To Write a Cover Letter... or Not to:

Mar 29, 2019

  1. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    https://img.anicoweb.com/wps/portal/img/news/to+write+a+cover+letter+or+not+to+write+a+cover+letter+.+.+.+there+should+be+no+question.

    I found this article by American National rather interesting. Sometimes I have to be reminded how some agents think (and it's not good).

    This was an interesting part:
    Wow. Then there was this one:

    The death benefit has to always be inline with proper underwriting. If it isn't, write a cover letter explaining the proper justification.

    Anyway, that link is worth reviewing.
     
    DHK, Mar 29, 2019
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  2. MoneyNirvana
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    MoneyNirvana Super Genius

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    so when it comes to financial justification, other than filling out a financial supplement form when requested death benefit is beyond the Salary x 10/15/20 depending on age what more can be said about the financials?
    I just had a case where parents were willing to pay for the death benefits of an adult college bound son (Age 23M/NS/ P+) who was making $6k/yr & my justification for it was that adult sons could be eligible for half of death benefits available to parents. ( i guess that only applies if children r juvenile). Parents combined have $2mm in death benefits.
    O well it didn't sit well with underwriters at the insurance company & best offer came back as $100k death benefit.
    What could have been explained in a cover letter that could approve this financial justification.
    Isn't this what we call " because he can afford to pay the premium" situation.
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    In that situation, you'd have to provide proper financial justification for the death benefit because $6k a year of income doesn't justify much on its own.

    Is there a business loan? Is there private student loan debt that wouldn't be forgiven at death?

    There is never a case of "because he can afford the premium". It's always about justifying the death benefit amount - which is the amount the insurance company has at risk.
     
    DHK, Mar 31, 2019
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  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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