I received a letter today from AARP New York Life Insurance. Since my husband's retirement insurance was taken away, I have been thinking I should get some sort of Life Insurance for him & myself. I shouldn't have any problem since I am healthy. However, I did not think I could get him insurance because of the dementia. However, of the 3 health questions the 3rd question is the only one that could apply to him....In the past 3 months, have you consulted a doctor or had treatment or diagnostic test of any type? The only doctor or test he has had in the last 3 months was with the Urologist, he hasn't seen the Neurologist since July. My question is...do you think I am being untruthful, by no disclosing his dementia? I have no idea how long my husband will live or myself for that matter. Nothing is mentioned regarding anything close. Welcome anyone's thoughts, opinions etc.
I have an idea they will check further,.and ask for his medical records. Depending on the amount of Life insurance you are asking for, they usually send out someone to ask more extensive questions. - If not, they usually have in very fine print, that the payable amount is drastically reduced if the insured dies in one year, two years, three years, etc.
Answer to your question is: We're told not to volunteer information if they don't ask it. What is the old addage: Don't Ask, Don't Tell. Go for it and see wht happens.
I used to be an insurance agent. We have talked about this kind of policy before. The three questions are the give away.
Answer the questions honestly, but you don't have to say more than they ask. This kind of policy will pay you back the premiums you paid them if the insured dies during the first two years. Some times they will pay a a larger amount if the death is after the first year and the full amount after two years. The information about this ought to be in the mailing you received, but will definitely be on the policy itself.
By the way, if someone dies during the first two years in any policy they will go back to the doctor who did the exam and ask if the person knew they were sick when they bought the policy. It happened with my BIL who died less than a year after buying a policy. He was sick with pancreatic cancer at a time when they NEVER found it early, so the Insurance Company did pay on the policy. It is called buying insurance "in contemplation of death." This kind of policy is different because they KNOW you are buying it in contemplation of death. They only sell it to people over specific ages.
This is not a scam, by the way. All insurance companies have these policies.
My husband got a life insurance policy after he was diagnosed with FTD. It is a small one which is basically considered an end of life policy to pay for burial expenses, etc. He did not need any medical records sent. Just answered the couple of questions and it was approved. This was through State Farm and not one of those policies you see advertised on TV.
On the other hand, when I recently went for life insurance, I had to have an EKG, blood work, etc. before I was approved for the policy. But this policy was for quite a bit more money which would be of help to my husband in case I died before him.
deb, your policy will also pay out the full amount if you die tomorrow. So, since it is the same kind of policy a 25 year old might get, they want more information.
When we refinanced our home while DH was on medical leave, but before he was 'retired', we had an offer to take mortgage insurance just on him, even though he was secondary. It made four payments upon total disabiliy or death. AT that time he was considered totally disabled but they did not ask that as one of the questions. We could truthfully answer their questions negatively. However, I was a bit concerned because he was already disabled. We were at the attorney for other documents and I asked the attorney. He could not find a reason that applying would be fraud. He said to carefully read the full policy when we got it. I did and nothing they said applies to our situation. figured out that, with the rate of decline, my DH was likely to live less than the breakeven point, so I gambled and took it. We shall see.
BTW, my DH's term life insurance is due to expire in a couple years. Most companies let you renew w/o a medical exam IF you agree to pay the higher premium. I'll check into that if we get that far. His term insurance covers the remaining house payments. DH told me early on not to worry as he would not be living that long.
I dug out his term life insurance policy and when he turns 67 (62 almost 63 now) it will jump from 635 a year to 6300.00 a year. That was a shocker to see the big jump. This may sound horrible, but I hope this disease takes him by then.
I have a (to me) large term policy on my dh that we have had for many years. It would be enough for me to pay the house off and probably retire. I also took out a 50k term policy at my employment on him. Costs pennies.
Since we are on this subject..may I ask your opinions? The questions are tough.
The monthly payments have jumped to 275.00 per month. I now have a 1200.00 month out of pocket cost to ALF which to pay will leave me using food banks, etc for survival. The policy will expire when he turns 65. He turns 64 in Aug. Outside of the degenerative neuro disease and dementia..he is healthy.
so.....cancel the policy and free up budget by 275.00 a month? or.....keep policy for the mext year..just in case?