- 10,328
You will fit in very well in the FE section...
Simplified Issue or Fully Underwritten?
- Thread starter insuresu
- Start date
- 24,968
I do not not use SI it is just the end all be all.
Yeah, this is not LinkedIn, however, we get more truth here.
As I mentioned earlier I use SI and would be in your recommendations on SITERM.
- Thread starter
- #23
insuresu
Expert
- 33
Correlation clear. Doesn't mean there is only one way. Best wishes.
- 2,758
You are wrong, there IS only one way. And that way is to sell the client the best plan you have that they can qualify for on the day that you write them. What you are doing is selling healthy people a second rate plan then going back and saying..."ohh, hey, I got a better plan now...you need to switch".
If you didn't have the better plan at the time you first wrote the client but added it later, that's one thing. But if you had both plans and intentionally did not disclose it (or "persuade" them not to go with FU) just for the extra (or higher) commission, then you are what gives the rest of us, and the industry, a bad name.
The life insurance agent began as a unique and honorable vocation which enabled us to not only help people but to earn a living while doing it. But for every hot shot agent that manages to pass the test and policy peddle for their own personal greed causes all the rest of us look like the "used car salesmen".
- Thread starter
- #25
insuresu
Expert
- 33
Thanks for sharing.
- 11,277
Are we sure that we're agreeing on the proper terminology in this thread?
Simplified issue is typically a policy that incorporates a variety of health issues... without requiring a medical exam.
Simplified issue is NOT the same thing as a fully underwritten policy that skips the paramed exam.
Some insurance is better than none.
More is better than less.
A "bad policy" will still pay out a death benefit.
Getting a client started on a portfolio of policies is NOT a bad thing. Whatever it takes to help make them a client.
Not every interaction with a client starts out by talking about Human Economic Life Value. Sometimes it just about what's the easiest way to get them covered with SOMETHING in an affordable manner.
Prospects cannot become clients unless they buy and they are issued coverage.
Now, as far as recommending a simplified issue policy when they can qualify for a better rating: it depends on the company you are representing.
Assurity Life only does non-medical underwriting for under $350,000. If that's the company and plan you're going with... that's the plan.
ANICO only does their "express underwriting" for $250,000 and under. If that's the company and plan you're going with... that's the plan.
Yes, I'm lumping in non-med and 'express underwriting' as simplified issue. They are fully underwritten policies that don't use a medical exam... which are different from a true "simplified issue".
For lower face amounts... it's not going to matter all that much. Now, if you're going to write some SERIOUS business - over $250,000+ in face amount... now you need to pay more attention to the nickels and dimes.
Until then... affordable protection, easily issued... and even higher comp... is NOT a bad thing.
Simplified issue is typically a policy that incorporates a variety of health issues... without requiring a medical exam.
Simplified issue is NOT the same thing as a fully underwritten policy that skips the paramed exam.
Some insurance is better than none.
More is better than less.
A "bad policy" will still pay out a death benefit.
Getting a client started on a portfolio of policies is NOT a bad thing. Whatever it takes to help make them a client.
Not every interaction with a client starts out by talking about Human Economic Life Value. Sometimes it just about what's the easiest way to get them covered with SOMETHING in an affordable manner.
Prospects cannot become clients unless they buy and they are issued coverage.
Now, as far as recommending a simplified issue policy when they can qualify for a better rating: it depends on the company you are representing.
Assurity Life only does non-medical underwriting for under $350,000. If that's the company and plan you're going with... that's the plan.
ANICO only does their "express underwriting" for $250,000 and under. If that's the company and plan you're going with... that's the plan.
Yes, I'm lumping in non-med and 'express underwriting' as simplified issue. They are fully underwritten policies that don't use a medical exam... which are different from a true "simplified issue".
For lower face amounts... it's not going to matter all that much. Now, if you're going to write some SERIOUS business - over $250,000+ in face amount... now you need to pay more attention to the nickels and dimes.
Until then... affordable protection, easily issued... and even higher comp... is NOT a bad thing.
- 1,900
"Especially if the bank is requiring the coverage"
For Mortgage Protection Life Insurance?
Please elaborate.
- 11,277
I've never seen that, even for multi-million dollar mortgages.
Usually SBA loans will require some kind of life insurance coverage.
Usually SBA loans will require some kind of life insurance coverage.
- 10,328
Sometimes the bank will require a borrower have a life insurance policy with the bank as beneficiary to cover the loan if the borrower dies.
A decreasing term policy could be used (which many agents call "mortgage protection life insurance").
Or a traditional policy could be collaterally assigned.
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I have.
After 08/09 it started becoming a lot more common. Usually just on jumbo mortgages though. These days it is less common now that lenders have relaxed standards more so. But it still happens. And not just for mortgages, business loans too (not just SBA). I have probably seen it more for business loans than I have for mortgages.
- 11,277
Ah. That makes more sense. It's been a while since I've done anything with mortgages.
