Sorry for the non-insurance related post, but I’m trying to help my mom out.

A couple years ago, my mom became an Ambit Energy Consultant.  I don’t know much about it, but she also signed me up as a consultant, with the idea that when (or maybe if) energy gets deregulated in CA, as it is in TX, that she and I will hold a high ranking in the business.  Currently she’s put enough consultants under me that I’m what’s called a Senior Consultant.  I don’t know what she is but think she’s one or two levels ahead of me.

So she just sent me an email saying that during the month of February, Ambit is offering a higher bonus to consultants who sign up new consultants.  So apparently if I sign up a consultant under me, I make enough that I can actually refund them their start up fee.

This is the way my mom has gotten many consultants under her (including myself).  The key is that during the first month ( I think it’s a month), the new consultant has to sign up 4 new energy clients.  Here’s where my mom steps in and provides the clients for them.  She has a bunch of apartment buildings in TX feeding her constant new energy clients, so she can easily sign them up under whoever she wants.

Anyway, I’m really not involved in the business.  I’m way too busy with my life insurance business to work an MLM business, but I know my mom also gets a cut of any consultants I put under me, and she’s been on me for a while now to try to sign some people up under me.  To be honest, I’d rather not be involved in the process at all, so if you’re interested call my mom directly please.

I don’t have the time to get involved, but I do have a website that gets 10,000 visitors per month, so I guess it’s worth a post.  Speak to my mom, Susan Ham, for more details at 619-916-8216 or you can email her at susanjham@cox.net

Here’s a copy of my mom’s email this morning which explains the particulars:

Hi Chris,

As you know, you are a Regional Consultant.  I am sitting on customers to transfer to someone.  I’d like to try and sign up 4 this month while we are in Triple Bonus Month.  I’d like to get you to Senior.

As a RC you would make $465.00 (in a triple bonus month like Feb)  if someone paid their own consultant way in $458, got their own 4 customers and they would get $300 back.   Of course, this is the best option.  Pretty cheap way to buy your own business.  They get Powerzone back office and a training kit.

If you paid their way in by putting it on your credit card, you would clear $227.00 after all the expenses.  They would have to get 4 customers (I pay $20 each) within 28 days and I can get those for them. I am sitting on customers right now that need to go under somebody.  So you get $465 as a RC plus $300 because you paid the persons way in, minus $458 fee, minus $80 customers is $227.00 profit.  (It cost $458.00 to be a consultant.)

If they wanted to work the business, I would do the training if they are in a deregulated state or they can get in and wait for their state to deregulate, at no cost after the initial investment.  This is how I built my business.  Their customers are your customers as well.  There will be residual income.  I have over 190 consultants under me and 625 customers.  It’s taken awhile but these triple bonus months are great.  My monthly customer residual is about $300 now and I don’t do anything for it after they are signed up.

I could talk to someone for you.  Do you want to add someone under you?  Even Brenda or a family member.  How about someone in Texas or Illinois?  All I need is their personal info, inc. SS# and Birth date.

Love Mom

I recently wrote an article about “hybrid term/UL” policies as it relates to understanding term conversion. During the article, I mentioned Genworth’s Colony Term UL product which has a very special feature called the Coverage Extension Feature.

What is the Coverage Extension Feature?

Abbreviated CEF, it is a feature that allows the Colony Term UL policyholder to extend the death benefit guarantee beyond the period originally chosen. Remember, the Colony Term UL policy is built on universal life policy structure, and adds a no lapse feature for a number of years, which makes the policy act like a term policy during the duration of that no lapse guarantee.

Depending on which term you chose (15 or 20 years), Genworth adds a Coverage Protection Guarantee which states that for the duration of the term you select, the policy will act just like a term policy.  But after the term is over, the policy reverts back to acting like a universal life policy, which means it would need cash value to keep the policy in force.  If you let the term expire, the premiums would rise dramatically, and possibly be too much to afford.

Here’s where the Coverage Extension Feature comes into play.

So let’s say you have a Colony Term UL 10 policy and decide 5 years into the policy that you need this coverage for the rest of your life.  In essence, the CEF feature will allow you to extend your death benefit guarantee to age 90,100, or 105, without proof of insurability (means you don’t have to take another physical).

