By Craig Simms
Over the previous few years, the life insurance coverage trade has undergone one of many greatest transformations in its lengthy historical past. The introduction of accelerated underwriting has introduced with it a world of latest potentialities for corporations and candidates alike.
By way of this course of, insurance coverage suppliers faucet available client data from locations like LexisNexis, motorized vehicle and pharmaceutical databases to gauge the potential danger of insuring a person. One of many key advantages of this method is that the healthiest candidates have the power to bypass invasive medical exams and obtain a coverage determination far quicker than conventional underwriting strategies, which, on common, can take so long as six to eight weeks.
Not solely does this methodology make the underwriting course of practically painless for more healthy shoppers, nevertheless it additionally presents an thrilling alternative for brokers. With accelerated underwriting, brokers are capable of spend extra time prospecting for brand new enterprise as a substitute of managing present instances via the standard course of. Due to expertise, brokers have the time and adaptability to work with extra candidates, develop and nurture relationships, and promote their enterprise to the underinsured and uninsured markets. The supply of this new underwriting course of will even present an extra purpose to achieve out to youthful, more healthy prospects who're in search of insurance coverage safety.
That mentioned, you have to be cautious to not oversell this to prospects. Whereas accelerated underwriting has completely reworked the panorama of life insurance coverage, it's not a one-size-fits-all answer and isn't a assure for all candidates – even when they're wholesome. Right here’s find out how to stroll the tremendous line of touting its advantages with out overpromising a end result.
Prescreen The Proper Approach
Some life insurers robotically embrace a prescreen as a part of the applying course of, which means that the agent would be capable to give the shopper some perception concerning whether or not the person may qualify for an accelerated underwriting determination. Nevertheless, I don’t consider the trade must put the common shopper via a prescreen for the specific objective of figuring out them as an acceleration candidate.
The truth is, it may be detrimental to your relationship, as even the most effective insurance coverage brokers can’t be 100% positive if an applicant will qualify. The shopper is just fascinated about defending their household. Deal with this facet of the sale, whereas maybe simply mentioning that an exam-free course of might be attainable relying on the shopper’s bodily and financial well being.
The one prescreen brokers ought to carry out is to find out whether or not their shopper is insurable within the first place. On the finish of the day, it's not price losing the time of each the agent and the shopper, understanding that the shopper can be declined as a result of their well being, funds or different danger components.
As an agent, your major objective in area underwriting is to gauge your shopper’s insurability via one-on-one dialog, as a substitute of particularly discussing whether or not acceleration is a risk.
Set Expectations
Upon getting decided that an individual is insurable, it is very important not promise accelerated underwriting. Typically talking, candidates with a steady monetary background and good well being have the next probability of being accepted for expedited underwriting.
Nevertheless, there are a selection of nuances all through the applying which can tip the boat into full underwriting, so there's a risk your buyer might not qualify for a call with out a minimum of a evaluation by an underwriter.
Due to this, it's strongly suggested to not guess on the odds and keep away from by chance giving your shopper the expectation that they are going to be a assured candidate for accelerated underwriting. In spite of everything, they're assembly with you to guard their household, whether or not or not the method is accelerated.
At this stage, it's critical to stipulate all potential timelines, so the applicant has a transparent understanding of what to anticipate. An accelerated provide might solely take a couple of hours or days, whereas the total medical underwriting course of can take six to eight weeks or longer.
Be Conscious Of Your Phrases
Put your self within the shopper’s sneakers. You’ve doubtless been toying with the concept of buying life insurance coverage, however haven’t pulled the set off. If you lastly resolve to acquire protection, it actually doesn’t matter in case your software is accelerated or not. You’re going to purchase protection regardless.
Keep in mind, you could have a radical dialog with the applicant, articulating what you’ll want from them, no matter whether or not they're accepted for accelerated underwriting. By way of this, candidates can be properly ready for any situation, and never discouraged if they don't seem to be robotically accepted for accelerated underwriting.
Accelerated underwriting is meant to handle one of many greatest points the insurance coverage trade has had for years: placing wholesome individuals via the burden of the total medical underwriting course of when it’s not needed.
It’s our job as life insurance coverage professionals to set correct expectations with our prospects. We should clearly clarify to each present and potential shoppers that whereas accelerated underwriting is an excellent alternative, it's not assured, and sometimes reserved for the healthiest fiscal and bodily profiles.
Whereas I extremely encourage you, as knowledgeable within the area, to take full benefit of this improvement, it's of the utmost significance to not make any guarantees, and to easily provide acceleration as one among many attainable outcomes.
Craig Simms is senior vp, Vantis Life. Craig could also be contacted at [email protected].
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