March 2022 - SRS Inc

Catastrophic Disability Benefit Rider: Up to 100% Income Replacement

September 25, 2026March 30, 2022 by Tim Fuller

Professional working confidently at her desk, representing disability income protection

If a severe disability made it impossible to perform basic daily activities without help, would a client’s disability benefit be enough? For most, the answer is no, because expenses rise sharply at the same time income falls.

Key takeaways

Traditional individual disability coverage typically replaces about 60% of pre-disability income.
A catastrophic disability benefit (CDB) rider pays an additional monthly benefit on top of the base benefit.
Combined, the base benefit and rider can replace up to 100% of pre-disability income for catastrophic claims.

A catastrophic disability doesn’t just stop income — it adds care costs. The CDB rider can bring total benefits up to 100% of pre-disability income.

Why severe disabilities need more coverage

Catastrophic disabilities often bring home modifications, in-home care, equipment, and transportation costs. A benefit designed to replace 60% of income may leave a large gap just when expenses are highest.

How the rider works

The catastrophic disability benefit rider pays in addition to the base monthly benefit. With one carrier, the rider benefit ranges from a $500 monthly minimum to an $8,000 maximum, depending on the client’s income. Together with the base policy, it can replace up to 100% of pre-disability earnings.

What triggers the benefit

Inability to perform activities of daily living (ADLs) without assistance
Severe cognitive impairment
Presumptive disability, such as loss of sight, speech, hearing, or use of two limbs

Definitions vary by carrier, so review the rider language.

Who should consider it

High earners, business owners, and clients with dependents or few other resources benefit most. For more on how much income group coverage actually replaces, see can your clients afford a 58% pay cut?

Frequently asked questions

What is a catastrophic disability benefit rider?

An optional rider that pays an additional monthly benefit when a disability is severe, such as being unable to perform daily activities or having a cognitive impairment.

How much does a catastrophic disability rider pay?

It varies by carrier and income. One carrier’s rider pays from $500 to $8,000 a month on top of the base benefit.

What is a presumptive disability?

A disability automatically considered total, such as loss of sight, hearing, speech, or use of two limbs, regardless of ability to work.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Insuring the Stay-at-Home Parent: Life Insurance for the Domestic Key Person

September 25, 2026March 29, 2022 by Tim Fuller

Advisor and client reviewing an advanced markets estate planning strategy in a private office

Every well-run household has someone who keeps it running — and that person often earns no paycheck. Because the role isn’t paid, its replacement cost is easy to overlook. Here’s how to size and place coverage on the household’s domestic key person.

Key takeaways

A stay-at-home parent or homemaker provides services that would be expensive to replace if they passed away.
Coverage is usually sized in two steps: insure the breadwinner adequately, then find a carrier that will allow a comparable amount on the homemaker.
Carrier rules for non-earning insureds vary widely, so shopping the case can make the difference between meaningful coverage and a token amount.

In one case, a carrier offered less than $50,000 on a grandmother raising two grandchildren — proof there is more to a term sale than a spreadsheet.

The household’s unpaid key person

Think of the head butler in a great English manor: every detail of the household ran through him, and when things went well, it was because he made them go well. The modern homemaker or stay-at-home parent plays a similar role — and, like the butler, is rarely recognized or paid in proportion to the value delivered.

Because the job has no salary, families seldom think about what it would cost to hire out childcare, transportation, meals, household management and everything else if that person died. That gap is a real and often easy-to-address planning need.

How to determine a coverage amount

Sizing coverage on a non-working spouse is typically a two-step process:

Insure the breadwinner properly. Carriers use fairly standard income-multiple guidelines; our article on income multiples in life underwriting walks through them.
Match the homemaker to that amount where possible. Many carriers will allow coverage on the non-earning spouse equal to, or a percentage of, the working spouse’s in-force coverage.

Economical level term with guaranteed premiums until the children are grown is often the right fit, which makes this one of the simpler sales you’ll have.

When the family doesn’t fit the template

Carrier choice matters most when the facts are outside the norm. In one case, a retired grandmother had taken on full-time care of her two grandchildren, and the household was supported by her other daughter, who was single, working and adequately insured.

Rather than allow coverage on the grandmother equal to the working daughter’s, the first carrier proposed only a multiple of her Social Security income — an offer under $50,000. Finding a carrier that recognizes the economic value of a caregiver in a non-traditional household can change that outcome dramatically.