A Few Helpful Rules when Exercising the Coverage Extension Feature

• The CEF must be exercised for Colony Term UL 10 in policy years 2-10, for Colony Term UL 15 in policy years 2-15, for Colony Term UL 20 in policy years 2-20, and for Colony Term UL 30 in policy years 2-30

• The CEF must be exercised before the insured’s age 76

• Coverage must be projected to extend to at least age 90

• The CEF must be agent assisted

• The Specified Amount must be retained (in other words, you couldn’t start with a $500,000 policy, and switch to 1 Million, or $100,000.)

Benefits of Coverage Extension Feature

Since the costs to extend coverage are fixed, the planned premiums for coverage beyond the 10, 20, or 30 year period selected can be known at the time of issue.  The cost to extend coverage is included in your policy.

One question I have not yet had answered is if the new premium under the CEF is determined based on your new attained age, or original age of issue.  I assume the latter, which would make it work similarly to a regular term conversion.

Not a Conversion – Not a New Policy — Simple

Now, if policyholders wish to extend their protection, they have the assurance of knowing that it is as easy as simply paying the known planned premium—no underwriting, no complex paperwork, no surprises.

The benefit of the Coverage Protection Guarantee is that it minimizes the risk for the policyholder, because while other carriers offer conversion options, the client is at the mercy of the insurance company as to what product will be available down the road when they want to convert and how much that product will cost.

In this case of the Colony Term UL through Genworth Life Insurance, you already know the cost to extend coverage at the time of issue.

So in some ways, you might call Genworth’s Coverage Extension Feature superior to the traditional term conversion to whole life.

Life insurance conversion is the process of upgrading a term life insurance policy into a permanent life policy, under the original rating (or health classification)  assigned to the insured.

For example, say you’re 65 years old, and purchased a term life insurance policy 10 years ago.  At the time of policy issue, you were in excellent health and were rated at “Preferred Non Tobacco”.  But in the past 10 years, you’ve developed sleep apnea and were diagnosed with diabetes.  It would be difficult to secure a Preferred offer today.

Here’s where the life insurance conversion benefit kicks in.  You can convert your policy to a permanent policy at the “Preferred Non Tobacco” rating, WITHOUT evidence of insurability.  So you’ll pay what any other 65 year old will pay for the same policy, but in excellent health.

Factors that vary among life insurance conversion features:

Maximum age – each policy carries its own conversion limitations.  For example, a Banner OP Term 15 policy can be converted to a permanent product, but only until the insured reaches the age of 70.  Minnesota Life’s Advantage Elite Term 15 carries a maximum conversion age of 75.

If you purchase a term life policy, and there’s a possibility you may one day need permanent coverage, be sure to look at the max age…  The older the max age, the better.

Availability and choice of Permanent policies

• Some policies allow conversion to ANY permanent policy
• Some policies allow conversion to a permanent policy of carrier’s choosing

For example, Ohio National has two types of term, regular or plus:

1. 15 Year Term – converts to policy of carrier’s choice
2. 15 Year Term PLUS – converts to ANY permanent policy

This conversion option is probably the most important conversion feature.  If your term policy allows you to convert to ANY permanent policy, this is a good benefit, because in most cases, you will have your choice of converting to a low premium, guaranteed universal life plan, or a higher premium, cash accumulating plan.

But if your policy doesn’t give you the choice, you can guess which policy the company will likely allow you to convert to…. most likely their highest cost option.

If you’re shopping for insurance, be sure to ask your agent to read the conversion privileges to you and listen for whether to product is convertible to “any permanent policy without evidence of insurability”, or to “select permanent policies” or “permanent policy selected by XYZ insurance company.”

Conversion Credits

Some term policies carry a conversion credit, which reduces the premium payments on the new Permanent Policy by some factor.

• For example, Prudential Essential Term policies do not offer credits
• Prudential Elite Term policies offer credits – reducing the first year of premium for the new policy by the amount of the old term premium

All Term Policies we sell have some sort of conversion feature (Again, all term policies WE SELL.  That doesn’t mean all term policies out there offer conversion priviledges.  Primerica is one such company.  Since they have no permanent products, they have no conversion.)

What about Hybrid Term/Universal Life Policy Conversion?

