Look Outside The Box To Save A Case

An Underwriting success story about how a postponed case was turned around.

Here are the details:
  • 71- year- old female looking to replace $1 million of guaranteed UL coverage
  • Postponed informally due to recent labs in the APS showing severe anemia

Case was discussed in more detail with the carrier underwriter who took the time to provide recommendations regarding how to re-package the case to obtain an offer:

  • Request a letter from the client’s MD on the cause of the anemia
  • Secure a current, favorable CBC panel (complete blood count)

Fortunately, the client’s doctor identified the anemia as iron deficiency.  Subsequently, the client was started on iron supplements which resolved the anemia.  This was confirmed by a normal CBC panel she completed.

New Decision: Standard!

With the updated favorable medical evidence, this carrier was able to offer Standard rates which resulted in a placed case!

Our Underwriting Team is here to help with all your impaired risk cases!

Starting The LTC Conversation

How many times have you heard clients’ concerns about the cost of Long-Term Care Insurance?  It is the single most common objection, but this objection can be overcome by understanding the underlying issues at work here.

If your clients are like most, they do not think they will ever need LTCI, and they do not really understand what they are getting for their money.  So how can you help them overcome these misconceptions?  This requires asking some very specific questions.

Many producers make the mistake of showing an illustration too soon – the premium then becomes the problem instead of the solution.  You must first develop the need.

Try starting with
  • What is your written plan of care should an extended health care need arise?’’  The majority of people do not have a plan, other than thinking their family will take care of them.
  • Your follow up to this response should be, I am happy to hear you have such a wonderful family that wants to be there for you, but have you had this conversation with them?”  Most likely, this has never even crossed their mind.
  • Then if applicable ask, “Are all of your children employed?”  And if so, Which one could afford to cut back on their work week, or quit all together to provide needed care?
  • The next question is critical and must also be asked.  “Which one of your children do you want to do your bathing or toileting?”  Follow up with, Wouldnt you rather have a trained professional come in and take over that burden, freeing up your family to spend quality time with you and allowing you to maintain your dignity and independence?’’

The purpose of this dialog is to get your clients to really understand what care giving encompasses.  It is at that point they realize the true value of a LTC policy.

While the life insurance sale is a very logical one, the LTCI sale is unique, as it is an emotional sale.  When an extended health care need arises, it is an emergency, not a planned event.

A LTCI policy not only provides financial support, it also provides much needed emotional support for the family members dealing with the emergency.

If and when a person becomes ill, there will be a need for care and a way to pay for that care.  A Long-Term Care Insurance policy is the most cost effective way to provide for that.  The premium is not the problem – the premium is the solution to the problem.  If you can get your clients to understand this, you will get the sale.

Contact your LTCI Specialist today for more ideas on how to develop the need and start closing more business!

Principal Announces Temporary DI Underwriting Guideline Changes In Response To COVID-19

Principal Financial has made temporary Individual Disability Income underwriting guideline changes in response to COVID-19.

Effective immediately, the Individual Disability Insurance (IDI) Underwriting Department at Principal® is changing underwriting guidelines for exams and labs.  These changes will be effective through May 31, 2020, and will be revisited regularly as the pandemic news unfolds.

Labs & Physical Measurements

No physical measurements and labs are needed for up to the amounts listed below.  For amounts beyond those listed below, Principal Underwriters will evaluate the medical records to determine if labs and physical measurements are needed.  We highly recommend the use of Human API and encourage your client to connect their records through that process.  Your underwriter can provide more information on Human API if you need it.

  • Disability Income:  $10,000/month
  • Business Overhead Expense:  $25,000 (increased from $10,000)
  • Disability Buy Out and Key Person:  $1,000,000 Aggregate Benefit (increased from $360,000)

These new guidelines are available to Individual and Multi-Life cases.

As you have questions, contact me.  We’re here and ready to help, in any way we can.

Solving A Major “Minor” Problem

In the 2000 comedy flick Family Man, the investment guru played by Nicolas Cage is asked if he likes kids.  His response:  “On a case-by-case basis!”

But when minors are to be a party to a life insurance policy we can’t be so selective.  Every case is a potential problem and contracts must be implemented accordingly.

Minors are not legally competent (as in not allowed under the law) to own a policy or take possession of the death benefit, so… the easiest solution is to always use a state’s Uniform Transfer to Minors Act (UTMA) when drafting a beneficiary designation for a minor child.

A few basics:
  • The device is created in the beneficiary designation and operates like a “poor-person’s trust” when a separate formal trust is too expensive or too complicated to use.
  • A custodian-beneficiary is appointed to watch over the policy and proceeds for the benefit of the minor according to the directives in the state’s UTMA.
  • A successor custodian should always be appointed, since there is a good chance the custodian may pass away before the minor.
  • When the minor reaches the age of majority (which can differ with each state) the policy or proceeds must be turned over to him/her “lock, stock and barrel” – unlike a trust where control can be delayed well into adulthood.
  • The wording must comply with state law.  In addition, always check with the carrier Claims Department for its approval.
  • There must be a full and separate designation for each minor beneficiary.

The most important thing on a life insurance policy is the beneficiary designation.  But you’d never know it by the small amount of space given for it on the application – space that is especially inadequate if a minor is involved.  A UTMA designation will always take a separate page to be appended to the application.

You probably know that Cage’s real name is Nicolas Coppola.  He changed it for the screen because he didn’t want to appear to be cashing in on the reputation of his uncle, director Francis Ford Coppola.

6 Core Needs Of Business Clients – And How We Can Help

Are you talking to your clients about Business Insurance?  If not, you may feel that it would take years to become an expert.

We can help you provide free business evaluation services to your clients today!

We will help to address your business clients’ six core needs:
  • Retirement Income
  • Exit Planning
  • Income Protection
  • Business Protection
  • Wealth Transfer
  • Survivor Income

A sales associate will work with you to provide business case expertise and top-notch service before, during and after the sale!  We will help you navigate through the planning process.

The process includes, but is not limited to:
  • Learn the Business Planning Services Approach
  • Learn whom to approach
  • Learn to build marketing campaigns
  • Help clients find the value of their business
  • Help clients review their buy-sell agreements
  • Help clients understand the reports
  • Help clients create an action plan

Working the process thoroughly will help your clients gain perspective on the value of their business, and identify any planning opportunities in their current buy-sell arrangements.  Contact us today to learn more about this comprehensive service.