Fully Underwritten or "Final Expense" for Small Policies

[jemelton]

Monday I am going out and doing the door to door method mentioned on this forum. I have a nice array of FE companies (RNA, Foresters, Monumental, UHL) at my disposal.

I am sure that I am going to get into many situations (hopefully) that will call for a policy in the $5,000-$15,000 range. The major company that I write for on my big stuff requires a paramed and urinalysis for anyone over 60 for policies of this amount.

Do I give people both options (the fully underwritten is going to be much cheaper) but the FE is immediate decision (most of the time) and the policy is issued in a matter of days instead of up to a month with the fully underwritten.

 

[Todd King]

Yes, give the option to the clients. By the way, RNA has great prices for that fully underwritten WL.

 

[jdeasy]

Yes, give the option to the clients. By the way, RNA has great prices for that fully underwritten WL.

I'll second that. The RNA fully underwritten is far and away the best priced whole life you will find. It is a $25000 minimum after age 17 though.

Fully underwritten does not mean an exam unless the client is over age 65 on the $25000 face.

I wrote one yesterday on a lady and the $25000 face was only $10/mo more than a $10,000 SIWL. Even without an exam it is not a quick turnaround with RNA. Getting it issued in a month is warp speed for them.

 

[jemelton]

What are their requirements for the fully underwritten? Is it just a longer app or are there medical requirements?

 

[jdeasy]

What are their requirements for the fully underwritten? Is it just a longer app or are there medical requirements?

Yeah, the app is longer and more intensive. many more questions than the SIWL. Since you are already contracted with RNA just print off an application read through it.

They also have a chart showing the requirements for each age and face amount. For example, there is a paramed at $100,000 face for all ages.

 

[rousemark]

For policies in the 5k to 10k range, you will find Settlers SIWL very competitive even with fully underwritten plans because Settlers does not have a policy fee. Once you get over 10K, the larger the face amount. the less competitive they are. If you can contract with them, you might want to consider it. (Oh, they also write chewers and dippers as non smokers/tobacco)

 

[jemelton]

Great info, not currently contracted with Settlers. Just trying to find the right balance of getting the best rate for the client and making it easier for all involved.

I'm the last one that wants to make a sale and get out the door but sometimes the longer underwriting drags on the less chance the client is motivated to get the policy in place and becomes turned off by it.

 

[rousemark]

Great info, not currently contracted with Settlers. Just trying to find the right balance of getting the best rate for the client and making it easier for all involved.

I'm the last one that wants to make a sale and get out the door but sometimes the longer underwriting drags on the less chance the client is motivated to get the policy in place and becomes turned off by it.

I know some try, but you will never be able to give a client the best price in every case. And, even you could, it might not be the best price tomorrow. We are in a competitive business and things are constantly changing. Pick a few companies, not just on price but underwriting, claims paying record, customer service, agent service, etc. and then do the best you can do.

 

[BenS]

If you're door knocking, then yeah, you're going to need to offer plans that will require fully underwritten, with paramed exam.

If you come across a young family with parents in their 20's or 30's, you should be getting them a much higher death benefit than 100k assuming they are in good health. You could run into a young couple that has just signed on with Farmer's or another large captive, and may be able to replace it if you have competitive products.

Consider all scenarios

 

[rousemark]

If you're door knocking, then yeah, you're going to need to offer plans that will require fully underwritten, with paramed exam.

If you come across a young family with parents in their 20's or 30's, you should be getting them a much higher death benefit than 100k assuming they are in good health. You could run into a young couple that has just signed on with Farmer's or another large captive, and may be able to replace it if you have competitive products.

Consider all scenarios

Ben: Love the photo of the kids on your homepage. Is the site producing leads for you? Weren't you with EFES or Securus? Still doing that? .. Louis