In a sense, these policies automatically “convert” to a permanent product.  But be careful of classifying hybrid term-UL products (such as Genworth’s Colony Term UL) as term policies.

These are not actually true term policies.  They are built on universal life policy structure, and add a no lapse feature for a number of years, which makes the policy act like a term policy during the duration of that no lapse guarantee.

So at the end of the initial no lapse period, they don’t technically “convert”, per se.  Instead, they simply revert to the UL function, losing the no-lapse feature. At this point, your premiums would increase, and the policy will function like any other universal life policy, needing cash to sustain the policy.  Note: with Genworth’s Colony Term UL, you would probably exercise the Coverage Extension Feature before the initial term expires, if you need to extend coverage.

At the time of writing this article, the two main players in the term/UL hybrid arena are Genworth and Transamerica, with their TransTerm UL.

If you need a term life insurance policy with strong conversion privileges, or have any questions about life insurance conversion, please call us at 877-443-9467.  Thank you.

We’ve gotten 3 calls in the last month from prospective applicants needing life insurance, required by a structured settlement buyout company.  The settlor pays lump sums in exchange for pension income.  All 3 have said they need a 10 year term, and knew the exact amount they needed, and needed the buyer get the collateral assignment.

Perhaps you’ve seen J.G. Wentworth commercials before where they ask you if you’re receiving a fixed income stream or annuity payout, and how if you call them, they can offer you a lump sum in exchange for your annuity.  Of course I’m familiar with these settlements, but have never heard of the concept where the settlor requires life insurance on the seller.

So did a bit of digging.  Naturally, my first source or research was to Google the term “Life insurance for structured settlement buyout.”  I found multiple hits from multiple structured settlement companies, all basically saying the same thing… these companies will buy your pension or income stream either for life or for a period of time, but all of them that I saw require life insurance.

One site explained:

“During the pension period (the time period you sell; for instance, selling 96 $500/month payments would be an eight-year pension period) you will be required to carry a life insurance policy as collateral. If you don’t yet have life insurance, we have licensed, independent agents ready to assist you in securing coverage.”

In the frequently asked questions, you find the reason they require life insurance.

“Much as lenders require homeowner policies on mortgages, we require a life insurance policy be in place before approving a pension sale. Understandably, if the pensioner passes away all payments to us will cease; a life insurance policy helps us protect the integrity of our relationship with you.”

I was a critic when I first heard the concept, but now I’m in discovery mode.  If there are any agents out there reading this article, and you have successfully placed a case for the purpose of collateral for a structured buyout, please comment and let me know if the carrier had any questions about the purpose of insurance or establishing an insurable interest.

I also interviewed a gentleman at the Lump Sum Settlement Store (link below), who said this is a new industry that just popped up 2 years ago when the Pension Protection Act was changed, and now tens of thousands of these deals are being done per year.  So it seems it could be legit.

Below I’ll list the webpage I quoted above.

http://lumpsumsettlementstore.com/?page_id=45

We’ve successfully helped many veterans of war obtain affordable life insurance who have post traumatic stress disorder.  These cases are very similar to the depression or bipolar life insurance cases we get.

What the Insurance Companies Need to Know

Essentially, the life insurance companies want to know what medications are being taken, and how well the depression, or in this case, PTSD, is being controlled.  Some factors that help us determine control are whether or not you are on disability for PTSD.  It speaks volumes to underwriters if you’ve been able to hold a steady job.  Note, some people with severe PTSD may be affected so much that they will not be able to.

It’s also important to know whether you’ve ever had any suicidal thoughts or threats or hospitalizations due to post traumatic stress disorder.  If the disorder is well controlled, standard or better rates may be available.

Vietnam Vet with PTSD’s Story

However, I recently had one client dragged through the mud by Fidelity.  Here’s his story.

He is 65 years old, retired at age 55 from postal service.

Vietnam Vet with post traumatic stress disorder. He lived with it for several years with no treatment. Approx 10 yrs ago he visited a psychiatrist who diagnosed him with PTSD and prescribed him Wellbutrin. He only visited him one time. Since then his primary care dr has been renewing the rx. He takes 20 mg per day.

With the PTSD, my client was able to take a partial disability from the VA, and retire from the postal service at age 55. He is now on 60% disability with VA, half for PTSD and half for a shoulder cuff injury, which has required surgery.

