First, we would like to thank every service person who reads this for their tireless work and dedication during this pandemic. It is because of people like you we have confidence that the United States will lead the world out of this current crisis.
The impact the virus has had on the insurance industry, which usually moves at a glacial pace has been astonishing and compassionate. Under normal circumstances, all life and disability policies have a 30- day grace period from when premiums are due to when they need to be paid. Currently, this has been extended by at least 60 days for a total of 90. The procedure to obtain the extension differs by company but is very easy and accessible. Please contact us should you need assistance with your company.
Regarding underwriting, the process by which insurance policies are approved, the benefit amounts available without a medical exam or lab work have been increased substantially for both disability and life insurance. For disability insurance you can now obtain as much as $6,000 per month of specialty specific disability insurance without an exam if you are under age 51. The situation is even better for life insurance, as you can now obtain up to $1M of level premium term life insurance without an exam and have the coverage in effect within a few days if you are under age 46 (unless you have medical issues). Premiums are extremely competitive. For a male age 35 a $400,000 policy with premiums guaranteed level for 20 years, the monthly premium is $20-$40 per month depending on your risk class. For comparison, SGLI is $24 per month for $400,000. Since most individuals with a family should maintain 7- 10 times their annual income in life insurance protection, SGLI is not adequate. Hopefully these changes will become permanent but as of now that is uncertain. Please contact us for any assistance:
- Andy G Borgia CLU
- D.K. Unger