Young and in excellent health. Underwriter pricing came back 3x original quote. What gives?

[manxy]

Throwaway account here given semi-personal info. Wife and I applied for term plans with one of the big underwriters through PolicyGenius.

We're in our mid-30s, don't smoke or drink (truly), don't have major outstanding medical conditions or unusual family medical history, and don't participate in any risky sports or activities. Basically, we assumed we'd be the cheapest to insure.

We were quoted ~$50/mo for a $1m 30yr term plan, each, after going through their onboarding flow. Told by the agent and our financial planner we'd be in the healthiest class assuming nothing turned up in our medical records or exam.

After our exam and almost two months waiting, the underwriter came back and quoted us at ~$150/mo for the same plan because we were in a "lower health class," ie 3 times what I was originally quoted. They claimed it was because of irregularities that showed up in our medical records and exam. I can give details but they're all minor (e.g., they claim my wife has low BMI).

PolicyGenius kind of shrugged their shoulders and said we could shop around with other underwriters, but didn't give us any other options. Am I missing something here? Did we get duped by PG or is this normal? Feels like a bait-and-switch.

 

[seekeroftruth0]

@manxy You can’t ask for input and not disclose what showed up on your medical records because “they’re all minor”

The number of times I’ve had a client tell me they’re in great health, only to later disclose fibromyalgia, Rheumatoid Arthritis, literally CANCER (I’m not joking).

So what’s your wife’s height & weight, and what showed up on your medical records?

 

[smitty1991]

@seekeroftruth0 One person told me no medical problems.

Turns out she didn’t think Lupus was a big deal.

 

[manxy]

@seekeroftruth0 Me (35M): Low cholesterol (below normal range) + benign neurological condition that a doc cleared me from over 10 years ago and I don't monitor/experience symptoms

Wife (34F): Low BMI (5'5", 105 lbs) + depression flag that came up from a Psych visit in 2020 but hasn't seen one since.

Maybe these are a bigger deal that I assume. I could imagine a small from the initial quote, but a 3x increase seems overly conservative.

 

[hannahjane]

@manxy Did you go through an exam?

The problem with online providers is they simply want to move as many cases as efficiently (cheaply) as possible.

Health blips aren’t investigated - they’re rated. Where a human underwriter with the benefit of traditional underwriting tools would ignore those same conditions.

You don’t mention your specific neurological condition but I could see that increasing your premium.

Low BMI in younger adults is a significant red flag. It’s a marker for health problems - both mental and physical. A BMI of 17 is going to make your wife ineligible for best rates at most companies.

I’d find an independent advisor and work with them to go through a traditional underwriting process.

 

[seekeroftruth0]

@manxy What’s your neurological condition called?

 

[david1812]

@manxy Was she hospitalized for the psych condition? That could do it.

 

[aladinair]

@manxy Benign neurological condition? Expand.

 

[yhjmkiop]

@manxy I wouldn’t call it being duped, but this doesn’t seem totally out of the ordinary. Agents are not underwriters, and they aren’t your doctor either, so anything they tell you about what class they think you’ll get is just an educated guess.

And depending on the carrier, the threshold to get super preferred rates can be pretty strict, especially on a $1 million, 30 year policy that is going through full underwriting. An underwriter could tell you more than I could, but what your doctor tells you is just a few “minor” irregularities, they could very easily be enough to get you knocked down a rating class. Or even two if it is the right combination of them.

Basically, I think you were just putting too much stock in the Policy genius agent’s word. All they really knew was that your test numbers looked pretty good on that day, and you didn’t have any major medical issues. And there’s a lot more to your health history than just what is going on right now.

 

[marked]

@manxy Hard to know why you were rated higher if you aren’t giving the specifics… plenty of underwriters here that could explain why if you can give details.

 

[levnishbar]

@manxy What medical stuff came up? Do you or wife take any medications?

 

[manxy]

@levnishbar Me (35M): Low cholesterol (below normal range) + benign neurological condition that a doc cleared me from over 10 years ago and I don't monitor/experience symptoms

Wife (34F): Low BMI (5'5", 105 lbs) + depression flag that came up from a Psych visit in 2020 but hasn't seen one since. We don't take meds.

 

[levnishbar]

@manxy I know depression can have a surprising effect on premium. An underwriter on here might be able to help with the other things.

 

[frenchyriff]

@levnishbar Depression history could cause premiums to increase. Would be curious if she was referred for additional treatment during the 2020 psych visit. Would probably need to know more details on the visit too. Any meds advised? Was she hospitalized? Did they ask her to follow up and she never did? There are a lot of variables at play and a lot of unknown. As an underwriter, I’m curious about the visit. She was likely quoted best class and received standard. Not very uncommon

 

[seekinganswers411]

@manxy Did they not offer you a no medical option or was it offered and the insurer wanted a medical as they saw something while underwriting?