We all know that the sole purpose of life insurance is to fulfill a financial need, whether that be for estate purposes, business planning, personal income or otherwise. You’re working hard to help clients meet those needs and prepare for what’s to come in life by streamlining the process of application through placement and presenting the best possible offers. So what should you do when things just don’t go your way?
As a life agent, you’ve experienced the joys of having cases come back as applied for and delivering the good news to clients. On the other hand, you’ve probably felt the frustration and disappointment that can come with helping a client apply for a policy only for the case to come back rated. These rated cases, formerly known as substandard cases, result in you having to talk with your clients about paying higher premiums or you having to do more work (obtain more information on the client’s health, shop the case or move on altogether if the client declines the offer) to get a policy placed.
A case typically comes back rated because the client is seen by the underwriter as having an increased risk of early death. This may be due to his or her occupation (a stuntman, for example), but most often it’s due to medical issues or a health condition. By working closely with your clients and ensuring all of their health information is disclosed at the time of application, you often know when to expect cases to come back rated; yet sometimes, it may be an unwelcome surprise. Don’t let that stop you from doing what’s best for your client and addressing these cases in a timely manner.
There are three main reasons you should take the next steps in the placement process immediately: ethics, liability and additional sales. First, some carriers impose a timeframe in which policies must be placed once an offer is made. If you don’t act quickly, you could be putting your clients’ financial futures at risk. Second, when cases come back rated due to clients’ medical status, the possibility exists that their health will simply stay the same or even decline over time. In these situations, the initial offer may be the best these clients can expect; in fact, they may face being declined from future applications and even find themselves in a situation where the benefits of life insurance come into play relatively quickly. Third, rated cases may present an opportunity for you to work with clients to purchase additional coverage, which could positively impact their lives … and your bottom line.
At Creative Life, we take the placement process very seriously. When you partner with us, we’ll keep you informed of any feedback we’re getting from the carriers and help you maintain your clients’ expectations. Because of the relationships we’ve built and the expertise we have in house, we can help you shop cases on behalf of your clients to help keep premiums low. Most importantly, we take a proactive, professional approach to help you handle each client’s case efficiently and effectively. Contact your Life Sales Team for A-rated service, even when placing rated cases.
FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12281 – 2012/4/25