Just declined by Fidelity for “use of Wellbutrin and high blood pressure history”, although underwriter did say the MIB had other hits.

Spoke at length with my client who said he has never been hospitalized due to PTSD, and is a Christian, and would never ever consider suicide, and can’t remember ever making any statements about suicidal thoughts in the past, and certainly hasn’t in the past 10 years since he’s been on Wellbutrin. He worked with it for years holding a steady job at the postal service, and for the past 10 years, since getting treatment, he’s been doing great.

The description above is what I sent out in a trial offer request on my client’s behalf.  He will most likely be rated at Standard or mildly substandard with most companies.

If you have Post Traumatic Stress Disorder, or any other high risk medical disorder, please call us for a free quote at 877-443-9467.

Left Ventricular Hypertrophy is defined as a thickening of the ventricular muscle, or enlarged heart.  It’s primarily caused by high blood pressure, and life insurance companies don’t like to see it, because people who have left ventricular hypertrophy have hearts that have to work harder, and are at higher risk of heart attack and cardiac death.

So it’s no wonder that a client who recently came to me with LVH had been declined by Genworth.

We put the policy out to bid, and while we got mostly declines and substandard rating quotes, we did have one company offer a quick quote of standard!

Here is a copy of the detailed letter I wrote on behalf of my client.  I poured hours into reviewing my client’s medical records, as well as reviewing his case with my medical director, in order to come up with our “angle”.  We wanted to admit up front that, yes, he has an enlarged heart, but tell a story of why they don’t need to be as concerned about it as other people with LVH.

In my client’s case, we pointed out his recent control of blood pressure, stress free life, and recent dietary changes.  While you read the trial offer request, ask yourself how many agents would go through this trouble for their client.  Do you think a Select Quote Agent with their sales quotas would be able to dedicate this sort of time to one client?  No way!  Here is the email I sent out to over 2 dozen companies on his behalf:

I have a male, age 65, 5’10 ½ 237 lbs, non smoker.  My client lives a stress-free life.  He’s a Canadian citizen who owns a home in FL, and stays here with his wife 6 months out of the year.  Between them, they earn 130K per year (US dollars), and have a net worth of between 1.5M-2.0M.  He is happily enjoying his retirement.

He rides his bike and plays tennis 5 days per week.  Very active.

However, my client was declined by Genworth on 12/16/2011 for Left Ventricular Hypertrophy, even though his APS describes it as “mild left ventricular hypertrophy”.

His echo results from 2009 show:

RVIDd – 3.21 cm

IVSd – 1.69 cm

LVIDd – 4.44 cm

LVIDs – 2.9 cm

LVPWd – 1.68 cm

Ao Root Diam – 3.8 cm

LA Diam – 3.7 cm

EF – 60%

LVFS – 34.7%

All other values within normal range.  (many of the values above are normal too)

Echo exam comments included “normal left ventricular chamber size”, “mild concentric left ventricular hypertrophy”, “normal left vent. systolic function”.  “The right vent chamber size and systolic function are within normal limits.  The right ventricular cavity size is mildly enlarged.”  “mild mitral regurgitation”, “mild tricuspid regurgitation”, “mild annular calcification on mitral valve”.  Right atrial cavity and left atrial chamber are normal.

My client’s primary problem over the past 3 years has been getting his blood pressure controlled.  In May of 2011 he began seeing a nutritionist who taught him about portion control and adding 2 veggies to each lunch/dinner, and since implementing her suggestions , my client has lost 8 lbs, and his bp #’s have been under good control, with great results in his Oct. 2011 checkup, and again in his insurance exam in Nov. 2011, his readings were 112/66, 114/66, 116/68.

He’s really excited about his dietary changes, says he feels a lot better, and feels he’s finally turned the corner on getting his BP under control.  He also has been taking Altace to control bp for many years, a very low dose.  We argue that with BP being the primary risk factor for LVH, that since he now has this under control, that he is not at high risk for the LVH to worsen.

We also argue that he’s on a super low dose of bp medication, just 2.5 mg of Altace.  If his dr was truly concerned, he would increase the dose.

Other pertinent details:

-          In April 2009, was hospitalized for viral pneumonia, and had an episode of atrial fib.  It was transient and immediately resolved, and records show it was resolved.  In June 2009 in an exam, no atrial fib or murmur was detected.

