Getting Life Insurance is Easier Than it Used to Be with Angela Thieschafer Revisited

Episode 316 – The process of getting life insurance is a lot easier than it used to be. In this podcast, we will learn why, with special guest Angela Thieschafer.

More SML Planning Minute Podcast Episodes

















Transcript of Podcast Episode 316

Hello, this is Bill Rainaldi with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we take a look back at one of our favorite previous episodes, getting life insurance is a lot easier than it used to be, with special guest Angela Thieschafer.

Angela Thieschafer is Vice President and Assistant Chief Underwriter at Security Mutual Life. She has been actively involved in the life insurance industry for nearly 25 years, of which she has spent the last 17 exclusively in underwriting.

Having a degree in both nursing and business has aided her in having a deeper knowledge and understanding of the life insurance underwriting world. During her career, Angela has worked for some major carriers, but finds her position at The Company That Cares® to be extremely rewarding, as she feels this motto is truly the foundation of Security Mutual Life.

Angela, welcome to the program.

Angela Thieschafer:
Thank you, Bill. I appreciate the introduction.

Just to start off, I really would like to just provide a little history on life insurance. The concept of life insurance itself dates back to 600 to 100 years BCE in Rome as a burial club. The intention was to cover burial expenses for military members.

And over the years, the concept has evolved, and the first American life insurance companies started forming in the 1700’s. During that time, obviously little underwriting was done. But in the 1900’s, a plethora of data was being obtained. Which included medical exams, inspection reports, and even medical records. And it was also during this time that a urinalysis, or in insurance terms, a “home office specimen” was introduced.

Bill Rainaldi:
Sure. This is very interesting, Angela, and I want you to continue. I’m just wondering how the underwriting process has changed in the last 10 to 20 years. And I would just say to you that I remember very well getting a life insurance policy myself back in the early nineties, and it seemed to be a process that took months, and involved all kinds of tests and all kinds of statements from doctors and things like that. It seems to be streamlined a lot since then. Is that fair to say?

Angela Thieschafer:
Bill, you are so correct. The old school traditional process, it could take weeks to months for a life insurance application to officially be approved. But over the last 10 to 20 years, there has been a significant change in the life insurance world when it comes to underwriting. With almost all the industries, technology definitely had a substantial impact when it came to that.

So life insurance companies went from analyzing those home office specimens, or that urinalysis, and they started moving to other realms of underwriting. Like including tele-interviews, a paramedical exam, even advanced blood and urine panels, and even EKGs, portable EKGs brought to the applicant’s home. So really, it took away that inconvenience of going to a doctor’s office, and it was just done at the comfort of the insured’s home. So it’s great. And most recently, electronic health records have become mainstream for the medical industry itself. The adoption rate of physician clinics is nearly at 90% right now, which is doubled since 2008. Back in the day of being a nurse, it was very critical for us to have medical records in-hand. A lot of times you would just have a patient, and you could only go by verbally from what they gave you.

So being a nurse by trade, this advancement is an absolute necessity in the medical industry, and it allows medical professionals instant access to patient’s health records. Say in the event of a life threatening emergency. But not only that, it also allows the patients themselves an opportunity to get instant access to their own records. So they can view test results, they could see when their next visit’s due. Even scheduling their next physical exam, so it’s really great.

And I would say, I would highly recommend anyone who doesn’t currently have a health portal with their clinic that they should really inquire if it’s available so that they too can have access to their own electronic health records. But with this as well, a client can provide access of their electronic health records and grant permission to outside sources.

So say, one were to apply for life insurance, and by doing that, it cuts the time of underwriting down, like you had mentioned, from weeks, months, to potentially a same-day approval.

Bill Rainaldi:
Wow.

Angela Thieschafer:
Yeah. Quite amazing.

Yeah, so even with the onset of the electronic medical records being available, there’s also an opportunity of other electronic data availability that underwriters can obtain. And really, what that does is it takes out that need for any type of invasive testing, such as that collection of blood and urine, or maybe even EKG.

If we know that somebody has a history of atrial fibrillation, obviously EKGs give you a very good knowledge of their control, things of that nature. So it is definitely a necessity from our end. However, we can obtain that information directly from these third-party sources.

The other thing is the onset of Covid, the pandemic, it forced almost every industry to develop new and creative ways to do business. And even though third-party data was available prior to the pandemic, it was really during this time that the life insurance industry adopted new ways to utilize that data, and make obtaining life insurance even easier.

