Setting Your Clients Up for Success

As seen in Perspectives Q2 magazine -

Setting your clients up for success

Accelerated underwriting is just that – accelerated but still underwritten.  To ensure your client’s goals are met and you do not sabotage other possibilities by not applying with the right carrier the first time, consider the following points.

Qualify first

1. Does the client need the policy as soon as possible? Accelerated underwriting, or fluidless underwriting, implies the process is fast given most programs offer the possibility of no exam, if the client qualifies. Some carriers, however, will order medical records, which can slow down the accelerated pace. 

2. Is the insured comfortable with an electronic application process?  If not, your options will be limited.

3. Insured Age, amount, and product requested? Check age and amount guidelines.

4 Applied for any life insurance, disability insurance, or long-term care insurance in the last 12 months?  If so, was an exam completed?  If not, provide details.

5. What coverage is currently in force and with which carriers?  If the client has over the threshold with one carrier, then that will eliminate that one off the bat.

6. Any health issues, build, tobacco status, medications, etc.? Be sure to check knock out guides. 

7. Did you provide a disclaimer upfront? It’s important to let the client know this is the best option based on information provided, but accelerated underwriting or exam free is not guaranteed. 

They can’t hide

Even though it might say accelerated underwriting, there’s a lot of information a carrier can get without an exam or medical records from the client – prescription history report, motor vehicle report, and even an electronic platform showing diagnosis codes listed by doctors – to name a few.  

Particularly in accelerated underwriting situations, it’s better disclosing the information on the front end than it being uncovered by the underwriter. If the client is trying to hide something, keep moving because it is not worth your time or your license.

SBA Loans

Some carriers will knock the application out of the accelerated underwriting program if even just an application (not exam) was submitted with any carrier in the last 12 month.  In some cases, the fully underwritten policy is still more beneficial to the client due to the rate class offered.  It is important to consider the option of applying and placing in force the policy with the accelerated underwriting option to satisfy the loan quickly and after issue apply with the fully underwritten option which will allow the client more time for underwriting.  For the accelerated underwriting policy, using a carrier with Living Benefits can help to keep the policy on the books even after a fully underwritten policy is placed since there is added value and another layer of protection provided.  

BOTTOM LINE

For either accelerated or fluidless underwriting to be successful, your client must be honest and as the broker you have to keep up with carrier guidelines and place them with the best carrier to fit their needs.

Marie King Colbert, CFP, CLTC, Brokerage Manager at MRW Financial Brokerage, has over 13 years of experience in life insurance, annuity, and long-term care. Serving independent advisors with case design, sales support, and underwriting to meet their clients’ goals.