The So Called "Medical Close"

[Franz Kafka]

is when the prospect takes the paramed to see what kind of rate the company will offer them first then decide whether they will take the offer.

In 5 years of selling life insurance, I've had 2 "Not Taken"s and those 2 were from 2 "Medical Close"s I have tried (and both were offered preferred risk). I don't need a third one to get the lesson.

If they ain't going to commit when they're with you, they certainly ain't going to commit when they're by themselves.

Just a vent (2nd one was a larger case - WTH was I thinking?)

 

[STIBROKER]

I never send in a app with a check.......

 

[VolAgent]

I never send in a app with a check.......

IMO there is a difference between not binding and doing a "medical close". In the first, you've given a basic idea of cost, in the second there is no idea.

 

[Larry Tew]

I don't use the "medical close" either. If there's still that much uncertainty about buying the life insurance, I don't want to do all the paperwork just to have a "not taken".

I also rarely submit initial premium either - even if the face is under the COD limit. I usually submit the app as a 10-year term for as much face as I think I can place (goal is maximum income multiple) with instructions to hold for issue instructions. Once I know their rate class and other factors, I tell the underwriter what product or combination of products I want and how much.

 

[Full Throttle]

I'm the exact opposite, most of my cases are medical closes. For two reasons:

1. I don't want an adverse underwriting decision to torpedo a case when the client gets upset about paying the actual offer versus the rates shown.

2. I don't want to have a permanent vs. term discussion until I'm ready to have it. It's much easier once we have an offer, I can show them real numbers, and once they make a decision, I have the carrier issue the policy. Less time for something to go wrong.

Are all my cases taken? Nope, about 80%. I think that's decent given a number of them come through cold marketing. Obviously, the placement rate on referrals, current clients, and call-ins is much higher.

Do I discuss rates at all on the front end? Very little. I will usually tell them the standard rate for term insurance (length depends on the situation) and tell them it could be much better, but also, it may not. I also tell them once we have an offer, we'll structure the plan to fit their budget. If they balk at the general term rate I give them, then we're going to have a more serious discussion at that moment as to what they reasonably can afford.

I also don't push for an application or use a hard close. I only want people who have geniune interest in getting an offer for life insurance. "If this is something your serious about, this is the next step..." Usually followed by, "If you're hesitant or not sure if want additional life insurance, that's fine, let's talk about it before we go through the effort of putting in an application."

Works for me, your results may vary. Ben Feldman had a quote in one of his books, "if you can get a man examined for life insurance, my experience shows at least 75% of them will take some sort of coverage."


FYI: if I am going to run into an issue, it almost always occurs before the paramed. They will reschedule or cancel it, then magically "disappear" when I call. For that reason, I usually try to schedule the paramed when I write the app with them there for as soon as possible and wait to submit the application until the paramed is completed. No paramed, the application in most cases will not get submitted.

 

[peopleperson]

is when the prospect takes the paramed to see what kind of rate the company will offer them first then decide whether they will take the offer.

In 5 years of selling life insurance, I've had 2 "Not Taken"s and those 2 were from 2 "Medical Close"s I have tried (and both were offered preferred risk). I don't need a third one to get the lesson.

If they ain't going to commit when they're with you, they certainly ain't going to commit when they're by themselves.

Just a vent (2nd one was a larger case - WTH was I thinking?)

Uh... you're very own jobs program for the paramed people??