{"id":1194,"date":"2024-11-14T19:47:47","date_gmt":"2024-11-14T19:47:47","guid":{"rendered":"https:\/\/webdesign.quoteplicity.com\/keyperson\/?p=1194"},"modified":"2024-12-16T20:05:30","modified_gmt":"2024-12-16T20:05:30","slug":"key-man-insurance-underwriting-guide","status":"publish","type":"post","link":"https:\/\/webdesign.quoteplicity.com\/keyperson\/key-man-insurance-underwriting-guide\/","title":{"rendered":"A Complete Underwriting Guide For Key Man Insurance Policies"},"content":{"rendered":"\t\t
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Our key man insurance underwriting guide can provide the criteria\u00a0insurance companies<\/a>\u00a0use to determine your health class.<\/p>\n\n

Because each company has its own specific underwriting guidelines, the choice of insurance policies will be affected by the way each respective company evaluates your health. This guide will help you understand how to qualify for key man insurance from a medical standpoint. You should also consider reading the article,\u00a0\u201cFinancially Underwriting Keyperson Insurance\u201d<\/a>.<\/p>\n\n

Determining Your Health Class<\/h2>\n\n

This chart will help you identify which rate class you may obtain based on your specific health information. This is a general guide for insurance underwriting risk assessment only. Each company has its own underwriting guidelines.\u00a0<\/p>\n\n

\u00a0<\/p>\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Category<\/strong><\/td>\nPreferred Best Non-Smoker<\/strong><\/td>\nPreferred Non- Smoker<\/strong><\/td>\nStandard Plus Non-Smoker<\/strong><\/td>\nStandard Non-Smoker<\/strong><\/td>\n<\/tr>\n
Physical \/ Mental Impairments and Medical History<\/strong><\/td>\nNO history of heart, stroke, diabetes, cancer, respiratory, circulatory, anxiety, depression, sleep apnea, or any other internal problems.<\/td>\nNO history of heart, stroke, diabetes, cancer, respiratory, circulatory, anxiety, depression, sleep apnea, or any other internal problems.<\/td>\nSome minor history of heart, stroke, diabetes, cancer, respiratory, circulatory, anxiety, depression, sleep apnea, or any other internal problems.<\/td>\nSome minor history of heart, stroke, diabetes, cancer, respiratory, circulatory, anxiety, depression, sleep apnea, or any other internal problems.<\/td>\n<\/tr>\n
Use of Tobacco or Nicotine Products<\/strong><\/td>\nNo use within last 60 months.<\/td>\nNo use within last 36 months.<\/td>\nNo use within last 12 months.<\/td>\nNo use within last 12 months.<\/td>\n<\/tr>\n
Blood Pressure<\/strong><\/td>\n140\/80 or less. No current treatment. Prior treatment OK, if 2+ years<\/td>\nCurrent or past treatment OK. 145\/90<\/td>\nCurrent or past treatment OK. 152\/90<\/td>\nCurrent or past treatment OK. 156\/92<\/td>\n<\/tr>\n
Cholesterols Readings and Ratio<\/strong><\/td>\nMay not exceed 220 or ratio of 5.0, with or without treatment.<\/td>\nMay not exceed 250 or ratio of 6.0, with or without treatment<\/td>\nMay not exceed 280 or ratio of 7.0, with or without treatment<\/td>\nMay not exceed 300 or ratio of 8.0, with or without treatment<\/td>\n<\/tr>\n
Cancer<\/strong><\/td>\nOnly some skin cancers<\/td>\nOnly some skin cancers<\/td>\nDepends on type and date of onset<\/td>\nDepends on type and date of onset.<\/td>\n<\/tr>\n
Family Medical History<\/strong><\/td>\nNo cardiovascular disease or cancer in either parent or siblings before age 60<\/td>\nNo cardiovascular or cancer death in either parent.<\/td>\nNo cardiovascular or cancer death in both parents<\/td>\nNo cardiovascular death in both parents.<\/td>\n<\/tr>\n
Aviation<\/td>\nCommercial airline pilots accepted. Private pilots with exclusion.<\/td>\nCommercial airline pilots accepted. Private pilots with exclusion.<\/td>\nCommercial airline pilots accepted. Private pilots with exclusion or flat extra.<\/td>\nCommercial airline pilots accepted. Private pilots with exclusion or flat extra.<\/td>\n<\/tr>\n
Hazardous Activities (Sky Diving, Hang Gliding, Rock Climbing, Scuba Diving, ect)<\/strong><\/td>\nAvailable if no flat extra involved.<\/td>\nMay include flat extra.<\/td>\nMay include flat extra.<\/td>\nMay include flat extra<\/td>\n<\/tr>\n
Personal Driving History<\/strong><\/td>\nNo more than 2 moving violations in last 3 years and No DWI, DUI, reckless driving, or suspension in last 5 years.<\/td>\nNo more than 2 moving violations in last 3 years and No DWI, DUI, reckless driving, or suspension in last 5 years.<\/td>\nNo more than 3 moving violations in last 3 years and No DWI,DUI, reckless driving, or suspension in last 3 years.<\/td>\nNo more than 3 moving violations in last 3 years and No DWI, DUI, reckless driving, or suspension in last 3 years.<\/td>\n<\/tr>\n
Substance or Alcohol Abuse<\/strong><\/td>\nNo abuse.<\/td>\nNo abuse.<\/td>\nNo abuse in last 10 years.<\/td>\nNo abuse in last 7 years.<\/td>\n<\/tr>\n
Residency\/Citizenship<\/strong><\/td>\nUS citizen, resident for 3 years, must hold permanent Visa or Green Card.<\/td>\nUS citizen, resident for 3 years, must hold permanent Visa or Green Card.<\/td>\nUS citizen, resident for 2 years, must hold permanent Visa or Green Card.<\/td>\nUS citizen, resident for 2 years, must hold permanent Visa or Green Card.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n

