insurance

Julie Boonstra goes Boom on The ObamaTax

Julie Boonstra goes Boom on The ObamaTax

A few weeks ago, Michigan's Julie Boonstra, a leukemia victim, cut a video critical of her CongressCritter's support of the ObamaTax...

10:21 AM

A Principal of Underwriting

<div class="separator" style="clear: both; text-align: center;"><a href="http://www.principal.com/allweb/images/corporate/pcom/pfglogo.gif" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="http://www.principal.com/allweb/images/corporate/pcom/pfglogo.gif" /></a></div><div style="text-align: justify;">Buying life insurance can be a daunting experience. First of all, who wants to think about being dead? Then, one has to consider all the financial considerations and problems facing one's family when one passes on, and make some determination about how much coverage to buy. Finally, one has to then decide what type of plan is appropriate (term, whole life, etc). And then, one most likely has to "face the needle:" undergo a paramed exam including blood and urine samples. But what if there was a way to avoid that last step? The <a href="http://www.principal.com/" target="_blank">Principal Financial Group</a> has introduced their "accelerated underwriting" process that could dramatically reduce both the intrusiveness and the timeline of the process. I recently had the opportunity to speak with Neal Halder, The Principal's assistant vice president and chief underwriter of individual life insurance, who filled me in on the finer points. Let's start with the fact that it can often take a month (or longer) for a typical plan to make its way through underwriting. There's the application, of course, then (usually) an exam and maybe a <a href="http://insureblog.blogspot.com/2007/08/bad-info-mib.html" target="_blank">Medical Information Bureau (MIB)</a> report, and then the underwriter has to wait for all those results and inquiries to come in before a decision can be made. In the meantime, the applicant may or may not actually have coverage, and may in fact be having second thoughts about the whole ordeal. That's where the "Principal Accelerated Underwriting" program comes into play. As Mr Halder explained, "our studies found almost 50 percent of eligible individuals tend to have a high number of favorable health factors so the need for lengthy exams and blood work are simply not necessary." He told me that the program was developed and is owned by Principal Financial Group. Insurance agents are often loathe to cede control of a case to some other entity, and the "tele-app" process is a great example of that tension. Tele-apps are essentially telephone interviews between the home office and the applicant, and in Principal's accelerated underwriting program they’re used to help move things along. The process is actually pretty simple: Once the agent and client have settled on a face amount and plan design, the agent consults a one-page checklist [ed: although this isn't a requirement, it's a pretty good idea] that helps cull out those that probably won't qualify. As long as the applicant is 18 to 60 years old and applying for one of their standard life insurance policies (including term, universal and variable life plans) of up to a $1 million of coverage, they might qualify for Principal Accelerated Underwriting. As an aside, a $1 million policy without a blood draw is almost unheard of these days. Once the completed application hits the home office, Principal checks the MIB, motor vehicle reports and prescription records. At that point, the tele-app folks in Des Moines reach out to the applicant and ask a series of questions (part of the application). Those answers are then forwarded to the underwriter who, based on the MIB and other info and the answers to the tele-app questions, can approve the application with no further input (such as blood or urine) from the client. It's also worth noting that the rates are the same regardless of the process; that is, one doesn't pay a higher premium by sidestepping the paramed exam. All in all, a very interesting program. It's always great to find carriers thinking "outside the bun," looking for innovative ways to make it easier for people to buy the coverage they need. Kudos to Principal, and Many Thanks to Neal Halder! [Hat Tips to Erica J and Julia M]</div>

A Principal of Underwriting

Buying life insurance can be a daunting experience. First of all, who wants to think about being dead? Then, one has to consider all the fin...

