Newsletter

LIFE INSURANCE CARRIERS EXPAND ACCELERATED UNDERWRITING PROGRAMS

More carriers are leaning into accelerated underwriting, and the shift is becoming more than a trend—it’s quickly becoming the norm. Over the past year, several major insurers have raised their age and face‑amount limits for no‑exam underwriting, with some now approving applicants up to age 60 for amounts as high as $2 million.

What’s driving the change

• Improved data analytics and prescription histories
• Faster identity and risk‑scoring tools
• Consumer demand for a smoother, less intrusive process

What this means for applicants

Healthy applicants can often secure coverage in days rather than weeks, and many who previously expected a medical exam may now qualify without one. It’s a strong opportunity for individuals who delayed applying because of the traditional underwriting process.

SHORT TERM DISABILITY POLICIES ADD MENTAL HEALTH FLEXIBILITY

A growing number of disability carriers are updating their definitions and benefit triggers to better reflect today’s workforce realities. One notable development: expanded coverage for mental health–related disabilities.

Key updates appearing in new or revised policies

• Broader definitions of covered mental health conditions
• Longer maximum benefit periods for stress‑related claims
• Reduced waiting periods for certain diagnoses
• More integration with employer wellness programs

Why this matters

Mental health–related disability claims have increased steadily over the last five years. Carriers are responding with more modern, supportive policy structures—good news for employees and self‑employed professionals who rely on income protection.

LONG TERM CARE INSURANCE SEES RENEWED INTEREST AS STATES CONSIDER LTC PAYROLL TAXES

Following Washington State’s implementation of a mandatory long‑term care payroll tax, several other states are now studying similar programs. Even the possibility of future taxes has sparked renewed interest in private LTC insurance and hybrid life/LTC products.

Current trends

• Younger applicants (40s and early 50s) are applying earlier to avoid potential state taxes
• Hybrid life/LTC policies continue to outpace traditional LTC sales
• Carriers are offering more flexible benefit structures, including cash indemnity options

Why clients are paying attention

Private LTC coverage not only helps individuals avoid potential state payroll taxes but also provides significantly more robust benefits than state-run programs. For many, it’s becoming a strategic part of retirement and estate planning.

About Paul Cholak

Paul has over forty years of benefits experience and has been Director of Employee Benefits for large companies, as well as a benefits consultant with major consulting firms. He understands the life and health insurance needs of individuals and families of all ages. He also has considerable experience in selling life and health insurance to employer groups.

He guides you through the steps of getting insurance and is available to help you both BEFORE and AFTER you've made your purchase decision.