Height and Weight Chart (Male and Female)<\/h2>\n\n

The requirements for height and weight will vary among insurance companies. The chart below should be considered the maximum allowed to qualify for life insurance.<\/p>\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Height<\/strong><\/td>\nBest Class\/ Preferred Plus<\/strong><\/td>\nPreferred<\/strong><\/td>\nStandard Plus<\/strong><\/td>\nStandard<\/strong><\/td>\n<\/tr>\n
5\u2032 0\u2033<\/td>\n144<\/td>\n158<\/td>\n166<\/td>\n172<\/td>\n<\/tr>\n
5\u2032 1\u2033<\/td>\n148<\/td>\n163<\/td>\n172<\/td>\n178<\/td>\n<\/tr>\n
5\u2032 2\u2033<\/td>\n153<\/td>\n168<\/td>\n175<\/td>\n183<\/td>\n<\/tr>\n
5\u2032 3\u2033<\/td>\n158<\/td>\n174<\/td>\n182<\/td>\n190<\/td>\n<\/tr>\n
5\u2032 4\u2033<\/td>\n163<\/td>\n179<\/td>\n188<\/td>\n195<\/td>\n<\/tr>\n
5\u2032 5\u2033<\/td>\n168<\/td>\n185<\/td>\n194<\/td>\n202<\/td>\n<\/tr>\n
5\u2032 6\u2033<\/td>\n174<\/td>\n191<\/td>\n200<\/td>\n208<\/td>\n<\/tr>\n
5\u2032 7\u2033<\/td>\n179<\/td>\n197<\/td>\n206<\/td>\n215<\/td>\n<\/tr>\n
5\u2032 8\u2033<\/td>\n185<\/td>\n203<\/td>\n212<\/td>\n221<\/td>\n<\/tr>\n
5\u2032 9\u2033<\/td>\n190<\/td>\n209<\/td>\n219<\/td>\n228<\/td>\n<\/tr>\n
5\u2032 10\u2033<\/td>\n196<\/td>\n215<\/td>\n226<\/td>\n234<\/td>\n<\/tr>\n
5\u2032 11\u2033<\/td>\n201<\/td>\n221<\/td>\n231<\/td>\n241<\/td>\n<\/tr>\n
6\u2032 0\u2033<\/td>\n207<\/td>\n228<\/td>\n240<\/td>\n249<\/td>\n<\/tr>\n
6\u2032 1\u2033<\/td>\n213<\/td>\n234<\/td>\n245<\/td>\n255<\/td>\n<\/tr>\n
6\u2032 2\u2033<\/td>\n219<\/td>\n241<\/td>\n253<\/td>\n263<\/td>\n<\/tr>\n
6\u2032 3\u2033<\/td>\n225<\/td>\n247<\/td>\n259<\/td>\n269<\/td>\n<\/tr>\n
6\u2032 4\u2033<\/td>\n230<\/td>\n253<\/td>\n265<\/td>\n276<\/td>\n<\/tr>\n
6\u2032 5\u2033<\/td>\n237<\/td>\n260<\/td>\n272<\/td>\n283<\/td>\n<\/tr>\n
6\u2032 6\u2033<\/td>\n243<\/td>\n267<\/td>\n280<\/td>\n291<\/td>\n<\/tr>\n
6\u2032 7\u2033<\/td>\n249<\/td>\n274<\/td>\n287<\/td>\n299<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n

