Underwriting Strengths Help Shape Great Offers

It’s summer time and we all want to be in great shape!

This A+ carrier will help you shape up for the summer and beyond.  With underwriting strengths in many aspects, think of this carrier as your personal trainer!

  • Occasional cigar users (one per month or less) can qualify for Preferred Plus, Preferred & Standard Plus non-tobacco rates if there is a negative urinalysis test
  • Clients who occasionally use marijuana may qualify for standard non-smoker rates (possibly better)
Here are some examples for family history underwriting strengths:
  • Family history qualifications do not apply if the proposed insured is 65 or older for Preferred Plus, Preferred & Standard Plus classes
  • Family history qualifications apply only to deaths rather than disease
  • Family history of deaths due to cancer can qualify for Preferred and Standard Plus
  • Great family history credit – no deaths prior to age 70
Underwriting strengths for common health impairments:
  • Mild Asthma clients may be eligible for Preferred
  • Mild Sleep Apnea may be eligible for Preferred with verified C-PAP usage
  • Treatment for cholesterol or hypertension does not exclude a proposed insured from Preferred, Preferred Plus or Standard Plus classes
  • Blood Pressure control credit treated or untreated of 130/80 or better
  • Commercial pilots for regularly scheduled passenger airlines can qualify for all preferred classes and private pilots may qualify for Preferred Plus, Preferred or Standard Plus classes with Aviation Exclusion Rider (AER)
  • Preferred classes may be available for occasional scuba diving if proposed insured is certified and dives less than 100 feet

Call the our Life Underwriting Department today – we can help you enjoy the summer with more business on the books!

Cross Selling Long-Term Care Insurance

There are numerous people you know that need Long-Term Care Insurance, many of them include your current clients.  Perhaps you have already sold them a Life Insurance Policy, yet how do you get them interested in LTC?

Cross Selling can be difficult, yet when you present your client with information about LTC, they should understand the benefit of protecting themselves when they may need it.

Begin by talking about the consequences of living a long life will have on their family – and offer to put together a plan to protect them from the biggest risk they face after retirement – one that must be protected with Long-Term Care Insurance.

Once the conversation is going, a few good questions to ask include:
  • What percentage of your retirement assets have you set aside to pay for Long-Term Care services?
  • Are you concerned about the impact a chronic illness would have on your retirement savings?
  • If it were necessary to increase your spending by $3,000 or $4,000 a month to pay for LTC services, would that concern you?

To learn more about incorporating Long-Term Care into your product portfolio, or if you need more prospecting tips, contact your LTC Specialist today!

How To Increase Your DI Sales

Full-Time Independent 1099 contractor groups are now eligible for multi-life discounts or Affinity Business Discounts.

Typically the employee must be part of an employer group, work full-time, and receive W-2 wages to qualify for a multi-life discount.

Now, small groups of 3-14 employees and contractors can qualify for an Affinity Business Discount without any employer sponsorship and receive only 1099 income.

Who is Eligible?

Under the Business Affinity Discount Guidelines, eligibility is available to groups of 3 or more individuals applying at the same time who are:

  • Employees and/or 1099 contractors under a common employer

OR

  • Are members of a local professional employer organization

Each applicant must have an issue age of between 18 to 70, and Occupational class of at least 3A.  The launch of the Business Affinity Discount makes now a great time for you and your clients to discuss the exceptional benefits of Disability Insurance at an even better price.

The following professions also represent potential sales opportunities:

  • Accountants
  • Independent Insurance agents part of an agency
  • IT Professionals
  • Real Estate Agents
  • Consulting Groups

Please contact your Disability Income Sales Rep for additional information.

Show Me The Money!

There’s the old story about the hungry chicken and the hungry pig who agreed to both contribute to a mutual breakfast.  The chicken suggested they have ham and eggs, to which the pig replied, “That’s a contribution for you, but it’s total commitment for me!”

