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Life insurance veterans: Please share your sales tips on how to sell non med term verses lower priced medically underwritten term. I love selling the ...
Life insurance veterans: Please share your sales tips on how to sell non med term verses lower priced medically underwritten term. I love selling the non med and need more sales scripts and reasons to give the client to buy non med verses medically underwritten life. The obvious reasons are to avoid the rateups with the medically underwritten, the speed of the policies issued, etc...but what other innovative ways are there to pitch the non med?
The obvious reasons are to avoid the rateups with the medically underwritten
Depends on how you look at it. All non-med policies are already rated at about a Table C or more. That is what their "standard" is. So they are not avoiding being rated up. It is the opposite. They cannot avoid being rated up.
It doesnt matter anyway. The point is that is what you want to sell them.
Non med is mostly shlock.
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Winter: Not to be disrespectful of your post, because you are correct - but why is non med schlock? Seriously, I do tire of the long applications, BS nurse visits, paid as earned, crap box mentality of most medically underwritten term carriers. Isn't it refreshing being paid within a week on most non med term without the BS to you OR the client? More opinions please. I only ask for more opinions because I WANT to sell more non med term if I can make it easy and give the client legitimate rationale for paying a bit more....
but why is non med schlock? Seriously, I do tire of the long applications, BS nurse visits, paid as earned, crap box mentality of most medically underwritten term carriers.
Non-med has a place, just like (almost) every other product.
I had a client a few months back that wanted $250k but did not want to take a physical. He hates needles.
I quoted both underwritten (best estimate) and non-med. Non-med was almost 3x the underwritten plan.
Three days before the physical he said he wanted $500k. I called the GA and we arranged for the paramed to do an exam for the higher amount. When the paramed showed up with an EKG machine he freaked again. His wife called and said the deal was off.
I got both on the phone, explained we could back down to $250 and forget the EKG.
That was when his wife insisted he "man up" and have the full exam.
If not for his wife, he probably would have gone with non-med.
The good about non-med (from a client perspective) is that you can get coverage sometimes at a better rate than a full exam.
Had a hep C client a few years back. He did not know he was hep C until the paramed & lab work. We switched to an impaired risk carrier and got the coverage he needed . . . but at a higher rate than a non-med plan.
Kind of a good news, bad news situation.
Good news is, he could have saved money with non-med. Bad news is, he may never have discovered the hep C until his health was worse.
Think of non-med life as a comparative product to a stated income mtg... (those that used to exist). For convenience and sometimes other reasons, a borrower would knowingly pay a higher price so as to get the mtg they wanted, in lieu of meeting a higher requirement of documentation. Non-med life is much the same... some folks will pay more to avoid the criteria involved with fully underwritten life ins... and it makes sense to them. That is all that counts.
Yep, it isn't for the majority, but for someone who might otherwise be rated due to build/weight, or isn't sure about some aspect of their health, non-med can make sense, especially in cases where the face amount is lower... the actual cost difference may be nominal.
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"A successful man is one who can lay a firm foundation with the bricks others have thrown at him." David Brinkley
If it wasn't for me not a shot in hell my wife would have went through the med exam. She has an intense fear of needles and even the day before the paramed came over she told me to cancel, that she wasn't going through it.
Of course, we could not get the proper DB with non-med so she went through with it - and was not happy in the least. I think my wife's dropped the F bomb 3 times during our 11 year marriage. After the exam when I said "see, it wasn't that bad" would have been one of them.
Had I not been the husband and agent no one would have convinced her to take the exam.
Non-med has it's place - as previously stated. I sell Fidelity non-med to mainly single guys under 35 where the price isn't that much different than med and there's not a shot in hell they're going through a paramed exam to get life.
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I do tire of the long applications, BS nurse visits, paid as earned, crap box mentality of most medically underwritten term carriers.
Long apps... hmmm, not really. Most medically u/w products have a shorter app since the paramed is going to provide the majority of medical info...
BS Nurse visits... hmmm, maybe only BS if you don't realize the financial exposure of an insurer, in light of certain medical and health risks that can and do exist. This is simply the insurers protection against assessing the risk improperly and drastically underpricing the product compared to the actual health risk.
Paid as earned.... not exactly. You must have the wrong contract if you aren't being annualized on fully u/w term products. Shop around and find another FMO who annualizes comm.
Crap box mentality... Refer to and re-read the answer above for BS nurse visits... OR, maybe you should pursue another line of work, better suited to surface understanding and simple business structure that don't have the financial exposure of 100's of thousands of dollars to one party or another in a transaction... OR, spend a little time absorbing the responsibiltiy that you share when entering into a contract to represent a life ins co... The responsibilities are great, really, but not for everyone.
