Life Insurance Underwriting Strategies for Elevated PSA
Life insurance applicants are sometimes assessed an extra premium due to elevated PSA findings in their insurance company labs; most life insurers screen for prostate cancer by measuring current PSA levels in male applicants age 50 and up. Such findings, which can be caused by several conditions other than prostate cancer, are common among men in their 60s, 70s, or 80s. No applicant is going to be happy having to pay an additional premium. With that thought in mind, let’s explore life insurance underwriting strategies for elevated PSA findings and confirm you are providing your client with access to our industry’s most competitive solution(s).
Insurer Selection is Key
Life insurance offers for applicants with elevated PSA readings vary greatly from one insurer to the next. Conservative insurers may not be willing to make any offer. Impaired risk specialty insurers may be willing to offer preferred rates. Developing relevant facts, and strategizing with medical directors at several insurers, allows us to identify our industry’s top option(s). Let’s take a look at a recent request.
Male, 65, Elevated PSA 5 – 8
One of our Financial Advisors approached us to assist with a 65-year-old man who needs several million dollars of life insurance to finance a business succession plan. He was diagnosed with elevated PSA readings about 2 years ago. A DRE led to an initial diagnosis of an enlarged prostate. The urologist suggested quarterly monitoring. PSA readings fluctuated between 5 and 8 during the subsequent 12 months.
PSA levels in men with prostate cancer tend to rise steadily, which was not the case for this individual. Still, a fluctuating PSA of between 5 and 8 is relatively high. After a year of recurrent elevated readings without plausible benign cause, the urologist and patient agreed to undergo an exploratory biopsy.
Fortunately, the biopsy did not reveal any cancerous cells. The patient continued to see his urologist every 3 months to confirm his PSA stayed within his normal range. They did for the next 12 months, at which time the patient applied for life insurance. Also of note: the patient’s dad is alive and well in his mid-90s, without known prostate cancer. Therefore, the diagnosis of an “enlarged prostate” remains.
Not all insurers were comfortable with that assessment. A cautious interpretation of the applicant’s PSA findings is “prostate cancer waiting to be found.” The Advisors’s primary life insurer chose not to make an offer and thus he reached out to our underwriting team for options.
Underwriting Classification
For our 65-year old applicant, we were able to negotiate for preferred rates at several of our industry’s top insurers based on:
- Fluctuating PSAs with in a specific range (not rising steadily)
- Biopsy about a year ago without abnormal cells
- Proactive consistent quarterly checkups by a urologist
- No use of tobacco products
- Great health in all other respects
- Favorable family history
Life Insurance Pricing Options
At preferred rates, the annual premiums per $1M of term life insurance protection are:
- $5,089.59 for 10 years of guaranteed protection
- $6,899.42 for 15 years of guaranteed protection
- $10,153.51 for guaranteed coverage to age 85
Permanent life insurance, using a conservatively structured IUL policy, assuming an interest rate of 5.07%, requires a level premium of $22,953 per $1M. Permanent insurance costs more, of course, because the insurer knows a $1,000,000 tax-free benefit must be paid to the beneficiary eventually.
Opportunities for Financial Advisors
Have you run into difficulties obtaining life insurance for one of your clients? If so, let’s put our heads together and explore life insurance underwriting strategies for elevated PSA. Connect with your CPS Advantage Representative or request an underwriting consultation via email. We look forward to providing you with solutions so you can provide your client with our industry’s top solution(s) with confidence.
