Disability IMO suggestion

[SRee973]

What do you consider "high limit"? Most DI carriers will go to 20k/mo and to get that, you'll need to be earning 600k+ yr.

65+ are going to Lloyds.

Occ classes/build tables are easily accessible and your IMO is probably looking half of that stuff up anyway. Medical underwriting is also available but unless you're pretty healthy, you're unlikely to get a plan anyway (or you may have a bunch of exclusions). There are carriers with graded plans (Assurity, Lloyds, Fidelity Security).

You learn most of this stuff through experience.

Plus group is a marketing group of agencies. They'll likely refer you to a local agency that is a member.

"High limit" is anything more than $20K/month.
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20k/month ($240K/year) is 60% of $400K.
A $600K earner needs $30K/month if they want 60%.

Why would someone need to earn $600K+ to get $20K/month? That seems high.
Why wouldn't a $400K earner qualify for 20K/month?
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I know some higher earning people I'm going to talk to. I just want to be able to place the business if more than $20K/month is something the client wants (if applicable).
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Since there aren't that many carriers, going direct may be OK if someone is willing to look at all the underwriting.

I submitted a quote to DIS, so I'll see how it goes in 24 hours or so.

 

[Tahoe Ray]

"High limit" is anything more than $20K/month.
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20k/month ($240K/year) is 60% of $400K.
A $600K earner needs $30K/month if they want 60%.

Why would someone need to earn $600K+ to get $20K/month? That seems high.
Why wouldn't a $400K earner qualify for 20K/month?
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I know some higher earning people I'm going to talk to. I just want to be able to place the business if more than $20K/month is something the client wants (if applicable).
---------------
Since there aren't that many carriers, going direct may be OK if someone is willing to look at all the underwriting.

I submitted a quote to DIS, so I'll see how it goes in 24 hours or so.

That's not how it works. The more you make, the more that % (60) goes down so no, 400k wouldn't hit 20k.

What you would normally do is place a carrier max based on income and then submit a Lloyd's app for the overage (whatever they qualify for). Petersen specifically will auto issue the supplemental if you submit it within 90 days of placing the traditional IDI in force.

You don't want to go for Lloyd's for 100% of someone's coverage if you have to. Their policies are only guaranteed renewable for 5 years. At that point, you have to submit a medical insurability update which allows them to add exclusions, ratings, and even decline the continuation of coverage.

 

[SRee973]

That's not how it works. The more you make, the more that % (60) goes down so no, 400k wouldn't hit 20k.

What you would normally do is place a carrier max based on income and then submit a Lloyd's app for the overage (whatever they qualify for). Petersen specifically will auto issue the supplemental if you submit it within 90 days of placing the traditional IDI in force.

You don't want to go for Lloyd's for 100% of someone's coverage if you have to. Their policies are only guaranteed renewable for 5 years. At that point, you have to submit a medical insurability update which allows them to add exclusions, ratings, and even decline the continuation of coverage.

So, continuing the example, someone making $400K couldn't get to $20K/month?
Even with multiple traditional carriers covering under $20K and Petersen covering the overage to get to the $20K?
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For the auto-issue from Petersen for the overage policy to get to $x/month, are those policies only for 5 years as well, with the medical insurability update requirement? Or for much longer (depending on case, obviously).
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So, if Lloyds covers 100%, then after a max of 5 years (could be less), the client would basically be applying again?

 

[Tahoe Ray]

So, continuing the example, someone making $400K couldn't get to $20K/month?
Even with multiple traditional carriers covering under $20K and Petersen covering the overage to get to the $20K?
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For the auto-issue from Petersen for the overage policy to get to $x/month, are those policies only for 5 years as well, with the medical insurability update requirement? Or for much longer (depending on case, obviously).
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So, if Lloyds covers 100%, then after a max of 5 years (could be less), the client would basically be applying again?

Carriers have IP limits for their own policies and then if the client has existing so you can't really blend to get a lot higher. Lloyd's coverholders will sometime offer additional if the income dictates it.

No one covers 100%. Lloyds can step in where the traditional carriers don't. They are all a max of 5 years (not on benefit period, but on renewability). Sometimes less depending on health.

 

[DI Guy]

Good morning,

I was tied up with IRL events, I didn't mean to ghost the forum!

Tahoe Ray is right on everything!

Lloyd's is a surplus carrier and not intended to compete directly with carriers that are appointed in a state.

Are there any issues or concerns you have? The quote should have shown up by now (if it hasn't, that's a serious problem), so feel free to ask me here or contact us directly.