5:30 AM

Trust in the Lord

A few years have passed since we looked at Christian health care sharing ministries as an alternative to real health insurance, and perhaps it is time to visit them again. Back in 2007 we posted <a href="http://insureblog.blogspot.com/2007/01/pennies-from-heaven.html" target="_blank">Pennies From Heaven</a>, a post that attracted attention but never really gained traction.   <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivo3pa1_sP2iI0tcDuAywVP9wJNXZoegNFb3Stg2RTmoelxmjGf55_TvFzn2-T8zCxxiAkF5yK6d8uiCjTjWQXg1otAdbnR1qUyW0DCK8sue_cRhAfHlf6TYH-XGVIQ5rH_fx1iWWkXl8/s1600/trust+in+the+lord.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivo3pa1_sP2iI0tcDuAywVP9wJNXZoegNFb3Stg2RTmoelxmjGf55_TvFzn2-T8zCxxiAkF5yK6d8uiCjTjWQXg1otAdbnR1qUyW0DCK8sue_cRhAfHlf6TYH-XGVIQ5rH_fx1iWWkXl8/s1600/trust+in+the+lord.jpg" /></a></div> That was then. This is now. Fast forward 7 years and we are in full blown Obamacare. Cancelled health insurance plans. High rates. Higher deductibles. Higher out of pocket. As if this isn't enough, a recent poll said 63% of the nation does not like Obamacare. Imagine that . . . All these things coming together mean there are a lot of people looking for lower priced options. Hospital indemnity plans are a weak substitute. Short term medical (STM) would be a better choice but those have limitations as well. But how about these Christian ministry programs where your cost of medical care is shared among members that are also believers? <blockquote class="tr_bq" style="background-color: white; color: #333333; line-height: 22px; margin-bottom: 15px; margin-left: 60px;">Daniel and Katlyn Street don't have health insurance. But they do have a new baby girl, a new approach to health care and something they weren't expecting at all – a new handmade quilt.</blockquote><blockquote class="tr_bq" style="background-color: white; color: #333333; line-height: 22px; margin-bottom: 15px; margin-left: 60px;">The quilt arrived Thursday, sent by someone they have never met, who – along with scores of other people around the nation – also sent money, notes of encouragement and prayers on behalf of the young Seaford couple as they welcomed little Adelyn last fall.</blockquote><blockquote class="tr_bq" style="background-color: white; color: #333333; line-height: 22px; margin-bottom: 15px; margin-left: 60px;">Obamacare doesn't work like that</blockquote><blockquote class="tr_bq"><a href="http://www.delawareonline.com/story/news/health/2014/02/28/ministries-allow-some-to-put-their-faith-in-health-care-sharing/5918657/" target="_blank">Delaware Online </a></blockquote>The quilt is a nice touch. And yes, you won't get an Obamacare quilt following the birth of your baby. But are these programs (they are not insurance) worth the gamble? Should you rely on the kindness of others to pay your medical bills? What if they don't pay? Or they pay, but you are still left with unpaid bills? Even worse, what if your request (claim) is denied? Which regulatory authority has oversight and can intervene on your behalf? Most of these questions were addressed before and the same answers apply now. You don't have insurance, you have a walk of faith. Please understand I am not being critical. Religion is a good thing and so is a public acknowledgement of your beliefs. But if the program doesn't pay you are stuck with the bill. There are no financial guarantees.  Not for you (the member). Not for the medical provider. This is key. If your doctor and hospital do not have a guarantee they will be paid for your planned treatment, how often do you think they will require cash up front? It can happen. What do you do then? You can raise the money yourself, and maybe with the help of your group. You can ask for charity. You can delay your treatment until the next Obamacare open enrollment. That's pretty much it. Since these sharing programs are not compliant with Obamacare rules, you will owe a tax penalty for failure to have a government approved plan. <blockquote class="tr_bq">Unlike the Affordable Care Act, which forbids exclusion of those with pre-existing conditions, these plans usually will not consider such conditions as eligible for shares.</blockquote>That's something to consider. At least with an Obamacare plan you will have full coverage for your pre-ex condition. So what about the leap of faith? <blockquote class="tr_bq">"I have absolute faith that God is going to provide for us," he said. "I have no doubt about that."</blockquote>That's great, and I am not one to cast stones. But if you are looking for a lower cost alternative to Obamacare those short term medical plans look to me like a much better option.