What Every Life Producer
Must Know to Close More Sales
By Allan D. Gersten, CLU, CFP, ChFC
Working directly with clients and prospects is every pro- ducer’s primary task. But just as evaluation, fact finding and technical capabilities are essential for successful selling, there’s another critical, but often overlooked, skill set required for sizing up the potential issues involved in the life underwriting process. While this often occurs toward the end of the sales cycle, it’s important since it can often create a “make or break” result.
At the very least, producers need to have a working knowledge of the potential medical issues and their relative effect on the sale. Since it’s the producer’s task to manage client expectations to obtain the optimum result, open communication is essential.
There are several ways to obtain the necessary information. It may be a short-form medical questionnaire, one coupled with a HIPPA authorization (to secure attending physician records) or a Part II on a life application.
Tentative offers, secured by an advisor without making a formal application, can be used as a sales tool. If a quick quote for a particular impairment is needed, a specific questionnaire is often available. In addition, there are a number of services for quoting available through a Brokerage General Agent (BGA).
Here are several helpful quoting
tools:
•;There;are;a;number;of;quoting;sys-
tems that can compare the medical
and general underwriting criteria
for various carriers. Compulife
software is used primarily for
shopping term life insurance.
It determines rate classification
based on information on blood
pressure, cholesterol, family his-
tory, tobacco usage, driving
history and records and height
and weight information. It tells a
producer the criteria needed for
the carrier to make or miss a rate
classification. The software can
also illustrate costs for various
carriers for term and universal
life.
• NAILBA’s Field Underwriting Guide includes a questionnaire for individual impairments. This can be useful in determining the pertinent risk factors and concerns for each impairment.
•;The;use;of;your;BGA’s;Phone;Line for Quick Quotes and specific carrier underwriting is a fast way to obtain answers.
•;XRAE;access;for;quoting;can;de-termine each carrier’s approach to a particular risk. This software is populated with questions and answers for each impairment covered and can serve as an effective way to access companies quickly. This is good for single impairments and can be accessed without cost through a BGA.
•;Informal;process.;A;producer;or;a BGA secures APS and carrier offers. This preliminary and more discrete process often saves time and is more rewarding than simply submitting to one carrier and hoping for the best. This strategy works best when preceded by a summary and a phone call to the underwriter.
Each insurance company has its own model. One carrier may be larger, another may have more capacity for retention, a third may have a special ability and understanding for specific risks, while yet another might have
ConFidEntial AssistanCE With:
•;Agency;Mergers;&;Acquisitions
•;Agency;Sales;Arrangements
& Valuations
•;Agency;Succession;Planning
& Exit Strategies
•;Operations;Profitability
Review & Evaluation
•;Tax;&;Accounting;Services
“More than accountants…business advisors”
SpECialiZing in SErViCEs
to AgEnts and BroKErs
Michael B. Ryan, CPA
Westwood, MA
781-329-1690
Allan D. Gersten, CLU, ChFC, CFP, is chairman, CEO and the chief underwriter of First American Insurance Underwriters, Inc, a Needham, Mass.-based insurance brokerage firm specializing in coaching successful producers. He has been in life insurance sales since 1969. He can be reached at (800) 444-8715 or agersten@faiu.com.
www.dsrcpa.com
References:
Archives