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Underwriting Deal Time

Most people in our industry know that the end of the year companies are more apt to make offers that they wouldn’t offer any other time.

IN THE PAST MANY CONDITIONS WERE IMMEDIATE DECLINES

This Includes people who have had: but not limited to the following
Cancer                     Asthma                       Mental Impairments
Diabetes                  Hepatitis                      COPD
Stents                     Emphysema                 Heart issues

However today these same declines are now getting issued regularly and some with astonishing rates.  Today we can even get the multiple impairments clients who had no chance of obtaining coverage can now get issued.
We can even get smokers through standard programs whether they smoke Cigars Cigarettes, Electronic cigarettes, Cigars, Pot.  You just have to tell us which they smoke and we can tell you the programs they fit in for standard issue. That being said, one of the biggest contributor of declines today is the use of narcotics and other pain medicine for an extended period of time.

Today anybody who still works 20 hours or more a week no matter how bad financially or health wise can get a standard issue policy with no underwriting.  In addition to that outlet here are other ideas to get your very difficult case issued.

  • Maybe the person is part of a group and they have enough say to get a guarantee issue for individual insurance via the group the client works for.  I can’t tell you how many times the adviser agent retorts “He or the Group does not want insurance on everybody.  However besides that being one of the only ways of obtaining insurance it is less expensive buying on everybody else plus themselves then it is to get an individual policy rated up extremely high.
  • Another unique trick is if you have a need for 2 people to have insurance for liquidity or estate issues, most times it is much less expensive acquiring a SUL, SIUL SWL then insuring the one healthy person. Sometimes it pays to do opposite of the previous sentence if one person is significantly older (10 years or more) and the older person in terrible health.
  • Most people are unaware that sometimes insurance companies might make a business decision especially this time of year.

Now it is time to dust off those file cabinets and open up cases you have had in the past.    We are one of the best shops to get your case issued the way you and your client want it to be issued.  We have a partnership with you the producer and we do not get paid until you get paid.
If you want to get the very best issue possible than you must do things a little differently than the past.  You will have to help take control of that case and get better information from the client before it goes to underwriting.  The very first thing is to control that exam.  Make sure it is done after an overnight fast and no exercise, no drinking, alcohol or other activities that can screw up the results of the exam.  One of the best agents we know sometimes accompanies the client for the exam.  If one knows they have ailments like mentioned above get details.  We are going to make it a little easier for you by attaching common specific ailment questionnaires.  Do not double and triple the applications with different companies unless it is disclosed. Do not without knowledge of the whole case quick quote it and send to 30 companies like a number of large brokerage shops do because the underwriters may not choose to take that limited chance of approval and placement.  If the client has indicated that the doctor has been seeing improvement in whatever illness they have and if they have a positive prognosis get them to help to obtain a letter from the physician to go with the case from inception.  Be realistic in your expectations by using software out there that one can rate an individual such as Xrae, and Compulife’s health analyzer.  Work up quotes and get best guess from great IMO’s and GA’s that have a direct pipeline to underwriters or that they just know a case.  See if that is palitable first to your client.  and have an idea of the client’s tolerance premiums. Use a firm like ours that has underwriters on call from multiple companies.  Write cover letters to accompany the application to the financials, the health and what the client(s) are looking for to the underwriting company.

Here is a crazy example of underwriting.  A prominent broker gave me a couple that he wanted SUL or SWL for and the man was 79 closer to 80 and the woman was 69.  We looked at the prelim and had the belief that  there was no way any company would take him other than uniinsurable  We recently underwrote a person whose APS came in with 30 ailments and on 15 prescriptions  It was my first case from this producer and I thought for sure after I saw the case that it was leading with my worst foot forward and I expected that they would not produce through our agency again.  HOWEVER much to our surprise they indeed made an offer.

Another one we got recently had a 65 year young lady.  She has had multiple impairments including a growth (questionable cancer ) on her kidneys that was cut out and radiated.  She has RA being treated successfully. The doctor who was retired called it Cancer.  However the client was told by the Dr. that she didn’t have cancer  was not required to come back as it had been over 5 years since operation.  The new Dr. indicated that he disagreed with that diagnosis before despite his office chart didn’t reflect that prognosis.    Even though the doctor had in his notes from the retired Dr. he never corrected his notes.  We called, faxed, emailed the Dr. and got him to write a new note.  She went from a total decline to table 3 and through n a table shave program was standard

We will help make it easy for you to get the information you may need.  Attached to this blog there are the following helpful forms.  If the one you need is not here please feel free to call us.

  1. Preliminary information form that we use to help fill out all cases with all carriers
  2. Our Himmelstein Financial Informal
  3. Comprehensive questions for different impairments such as
    1. Hepatitis
    2. Heart or circulatory issues
    3. Cancer
    4. Breast Cancer
    5. Stroke
    6. Diabetes
    7. Epilepsy

 

Life after AG 48 The Law, The Effects, The Opportunities

Life After AG 48

The company’s are afraid

The representatives are afraid
The clients are afraid

Life is great.  Now companies have to make sure the printouts they arm us with are ones the company can deliver over time.  Ain’t that a kick in the pants.  Isn’t this what companies were suppose to be doing all along.  Now Insurance companies can have significantly more costs.   They are also concerned about their product having too many guarantees that they risk the use of their tieing up reserves.  The agents representatives and advisors are afraid that the products lose the sexiness without showing those sexy lofty returns over a long period of time.  Now they must illustrate more realistic interest rate hypothetical’s that  match what their experience has done.
Good
1) We will have more realistic illustrations as well as our competitors will be forced to show the same.
2) Companies must show more realistic variable borrowing rates than in the past
3) We must be more creative and understanding of our clients and prospects and provide solutions
4) It will force people to believe more in cash value products that have real cash in them
5) It forces the unscrupulous and/or the non educated in our industry to become a better asset to their client
6) Companies are buying out old guaranteed contracts and are offering lucrative conversions

The Bad 
1) Insurers who have already taken their GUL’s away now are discontinuing other products.
2) It makes it a little harder for ourselves to over promise and under deliver with lofty projections
3) Many companies are limiting the use of their historical illustrations

The Opportunities

  1. Now we can do a policy review (we have detailed complimentary impartial analyse with in force illustrations from the in force companiy
  2. We can be creative and layer insurance policies for different purposes.
  3. These new policies that insurance companies have designed can work with interest rate assumptions or hypothetical with as little as 4.5%
  4. We can add LIVING BENEFITS to their policies including Critical Care LTC, disability and accelerated benefit riders that old policies don’t have
  5. We can rescue non performing policies
  6. We can explore other needs like loan protection for practices, SBA loans, other loans protection
  7. We can leverage the rich or better off people with strategies where they can have use of the money when they need it.