Life Insurance Help

[tass]

I (33M) have been looking to increase my life insurance coverage to equal about 10X salary (Approx $2M). Married with one child and one on the way. Health-wise, I have a small heart condition (heart murmur) but am otherwise healthy, minus being slightly overweight (165lbs at 5'8"). Since initiating the policy my health condition has not changed and weight has stayed exactly the same.

I currently have a $1.1M policy ($1M variable term, $0.1M whole) with NWM that I started in 2019. Term is ~$1,000 per year and whole is about $1,800 per year. My current term policy will increase steadily to about 6,400 per year by 2043.

I was looking for options that would replace my current policies (whole and term) for a level term policy to lock in a lower rate. However, in getting new quotes i'm seeing premiums increase astronomically. For a $2M 30-year level term policy i've seen a low end of $550 and high end of $750 per month. The underwriters have said this is because of my heart condition but there's no new documentation over the last four years. I've been shocked by how expensive my rate is and i'm not sure I want to pay nearly $7-10K per year for a term insurance policy.

Two questions for the group:

• From what I could see from Nerdwallet (see link), my rate looks like it's in a very high risk bucket. I don't know if this is accurate. Is there a way I can contest this or learn more about their risk scoring?
• Does anyone recommend any other options I should consider? Either something i may be missing with how quotes work or other insurance strategies I should consider?

Any help is greatly appreciated!

https://www.nerdwallet.com/article/insurance/average-life-insurance-rates

edit: updated first question

 

[saywhat1]

@tass Shop around. We can not do that for you, but the older you are when you apply, the more expensive the coverage is. The older you are, the higher chances are for that heart murmur to mean something. You're also looking to double your coverage. Rates have changed. Life expectancies have shortened for the 1st time in a long time. Shopping is your only option.

 

[tass]

@saywhat1 Thanks. As of this writing i've received quotes from six carriers and am waiting on a quote from a seventh.

 

[saywhat1]

@tass Perfect! Good luck!

 

[seohce]

@tass Also, try and work with an independent agent instead of captives, especially ones that are primarily home and auto or only on-line quotes. The agent will have multiple companies and know which one(a) underwriting is more favorable for your heart murmur.

 

[tass]

@seohce Thanks so much for your response! I used my NWM broker for quotes with NWM and AIG (in process) and requested the rest of the quotes directly with the insurance company. NWM recommended just getting an additional quote with AIG. I'll reach out to an independent agent.

Also- I found out NWM only offers 20-year level term but they were quick to recommend whole life which i'm really not a fan of.

 

[seohce]

@tass AIG, Banner, Protective, Principal, Transamerica, and more have companies that have 30 year term. Also, they almost all offer a living benefit or critical illness rider.

 

[acclarke01]

@tass What health rating did they give you? Even with a lower health class I am seeing many carriers below $300/mo for the coverage you want. I would find a local broker to work with.

 

[tass]

@acclarke01 TBH I don't think they did or I don't remember them saying if they did. I'll give them a call about the health rating. Is there a standard health rating scale I should be looking at or is it unique by company?

I'll look for a local broker first thing tomorrow. Thank you. Much appreciated.

edit: spelling

 

[qity]

@tass Some agencies specialize in high(er) risk life insurance. Others just want healthy people because they deal in volume.

Google "life insurance with heart murmur" and you'll see some agencies that specialize in getting you underwritten with an existing heart condition.

That's where I'd start.

 

[jay733]

@tass I’m with transmerica as far with coverages of that Aumont I’ve found them to be the best lmk if you need a quote I have a great agent that can help

 

[tabinek]

@tass Some murmurs are very benign and insurable at standard or better rates. Some murmurs have more serious underlying problems that cost more to insure.

A recent echocardiogram will also help underwriters to feel better about your heart.

What is your underlying condition?

 

[success1969]

@tass Insurance broker is your best bet. They will shop around for your best rates. Heart murmur is a non issue if you are willing to do a medical .you will get a better rate with a medical than non medical. I know alot of folks dont like to have a medical but it would get you a better rate if that is your goal. COVID19 changed alot with insurance as far as rates and risk.

 

[horan]

@tass Find a local broker who is independent and can shows plans from multiple carriers. I am in the business and I cannot even quote this without more info so there is no way anyone else can.

Also, I would not necessarily get rid of the whole life and I have no affiliation without the company you have the policy with. If those quotes are accurate, there is a reason the rates are that high.