How Our Underwriting Team Can Help You Make A Difference To Your Clients

One of the most important aspects to placing more business is a knowledgeable underwriting team to be your advocate for those challenging cases.  Our Life Underwriting team has a philosophy we call “never say never”.

We don’t give up on a case because it’s difficult.  We take on the challenge and look outside the box for solutions.

This innovation sets us apart from the rest and helps to get more cases placed for your clients.

Here are some case examples:

#1:  We were presented with case on a 52 year old dentist seeking $3 million of term coverage.  A recent lab panel for a carrier where he applied and was declined produced the following abnormalities:

  • Liver function tests:  ALT of 71 (on a normal scale of 0-45) and GGTP of 743 (on a normal scale of 2-65);  An alcohol marker and Hepatitis screen were not performed
  • Abnormal liver function tests have been noted since 1987
  • 10/2006 Liver biopsy showed mild to moderate fatty changes and mild liver scarring

If you noted the elevated GGTP alone which is about 11.5 times the normal value, an automatic decline probably came to your mind.  Some BGA underwriters may not have taken the chance to even send this case out for any opinions.  We discussed with our carriers and one was willing to look at the file.  After complete review, we received a Table 4 offer from this carrier.  Case was placed!

#2: A formal application for a 57 year old female applying for $100K of term was recently declined by one of our carriers due to her kidney function history.  An underwriter on our team reviewed the medical records and disagreed with the decline.  We appealed the decision and asked to have the file forwarded to the carrier’s Medical Director for reconsideration.  After Medical Director review, the decline decision was reversed to a Table 2 and case was placed!

If we had not gone back to the carrier for reconsideration, the case would have remained a decline on the books.  Another way we made a difference to our broker and the client.

Let our Underwriting Team help you with your challenging cases and generate more sales this year.  We look forward to hearing from you.

Affordable Income Protection For Any Budget

The need for an income protection plan is not limited to the Executive, Doctor or Attorney earning in excess of $150,000.  According to the U.S. Census Bureau the average annual income in the United States was $51,017 from all occupations.  Average everyday working people (Middle America) are just as dependent on their income to provide for themselves and their families as anyone in the higher tax brackets.

The opportunities are endless – reach out to your clients, friends, families, fellow club members and co-workers.  Ask if they have an income protection plan in place should they get sick or hurt.  Offer them an affordable plan to protect them and their family.

Of the advisors I speak with every day, Life Insurance Agents, Health Insurance Agents, and P&C Brokers – 92% are not talking to their clients about income protection and how affordable it can be.

You can differentiate yourself as an advisor just by offering valuable coverage to your clients that likely no one has ever spoken with them about.

Did you know?

The premium for a 45-year-old Office Clerk for $2,500 monthly benefit is only $51 per month?  There are affordable plans even for part time Dental Hygienists and Registered Nurses working as little as 24 hours per week.

Talk about opportunities, there are over 192,800 Dental Hygienists in the US earning an average annual income of $70,000 http://www.bls.gov/ooh/healthcare/dental-hygienists.htm) and 2.7 million Registered Nurses earning approx the same income. http://www.bls.gov/oes/2011/may/oes291111.htm

Never let premium be the reason your client’s income is left unprotected from an injury or sickness.  The new affordable DI plans can fit most any budget.  The premium for a 35-year-old Dental Hygienist for $2,500 monthly benefit is only $54.20 per month.

You are at the frontline to educate your clientele about the vital need for income protection in the event of an injury or sickness.  Your clients want to buy Income Protection, but they need someone they know and trust to ask them about it.

Discuss income protection insurance with all your prospects and clients, because they may not understand the risk of losing their income should an injury or an illness strike.

For marketing tools and sales ideas, contact your Disability Income Sales Expert today.

4 Ways Clients Can Cash Out On Their Life Insurance

Your clients need guaranteed life insurance protection today – but life changes, and so can your clients’ life insurance needs.

A unique feature on guaranteed universal life is a return of premium option, included at no additional charge within the policy, which provides clients with an exit strategy, giving them flexibility for their future.

How does this rider work?

