Term Life Insurance after Bariatric Surgery

[noelle_likechristmas]

Hello,

I am a 47 year old white male. I am 15 years into a 20 year $1 million term policy. I was rated at teh highest class at the time when I got that policy (I think I was 2 or 3 lbs away from being uninsurable).

In 2018 I had my second (aka "revision") bariatric surgery. It was a gastric bypass (Roux-en-Y) after I had a gastric sleeve several years earlier. It was a "failed" surgery in that I only lost 10-15 lbs and still was morbidly obese and wasn't making any lifestyle changes.

Fast forward to March 2020 and my pre-diabetes went to full diabetic. Like a switch had been flipped, I immediately started to take my health super seriously. I have lost 150 lbs, I am no longer obese (let alone morbidily obese). my A1C is totally normal at 5.0. I am on ZERO medications, I have ZERO health issues, I excercise 4-5 times per week (lift weights, run, etc). I eat super heathy, I have kept the weight off in it's entirity, etc. Honestly, I haven't been in such good shape/health since high school.

I went back to all of my medical providers to have them update my medical records that I am A) no longer diabetic, B) no longer need to use a CPAP, C) am no longer on chloestoral lowering medication.

Given my new health status, and that I am a high income earner, I'm trying to get a replace the current $1 million term with a $5 million 20 year term. I'm either being flat out denied or after the underwriters due their diligence, getting rated many classes higher than the initial quote. For example Pac Life went from an initial quote of $240 a month, and then 6 classes higher/later their quote was $722/month (this was through Policygenius).

I'm not arguing about their decisions. but I do wonder, given the last surgery date of 2018, if in 2028 it would "fall off" my medical record (granted I would be 52 at that point.

Does anyone have any suggestions on how I might proceed, if at all possible, to get a quote that more accurately reflects my current health situation?

PS - never used tobacco, don't drink, family history is great.

 

[scenematt]

@noelle_likechristmas Age has a lot to do with it. You’re 15 years older than when you first purchased your term insurance.

Price increases for every year we age.

At 47 for a $5mil term policy I’m not surprised at your quoted premiums to be honest

 

[noelle_likechristmas]

@scenematt so is the initial (over the phone) $240/month rate just a "teasier" rate? I mean, they knew my age when they gave me that rate. when I asked why it went up (6 classes) they pointed solely to the "bariatric revision" in 2018...

 

[scenematt]

@noelle_likechristmas No it’s not , they can’t give you a solid quote until you go through the application and underwriting process.

Bariatric surgery patients are very high risk so I’m not surprised. The surgery is very involved and has a lot of potential for post surgical complications even years afterwards.

I’m a nurse so I have had patients with bariatric surgery complications.

 

[noelle_likechristmas]

@scenematt but I'm guess that is what I'm asking. I'm five years out, no complications, would I have better luck if I was 8 or 10 years out? or will the surgery always be a spot on my record?

 

[structure]

@noelle_likechristmas No. The surgery isn’t the issue. It’s the health issues in the past. You can technically qualify for preferred rates after gastric surgery with some companies. Overall health history as yours is very complicated to underwrite and they are not just looking at your health today but the risks in the future.

I would reach out to a broker that works with American General or Prudential. Both are would do preferred rates for gastric surgery after 2 years. But carriers will most likely still rate the diabetes, even if you don’t have it anymore. You would be a Standard rate at best.

You didn’t mention how long of a term that Pac Life policy was for, but its pretty much in line with what a $5 million term for 15 years would cost at a standard rate with other carriers.

 

[resjudicata]

@noelle_likechristmas If you disclosed it could have been an inexperienced agent that just assumed it wouldn’t impact anything or an intentional misquote to get you in the door. They probably quoted you the best health class and you came back rated. A diabetic diagnosis before 50 is going to put you into what’s referred to as table rated in the business. Essentially 3 or more health classes below the best.

 

[kilmanagh]

@noelle_likechristmas This is a prime example why people need to take life insurance more seriously at such a younger age. You could have had a 5 million dollar 30 year term at age 32 for nowhere near what you've been quoted now for it. It's so much easier to over insure at a young age and back the face amount down if you need to than it is to try to get more at a later age. I hope you find something

 

[darlene5]

@noelle_likechristmas I guess I’d also be asking why is there a need for SO MUCH MORE coverage than 15 years ago? In theory, you should be much closer to being self-insured (more retirement savings, much closer to outright owning a home, more assets). Sure, you may have a higher income, but why such a drastic change in coverage amount?

Look, I get WANTING a high death benefit for your

 

[psykes]

@noelle_likechristmas Congratulations for completely turning your health around! That's a major accomplishment!!

Have you considered getting 1 million coverage from 5 companies so it can add up to 5 million. Also, since you are a high income earner and the insurance seems to be high because of your medical history, look at what investing the same amount would bring in some good index or mutual funds in about 20 years or so.

You may be able to continue the million you already have for a higher premium amount (ask your agent). It really depends on your company. However, you should have some type of options. Ask your agent and also call the customer service line to make sure the information you are receiving is accurate or get it in writing.

 

[tiffany1103]

@noelle_likechristmas Hey there first I just want to say Congratulations for such an amazing health and lifestyle transformation! That's the total win alone! I'm licensed in California, but the rules are relatively similar when it comes to insurance quotes and underwriting. Any quotes that you get from an online generated from will be substantially off due to your previous surgeries. Although your improved numbers are fantastic for your health, it doesn't make your overall health history obsolete. You're still considered a higher risk from the surgeries. At this point it would be difficult to find a company that would give you a more affordable rate for a term. Not to mention term policy issues know the numbers and in general charge a much higher rate for your age because the likelihood of death within the next 20 years increases substantially. Nonetheless,

Here are a few options to consider:

- purchase a lower face value term that has the option to convert to a permanent insurance (lowest cost option initially but the price goes up once you convert to cash value since that is permanent )

- purchase a lower death benefit cash value IUL and over fund it (meaning pay over the premium so that the extra goes into the cash savings account) as long as you get a policy with an increasing death benefit amount each dollar you add over the premium gets added to your your DB (death benefit). The cash value side grows tax free and most companies average at least a 5% return and these returns ALSO get added to the death benefit.

- purchase a lower death benefit cash value policy with an increasing DB option and max fund it based on the 7 pay amount. This means you will pay over the minimum premium up to the maximum deposit amount allowed that will still qualify the policy to not be considered an investment and keep the highly desired tax free benefits of life insurance.

- purchase a KAIZAN policy. This is a strategic insurance policy purchasing option that allows high income earners to finance the cost of their cash value insurance policy and then after 5-10 years for the loan period the cash value goes and pays back the loan and you keep the multimillion policy plus the remaining cash value that accumulated and that will continue to accumulate. (Your income has to obviously justify the need for the amount of insurance financed but generally I've seen approvals starting at 250K annually.

Note: I used cash value insurance but for any of these options to work it must be an Index Universal Life with a zero floor (meaning you can't lose any money). I hope this helps and feel free to ask me any additional questions.

 

[noelle_likechristmas]

@tiffany1103 DM'ed you to ask a follow-up question... please check it. thanks!