A springboard to broader planning

Raising coverage on the domestic key person addresses a vital need, and it naturally opens conversations about the breadwinner’s coverage, disability income, college funding and beneficiary planning. When a case doesn’t fit a carrier’s standard guidelines, contact us — our team knows which carriers are more flexible for non-earning insureds.

Frequently asked questions

How much life insurance should a stay-at-home parent have?

A common approach is to match or approach the working spouse’s coverage, sized to cover the cost of replacing childcare, household management and other services until the children are grown. Carrier limits vary.

Will carriers insure someone with no income?

Yes. Most carriers will insure a non-working spouse, typically up to an amount tied to the working spouse’s in-force coverage. Rules differ by carrier, especially for non-traditional households.

What type of policy fits a homemaker?

Level term with guaranteed premiums through the years the children are dependent is often the most economical fit, though permanent coverage can make sense for broader planning goals.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

10 Common Life Insurance Mistakes and How Advisors Can Help Clients Avoid Them

September 25, 2026March 28, 2022 by Tim Fuller

Placing the right policy, in the right amount, with the right ownership and beneficiary details is harder than it looks. Knowing the most common pitfalls helps your clients get the protection they intended — and makes you a stronger advisor.

Key takeaways

Beneficiary errors — naming the estate, naming minors outright, or skipping contingent beneficiaries — are among the most common and most avoidable mistakes.
Ownership and structure matter: having the insured own every policy can create estate and control problems.
Coverage needs change, term runs out, and life insurance isn’t a commodity — regular reviews protect clients from all three.

Checking in on a client’s policies at least every three years catches most of these mistakes before they become expensive.

Beneficiary mistakes

Naming the estate as beneficiary. This can expose proceeds to probate, delay and creditors.
Failing to name at least two contingent beneficiaries. If the primary beneficiary predeceases the insured, the proceeds may default to the estate.
Making the policy payable outright to minor children or grandchildren. Minors can’t receive proceeds directly, which can force a court-supervised guardianship. A trust or custodial arrangement is usually better.

Ownership and structure mistakes

All the insurance on the client’s life is owned by the client. For larger estates, an irrevocable life insurance trust can keep proceeds out of the taxable estate. See our overview of the $15 million federal estate tax exemption for who still needs this planning.
Not checking whether a business or practice can provide coverage more efficiently. Executive bonus, split-dollar, key person and buy-sell arrangements may fund coverage more effectively than personal dollars.

Design and amount mistakes

Matching the problem with the wrong type of insurance. A permanent need funded with term, or a temporary need funded with permanent coverage, rarely ends well.
Inadequate coverage for the family’s goals. Coverage should reflect income replacement, debts, education and long-term plans, not a round number.
Forgetting that term (including group term) runs out. Term coverage ends or becomes prohibitively expensive at older ages, and group coverage often ends with employment.

Process mistakes

Failing to review policies at least every three years. Marriages, births, business changes and policy performance all warrant a fresh look.
Buying life insurance as though it were a commodity. Underwriting niches, contract features, conversion privileges and carrier strength vary widely. The lowest premium isn’t always the best value.

Our life sales team can help you place the right policy quickly and avoid these pitfalls on your next case — contact us anytime.

Frequently asked questions

Why shouldn’t a client name their estate as beneficiary?

Proceeds paid to an estate generally go through probate, which can delay payment, add cost, and expose the money to the estate’s creditors. Naming individuals or a trust usually avoids this.

Can a minor be named as a life insurance beneficiary?

A minor can be named, but insurers typically can’t pay proceeds directly to a minor. A court may need to appoint a guardian. A trust or UTMA custodial designation is usually a better approach.

How often should life insurance be reviewed?

At least every three years, and after major life events such as marriage, divorce, a birth, a business change or a significant change in income or health.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Controlled Executive Bonus Plans With Long-Term Care Benefits

September 25, 2026March 24, 2022 by Tim Fuller

Business owners want to reward key people without losing them. A controlled (restrictive) executive bonus plan does that with life insurance, and adding long-term care benefits makes it even more valuable to the executive.

Key takeaways

The employer pays the premium on a policy the key employee owns, and generally deducts it as compensation.
A restrictive endorsement limits the employee’s access to cash value for a set period, usually 5–15 years, creating “golden handcuffs.”
Adding an LTC rider gives the executive long-term care protection on top of the death benefit and cash value.