When proposing life insurance we would manage client expectations better if we took time to explain the disproportionate obligations that exist once coverage is put in force.

It would also help them understand the purpose behind those often annoying requests and requirements made by the carrier – particularly in the area of financial underwriting.

Consider This:

Clients often think that a carrier ought to be inclined to sell them as much life insurance as they want.  They assume that because the local grocer would sell them his whole stock of fresh radishes, an insurance company ought to respond in the same manner and get frustrated when it does not.  The difference, again, is the disproportionate obligations and the economic exposure that remain after the transaction.  Except for a change in the type of asset you and your grocer are in the same position before and after the sale.

When a life contract goes into force the buyer is only under a non-binding obligation for periodic premium to keep the coverage going.  If paid the carrier is on the hook for a death benefit exponentially greater than the premium if the insured dies.  And that exponent is even more extreme when the client takes advantage of low term rates.  To use an example from experience with my own offspring:  a healthy 21-year-old female can purchase $350,000 for $185 a year.  The carrier is at risk for a payment that constitutes just 1/20 of 1% of their exposure.

We can argue that the disproportion is mitigated or eliminated when we look at the big picture.  If the carrier has underwritten correctly over a large pool of policyholders it all shakes out in the wash over time; does it not?

The key here is “if the carrier has underwritten correctly”

And part of correct underwriting is not issuing an amount of coverage that makes an insured worth more dead than he or she is when alive (or as we say in the trade, not increasing the likelihood that insureds will fall down a flight of stairs before their time).  The carrier wants to know why you need the coverage and the financial circumstances that justify both the need and the amount, usually in the form of a simple, easy-to-complete financial supplement that must be signed by a qualified third-party advisor for larger cases.  Resistance on this will only delay the case and maybe raise the suspicions of the underwriter.  Alert your client in advance and respond quickly to request that are made.

We turn over financial information for everything nowadays: loan applications, refinancing a mortgage, getting a new credit, or opening a PayPal account.  Don’t let your clients develop a mindset that applying for life insurance is any different.

We specialize in alerting you up front regarding potential underwriting requirements on your case, estimating how much coverage a carrier will allow given your client’s financial circumstances, and helping with bumps in the road if financial justification issues occur.  Give us a call.

Maximum Future Flexibility – Cash Value Life Insurance

Life Insurance products are designed to protect risks from being transferred to an undeserving party by having a group of individuals pay premiums to reduce the overall cost of mitigating these risks.

This is seemingly the base definition of the purpose of insurance, but there are additional caveats based on the specific design of the products.

The market has been repositioned in recent years to be geared toward guarantees with traditional no-lapse features built into policies.

During this market shift there was a product line that was forgotten, Cash Value Life Insurance.

The initial advent of Universal Life Insurance promulgated the concept of access to cash value and maximum future product flexibility

The current interest rate environment is at a 40-year all time low and individuals are looking for creative ways to achieve the highest return on their money.  The cash value products provide an alternative savings account and provide great flexibility to prospects when looking to supplement retirement benefits from a pension, 401(k), IRA or any other existing retirement vehicle within their portfolio.

The cash value is also another source of capital for an emergency fund for an uncertain future medical expense, or these values could be used if a unique business opportunity that would not have been available to the policy owner otherwise.

If the policy owner’s experience financial hardship they are able to adjust the policy to keep their coverage intact

One of the most prevalent features is that the policy owners reserve the right to skip premiums if the cash value is great enough to cover their obligation.  This reduces the possibility of lapse or reinstatement, which can be a cumbersome task for the client to complete.

This is a concept that should be discussed, because the traditional guarantees might not be flexible enough to meet client objectives in a financial environment that is new to even highly sophisticated advisors.

Contact Us

We want to help you provide the most comprehensive insurance planning to your clients and put you in a position to grow your business.  For more information on the cash value products please contact your Life Sales Marketing Manager today and ask about our Policy Review Program!