Last month we talked about what a good financial planner can mean in dollar terms for an investment portfolio. This month, let’s look at what an independent life insurance broker can mean for your life insurance. This is probably no better illustrated than with two real world (client) examples.
First, consider “Hubert,” a younger client with a relatively dangerous job and a growing family. Hubert was looking for a $1,000,000 of life insurance. Given Hubert’s profession, a life insurance “pre-quote” made sense.
A “pre-quote” is a quick one page form a client can fill out that will determine which life insurance company to apply with. When Hubert’s pre-quote was submitted we found out that EVERY SINGLE LIFE INSURANCE CARRIER BUT ONE was going to either flat out deny him coverage, or only do so at greatly enhanced rates (an extra $1000 or so every year in premium). However, one company saw no out-of-the-ordinary risk to his profession and extended him an offer of $1,000,000 of 20 year term coverage for just $430/yr (the next closest competitor was over $1400/yr).
Next, consider “Dudley.” Dudley was also in the market for some life insurance so again, we did a pre-quote. We quickly found the least expensive coverage for Dudley but learned his current weight was right on the line of what would bump him into the next lower health rating, and would increase his cost by about $300/yr… every year for 30 years. Dudley did some quick math and realized if he could just lose a few pounds by the time the medical examiner arrived, he’d save $9000 over the next 30 years. That’s some pretty good incentive to go on a quick diet.
When you shop insurance through Flatirons Asset Management, we use “pre-quotes” for every client that needs life insurance. It’s what sets us apart from the Northwest Mutuals or State Farms of the world. Agents from companies such as those can only offer insurance from one carrier- themselves. We have access to over 60 different life insurance carriers, each with their own unique perspective on risk. That means we can shop around for the best deal- and even go so far as to tell you exactly what they’ll be looking for when you apply. It’s a pretty sweet deal… for you.
Calendar of Events
On Saturday, May 17, a team from Flatirons Asset Management “busted” some yard work for the Boulder County Care Connect Yardbusters program. Please join us next time on the morning of Saturday, June 21 when we take care of some general yard maintenance like mowing, raking, weeding and trimming for the elderly and disabled in Boulder county. E-mail me if you’re interested in joining my team. Everyone is welcome!
Have a great June,
Steve Zakelj, CFP®