Under The Hood: Underwriting for Whole Life Insurance and IBC

Understanding life insurance underwriting is critical.

Most agents gloss over the complexities to get straight to the sale, but Hans Toohey and Brian Moody move beyond the typical "just buy term" conversation to examine the intricate process of getting approved for coverage, especially for military service members.

Underwriting differs dramatically between civilian and military applicants. In this episode, they discuss the unique challenges of military pilot ratings, the impact of VA disability claims, and the often-overlooked financial qualification process. Hans and Brian draw from their experience working with military personnel to provide actionable insights about medical exams, financial requirements, and navigating the complex military medical records system.

Getting coverage while you're insurable is paramount, VA disability claims require careful timing, and understanding the underwriting process matters more than chasing the best rates.

• Dual Qualification Required: Life insurance stands alone in needing both financial and medical approval. Financial looks at income and existing coverage, while medical requires exams and health history. Once approved, it's a binding contract that can't be changed.

• Military Service Adds Complexity: Military pilots face extra charges that civilian pilots don't - $4/thousand for fighters, $2/thousand for helicopters. Deployments complicate coverage, and getting military medical records is notoriously difficult. Simple assignments like moving overseas can trigger special reviews.

• VA Claims vs Insurance Timing: The VA system rewards claiming maximum disability, while insurance rewards good health. Mental health claims especially impact insurability. Key advice: Get insured before filing VA claims, as these records become permanent.

• Focus on Getting Coverage: Whether you get preferred or standard rates matters less than securing coverage while you can. Most people don't get healthier with age. Even if tobacco use or high-risk activities bump up your rates, having coverage beats being uninsurable later.

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