Tobacco or Nicotine Use<\/h2>\n\n

All smokers and alternative tobacco users will pay more for life insurance due to the increased risk associated with tobacco use. Additionally, most insurers require that former tobacco users be \u201ctobacco free\u201d for at least 12 months (maybe longer) to qualify for preferred non-tobacco rates. However, there are opportunities for alternate tobacco users to obtain non-tobacco rates depending on the type and frequency of usage. Occasional cigar users may even qualify for preferred plus nonsmoker rates depending on the circumstances.\u00a0<\/p>\n\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\tTry our Calculator Tool<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\n

Determining your Health Class for Tobacco and Nicotine Users<\/h2>\n\n

This chart will help you identify which rate class you may obtain, based on your specific health information. This is a general guide for insurance underwriting risk assessment. Some alternate tobacco users (cigars, pipe, chewing tobacco, snuff) may qualify for non-tobacco rates.<\/p>\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Category<\/strong><\/td>\nPreferred Smoker<\/strong><\/td>\nStandard Smoker<\/strong><\/td>\n<\/tr>\n
Physical \/ Mental Impairments and Medical History<\/strong><\/td>\nNO ratable history of heart, stroke, diabetes, cancer, respiratory, circulatory, anxiety, depression, sleep apnea, or any other internal problems.<\/td>\nNO ratable history of heart, stroke, diabetes, cancer, respiratory, circulatory, anxiety, depression, sleep apnea, or any other internal problems.<\/td>\n<\/tr>\n
Blood Pressure<\/strong><\/td>\nCurrent or past treatment OK. 152\/90<\/td>\nCurrent or past treatment OK. 156\/92<\/td>\n<\/tr>\n
Cholesterols Readings and Ratio<\/strong><\/td>\nMay not exceed 300 or ratio of 7.0, with or without treatment<\/td>\nMay not exceed ratio of 8.0, with or without treatment<\/td>\n<\/tr>\n
Cancer<\/strong><\/td>\nOnly some skin cancers<\/td>\nDepends on type and date of onset.<\/td>\n<\/tr>\n
Family Medical History<\/strong><\/td>\nNo cardiovascular or cancer death in either parent.<\/td>\nNo cardiovascular death in both parents.<\/td>\n<\/tr>\n
Aviation<\/strong><\/td>\nCommercial airline pilots accepted. Private pilots with exclusion or flat extra.<\/td>\nCommercial airline pilots accepted. Private pilots with exclusion or flat extra.<\/td>\n<\/tr>\n
Hazardous Activities (i.e. Sky diving, Hang gliding, Rock climbing, Scuba diving etc)<\/strong><\/td>\nMay include flat extra.<\/td>\nMay include flat extra<\/td>\n<\/tr>\n
Personal Driving History<\/strong><\/td>\nNo more than 2 moving violations in last 3 years and No DWI, DUI, reckless driving, or suspension in last 5 years.<\/td>\nNo more than 3 moving violations in last 3 years and No DWI, DUI, reckless driving, or suspension in last 3 years.<\/td>\n<\/tr>\n
Substance or Alcohol Abuse<\/strong><\/td>\nNo abuse.<\/td>\nNo abuse in last 7 years.<\/td>\n<\/tr>\n
Residency\/Citizenship<\/strong><\/td>\nUS citizen, resident for 3 years, must hold permanent Visa or Green Card.<\/td>\nUS citizen, resident for 2 years, must hold permanent Visa or Green Card.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n