Clients purchase a guaranteed universal life policy and make the required premium payments – the required premium is the amount that guarantees the death benefit through age 100.  On the 15th, 20th and 25th policy anniversary, clients have a 60-day window where they have the opportunity to surrender their policy and get their premiums returned to them.  If they don’t exercise the rider, there will be no impact on the policy.

4 Cash Benefits For Your Life Insurance Clients
  • For Retirement.  A 45-year-old insured receives 20 years of death benefit protection and at age 65 receives her paid premiums back and uses the cash to supplement retirement income.
  • For College Costs.  The insured bought two permanent policies and currently has young children.  One of the policies was a GUL policy with the refund option available.  When the children are at the age to attend college, the death benefit needs of the family change. He can surrender his GUL policy in year 15, 20 or 25 and use the cash to help pay for the child’s college education.
  • For Business Planning.  The insured owns her own business and has a key employee, Tom.  She purchases a GUL policy to protect her business if Tom died unexpectedly.  In year 18 of 20, Tom resigns – and two years later she will receive all of her premium payments back.
  • To Pay-Up Another Policy.  A 55 year old has a need for $5M in life insurance.  He purchases two GUL policies, one for $2M and another for $3M.  When he turns 75, he no longer needs as much coverage.  He surrenders the $2M policy and uses the cash value to pay up the remaining policy.  The insured still has $3M of insurance with no further premiums due.

Contact your Life Sales Rep for more on how the return of premium option can positively impact your clients and your business.

LTC Underwriting V.S. Life Underwriting

Long-Term Care and the cost of care can be overwhelming for most.  In the past, traditional stand-alone LTC policies were the only way to insure long-term care expenses.

These days, there are more ways to obtain this valuable coverage – including LTC riders on Life Insurance policies.

Underwriting long-term care risks can be very different than underwriting for life insuranceLTCi underwriting takes into account medical impairments that impact ability to perform daily living activities.  Whereas, life underwriting is more concerned about impairments that affect mortality, or life expectancy.

In some cases, your client may be eligible for life insurance at a favorable rate class, but may be rated or declined for long-term care.

This recent case study shows how different underwriting mortality vs. morbidity can be:
  • 62 year old female
  • Seeking $1 million of UL coverage with a Long-Term Care rider
  • Non smoker; normal build
  • Hypothyroidism diagnosed in 1980; well controlled on medication
  • Was seen once by a chiropractor for back pain with improvement
  • Diagnosed with scoliosis
  • Final underwriting decision: Super Preferred for life coverage; Standard for the LTC rider due to scoliosis and back pain history

Non-traditional long-term care insurance and chronic illness riders are the perfect solution for those impairments that would be declined for traditional LTC riders.  These alternative riders are automatically available on eligible permanent products with little to no additional underwriting.

Whatever the case may be, there is a product we can pivot to, to cover long-term care needs.  Contact your Underwriting Specialist, we’re here to help you sort through the different options and pre-qualify your client for this much needed coverage.

Open the Door to Small Business Sales

Selling Long-Term Care Insurance to small business owners is not like the emotional roller coaster sale it is when selling to individuals.

Business owners tend to look at this as a logical discussion of how you can help with their business finances.

Many are always looking for a way to save on taxes so a great way to open the door to an LTC sale would be, “If I could show you something that could help your business reduce its tax burden, would you be interested?”

All businesses can deduct LTC Insurance premiums paid using business dollars.  Depending on the tax structure of the business, the owner can either deduct the actual premium or eligible premium.

How?
  • Owners of C corporations can deduct the actual premium paid on a LTC Insurance policy for the owner / employee, spouse, dependents and a designated class of employees.
  • Self employed business owners such as sole proprietors, partnerships or LLCs can deduct the eligible premium paid for the owner, spouse and dependents.  The eligible premium is established annually based on the medical care components of the Consumer Price Index.

This opportunity allows you to approach any type of small business because you are able to offer a money saving solution.  Be sure to approach small business owners with a plan that provides essential LTC coverage and allows them to take advantage of federal tax incentives.

For more information about selling LTC to small business owners contact your LTC Specialist today.