Agent Blog: Helping Out a Relative

Helping a relative was an especially rewarding moment in my life insurance career

By Jeff Iwashita
Matrix Direct Licensed Agent

In 2008, a relative of mine graduated from medical school and had his first child, a beautiful baby girl. Some other family members told him that it was time to look for life insurance coverage to protect his wife and newborn daughter. Knowing that I was a licensed life insurance agent with Matrix Direct and had experience with multiple companies and different products, naturally he turned to me for advice.

My relative had a juvenile onset medical condition called Ankylosing Spondylitis, which is a form of rheumatoid arthritis. With the condition at such an early age of onset, I advised him that he might have a difficult time getting life insurance coverage at a good rate. We were going to need to do what we call "quick quotes" with multiple companies to find which company would be able to give him the best value. I told him to email me a quick summary of the age of onset of his condition, along with any medications he was taking and basically give me a good summary of what the insurance companies would see in his medical records.

We determined that American General would best fit his needs and give him the best chance at getting the best rate. We went through different options for coverage and determined that he would need at least $1 million in coverage. I advised him that if his income increased as he expected, he could always add more coverage and ladder his policies.

I advised my relative that term life insurance would best fit his need. In 30 years, hopefully his daughter would be out of the house and independent, his mortgage would be paid off, and he'd have most of his financial ducks in a row, so he wouldn't need as much coverage.  He still wanted some value and at 33 years old, he was sure he was going to outlive his policy. I suggested a return of premium policy. Although it was a little more expensive than a level term, he could get 100% of his premiums paid back at the end of the 30-year term. I even joked with him that he and his wife could take me on a cruise in 30 years when he got his money back!

We applied for a $1 million, 30-year term ROP policy. Six weeks later, American General approved him at a better rate than I quoted. The insurer had applied positive offsets to give my relative a standard plus rate, even with his underlying medical condition.

I have never been so happy to call a client with good news! In May of 2009, my relative’s policy went in force and he and I could both rest with the peace of mind of knowing that his family was protected.