Term Life Ratings Question

Oct 31, 2015

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  1. axeman462
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    axeman462 Guru

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    I dont do a lot of Term Life. But I wrote one on a 38/yo male yesterday.

    It seems like he would qualify for a preffered plus rating, but I know those are hard to come by. If I submit it asking for preferred +, what is the downside?

    If it doesn't get preferred+ but he qualifies for preferred, would they give it to him as preferred? Or would they give it as standard? Or if I submit it as preferred, would they automatically give him preferred + if he qualifies?
     
  2. WinoBlues
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    WinoBlues Guru

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    Yes they, normally, will give him the next lower class rating. Technically it works the same going up as well. However, it seems to me that underwriters are slower to go to P+.

    Labs seem to be the thing that kicks them down a class rating the most. Hard to field underwrite that.

    If I think P+ I also give them the P premium and quote a range.
     
  3. axeman462
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    I quoted him std and preferred. I like to over-deliver whenever possible. So, should I just submit it as preferred then, even though I think he may qualify for P+?
     
  4. WinoBlues
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    If they truly qualify for P+ per the guide I submit it that way.

    Quoting Std-Prf'd was wise. Really helps in placement.
     
  5. Larry Tew
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    I never quote price because until they go through underwriting, it's nothing more than an educated guess. I tell prospects to let's go through the underwriting and see exactly what our options are and based on that, we'll tell the company what we want them to issue.

    This is why I chuckle at all this term quoter drama. PRICE is an issue when VALUE is a mystery.
     
  6. WinoBlues
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    WinoBlues Guru

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    I was thinking of you when I was posting my reply about quoting. And I agree completely about value.
     
  7. term2u
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    I always pre-qual them with field UW and ask all of the main questions (H&W, tobacco, meds, BP, cholesterol, driving record, sleep apnea, family hx, hazardous hobbies, travel, etc.) in order to get an idea of their health. I then start honing in on the specific carrier, based on where they will max out on the UW class, per the carriers published guidelines. Finally, I factor in the pricing based on each carriers UW classes.

    I then quote a range to the client based on the most favorable carrier (ie: P+ to P rates), so that they're comfortable with the pricing. This method seems to work out very well, and I usually don't have any surprises on the UW decisions. If I do have any surprises, it's always with the labs (ie: low/high cholesterol, BP, elevated triglycerides, elevated alkaline phosphatase).

    Lastly, I ALWAYS write P+ on the app, even if I think they're going to be STD. Reason being, if they're approved as applied, they usually don't note the specifics as to how they determined their UW class. When I quote P+ and they come back as STD, they always note the specifics (ie: STD due to build, elevated BP, etc.). I then notate the file in my CRM, so that I can run a search at a later point and follow up with them in order to see if they dropped weight, improved their BP, etc. If so, we reapply and lock in a better rate with another carrier about 1-2yrs later. They're paying less, and I'm getting paid again - everyone wins!
     
    term2u, Oct 31, 2015
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  8. WinoBlues
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    I could be off, However, I believe Larry works heavier on the problem end. Such as estate preservation. I also believe his client base is at higher end of the economic ladder.

    Sounds like you and I do things similarly. Especially in collecting information for future use. I look at most new business as future business as well. Old School.
     
  9. Larry Tew
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    I have clients from one end of the spectrum to the other. I do it the same way with everyone. I don't recall ever saying what rate class I want on an application. I think in the agent's comment section they ask if you quoted a preferred rate, but in the end, it is whatever the underwriter says it is regardless of what I noted on the app.
     
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