Golden handcuffs with a benefit executives actually value: death benefit, cash value, and long-term care protection in one plan.

How a controlled executive bonus works

A controlled executive bonus, also called a restrictive executive bonus or Section 162 plan, is an agreement between an employer and selected key employees. The employee applies for and owns a permanent life insurance policy and names the beneficiary. The employer pays the premium directly to the insurer as a bonus. A restrictive endorsement, signed by both and filed with the carrier, limits the employee’s right to surrender, borrow, assign, or change ownership without the employer’s consent for an agreed period, typically 5–15 years.

If the employee leaves during the restricted period, the employer’s consent is needed to access cash values, and the employer may require repayment of some or all of the bonus premiums as a condition, subject to the agreement.

Benefits for the employer

Choose which key employees participate
No mandatory eligibility or participation rules, and no IRS approval required
Minimal administration and no government filings
Bonus premiums are generally deductible as compensation
Recruit, reward, and retain key people

Benefits for the employee

Permanent life insurance with an income-tax-free death benefit for their family
Tax-deferred cash value growth
Long-term care benefits through the LTC rider
Full, unrestricted ownership once the restriction period ends

The employee reports the premium as taxable compensation each year. Employers often pay an extra cash bonus to cover that tax, known as a double bonus.

Why the LTC rider matters

Executives often care as much about protecting their savings from a long-term care event as about the death benefit. Including LTC benefits makes the plan more valuable to them at little extra complexity. For the tax side of LTC for businesses, see how LTC insurance provides tax advantages.

Frequently asked questions

What is a controlled executive bonus plan?

A Section 162 bonus arrangement where the employer pays premiums on a policy the key employee owns, with a restrictive endorsement limiting access to cash value for a set period.

Is a 162 executive bonus tax deductible?

The employer can generally deduct the bonus premium as compensation, and the employee reports it as taxable income.

Can an executive bonus plan include long-term care benefits?

Yes. Using a policy with an LTC rider adds long-term care protection for the executive.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Group LTD Offsets: How Social Security Can Reduce Employer Disability Benefits

September 25, 2026March 23, 2022 by Tim Fuller

Employees often assume their group disability benefit and any Social Security disability benefit will add together. In most group plans, they don’t. The group plan pays less when Social Security pays anything.

Key takeaways

Most group LTD plans include offsets: benefits are reduced by Social Security disability and other income sources.
Group benefits are usually taxable when the employer pays the premium, and many plans exclude bonuses and commissions.
Individual disability insurance generally has no Social Security offset and pays tax-free benefits when premiums are paid with after-tax dollars.

In a typical group LTD plan, every dollar of Social Security disability reduces the group benefit. The total doesn’t go up.

How offsets work

Group LTD plans typically promise a percentage of salary, often 60%, from all sources combined. If the employee qualifies for Social Security Disability Insurance (SSDI), workers’ compensation, or other disability income, the group plan subtracts those amounts. Many plans also estimate SSDI and reduce benefits until the employee proves they applied.

Three more things employees don’t know

Most group benefits are taxable. Employer-paid benefits can leave employees with roughly half their regular pay after tax.
Variable pay often isn’t covered. Employees who rely on overtime, commissions, or bonuses may find those excluded.
High earners hit the cap. Monthly maximums limit benefits for executives and business owners.

These findings echo research by The American College on employer disability benefits. See why 60% group coverage can feel like a 58% pay cut.

How individual coverage fills the gap

Individual disability insurance generally isn’t reduced by Social Security benefits, can cover variable income, is portable if the client changes jobs, and pays benefits free of income tax when premiums are paid personally. Layering it on group coverage restores meaningful replacement.

Frequently asked questions

Does Social Security disability reduce group LTD benefits?

In most group plans, yes. The group benefit is reduced by the amount of Social Security disability the person receives.

Does individual disability insurance have a Social Security offset?

Generally no for the base benefit, although some optional riders coordinate with Social Security.

Why is group disability coverage often not enough?

Offsets, taxes, benefit caps, and exclusions for bonuses or commissions can all reduce what employees actually receive.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Older Universal Life Policies at Risk of Lapse: When to Review

September 25, 2026March 21, 2022 by Tim Fuller

Many universal life policies still in force today were designed around interest rate assumptions far higher than what those policies have actually credited. Clients often don’t realize their coverage may be heading toward lapse. A proactive review can protect the death benefit — and your relationship.

