For those that Use Simplified Issued

[Justin Bilyj]

How do you offer the choice between simplified and fully underwritten? Do you have a face amount that you do fully uw for besides 400k+?

What is your phraseology so you don't lose the sale? Not trying to confuse the prospect and give them more options than they need to pull the trigger.

 

[dfw1]

I have sold a few simplified issued policies lately and have noticed that my clients are 50+ years of age, who may have a feeling that they will never pass a paramed and are usually looking for $100k to $200K face. The guys I have talked to just want to leave something for their wife, since the kids have grown up already. I like simplified issue since they are easy cases to write.

 

[Justin Bilyj]

what kind of riders do you like to explore with the client at that age?
What kind of companies do you recommend?
I have seen Americo's, Mutual's, and TransAmerica. I like the LB from Trans for the terminal, chronic, and critical benefits, but no rop option...

 

[JRoot]

How do you offer the choice between simplified and fully underwritten? Do you have a face amount that you do fully uw for besides 400k+?

What is your phraseology so you don't lose the sale? Not trying to confuse the prospect and give them more options than they need to pull the trigger.

I give them the option of non-med or fully underwritten, but position the non-med a little better.

"You have 2 options and it’s just a matter a preference for each person.


A: We can schedule a medical exam, obtain your medical records and wait 4-8 weeks for a decision on your application.


OR

B: We can apply online, bypass the exam and get coverage within 48 hours.


For option A, a $250,000 policy can be anywhere from $55/mo. to $90/mo. – it all depends on your medical records and lab results”


For option B, the monthly premium would be $80/mo. and we’ll know within 48 hours if you’re approved. Although, not everyone qualifies as they're very picky on who they take.”

You're making the slightly higher price (non-med) seem more attractive by eliminating the uncertainty of what the final price will be. Also you're positioning it as an exclusive group by saying not everyone can qualify (almost challenging them to see if they can get in).

 

[SportsNut]

"Although, not everyone qualifies as they're very picky on who they take.”

The "Take Away"... it is a very effective technique when used properly.
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How do you offer the choice between simplified and fully underwritten?.

Maybe I should have started a new thread with this but it seems to dovetail nicely into this thread... so the question is, is anyone using the (rather new, I think) Gerber Life Term (or whole life) online application...? The rates seemed pretty darned good on their online portal but there was no u/w criteria to determine whether those rates are obtainable with certain health conditions, etc. The online appl is sweet and easy.

Now for the but...... But I don't even know what comm they pay on this product or anything else about it. I have p/u Gerber solely for the purpose of the GI 50-80, whose rates are pretty darned good BTW, but by accessing the website I have found the term and WL simplified issue with online appl, as well as an accident only life AD&D policy which seems to be very reasonable... like 100K for 9.97 mo.

So who know what about the Gerber products above...? (besides the GI). Rates seemed better than Assurity non-med 350 unless you are quoting Select+. But again is it something that can be issued if you have a hangnail or two..? I didn't spot any way to alter the rate class so not sure that there is more than one. Found it interesting.

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I've completed a bit more research in the Product Guide for the Gerber Term Life product. There are 4 rate classes, and two substandard rate classes; (Table A thru C get Tbl C rates, and table D thru H get Tbl F rates). Although I haven't seen a way on the quoting dashboard to alter the rates shown for rate class, and I'm assuming what is quoted is Pref+ rates. This doesn't seem feasible to have to make an application w/o being able to discuss with client the probable outcome from u/w and which rate class is estimated as the final landing spot. Shoot for the moon and accept a star, as long as you know what that star costs in advance. No point in applying to learn that the star is out of the price range, or what the criteria is for each classification.

Positives are: Full online application and instant approval up to 300K for up to age 50, or up to 99,999 for up to age 69.

Maybe someone has used them t hat could elaborate more on the merits or drawbacks of the product...

 

[Justin Bilyj]

Jeff, awesome post! That's what I was looking for.

What riders do you like to explore with clients over the phone?

 

[mmsdaddy]

I give them the option of non-med or fully underwritten, but position the non-med a little better.

"You have 2 options and it’s just a matter a preference for each person.


A: We can schedule a medical exam, obtain your medical records and wait 4-8 weeks for a decision on your application.


OR

B: We can apply online, bypass the exam and get coverage within 48 hours.


For option A, a $250,000 policy can be anywhere from $55/mo. to $90/mo. – it all depends on your medical records and lab results”


For option B, the monthly premium would be $80/mo. and we’ll know within 48 hours if you’re approved. Although, not everyone qualifies as they're very picky on who they take.”

You're making the slightly higher price (non-med) seem more attractive by eliminating the uncertainty of what the final price will be. Also you're positioning it as an exclusive group by saying not everyone can qualify (almost challenging them to see if they can get in).

Jeff,
Thanks for the great Info!
Two questions for you:
1. "Using this technique, what kind of percentage of your clients opt for the easy issue no-med option then?"
2. "Is there an effective quote engine platform that you use to give your clients an easy issue non-med term policy then? And if so, who with?"

 

[CFP83]

what kind of riders do you like to explore with the client at that age?
What kind of companies do you recommend?
I have seen Americo's, Mutual's, and TransAmerica. I like the LB from Trans for the terminal, chronic, and critical benefits, but no rop option...

It seems as if Assurity has the most flexability of riders on the non-med term side from my experience.You can also position their ROP (very nicely priced):
"we can get 250k of term coverage for $600 a year, or we can choose to go with a term policy that refunds all your money if your alive in 20 years at the end of the term. So really mr. smith are you looking for the cheapest today or the cheapest in the long run?"

Assurity product also allows you to add on a disability income rider, critical illness, children's term, or "other insured" for the spouse. Lot's of ways to help solve many needs with one app and one policy.

For small cases in the lower or middle market they're a nice option. Convenience shouldn't be put ahead of quality though, and the bigger the needs/income the more work we should be willing to do as advisors. In the middle/lower markets however we all know that obtacles and excuses can stand between us and getting the planning in place for the family, so why created more obstacles than needed if an exam is going to be a real issue.

American National has quality non-med products up to 250,000 also. If someone wants a permanent 250k IUL but doens't like needles, to my knowledge American National is the only carrier who will do this non-med.

 

[anonymous1]

I personally bought the assurity to say I have it and was very curious how fast the actually process. Also it's a product that whether you live get sick/injured or die it will pay out. They were quick but the last thing in my medical records is a college physical. Should be selling one in Thursday to a clients kid Small one 150k with 30k crucial illness and rop
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Also this product will be a great doorway and a must need for all those new Obama care enrolled get life and something to pay their high deductibles when they get crucially ill. And 20 yrs from now if nothing happens they get their money back. Win win win

 

[Norwayguy]

I personally bought the assurity to say I have it and was very curious how fast the actually process. Also it's a product that whether you live get sick/injured or die it will pay out. They were quick but the last thing in my medical records is a college physical. Should be selling one in Thursday to a clients kid Small one 150k with 30k crucial illness and rop
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Also this product will be a great doorway and a must need for all those new Obama care enrolled get life and something to pay their high deductibles when they get crucially ill. And 20 yrs from now if nothing happens they get their money back. Win win win

That's a new one for me Crucially ill, I am sure you meant critically ill but crucial sounds good to...Does crucial illness insurance provide coverage for erectile dysfunction (not that I have that mind you) as I think its pretty crucial.