-          Father died of heart disease at age 55.  Mother lived to 90, died of natural causes.  1 sibling is 69 in excellent health.

-          Dx with fatty liver in 2009.  Labs from 6/2009 show Hgb: 138, MCV: 90, ROW: N, AST: 68, ACT: 246, GGT 149, ALK phos: N

-          Cholesterol under good control,  Chol/HDL ratio was 4.82 as of Sept 2010, and 4.67 in Oct 2011.

-          Drinks on average 2 alcoholic beverages per day

-          Uses inhaler for asthma as needed – needs it approximately once every 1 to 2 years on average.

-          His other rx is Novo-Naprox for daily tennis aches and pains

-          He’ll be in FL for the next 5 months, so there won’t be any issues taking his app in the US or having it delivered in U.S.

-          He wants a Canadian corporation to be beneficiary for tax reasons (corp. is his family business)

-          Right bundle branch block on ekg from 2009.  Doesn’t have a bundle branch block in current ekg taken for life ins. exam.

-          Please remember lots of his results looked screwed up in April 2009, because he was in critical condition with viral pneumonia.  He has been stable in all regards since recovering.

He’s looking for a $200,000 policy guar. UL, either 10, 15, or 20 pay policy.  We are in competition with an offer he has from a company in Canada, and we’ll need to get a Standard or better offer to win the business.  Total premium for this case will be around 6K to 7K per year.

Thank you for your consideration.

I hadn’t see this one before.  A potential client called recently asking if he could purchase a guaranteed universal life insurance policy with $100,000 face value at the age of 75.  So far, no problem.

However, I then asked him some questions about his medical history and found that he had an aneurism on his descending aorta stented a couple years ago, and also was diagnosed a couple years ago with Polycythemia, a blood disorder in which your bone marrow makes too many red blood cells.  In his particular case, this leads to too much iron in his blood, and he occasionally has to have blood withdrawn to reduce his iron levels.

I admitted I had no heard of this condition before, but the beauty of working with an agency like mine is we have the ability to get back quick answers from multiple insurance companies through our trial offer request process.  Additionally, we retain a medical director for help with our tough medical cases.

Life Insurance Approval with Polychythemia

What we found was about 70% of the companies were willing to consider him for life insurance, but at substandard rates.  May life insurance agents would not have even known where to start or how to quote a prospect like this, but we had his quotes to him just two days after our initial conversation, and they were backed up by tentative trial offers from underwriters, which means in all likelihood, he will be approved.

Had this 75 year old man gone to another agent, he probably would have tried applying with one of the 70%,and would have been declined.  With our process, we already know which companies will decline him, and which are likely to offer.

Here’s a copy of the trial offer request I sent out on his behalf:

“I have a male PI, 75 year old, non smoker, 6-4, 232 lbs.  Very active.  Bikes 13 miles/day.

Takes Tricor for triglycerides, under good control.

Takes a medication for enlarged prostate.  PSA at 2, strictly due to enlargement.  2 biopsies and multiple DRE’s have shown it’s not cancerous, with most recent one 2 yrs ago.

Takes a med called Hydrea for Polycythemia, which helps keep the iron levels down.  He has his blood tested monthly for iron and red blood cell levels, and says most months, the levels are good, but once every 3 or 4 months, he has to have 500 cc’s of blood removed to get levels back to normal, a procedure called a phlebotomy.  He says even when the levels are increased, he has no symptoms, and his dr says it’s not dangerous.  He will continue to monitor monthly.

One year ago had an abdominal aneurism surgically treated.  The size was 5 cm and was on descending aorta.  It was stented, and dr said with this treatment, it could not burst.

He needs 100K to 250K of Guar. UL.

Thank you for your consideration.”

I guarantee you if you called 10 life insurance agents you found on the internet, 8 of the 10 would have either quoted this man incorrectly during the first conversation, or would have just said they didn’t think he could qualify.  If you’ve had a history of polycythemia or have an aneurism, or any other medical issue, give us a call.  We’ll research your case thoroughly to help you find the most affordable and suitable policy for your life insurance needs.  877-443-9467

I’m often asked if besides life insurance services, if we provide financial services at Huntley Wealth. We do.