So as with electronic medical records, similar services are made available that revolve around prescriptions, lab results that are done with your medical professional, and even more.

But it also provides us even more data and availability of the data in the timeframe that it comes in. In years past, it might have taken days for us to obtain that data, and now that is almost instantaneous being relayed to us.

Bill Rainaldi:
Well, that’s fantastic. Would it also be fair to say, Angela, that certain people who might not have been able to get life insurance at all a few years ago might have a better chance now, or might get a better rate now just because of the way the information is processed?

Angela Thieschafer:
That is a very fair statement to say. Like I had mentioned before, technology really has been a game changer, and especially with new advancements in the medical world itself.

For example, a coronary artery disease. In the past, in years past, that might have been a declinable impairment for life insurance. But today, with all of the technology for bypasses, stents, the medications, post-op, a lot of times individuals will still qualify for coverage. So it is quite the game changer.

And typically, again, an individual might not have to have an invasive exam done. But the underwriting can just be done behind the scenes, based off of the available data that’s out there on that applicant.

Bill Rainaldi:
Well, that’s fantastic. So not only is it easier to apply, it’s easier to get approved. You might get a better rate than you would have a couple of years ago, and it’s going to take less time on top of all that. Is that fair to say? In some cases, of course.

Angela Thieschafer:
Yes. Obviously there would be eligibility criteria involved, but that is truly the correct answer. It is much easier today than it was in years past to obtain life insurance.

Bill Rainaldi:
Well, fantastic. That sounds good.

So Angela, before we wrap things up, is there anything else left that you think we should have talked about that we haven’t talked about?

Angela Thieschafer:
So when an applicant applies for life insurance, the company will determine what requirements will be necessary, and that’s usually based on the client’s age, the amount being applied for, their medical history and certain other factors involved.

And depending on that availability and the results of the third-party data, the company may waive certain requirements. And we also have SML Express, which is a program in which an exam in labs can be waived, provided the applicant meets eligibility requirements.

Both of these options are determined by the quality and quantity of the data received, and it provides an opportunity for clients to put coverage in place much faster than traditional underwriting.

Bill Rainaldi:
Oh, fantastic. So that applies to a certain number of people, I believe. What happens to people who cannot get that kind of underwriting?

Angela Thieschafer:
So even if an applicant doesn’t qualify for accelerated underwriting, the entire process of underwriting review today is pretty painless. In addition to the amount of information that’s gathered from completing a paramedic exam and that blood and urine findings, it typically yields even more data than a traditional basic metabolic profile, which is what’s ordered on most physical exams for applicants. So it’s so nice to have these comprehensive insurance lab findings. And often, you’ll find that these lab results will bring about peace of mind for the clients. But even in the rare event that an adverse finding is discovered, it doesn’t always mean a client doesn’t qualify for life insurance. But it gives them an opportunity to address the healthcare concerns with their provider and take the next steps.

Bill Rainaldi:
And give them a better quality of life, hopefully, from that point forward as well.

Angela Thieschafer:
Absolutely. Yes, yep.

Bill Rainaldi:
Great, Angela.

Angela, so I presume that Security Mutual is not the only company that does this sort of thing anymore. Is that correct?

Angela Thieschafer:
That is correct. The life insurance industry in general has adopted new ways to underwrite, to be able to provide coverage for applicants quicker and easier.

Bill Rainaldi:
Well, fantastic. Well, listen, Angela, it’s been great having you on the program. Thanks for joining us today.

Angela Thieschafer:
Thank you so much. I really appreciate your time today.

Bill Rainaldi:
Take care.

Angela Thieschafer:
Bye-bye.

Bill Rainaldi:
Bye.

Angela Thieschafer:
Bye.

More SML Planning Minute Podcast Episodes

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares^®.  The content provided is intended for educational and informational purposes only.  Information is provided in good faith.  However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered.  It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation

To help reach your goals, you need a skilled professional by your side.  Contact your local Security Mutual life insurance advisor today.  As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives.  For more information, visit us at SMLNY.com/SMLPodcast.  If you’ve enjoyed this podcast, tell your friends about it.  And be sure to give us a five-star review.  And check us out on LinkedIn, YouTube and X (formally Twitter).  Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances.  Results may vary, and products and services discussed may not appropriate for all situations.  Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently.  We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances.  Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York.  Product availability and features may vary by state. 

SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options