after a heart event to discuss insurance options.
- Delaying application might worsen risk classification if the condition progresses.