Huntley Wealth was established in 2004 to provide a broad array of financial services. Our clients include both those saving for retirement as well as those who have transitioned into retirement. As a firm, Huntley Wealth seeks to help clients manage their savings objectives through a number of financial strategies including capital preservation, risk management and growth.

Some vehicles we have used to achieve these purposes are fixed and equity indexed annuities, investment grade life insurance, as well as 15 low cost exchange traded fund portfolios, through our solicitor’s relationship with a local investment advisory firm, Efficient Market Advisors, LLC.

With respect to insurance, we help individuals with high risk medical conditions obtain affordable life insurance coverage.

Our clients include businesses and individuals across the U.S. We are located in San Diego, CA.

Many of us are convinced that our health issues make it impossible to qualify for life insurance coverage. We want to protect our family from the onslaught of expenses that will occur if we are no longer there to provide for them, but we know that life insurance is only for the healthy…or is it??

Whether you are fighting the oh-so persistent ‘battle of the bulge’, or being treated for diabetes, high cholesterol, high blood pressure, or more serious disease, don’t give up…life insurance is available! Surprised? I was too!

Here at Huntley Wealth Insurance, we operate a bit differently than the average life insurance agency, as described in our Select Quote review article. First, we are independent, which means we have the distinct advantage of being able to shop for the best carrier to offer coverage for a unique situation. Maybe you have researched life insurance in the past, and found, to your dismay, that many carriers decline to offer you coverage, or perhaps they simply charge too much because your health history resulted in sky-high premiums. We take this kind of challenge personally, and we search out a carrier that will be a bit more lenient with your particular condition.

Secondly, we take our time with each client. Instead of an off-the-cuff quick quote given at the time of your first call, we take the time to thoroughly research exactly which carrier(s) will be best suited for your individual case. This research often includes a trial offer, where we ask each carrier to consider your case, before an application is taken…that way, by the time we take your application, we are much more certain you will be offered a policy, since the carrier we apply with has already agreed, tentatively, to accept your case. This is the foundation of our success with our more complicated cases.

And finally, we don’t just sell you the policy and disappear. Who knows, maybe you are working on improving your health…losing weight, quitting smoking, exercising more? We will come back to you and review your progress, and if you qualify for a better rating in the future, we will be happy to help you maximize on that achievement, and find you a new policy with a lower price. Now that’s a good way to celebrate, I’d say!

So whether you are dealing with a chronic condition like COPD or Fibromyalgia, or are recovering from treatment for cancer or heart disease, don’t be discouraged, because chances are, we can help you obtain the life insurance coverage you need for your family.

The next time you find yourself wishing you had life insurance, quit wishing, and pick up the phone! Let us help you find that one carrier that can make it possible. Call us at 877-443-9467 and we will make a success story together!

If you are looking to apply online for life insurance without the hassle of speaking to a life insurance agent, use the form below.

Read This Before Using Quote Form Below!

Before you do, though, you should know that if you have had any history of any medical issues (diabetes, cancer, heart disease, or even something less serious like high blood pressure or high cholesterol), this is NOT the form for you.  You need special attention for a life insurance agent who can ask you specific questions about your health and get you an accurate quote.  Call us for quotes at 877-443-9467.

Healthy, No Medical Issues, No Medications

However, if you are in great health currently with no history of medical conditions, you can use the form below and begin your online life insurance application without the need to speak to a life insurance representative.

Other Issues to Watch Out for Before Applying Online

If you work in some sort of hazardous or risky occupation, or have had a family member diagnosed with cancer, heart disease, or diabetes prior to age 60, you should NOT use the form below.  If you have any upcoming travels outside the United States to potentially dangerous country, you should not use this form either.  You NEED to first speak with an agent to determine what rate class is appropriate for you, and the life insurance company who will provide the best price for your needs.

What happens when I use the Form Below?

Once you submit your information below, you quotes will appear.  You can alter the amount and type of coverage to see various quotes, and change the payment mode between monthly or annually, etc..  Then, if you like one of the quotes, click on “Continue”.  A bit more contact information will be required from you at this point.  Once you’ve submitted this information, you will be contacted by one of our representatives to complete the application with you and schedule your medical exam, if needed.