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Secrets of Underwriting

Some Underwriting Secrets

  • There are certain companies to go for certain conditions. We know companies that favor people with Heart Disease, diabetes, cancer,etc. We have one company that has given us a standard issue on cases like Parkinson’s, Juvenile Diabetes, Stent patients, Minor cardiac Issues, Former Hep C, and even some cancer victims.  One company will take Cigarette smokers and give them a standard rate for three years while others will give other forms of tobacco (Cigar, Pipe, Chewing, Nicorette, Vaping) as nonsmokers.  We have some companies that will take a cannabis user as a nonsmoker and sometimes even preferred. The list goes on there are many underwriting improvements from past years.
  • Its always best to have a specific illness questionnaire going into underwriting as opposed to obtaining (backpedaling) after a case is in underwriting if we know our client has an issue going into the case. We have specific questionnaires for many illnesses and one has much more negotiation power going into the case with knowledge strength.  Please feel free to inquire about specific illness questions or to discuss any cases.
  • Always control that APS. Many APS’s have conflicting information or worse yet wrong information.  We have actually written Drs to clarify and many times expunge wrong information on their patients.   Doctors are also practicing malpractice prevention medicine as well as being a good Dr. and because of that their files are often filled with no definitive prognosis leaving it up to the underwriter to make their own.
  • Control the physical. Do not believe the paramedic facilities care about the quality of tyeh exam.  They employ people who want to get the exam on their time as opposed to what is best for insurance company sumbmissions.  Exams come out better if done first thing in the AM fasting (except some diabetics).  Don’t use physicals from other companies that you didn’t control with fluid tests that you don’t know what time were taken or after which meal.
  • Be realistic as well as set expectations. Someone who is 70 years old can’t be taking 5 medicines and expect to get preferred.
  • Understand the ratings tricks. We have some companies that use age last birthday while others use age closest birthday.  Some companies have table shave programs where table C or even D can get standard.  We know if it is a term case and it is rates we have a company rates off a better rate class such as standard plus (ie. Table C standard plus 50 year old male will be less than a standard table B rated underwriting decision with another company).
  • Understand when a permanent product can be less then term. Certain ages certain rating classes there are ul products with 20 year guarantees less than 20 year term.  Unlike the term these same products will build a little cash and don’t have to be converted.  One just has to pay more if they want it to last longer.  We even have a company that one can combine a ul with a term rider and it is less expensive then pure term.
  • Know when to use abbreviated underwriting. These new programs save time and the home offices that do these do the majority of the paperwork (RIGHT).  Many of our clients will not need tests or exams with these programs.
  • Do not give up. We have found all kind of cases where the competition quit because they didn’t control the case, inspect the aps’s, control the exam and they got a decline.  WHEN ONE’S HOUSE IS ON FIRE THEY BUY FIRE INSURANCE AT ANY PRICE.  We have found that saying transforms to life insurance as the ones that have been rated or declined are motivated because they haven’t been able to procure that coverage at the price they may have expected.  Please see one of our preferred partners updates on underwriting, Lincoln Financial.