Life insurance for my scenario?

[jules61]

Early 50's. Birthday mid year. Two teen dependents.

Quit smoking December 2021 (not a full year).

Full medical exam w/ blood work coming up next week last blood work 1yr ago was pretty good.

Had a cardiac stress test and cardiac calcium scoring a few weeks ago (all clear).

Had lung CT cancer screening come back w/ "RADS-2" rating for follow-up in a year (basically a couple of minor areas to check for growth in a year).

The lung cancer screening result is the one that worries me for applying for insurance. Nothing was 'found' but they want another review in a year. Regarding quitting smoking etc I understand waiting a full year is best.

Thoughts? I 'm thinking of a 15 yr term or maybe a whole life policy. I have coverage through employer and an expensive guaranteed issue (100k/$160/mo) that I'd like to replace.

 

[champollion]

@jules61 Whenever there is something that is pending - IE a possible cancer diagnosis, more likely than not your insurance company will either postpone or deny until there is clarity. Being that you were a smoker - good chance they will postpone. I would consider NOT applying, as you risk getting a denial on your record, and that follows you around to every carrier.

Perhaps max out your company LIFE, and look into some small permanent policy with limited or no underwriting until your health situation is more stable and your smoking habit is further down the road.

 

[resjudicata]

@jules61 First off, sorry to hear about your situation.

Per everyone down below, you have some significant barriers to underwriting. I'd recommend a relatively aggressive investment strategy in the meantime until you get clarity on your lungs. In the event that you can get coverage then you can start paying into a policy, and if you can't you'll be earning interest in the mean time. Even if you can get a policy, the insurance companies are going to have pretty accurate statistics for people in your situation, and will most likely price their policies accurately and conservatively which will not benefit you.

I am not your advisor, and this isn't specific advise. I recommend looking into a few things for your education though.

1. Annuities don't require medical exams, and can act as an ultra conservative and safe investment. You could start paying into one now, and in the event of your passing it would pay for a set amount of years to your kids. There are variations that provide some variable aspects and allows indexing, and an agent licensed in your state can walk you through them.
2. If you forego the insurance industry
   1. If you're worried about a market tanking, and that's what's driving you towards these types of investments, then I'd research Structured Notes. The have a cap and floor like VUL and IUL, however directly participate in the markets. The floor means that you will be protected against market crashes for what you put in.
   2. Look into Advisors or Robo-Advisors and a Dollar-Cost-Averaging Strategy. Basically means putting a chunk of every paycheck into the stock market. It will go up and down, but on net will go up. This requires a bit more stomach and educating your kids about the value of leaving stuff in the market as long as possible.

You have options. Even if you get the all clear, I recommend a similarly aggressive investment strategy. That's a different conversation, but the only better time than yesterday to start investing is today. Look into Qualified Retirement stuff (Tax friendly) first, and then just get after it if max that out. If you're very new I can shoot you some links and recs for books.

 

[jules61]

@resjudicata Thanks for the informative reply. I will look into your suggestions. I've never considered annuities before so that's an interesting option. If you have links feel free to PM me. Thanks!

 

[erikplatte]

@resjudicata So am I understanding that IF we have the ability to save on an insurance premium and instead invest that money it probably is a better use of money? I’m my situation (no kids, no major debt, condo paid off) BUT my husband and I are lower income state employees so it would be hard to live off one salary

 

[resjudicata]

@erikplatte So, kinda hard to go through every avenue.

If you have a guaranteed issue policy for $100K @ $160/month that's probably the best you're looking at getting. You would have to save that for 50 years without interest to get 100k ($160 x 12 Months = $1,920... $100,000/$1,920 = ~50), and maybe 20-25 years with interest to get there. How long have you been paying into that?

The second best option is to put that $160/mo into Betterment or Wealthfront. That will allow you to use it if everything clears up, and leave at least something if you pass away.

The big thing, is that it's going to be very hard to get a new policy written until your medical diagnosis clears up. Then, you are in your 50's which means it would be more expensive anyways. These conversations ae sometimes about making the best of a situation, and these options may be it.

TL;DR: that 100k policy doesn't sound too bad... and SLAMF (Save like a MF)

 

[tabinek]

@jules61 Underwriter here. What others have said is most likely correct. You’re not insurable until that follow-up scan shows those areas of concern are stable and not growing - especially as a smoker which drastically increase your risk of lung cancer.

 

[jules61]

@tabinek Thanks for the info. I think I've got enough through employer and guaranteed issue for now. I'll just wait it out and see where things stand in a year.

 

[tabinek]

@jules61 Not a doctor so take this with a grain of salt… for the super concerning lung lesions they have you come back much faster than 12 months.

 

[javelinda]

@jules61 You will in all likelihood need to go with a gaurenteed acceptance whole life policy for another few years then if your health stays the same you can try to apply for a 15 year term. I can help you with some options if you need assistance.

 

[jd1998]

@jules61 You may have to go whole life with a 2 year wait due to cancer. Has it been officially been declared cancer? If not, you will have many more options.

 

[jules61]

@jd1998 Not declared cancer

 

[jd1998]

@jules61 Being not declared cancer, should have no issues getting approved on a whole life policy

 

[resjudicata]

@jd1998 That is not true. Underwriter here. If he has a lung nodule or some other issue that they are watching, he may not be able to get approved. Or may get rated. If I had the case and a person had a newly diagnosed lung nodule, and was a smoker, I would most likely postpone it until the follow up CT was completed. If there were no changes, then its possible to maybe get an offer with a higher premium. Usually with something like that newly diagnosed, it will be postponed. Which means it wasn't declined, just that an offer can not be made at the time until subsequent additional testing etc is completed.

 

[jd1998]

@resjudicata It may be based on the carrier as well. UW with different carriers does vary.

 

[jd1998]

@jules61 There are 2 carriers I looked at that would cover copd with day 1 coverage.

 

[godislove1993]

@jules61 Really it would be best for you to get a application in now and see what you qualify for message me if you want some help.

 

[godislove1993]

@jules61 If your still looking for help shot me a message