The Road Ahead - March 2010
 

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The TOLI Group Newsletter:

 Underwriting Explained
 
But First: Steve Maszczek Added to
The TOLI Group
 

The TOLI Group is pleased to announce the addition of Steve Maszczek, JD. to our organization.  Steve is a graduate of Capital Law School in Columbus, Ohio.  As our new Director of Trust Advisory Services, Steve will provide guidance to our partners and clients as it relates to meeting their fiduciary responsibilities. 

 
We've done several Lunch and Learn presentations for various groups and firms describing how ILIT's are used in the estate planning process, how Ohio has codified the UPI and how life insurance assets need to be managed inside trusts.  Steve's background will provide additional expertise to these presentations.  If you are interested in having The TOLI Group present to your firm, please contact us through our website link.
 

As an organization we are committed to providing exceptional support and services to our clients and we believe that Steve's capability will significantly enhance our ability to do so.

Underwriting Explained:

Different Providers, Different Underwriting Standards

 

Medical underwriting is the process insurance carriers take to assess the amount of risk they will assume if they decide to insure the life of an applicant.  The insurance company requests medical, travel, and avocation information to help determine this risk.  Each carrier decides how much weight each factor will have in this decision and this can lead to significant differences in premium charges. 

 
For example, one carrier may decide that in a typical applicant high blood pressure warrants an additional charge of $1285 (for $500,00 of term insurance) while another carrier will charge the same person only $890 for the condition.  Having a family member diagnosed with cancer or heart conditions before the age of 60 could result in additional premium costs of $1290 or as low as $715.  The more factors a person has, the more this complicates the job of the underwriter.  Add into the equation additional criteria, such as the amount of insurance, type of coverage, or additional lives insured and the process becomes even more convoluted. 
The TOLI Group's Unique Underwriting 
 
Because carriers vary so widely on the ways they underwrite policies, having an advocate in the process is one of the most important benefits of The TOLI Process.   We gather all medical information and have it reviewed by a licensed physician before we present it to carriers.  This allows us to clarify important facts and provide additional information when needed.  For example, a client may have diabetes, but if we can show the carrier that the client has a history of successful weight and diet management, we may be able to minimize the effect in the premium cost. 
 
Another important part of our underwriting advocacy is our intimate knowledge of the difference between carriers.  Our underwriting staff works with many carriers on a variety of cases, they have seen how various carriers react to different risks.  This allows us to make informed decisions on which companies might react most favorably to each case.
TOLI Group Underwriting: Case Study
 
A high net worth couple in their early 70's needed $30 million of coverage.  The husband was uninsurable due to multiple heart attacks.  The wife was also considered uninsurable due to obesity with a history of multiple 'mini-strokes', high blood pressure, asthma and sleep apnea. 
 
After reviewing the case, our underwriting team determined that the wife might be insurable.  They worked extensively with the wife's physician to demonstrate that the 'mini-strokes' were, instead, migraines.  They showed that the wife's high blood pressure was well controlled and the asthma and sleep apnea were mild. 
 
The result was $30 million of coverage issued at standard rates.   
At the TOLI Group we are constantly looking for ways to add value and enrich our clients and our partners.  If there is ever anything that we can do for you, please don't hesitate to let us know.

The TOLI Group - Protecting Tomorrow's Tomorrow.

Sincerely,
 
The TOLI Group
Securities offered through ValMark Securities, Inc. Member FINRA, SPIC.130 Springside Drive, Suite 300, Akron, OH 44333  800.765.5201
Investment Advisory Services offered through ValMark Advisers, Inc., a SEC-registered investment advisor.
The TOLI Group is a separate entity from ValMark Securities, Inc. and ValMark Advisers, Inc.