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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Personal Loss Highlights Insurance Need
- Todd shares his father’s minimal coverage left his mother financially struggling.
- The lack of sufficient life insurance forced his mother to rejoin the workforce unexpectedly.
Stricter Rules for Addiction Underwriting
- Life insurance underwriting on drug and alcoholism cases got stricter in recent years.
- Companies expect multiple rehab attempts for addiction recovery before considering applicants.
Marijuana Casual Use Mostly Okay
- Casual marijuana use is generally accepted by insurers, often rated like alcohol use.
- Heavy or illegal drug use results in decline or extended postponement periods.