It's easy - just target the right market - which is:
Those that need non-med.
Another note:
If you think a client will have the exam come back negative - then get them a non-med FIRST while they qualify. You can always cancel it later.
Non-Med has it's place.
I didn't want to sell anything but non-med but since the leads I've been getting would qualify the client for a more affordable premium with a UW plan - I quote them this option as well.
Afterall - it's the clients choice.
But - since I mainly target non-med qualified clients - it's not that big of an issue.
Tom
------------------------------------ [COLOR=Red]" If you must Hate - Hate the Game and not the Players"
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I always give my clients both options and allow them to decide. Most of my clients chose the non-med option. We all hate hassle and waiting. As an agent, I like non-med products. The prices are not that high for the non-med option. With the current technology, most companies can find out the same info about you, that a medical would tell them. I've seen what the companies can find out about the clients. We all know about the M.I.B. and the Rx, but there are tons of things that the avg agents does not know about.
Just give the clients both options and allow them to decide. Most want the coverage within a few days instead of weeks or a month. Also think about what happens if the medical comes back bad. Some clients do not see a doctor often and when the medical comes back, it is not always good.
I always try to give the clients many options to pick from. I also show them all the riders that can be added to each plan. A lot of agents do not take the time to go over riders and other options with the clients.
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Mark Rosenthal aka markingriffin
IMO/Ins Agent/Agent Trainer/Free Advice markcrosenthal@aol.comwww.realfastservice.com
Please visit mywebsite to learn more about me.
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you said that you have clients that need non~med....who are these people....
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[COLOR=black]You are getting NewInsbiz and my post confused.[/COLOR]
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Originally Posted by myinsurebiz
It's easy - just target the right market - which is:
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Originally Posted by myinsurebiz
[COLOR=black]Those that need non-med.[/COLOR]
I think you thought I wrote this instead of him.
But if you want my answer on the question, the market would be the clients that want jet issue and no hassle that are willing to pay a little bit more for it. Most of my clients want non-medical and are okay paying more for it.
Last edited by Markingriffin : 11-23-2008 at 03:35 PM.
But if you want my answer on the question, the market would be the clients that want jet issue and no hassle that are willing to pay a little bit more for it. Most of my clients want non-medical and are okay paying more for it.
I can ALMOST see that for low face amounts where the client might not care if he/she pays $25 vs $35 per month.
But if someone wants to protect their family, $100K of term probably won't go very far.
Do you find clients that want $500K or more are still unwilling to bother with an exam to save 30-50%?
Rick
------------------------------------ ILIAA
Training, Community, Support, and Success Independent Life Insurance Agents Assn rick@iliaa.org
I can ALMOST see that for low face amounts where the client might not care if he/she pays $25 vs $35 per month.
But if someone wants to protect their family, $100K of term probably won't go very far.
Do you find clients that want $500K or more are still unwilling to bother with an exam?
Rick
Most of my non med companies are $250,000 to $350,000 non medical at the most. I don't do any non med at $350,001 or higher.
The higher the amount, the bigger the difference in premium. Every client is different. If I see a big difference in premium and I think the client is in good health, I will highly recommend they do full underwritting to save some money. But I show them both options and let them decide.
If a company is offering $500,000 non medical, it would be for young ages and only if the client is in good health. If this is the case, the client should pick the medical, but some clients buy insurance like it is a fast food drive thru line. Hurry in and Hurry out.
The trick is to find a company that does not have high non medical prices. Also remember any company that finds mib codes or a reason to do a medical will do so. They can change their minds at any time and order a medical.
Bottom line, find a cheap non medical company and cheap medical company and give them all the options and allow them to pick which is best for them.
Yea sorry about that....I have never had a client refuse to take an exam and the face we are usually writing can not be done non~med....I just believe that you should go for the most bang for the buck and if they say they hate needles then they are really going to hate it in the hospital...better get use to it now.........
Originally Posted by Markingriffin
[COLOR=black]You are getting NewInsbiz and my post confused.[/COLOR]
I think you thought I wrote this instead of him.
But if you want my answer on the question, the market would be the clients that want jet issue and no hassle that are willing to pay a little bit more for it. Most of my clients want non-medical and are okay paying more for it.
Are any of these non-med carriers A+ or A++ rated? Or are they all "substandard" as far as the financial status of the company goes (A, A-, etc)? Seems to me there's a reason the larger carriers don't want any part of that market...
How to sell non med life?
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