Adam is a 74 year-old retired CEO of a security systems corporation. His earned annual income was between two and three hundred thousand dollars. Adam resides in Florida and is married to his wife, Maria.
He is 6’2” and weighs 215 pounds. Adam is in overall good health, but has a mild ulcer. Eleven years prior to applying for term life insurance, Adam underwent an elective and preventative procedure to repair his aorta. He sees his cardiologist once a year for a routine checkup. Adam was a smoker, but quit in the nineties and has been smoke-free for almost twenty years. Initially, Adam applied for $500,000 of ten-year term life insurance through Prudential based on our recommendation. As is typical, Prudential order a copy of Adam’s medical records. In addition to the previously mentioned health history, the full records indicated a diagnosis pancreatitis. This new info regarding the pancreatitis, coupled with age and cardiovascular history, led us to be concerned that Prudential’s underwriting decision may not be as favorable as we originally expected. In an effort to be prepared to switch carriers if needed, we decided to conduct an informal survey of the marketplace. After providing a summary to multiple carriers (Banner, MetLife, Protective, Lincoln, Transamerica), all but one carrier (Transamerica) said they would ultimately decline any formal application from Adam. The one exception, was Transamerica, which quoted Table F, six classes below Standard. In the meantime, Prudential came back with an approval of Table F on Adam’s formal application. Prudential’s formal offer at Table F was a lower price than the tentative quote from Transamerica (also at Table F), so it appeared Prudential would be the best fit. However, there was still a chance that Transamerica would approve better (or worse) than Table F after reviewing a formal application. Transamerica had indicated that, due to Adam’s age, he would need to complete an Elder Assessment (cognitive skills test) that would need to be submitted along with the exam and lab work he already completed for Prudential. If the Prudential application were to remain in “Approved” status (not yet active), we may have been obligated to submit the Elder Assessment to Prudential, potentially impacting the current approval. In order to lock in the current offer with Prudential, so that it could not be negatively impacted by the Elder Assessment, we recommended that Adam move forward with Prudential and place it in-force, before proceeding any further with Transamerica. Adam took our advice and purchased the Prudential policy, a $500,000 10-Year Term with a premium of $3,545/month. Once the Prudential policy was placed, we proceeded with the Transamerica application process. Adam completed the Elder Assessment and must have done well on it, as Transamerica ultimately approved Adam at a Table C. This outcome was much better than we expected. The improved risk class allowed Adam ultimately to get a policy with Transamerica which provided $500,000 15-Year Term at a premium of $3,048/month. Needless, to say he immediately stopped paying for his Prudential policy and placed the Transamerica policy in force. While Adam was satisfied and willing to accept the coverage we got for him with Prudential, our thorough, client-centered process resulted in an even better outcome. Ultimately ii provided Adam 5 additional years of coverage at a premium that was $6,000 less per year! Adam now has the peace of mind that Maria will be taken care of in their golden years.
Retired Executive Life 