In-house underwriting expertise is a tremendous benefit that an insurance marketing organization (IMO) can provide for your life insurance cases -- and it's the large cases that typically need a higher level of expertise and attention. Large face amount life insurance applications require special attention and handling. For this reason, an experienced life insurance underwriter with the skill set required to place large, complex cases is invaluable.
Here are six key factors necessary to acquire the best rating or to rescue a large case:
No. 1 -- Larger life cases should automatically be submitted to an underwriter at your marketing organization for underwriting review and consideration.
When medical records are obtained or submitted along with an application, your IMO should automatically submit them to their staff underwriter for review before they are sent to the carrier. The staff underwriter fine-tunes the facts and works to further develop aspects of the applicant's health history. This process helps you and your clients avoid an increase in the premium.
No. 2 -- The in-house underwriter at your IMO should personally write a professional medical summary of the case and alert you and your case manager of any details that may be important to clarify before the information is submitted to a carrier. Detailing the application provides for a seamless approach and allows the carrier's underwriter to receive your case fully developed -- without red flags and unresolved questions.
No. 3 -- Review the financial details of your large cases to make sure there is a full understanding of the purpose of the policy, how the face amount was determined, and to ensure there is adequate financial documentation for a carrier to approve your case. Oftentimes, a cover letter should be written to explain a complex financial situation or to reaffirm that all of the issues have been addressed.
No. 4 -- It's OK to question the decision. If any life insurance application -- regardless of the size of the case --comes back other than the way it was applied for, it should be reviewed automatically. Ensure the carrier's underwriting rationale is sound and that there are no errors. Underwriters are human and they can make mistakes, especially with the large volume of cases they are required to handle. The in-house underwriter may also notice that additional details can be provided to obtain a more competitive offer for you and your client.
No. 5 -- Look to see if a more competitive offer is available. Ultimately, if you are not happy with a carrier's handling of an issue, your IMO should be ready to shop the details of your client's case to other carriers to see if a more competitive offer is available in the marketplace.
No. 6 -- Your marketing organization should provide you with the tools you need in order to be organized and professional. If you have a challenging medical impairment case and aren't sure what details will be required -- or which questions to ask -- they should be able to provide you with a questionnaire to use regarding the impairment in question.
With the right guidance and expertise, you can save your large life cases and get the best rating for your client.
For Agent Use Only. Not for use in solicitation or advertising to the public.
*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.