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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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Life insurance for diabetic

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: A coworker age 50 is considering taking out life insurance with Lincoln Benefit Life Insurance Co. located in Lincoln, Nebraska. He has been a diabetic for over twenty years. Do you think he has a chance of being accepted? .

A: The field underwriter would have specific knowledge of the company's underwriting standards so there is no need for us to guess on the outcome of the underwriting. The fact that your coworker is uncertain of the outcome in this situation indicates that there is some communication lacking between the applicant and the agent. In your co-worker's case a strong working relationship with the agent is essential to get the best life insurance offer. An application should not ever be made for life or health insurance unless you are fairly certain of acceptance and have a good indication of the price of insurance that will be offered. A "decline" stays on your medical information bureau for years and affects your ability to get other insurance in the future. Sometimes a declined insurance has other implications as well in career or other types of undertakings. The normal life insurance underwriting procedure for a person with medical history is for an agent to work with a field underwriter and eventually a medical underwriter who reviews the applicant's medical records and make an informal offer prior to the application. This is called an "informal inquiry" rather than an application. The only way for your coworker to get into trouble here is to submit an application without an intelligent conversation with the agent and underwriter. Everyone is eligible for some type of life insurance. The difficult part - and the reason for using a good agent and field underwriter - is matching the insurance company and product for each particular situation.


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