Key takeaways

Current-assumption UL policies depend on credited interest and cost-of-insurance charges, so lower-than-illustrated crediting can quietly shorten how long coverage lasts.
An in-force illustration at current and guaranteed assumptions is the best way to see whether a policy is on track.
Options range from increasing premium or reducing the face amount to exchanging into a policy with stronger guarantees, depending on health and goals.

LIMRA research has found that 21% of consumers had no idea what type of coverage they had bought — many owners of older UL policies don’t know it can lapse.

Why older UL policies can drift off course

Universal life was built on flexibility: the owner pays premiums into an account, the carrier credits interest, and monthly cost-of-insurance and expense charges come out. Premiums were often set at the minimum needed to keep the policy in force under the interest rate illustrated at the time of sale.

When actual crediting falls below that illustrated rate for many years — and when cost-of-insurance charges rise with age — the cash value can erode faster than expected. A policy that looked guaranteed to age 100 may now be projected to lapse in the client’s 80s, precisely when replacing coverage is hardest.

Warning signs that call for a review

The policy was issued many years ago on a current-assumption (non-guaranteed) basis
Premiums have been paid at the originally illustrated minimum, or skipped
Cash value has been flat or declining on annual statements
The client has taken loans or withdrawals
The carrier has announced cost-of-insurance changes
The client can’t say how long the coverage is expected to last

Research from LIMRA has found that more than 60% of life insurance shoppers are proactive, often prompted by a desire to review coverage. Many clients will welcome the call.

How to run the review

Request an in-force illustration from the carrier showing projected values at both current and guaranteed assumptions, using the premium the client is actually paying. Then answer three questions:

At current assumptions, when does the policy lapse?
What level premium would carry it to the client’s target age?
Is the original need still the right need today?

If the client’s health is good, new underwriting may open better options. Our field underwriting guide can help you gauge where a client may qualify before you apply.

Options when a policy is underfunded

Increase premium to restore the projected duration
Reduce the face amount to fit the existing funding
Exchange into a guaranteed UL or other product with stronger guarantees, potentially through a tax-free 1035 exchange
Add long-term care or chronic illness benefits where a modern policy can address additional needs

Any replacement should be evaluated carefully against surrender charges, new contestability and suicide periods, and the client’s current insurability. Our team can help you run the comparisons.

Frequently asked questions

Can a universal life policy lapse even if premiums were paid?

Yes. If the premium paid was based on an illustrated interest rate that wasn’t achieved, or if cost-of-insurance charges increased, the cash value can run out and the policy can lapse despite regular payments.

What is an in-force illustration?

It is a current projection from the carrier showing how an existing policy is expected to perform going forward, at both current and guaranteed assumptions, based on the premiums you specify.

Is a 1035 exchange a good fix for an underfunded UL policy?

It can be, if the client is insurable and a new policy provides stronger guarantees at an acceptable cost. It should be compared against increasing premium or reducing the face amount, considering surrender charges and new contestability.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

3 Questions That Show Clients Why They Need Long-Term Care Insurance

September 25, 2026March 17, 2022 by Tim Fuller

Clients rarely buy long-term care insurance because of a statistic. They buy it when they see what a care event would mean for them and their family. Three questions help them get there on their own.

Key takeaways

Asking “What’s your plan?” reveals that most clients have never thought about where or how they’d receive care.
Asking “Who do you know?” brings up real experiences that make the need personal.
Asking “How will you pay?” shows that health insurance doesn’t cover most long-term care, and savings may have to.

Health insurance and Medicare don’t pay for most long-term custodial care. Many clients don’t know that until you ask how they’d pay.

1. What’s your plan?

Most clients haven’t considered what happens when they need help with everyday tasks. Where would they live? Who would help them? Would they stay at home? These questions turn an abstract risk into a planning gap they can see.

2. Who do you know?

Ask whether they know someone who has needed long-term care, or has provided it. Clients who have watched the emotional, physical, and financial toll on a family usually don’t want the same for theirs. Their own stories are more persuasive than anything you could say. More on using storytelling in LTC sales.

3. How will you pay?

Many clients assume health insurance or Medicare will cover it. Neither pays for most extended custodial care. Without a plan, the cost comes from retirement savings or forced asset sales. A long-term care policy helps ensure funds are there, so they can choose the care they want without draining their savings.

