Sagicor Life Insurance Company Review
Sagicor has a unique and fascinating history. Founded in 1840, the company was called The Barbados Mutual Life Assurance Society and is among the oldest insurance companies in the Americas. Between 1849 and 1896, it expanded into the Caribbean islands, and many investments were made throughout the British Empire in many countries worldwide.
On 2002, the policyholders decided to demutualize to allow Sagicor to compete in the marketplace, and, by 2005, Sagicor acquired American Founders Life. Prior to 2005, Sagicor’s main business was obtaining blocks (policies) from other organizations, but after the acquisition of American Founders Life, Sagicor (U.S.) became a direct writer of business.
“Sagicor” is a combination of two words: “Sage,” meaning “wise,” and “Cor,” meaning “heart” or “judgment.” This sums up the Sagicor moto: philosophy of wisdom and heart.
Sagicor Company Ratings
According to A.M. Best, Sagicor Financial Corporation has an A- (Excellent) rating as of December 4, 2015. This rating is based on Sagicor’s financial strength and ability to meet its ongoing obligations. Sagicor sells products in 45 states.
Sagicor Accelwriting Simplified Issue
Sagicor’s philosophy is that life moves fast. At one point, you are a college student, and the next day, you are a father to three boys. For this reason, they developed an electronic automated underwriting system called Accelwriting.
This significantly boosts underwriting, policy approval, and policy delivery processes and eliminates the phone interview provided that the application was submitted electronically and that the information was verifiable. Approval can take anywhere from one minute to a few days. This is a distinctive benefit Sagicor offers to individuals who need life insurance immediately due, for instance, to a court order or a business loan.
Accelwriting Underwriting Process
The underwriting for the Accelwriting app depends upon three main components: Pharmaceutical database (Parm DB), Motor Vehicle Record (MVR) and Medical Information Bureau (MIB). Let’s go over each variable to find out its role in underwriting.
Pharmaceutical Database (Parm Db)
This RX database is used exclusively by insurance companies. It provides the applicant’s prescription usage for the past five years. This is a remarkable method for the carrier to verify information and steer clear of surprises that may arise in the future due to health issues – even if the client was honest on the application, he or she could forget to mention a medicine from 4 years ago.
Medication usage provides a clue to the disorder or conditions the client may have that can increase the risk to the carrier. Be truthful on the application; there is no way to hide it, and you shouldn’t attempt to. Those who have no medication usage and history can expect a preferred class rating, while others who take medication for cholesterol or depression will get a standard rating or a table rating.
Motor Vehicle Record (MVR)
The MVR is yet another useful tool the insurance underwriter has at their fingertips to evaluate the potential risk you pose to the life insurance company. Any DUI, DWI or reckless driving in the past 2 years would trigger an auto declined. To qualify for preferred (best rating class), you can’t have more than 2 minor violations within the last 12 months. You can still qualify for standard rating with DUI within 3 years and for best rating preferred if the DUI was over 5 years ago.
Medical Information Bureau (MIB)
The MIB shares information with all insurers to protect them from error omission and insurance fraud. The data stored in the system represent medical conditions, hazardous hobbies, and driving records, to name a few. Anything that could have an effect on an underwriting decision is encoded into the system.
If the information the applicant put on the application isn’t consistent with the MIB database, the underwriter will be alerted to investigate further. Anything from being a tobacco user to having a high-risk occupation is stored in the MIB as long as you applied for an underwritten plan such as life, disability, long-term care or critical illness in the last 7 years.
Sagicor offers a wide range of competitive products including whole life, term life, no lapse and indexed universal life as well as single premium, immediate and deferred annuity options. In this review, we will be looking at the no-exam life insurance products offered by Sagicor that are qualified for the Accelwriting underwriting system.
Sage Term 10/15/20
Sage term is a term life insurance policy that provides guaranteed level premiums for the entire contract – 10, 15, or 20. Sage term is qualified for the simplified issue underwriting process, which consists of no exam, no phone interview and an automated underwriting decision within few minutes. Issue age ranges from 18 to 65 with face amounts of $50,000 to $500,000.
Conversion to a whole life (permanent) policy is available prior to the policy anniversary following the insured’s 70th birthday. Sagicor also offers 5 rate classes: Preferred non-tobacco, Preferred Tobacco, Standard Non-Tobacco, Standard Tobacco and Rated Non-Tobacco. This is good news for those who aren’t in perfect health; they still may qualify for a simplified issue policy. Sagicor also offers full underwritten plans for face amounts above $500,000.
