Why Do Captives Have Much More Restrictive Underwriting?

[scagnt83]

This is why I believe so many agents have gone to F.E. and non-med term. Normal UW is such a pain.

If you want to charge clients a higher premium than they need to pay.... and give them a sub-par product.... then this a great way to go.....

For low face amounts sometimes SI term can compete. But once you get over $250k (which almost any decent LI case is) then SI is out the window for the most part.


And to compare FE to a high quality WL or UL is almost criminal.

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Literally one of these carriers 2013 numbers is a number that would not be too far way from rivaling the entire top 15 in the final expense industry.

Exactly, they bring in single cases that are more than veteran FE agents produce in an entire year

 

[KidsGotHeart]

Lol, the original post was referring to individual life insurance....nowhere have we been talking about group coverage. So let me be specific, "95% of all individual life insurance sales in 2013 were medically u.w policies".

Good point though I should have been specific.

Do you know how much nml wrote in new prem last year?
New York life?
Prudential?
State farm?
Mass mutual?

Literally one of these carriers 2013 numbers is a number that would not be too far way from rivaling the entire top 15 in the final expense industry.

You are right, I overstated the impact of UW in my first post. I was just trolling when I brought up group term. I just had my panties in a bunch because I have a nice case stuck in UW ATM. I work for Mass, so I can't hate UW too much.

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If you want to charge clients a higher premium than they need to pay.... and give them a sub-par product.... then this a great way to go.....

For low face amounts sometimes SI term can compete. But once you get over $250k (which almost any decent LI case is) then SI is out the window for the most part.


And to compare FE to a high quality WL or UL is almost criminal.

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Exactly, they bring in single cases that are more than veteran FE agents produce in an entire year

Living in Alabama, a lot of folks simply will not do a med exam. They know they are paying a higher premium, but that is better to them than Big Brother having a sample of their blood for cloning.

 

[scagnt83]

Living in Alabama, a lot of folks simply will not do a med exam. They know they are paying a higher premium, but that is better to them than Big Brother having a sample of their blood for cloning.

Maybe it is just the area you live .... but if I were you I would reconsider my target market if that is the response you get most of the time.... especially if you work for Mass.... (Mass targets white collar)


Coming up with a crazy excuse to not do UW is often just another way of saying no or bringing up an objection.


I have clients all over the southeast (including AL), from extremely rural areas to the big cities.... and almost every one went through full UW.

 

[KidsGotHeart]

Maybe it is just the area you live .... but if I were you I would reconsider my target market if that is the response you get most of the time.... especially if you work for Mass.... (Mass targets white collar)


Coming up with a crazy excuse to not do UW is often just another way of saying no or bringing up an objection.


I have clients all over the southeast (including AL), from extremely rural areas to the big cities.... and almost every one went through full UW.

It would make sense that not doing UW is another way of saying no, if they did not buy the non med-term. Mass Mutual targets white collar, but their lead program brings in a ton of low income, non-heathly prospects. We write them up with an SI and send them through ASH.

 

[Gooner]

Maybe I'm misinterpreting some post here, but it seems that there is a lot of venom being pointed towards the SI stuff (FE if you will). Why the hatred? It definitely has its place, especially when that is your target market, via your lead sources.

I'm a little defensive since that is my primary focus, but I write plenty of fully UW cases...term, whole and UL when the need is there. Just doesn't happen often with how my lead generation is setup

 

[bluemarlin08]

When one is selling FE, do you discuss the option of being underwritten? Do you show the difference in premium under different UW classes? I have never seen anyone decide not to at least try to get the best rates.

 

[Newby]

When one is selling FE, do you discuss the option of being underwritten? Do you show the difference in premium under different UW classes? I have never seen anyone decide not to at least try to get the best rates.

You know through the health questions and the size of the policy. Most FE people have no business going fully underwritten. I've even replaced many fully underwritten policies with FE. State Farm agents in particular will put obvious FE clients through the ringer only to get them rated up so high a good FE agent will murder their price and have an instant approval.

I have offered both and had them go simplifies many times. One guys wife wanted to kill him over it. He would not do a paramed which would have saved him a lot of money.

 

[TwiLight]

A good Captive agent selling Fully Underwritten Whole Life is not going to sell face amounts above the Non-Med Limits.

Simply put. That is why there are so many policies in the household with the Captive. They Stack policies every year or two so they don't go through the med requirements.

Problem is that you look at any branch office of a Captive and there are only a handful of agents that are still agents after 2-3 years. Most were promoted prematurely into management and do not really know how to sell and they just teach the typical Home Office Marketing crap that is regurgitated out by people who have never sold a policy or qualified a prospect.

Training an agent died in 1992 and has not returned yet. The one agent that actually does a good job training agents on this forum that I have gotten to know is Ben (bboman23) and all he gets is a bunch of a wining from the WinerExpress.

If you get training from an experienced agent that is willing to train you on Marketing, Qualifying and Writing the business, then you are way ahead of the game.

 

[BNTRS]

Only captives have strict underwriting? Apparently you've never heard of North American, Banner/William Penn, or SBLI.

 

[TwiLight]

Only captives have strict underwriting? Apparently you've never heard of North American, Banner/William Penn, or SBLI.

How True this statement is......