Young Client Rejected From Transamerica

[rousemark]

If you were a doctor... and a patient came in and said "Don't examine me. Don't do your job. Just give me XYZ prescription."... would you do it as a doctor???

Why would you do it as a licensed insurance professional?

NEVER let a client dictate your recommendations without you doing your job first.

In fact: "Prescription without proper diagnosis and examination is malpractice." It also applies in our business too.

Go back and do it right. Sell a term policy, not a "burial" policy for a 27 year old.

You must have never worked with the typical FE prospect. The idea of a million dollar policy would freak most of them out.. They just would not buy it. Plus, most would never pass underwriting for $1M.

 

[shonceman]

Wait a sec...

Why on earth would you sell only a $5,000 whole life policy on a 27 year old?

They didn't decline on health. That policy probably isn't AVAILABLE at that age!

Sell her a $1 million term policy, learn your products, and learn how to properly advise your clients.

David, I admittedly focus on the opposite end of the market from you. In the communities I serve, there is a marked preference for whole life, particularly when the only need they're concerned with is Final Expenses. It may seem counterintuitive, but people of modest means usually prefer to pay more for a much smaller policy whose premium and coverage is absolutely guaranteed to never change.

I also write a fair amount of small face policies for parents who want a policy on an adult child who "runs the streets". A good example is one of my client's daughters who I'm pretty sure is a prostitute. As @rousemark suggested, do you think she could qualify for a $1 million face amount?

 

[DHK]

Based solely on the original post... YES she would qualify for a $1 million term policy.

My first policy was a $1 million 10-year term. I only earned $50,000 that year. My premium was $80/month with The Hartford.

Read the underwriting manuals. It's a function of financial and medical underwriting. Financials are often required at higher levels - perhaps at the $2.5m and higher level.

I believe that the reason the policy was really declined was because the policy wasn't available at that age. Most final expense policies (from what I've read here) usually have a start age of 45 or so? She's too young.

The same dollars going into a small "burial" policy could provide a lot of benefit for a limited time for protection. There's OFTEN (but not always) a smaller policy you can convert a portion of that term to.

Maybe the best would be a $1m term and $25k whole life for the same dollars?

 

[DHK]

Plus, most would never pass underwriting for $1M.

Not based on the original post. I already posted the build guidelines for Ohio National and I know the financial guidelines.

 

[MomTrabajadora124]

Just saying quick I did not mean to post any outdated information last night. Since Transamerica's update to apps and eapp etc, one of points I posted is outdated so deleted. I clearly haven't written Transamerica in almost a yr. Crazy. Instant decision and more liberal respiratory uw carriers are preferred, but Trans still helpful in some cases. Anyway.... just public apology. Oops lol Happy selling