Sage No Lapse Universal Life (NLUL)
What is Universal Life (UL)?
A universal life policy is a type of permanent life insurance that contains a cash value benefit on a tax-deferred basis and doesn’t have an expiration date. It also gives you the freedom to modify coverage amounts and annual payments. Unlike a whole life policy, which has a fixed premium payment and a fixed death benefit, a UL policy lets you skip a payment as long as you have accumulated enough cash value to cover it.
The premiums with UL aren’t guaranteed and could change based on the cash value of your policy; for that reason, UL considered to be riskier than a traditional whole life policy. Another great benefit for UL is that the costs and the administrative services are most transparent to the policyholder, which is not so true with a whole life policy.
This is available for face amounts of $25,000 to $400,000 for ages 16 to 65 with simplified underwriting. If you are looking for over $400,000, policies are offered with a full underwriting process for ages 16 to 85.
What Riders Are Offered by Sagicor?
Sagicor offers an accelerated benefit insurance rider, which is included in every policy, and 3 other optional riders.
- Accelerated Benefit Rider – This rider is included in the policy premium. It will help to pay medical costs or nursing home expenses in the event of a terminal diagnosis or condition. This will allow you to tap into the death benefit amount not to exceed $300,000 or 50%.
- Children’s Term Rider – This rider is life insurance for your children and is available from 15 days to 19 years. This rider remains in force until the age of 25 or marriage. At the end of the term, the policy can be converted to a whole life policy up to 5 times the original amount regardless of current health.
- Accidental Death Benefit Rider – If an insured person dies as a result of an accident, the beneficiary will receive an additional cash benefit.
- Waiver of Premium Rider – This rider eliminates your premium payment in the event you become totally disabled.
As I talked about in earlier posts, every insurance carrier on the market has distinct underwriting guidelines that convert into risks and rates. While some carriers will rate you up for a specific health-related condition, others will not. That is why it’s important to consult with a broker who works with all carriers and not one in particular.
Sagicor’s simplified issue policy guideline has a few positive aspects I would like to share with you:
- Aviation – You could get a preferred table if there is no past or future piloting within 24 months. Aviation is still allowed, but you may get a standard or rated table.
- Blood Pressure – You may qualify for preferred. Rate class determination will be made during underwriting.
- Driving History – To qualify for preferred, you can’t have a history of DWI, DUI or reckless driving within the past 5 years or more than 2 minor violations within the last year. A rated policy is possible if you had a DUI in the past 2 years.
- Family History – To qualify for preferred, you can’t have a history of death of either parent prior to the age of 60 due to heart attack, cancer or stroke. In the standard and rated table, family history is allowed.
- Tobacco or Nicotine Products – you can get a preferred table if there is no use over 2 years.
- Diabetes – If controlled with oral medication or diet, you could get a standard rating. This is great news for diabetics who are looking for a no-exam life insurance policy.
- The simplified issue is only up to $500,000 in death benefits, which might not be sufficient.
- A 30-year term isn’t available with Sagicor.
- There are few medical ailments which are auto declined such as COPD and insulin dependent diabetic.
I would encourage customers who don’t require a life insurance policy immediately to apply for fully underwritten coverage, because it costs less. You will pay more for the convenience of NOT taking an exam. And, if you are fairly healthy and don’t need the policy right now, just get a traditional policy; it may take 4 to 6 weeks for processing, but you will pay less.
Sagicor vs. Other Carriers’ Sample Monthly Rates
Male 20-year Term $250,000
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Female 20-year Term $250,000
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*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Feb 2017 and are subject to underwriting approval.*
When it comes to speed, Sagicor is a true pioneer in the internet environment. If you look a few years back, who would have thought that you could get a $500,000 life insurance policy issued in one minute?
I have called the underwriting department many times as a broker, and the service is a top notch. The consumer’s web page is very educational and describes in very simple language everything you should know about their products and services. I also investigate a source called Indeed in which Sagicor received 3.5 stars out of 5 for reviews from their employees. They all talk about the quality and the professionalism that the company stands for.
If you’re in a rush and need no-exam coverage less than $500,000, Sagicor is your friend. Keep in mind that is always a good idea to compare rates with ALL companies prior to making a final selection.