After the questions

Once the need is clear, move to design: benefit amount, benefit period, and whether a traditional, hybrid, or rider-based product fits best. Our LTC team can help you run options.

Frequently asked questions

Does Medicare pay for long-term care?

Medicare generally doesn’t cover long-term custodial care, such as help with bathing or dressing. It covers limited skilled care after a hospital stay.

What questions should I ask a client about long-term care?

Start with what their plan is, whether they know someone who needed care, and how they would pay for it.

Why don’t statistics sell long-term care insurance?

Most people don’t see themselves in the numbers. Personal questions and real stories make the need concrete.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Can Your Clients Afford a 58% Pay Cut? The Truth About Group Disability Coverage

September 25, 2026March 16, 2022 by Tim Fuller

Most employees with group disability coverage believe they’re protected. Few know how much their plan would actually pay, or that the benefit is probably taxable.

Key takeaways

Typical group LTD covers 60% of base salary, but employer-paid benefits are taxable to the employee.
After taxes, the benefit can be as little as about 42% of base income, a 58% pay cut.
Individual disability insurance on top of group coverage can bring replacement back to around 80% of pre-disability income.

A 60% group benefit, taxed, can shrink to about 42% of base pay. That’s a 58% pay cut when the family needs income most.

The reality of group coverage

A typical group long-term disability plan replaces 60% of base salary. When the employer pays the premium, benefits are taxable, so the after-tax benefit can be as low as about 42% of regular pay. For highly compensated employees, it’s often less: many plans cap the monthly benefit, and many exclude bonuses, commissions, and incentive pay.

Filling the gap with individual coverage

An individual disability policy layered on top of group LTD can restore total replacement to roughly 80% of pre-disability earnings. Individual benefits bought with after-tax premiums are generally received tax-free. Some carriers offer supplemental coverage on a simplified basis, with no exam or tax returns, up to set limits, and discounts (for example, 20% or more with unisex rates) when three or more employees of the same employer buy.

Turning “I’m covered at work” into a conversation

When clients say they’re covered through work, ask to see what their plan would actually pay, whether it’s taxable, whether bonuses are covered, and whether there’s a cap. Group benefits can also be reduced by Social Security disability payments; see how group LTD offsets work. For high earners, see closing the income gap above $150,000.

Frequently asked questions

Are group disability benefits taxable?

If the employer pays the premium, benefits are generally taxable to the employee.

How much does group long-term disability pay?

Typically 60% of base salary, often with a monthly cap, and frequently excluding bonuses and commissions.

Can I buy individual disability insurance if I have group coverage?

Yes. Supplemental individual DI is designed to layer on top of group coverage, often up to about 80% total replacement.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Using Indexed UL Alongside a 401(k) to Help Clients Retire on Time

September 25, 2026March 14, 2022 by Tim Fuller

Many clients plan to retire at 65, counting on a 401(k) to carry them. But a market decline in the years just before retirement can push that date back. Indexed universal life, used alongside a 401(k), can add a layer of downside protection and tax-advantaged flexibility.

Key takeaways

A 401(k) is exposed to market volatility, and distributions are taxed as ordinary income.
A common strategy: contribute enough to capture the full employer match, then direct additional savings to a properly funded IUL policy.
IUL offers an index-crediting floor, tax-advantaged access to cash value through loans and withdrawals, and a death benefit — but caps, participation rates and charges vary and change.

If a client’s investments are down in the years just before retirement, they may have to work longer and hope their allocations turn around.

The sequence-of-returns problem for 401(k)-dependent clients

For clients whose primary retirement asset is a 401(k), timing matters. A downturn shortly before or after retirement can force them to delay retirement or draw down a depressed account. And because 401(k) distributions are taxed as ordinary income, every dollar withdrawn is worth less than it appears.

If the 401(k) is one piece of a diversified plan, this may not be a major concern. But if it’s the plan, adding a non-correlated, tax-advantaged bucket can help.

The “above the match” strategy

When an employer matches contributions, it almost always makes sense to contribute enough to capture the full match. Savings beyond that point can be directed into an Indexed UL policy designed for accumulation.