I will show your comment about the web site to our Chief Technologist, by the way. Thank you for the feedback!

 

[SRee973]

Good morning,

I was tied up with IRL events, I didn't mean to ghost the forum!

Tahoe Ray is right on everything!

Lloyd's is a surplus carrier and not intended to compete directly with carriers that are appointed in a state.

Are there any issues or concerns you have? The quote should have shown up by now (if it hasn't, that's a serious problem), so feel free to ask me here or contact us directly.

I will show your comment about the web site to our Chief Technologist, by the way. Thank you for the feedback!

I got the quote back in like 3 hours; very fast. I sent everything to the client; he's deliberating.
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I know Lloyd's shouldn't be the first carrier to go to and that they shouldn't cover 100%, unless they are the only option in either case.
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Regarding a quote tool, I thought there was a quoter that showed all carriers and their numbers (like Life or medicare, etc.).

It's alright, I can give potential clients a ballpark industry number when I speak to them, but let them know the best option is to just give me a few hours to get them a real quote.
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I'm going to ask again...

As an example, if someone is making $400K, they can't get to $20K/month (60%), even with a combination of state carriers providing the bulk and Petersens/Lloyds providing the overage?

Petersens has a whole section on their website about high limit, with videos and examples.

 

[SRee973]

I will show your comment about the web site to our Chief Technologist, by the way. Thank you for the feedback!

Regarding the website...

- It needs to be updated in every way.

- It's cheap to do websites today, so there's no reason to have a website that looks 10+ years old.

- And they have to have updated content. I see posts from 2014 and 2015, and nothing in recent years. It looks like it's been abandoned.

- Online presence is everything. It's about trust. A good presence is a way to build trust with agents.

- When an agent like me is looking for a DI IMO, the agent should go to the DIS website and say "Yep, this is the DI IMO for me, it has everything: trust, content, step-by-step process, training, carrier information, how to submit apps, etc.

The current DIS website has info, but it needs a face lift.

 

[Tahoe Ray]

It's alright, I can give potential clients a ballpark industry number when I speak to them, but let them know the best option is to just give me a few hours to get them a real quote.

Up to you, but I would never do this. There are so many moving parts to disability insurance, you don't want to be throwing out general numbers when the price can swing wildly based on the benefits.

Ideally, you'll evaluate your client's need and educate them about all of the moving parts. What if the client wants a 1-year wait or some other non-traditional design? You'll get shopped and lose. You planted the seed (that they need this coverage) and another agent reaped the rewards.

Only after the initial consultation do we discuss carrier or possible premium.

Again, your call, but ballparking numbers is a surefire way to lose a meeting (in my experience). You really want the client to try to buy from you rather than you selling them.

As an example, if someone is making $400K, they can't get to $20K/month (60%), even with a combination of state carriers providing the bulk and Petersens/Lloyds providing the overage?

Yes...that's what it's used for. I may have misunderstood but it seemed like you were assuming that you can get 20k/mo of traditional coverage at 400k in earnings (which you can't). That's what I meant.

 

[SRee973]

Up to you, but I would never do this. There are so many moving parts to disability insurance, you don't want to be throwing out general numbers when the price can swing wildly based on the benefits.

Ideally, you'll evaluate your client's need and educate them about all of the moving parts. What if the client wants a 1-year wait or some other non-traditional design? You'll get shopped and lose. You planted the seed (that they need this coverage) and another agent reaped the rewards.

Only after the initial consultation do we discuss carrier or possible premium.

Again, your call, but ballparking numbers is a surefire way to lose a meeting (in my experience). You really want the client to try to buy from you rather than you selling them.
.

What I mean by "ballpark" is for disability insurance in general, because some people don't know what it generally costs.

So I would say something like "1-3% of income, depending on profession, but it really depends on the person and situation. So, tell me about yourself and what you'd like, or I can suggest what I think you need, and I'll run some quotes and get back to you in less than 24 hrs".

Not ballpark for their specific situation. I wouldn't do that.

 

[Tahoe Ray]

What I mean by "ballpark" is for disability insurance in general, because some people don't know what it generally costs.

So I would say something like "1-3% of income, depending on profession, but it really depends on the person and situation. So, tell me about yourself and what you'd like, or I can suggest what I think you need, and I'll run some quotes and get back to you in less than 24 hrs".

Not ballpark for their specific situation. I wouldn't do that.

That makes more sense...I thought that you wanted a quoter for initial discussions.

DI is a great market. Good luck with your new focus!