\u00a0<\/p>\n\n

An occasional cigar smoker may qualify for the top health class for key man life insurance.<\/p>\n\n

Opportunities for Alternate Tobacco Users<\/h2>\n\n

Some non-cigarette tobacco users (cigars, pipes, chewing tobacco, snuff, nicotine patches, etc.) may qualify for non-tobacco rates depending on certain conditions. There are several life insurance companies that offer alternate tobacco users this special underwriting concession. You may be able to save as much as 50% off normal smoker rates.\u00a0<\/p>\n\t\t

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trusted by 5,000+ clients<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Compare Life insurance Rates<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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See rates and benefits tailored to your business needs.<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tCompare life insurance rates<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Common Health Impairments<\/h2>\n\n

The table below provides general guidelines for some of the most common health impairments and how each impairment relates to your underwriting class. Your underwriting class will be based on your current health, medical history, and additional underwriting information. Depending on the nature, severity, and treatment of your impairment, higher rates may apply. Underwriting requirements vary by company.\u00a0<\/p>\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Medical History<\/strong><\/td>\nBest Class<\/strong><\/td>\nPreferred<\/strong><\/td>\nStandard<\/strong><\/td>\n<\/tr>\n
Alcohol \/ Drug Abuse Dependency History<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Arthritis\u00a0(rheumatoid)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Asthma\u00a0(requiring treatment within past 2 years)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Bronchitis\u00a0(chronic)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Cancer\u00a0(except certain basal cell skin types)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Cardiovascular \/ Heart Disease<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Chronic Obstructive Pulmonary Disease<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Crohn\u2019s Disease<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Depression\u00a0(requiring treatment within past 2 years)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Diabetes\u00a0(non-insulin dependent)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Diabetes\u00a0(insulin dependent)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Emphysema<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Epilepsy\u00a0(seizures within past 5 years)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Gastric \/ Peptic Ulcers\u00a0(requiring treatment within past 2 years)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Hyperlipidemia\u00a0(treatment for elevated cholesterol\/lipids)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Hypertension\u00a0(High Blood Pressure)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Kidney \/ Liver Disease\u00a0(chronic)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Melanoma<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Mental Illness<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Multiple Sclerosis<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Stroke\u00a0(including TIA)<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Ulcerative Colitis<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n
Vascular Disease<\/td>\n\"\"<\/td>\n\"\"<\/td>\n\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n

\"\"\u00a0Higher table class rates usually apply<\/p>\n\n

Here are several\u00a0other resources you may need<\/a>\u00a0in order to make certain you qualify for life insurance and understand how insurance underwriting risk assessment works.<\/p>\n\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tBook Consultation<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n

Financial Underwriting Key Person Insurance<\/h2>\n

The amount of coverage available for key person insurance<\/a> will be dependent upon the financial risk associated with the reason for buying the protection. Typical reasons for buying key person insurance include: key employee insurance, business loan indemnification, funding buy-sell agreements, key man risk for startups, and executive benefits. In each of these cases, the financial justification requirements are different. The general guidelines for underwriting key person insurance are described below:<\/p>\n

1. Key Person Insurance<\/strong><\/p>\n