Because index crediting has a floor (commonly 0%), credited interest won’t be negative in a down year — though policy charges continue to be deducted, so cash value can still decline if crediting is low. Upside is limited by caps and participation rates, which vary by product and are subject to change. Illustrate using current rates and reasonable assumptions.

Income and protection in one plan

A properly funded IUL can provide supplemental retirement income through policy loans and withdrawals, which are generally income-tax-free if the policy is not a modified endowment contract and remains in force. Understanding the loan options is critical; our article on IUL policy loans for retirement distributions explains the trade-offs.

If the client dies before retirement, the beneficiary receives an income-tax-free death benefit — protection a 401(k) balance alone can’t provide in the early years.

Who this fits

Clients contributing to a 401(k) without an employer match
Clients contributing beyond the match who want tax diversification
Clients who also need permanent life insurance protection
Clients with the discipline and cash flow to fund the policy consistently for many years

Contact our life team to see how much supplemental income a properly designed IUL could help generate for your client.

Frequently asked questions

Can an IUL policy lose value?

Index crediting typically has a floor, often 0%, so credited interest won’t be negative. However, cost-of-insurance and other charges are still deducted, so cash value can decline in years when crediting is low.

Is IUL a replacement for a 401(k)?

No. For most clients it works best as a complement — capturing the full employer match first, then using IUL for additional savings, tax diversification and death benefit protection.

Are IUL retirement distributions tax-free?

Policy loans and withdrawals up to basis are generally income-tax-free if the policy is not a modified endowment contract and stays in force. A lapse with loans outstanding can trigger taxes.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Cigars, Pilots, Divers, and Family History: One Carrier’s Underwriting Strengths

September 25, 2026March 11, 2022 by Tim Fuller

Some carriers stand out for how they treat common lifestyle factors and mild conditions. Here’s a snapshot of one A+ carrier’s underwriting strengths that can help shape better offers.

Key takeaways

Occasional cigar users (two a month or less) with a negative urine test can qualify for Preferred Plus through Standard Plus non-tobacco.
Family history rules are lenient: not applied at 60+, deaths only, and not for opposite-sex gender-specific cancers.
Airline pilots can qualify for all Preferred classes, and certified divers under 100 feet may qualify for Preferred.

Two cigars a month and a negative nicotine test? That can still be Preferred Plus non-tobacco at this carrier.

Tobacco and marijuana

Occasional cigar use (two or fewer per month) with a negative urinalysis: Preferred Plus, Preferred, or Standard Plus non-tobacco
Occasional marijuana use: Preferred or Standard Plus non-tobacco possible. See marijuana underwriting.

Family history

Not applied for applicants 60 and older (for Preferred Plus, Preferred, and Standard Plus)
Considers deaths only, not diagnoses
Doesn’t apply opposite-sex gender-specific cancers
Family deaths from diabetes can still qualify for Preferred Plus through Standard Plus

See family history rules for older applicants.

Common conditions

Mild asthma: may be eligible for Preferred
Mild sleep apnea with verified CPAP use: may be eligible for Preferred
Treatment for cholesterol or hypertension doesn’t exclude Preferred classes
Cholesterol up to 300 with favorable ratios: 5.0 or less for Preferred Plus, 6.0 for Preferred, 7.0 for Standard Plus

Aviation and avocations

Commercial airline pilots: all Preferred classes
Certain private pilots with IFR or ATP ratings, 50–250 hours a year and 1,000+ total hours: Preferred and Standard Plus
Certified scuba divers diving under 100 feet: Preferred classes may be available

Guidelines change; confirm current rules before quoting.

Frequently asked questions

Can pilots get Preferred life insurance rates?

At some carriers, commercial airline pilots qualify for all Preferred classes, and experienced private pilots may qualify for Preferred.

Does scuba diving affect life insurance?

It can, but some carriers offer Preferred to certified divers who stay under certain depths.

Do occasional cigars count as tobacco use for life insurance?

At some carriers, occasional use with a negative nicotine test can qualify for non-tobacco rates.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Catastrophic Disability Benefit Rider: Up to 100% Income Replacement

Why severe disabilities need more coverage

How the rider works

What triggers the benefit

Who should consider it

Frequently asked questions

Tim Fuller

We’re Here to Help

The household’s unpaid key person

How to determine a coverage amount

When the family doesn’t fit the template

A springboard to broader planning

Frequently asked questions

Tim Fuller

We’re Here to Help

Tim Fuller

We’re Here to Help

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller