Author Topic: New trend - Instant approval life insurance  (Read 6852 times)

Online skyguy918

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Re: New trend - Instant approval life insurance
« Reply #45 on: March 21, 2017, 02:27:37 PM »
But it doesn't. Yet. Which is my point, though I'm trying to keep myself to saying it between the lines.
In order to know that, you'd have to see a significant (ie non-anecdotal) number of people who already know that their blood work (as opposed to some other underwriting criteria) is giving them a less than optimal rating, while getting instant approved at rates that indicate a better rating. Let's just say I'd be skeptical of any such claim.

Offline hachover

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Re: New trend - Instant approval life insurance
« Reply #46 on: March 21, 2017, 02:27:46 PM »
The only thing you're really saving in that case is the hassle of the exam, and the rates don't seem cheaper than you'd get through a competent agent.

Isn't that huge?!
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline 12HRS

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Re: New trend - Instant approval life insurance
« Reply #47 on: March 21, 2017, 02:29:20 PM »
Why does it matter if I would be replacing an existing policy? It says "We're sorry! Currently, we aren't ready to sell policies that support replacing an existing policy. We apologize for any inconvenience."

Offline hachover

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Re: New trend - Instant approval life insurance
« Reply #48 on: March 21, 2017, 02:35:42 PM »
Honestly, it's actually a little surprising that they're not cheaper than everyone else. It's direct marketing only (no commissions), underwriting requires no staff, one product, etc - all of that likely means much lower expenses, which is the holy grail in term pricing.

As far as the actual underwriting, the only piece they're really missing is the added info of the medical exam (primarily the blood work). It's not so crazy to think that in the presence of all the other hard data they might be able to pull, the medical exam doesn't often meaningfully affect the outcome. Layer on that any conservatism they likely built into their mortality assumptions for lack of prior experience with the system and it doesn't seem like that big a risk.

The technology costs money - less than an agent once you reach scale, but they're not there yet

Advertising costs often eat up as much as commissions or more

The underwriting costs money - someone has to pay for the R&D to develop those models, plus it costs money to ping PBM, MVR, and the other data sources (which I'm not allowed to list). Plus, of course there's some underwriting staff - they need people to review after the fact to ensure model quality and people to handle applicants who don't qualify instantly.

Term isn't very profitable in the first place, and if you don't have scale it can be very unprofitable. Especially for incumbent companies who have high overhead cost or have high hurdle rates to justify branching out of their core business. Ladder or Quilt may have better ability to undercut the market - though their current prices show no indication of doing that.
« Last Edit: March 21, 2017, 02:48:26 PM by hachover »
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline hachover

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Re: New trend - Instant approval life insurance
« Reply #49 on: March 21, 2017, 02:37:52 PM »
Why does it matter if I would be replacing an existing policy? It says "We're sorry! Currently, we aren't ready to sell policies that support replacing an existing policy. We apologize for any inconvenience."

Legal stuff. Replacements require disclosures and some extra legwork for the new company. Just say it's not a replacement- that doesn't stop you from cancelling a different policy after you get approved for this one. The only downside is if the company decides you have too much life insurance and they would have approved you if they knew you were dropping another policy.
I'm an optimist; but only because life isn't going to give me any other good choices.

Online avromie7

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Re: New trend - Instant approval life insurance
« Reply #50 on: March 21, 2017, 03:48:19 PM »
I just applied with Haven Life, they won't approve me without a medical. I chatted and asked why they won't approve without a medical and they told me it's because of my prescription history. I can't recall any prescription that would be a cause of concern. I guess it's not very easy to get approved without a medical exam.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline Barryg

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Re: New trend - Instant approval life insurance
« Reply #51 on: March 21, 2017, 05:48:53 PM »
Legal stuff. Replacements require disclosures and some extra legwork for the new company. Just say it's not a replacement- that doesn't stop you from cancelling a different policy after you get approved for this one. The only downside is if the company decides you have too much life insurance and they would have approved you if they knew you were dropping another policy.
Especially in NY, reg 60 which is supposed to help the customer is lots of extra legwork.

Offline Baruch

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Re: New trend - Instant approval life insurance
« Reply #52 on: March 21, 2017, 10:41:32 PM »
I just applied with Haven Life, they won't approve me without a medical. I chatted and asked why they won't approve without a medical and they told me it's because of my prescription history. I can't recall any prescription that would be a cause of concern. I guess it's not very easy to get approved without a medical exam.
Were you ever prescribed any nicotine replacement?

Online avromie7

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Re: New trend - Instant approval life insurance
« Reply #53 on: March 21, 2017, 10:53:28 PM »
Were you ever prescribed any nicotine replacement?
No
I wonder what people who type "u" instead of "you" do with all their free time.

Offline Mikeoracle

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Re: New trend - Instant approval life insurance
« Reply #54 on: March 22, 2017, 07:01:37 AM »
If I currently have a policy with mass mutual at 1 level below preferred plus, I assume this application will pick that up and I won't be able to get the top level preference with Haven?

Offline A3

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Re: New trend - Instant approval life insurance
« Reply #55 on: July 06, 2017, 07:42:30 PM »
Does having a motorcycle or motorcycle endorsement affect life insurance? There were no questions pertaining to this (other than for organizing racing) nor is there anything in the policy documents....

Offline hachover

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Re: New trend - Instant approval life insurance
« Reply #56 on: July 07, 2017, 11:33:14 AM »
Does having a motorcycle or motorcycle endorsement affect life insurance? There were no questions pertaining to this (other than for organizing racing) nor is there anything in the policy documents....

They will see that in the motor vehicle records. I don't know whether it affects the risk rating though
I'm an optimist; but only because life isn't going to give me any other good choices.

Online skyguy918

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Re: New trend - Instant approval life insurance
« Reply #57 on: July 07, 2017, 01:01:24 PM »
I actually just heard a lunch'n'learn presentation from a CVP at my company, mostly on this topic. The lead-in was the fact that we (NYL) launched a 'jet-issue' system for underwriting on some portion of our existing direct distribution products (mostly AARP marketed life insurance). But his focus was more on technology companies coming into the insurance space, and the varying approaches and structures that it has created.

One thing he did mention though is that he felt Haven was priced very cheaply given what he feels the risk premium should be for a new concept like automatic underwriting. The other thing he said was that it's a very small percentage of applicants that get truly online purchases - the vast majority will require medical follow-up.

Offline A3

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Re: New trend - Instant approval life insurance
« Reply #58 on: July 07, 2017, 01:19:43 PM »
They will see that in the motor vehicle records. I don't know whether it affects the risk rating though
Thanks.

I couldn't find a definitive answer online and didn't want to ask. I guess I might as well call.

Total took about 4 weeks to get approved with Haven (required med exam and doc record). Within these 4 weeks I got my endorsement...

Offline Menachem613

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Re: New trend - Instant approval life insurance
« Reply #59 on: July 07, 2017, 01:55:21 PM »
Side question. If your existing policy expires in 6 months (paid in full) and you sign up for a new policy, does it begin when the other ends or does it begin now and you get a refund from the old policy?