- 2,960
Where do most typically fall for fully underwritten term? Do you quote at standard premium?
Standard or Preferred
- Thread starter smokin goose
- Start date
It depends on the company.
I find that the more competitive the preferred rate is the lower the percentage is for actually issuing at that rate.
As a general rule I use this statement when quoting before an application:
If you (the prospect) are Ht/Wt proportionate, not on HBP or Anxiety medications your rate could be as low as ...(preferred rate).... If there are some minor conditions that are controlled by Medications your rate could be as low as ...(Standard rate).... The best way to find out is by answering a few questions......What is your height....etc, etc.
- 717
Get the guidelines for each company you represent so that your quotes are accurate and you can show them why they will get one rate vs another
- 742
Why would someone quote standard if it is a preferred case? Use a health analyzer or read all those guides! Quote accurately people!
I don't mind quoting a "probable range" but ultimately it's in the hands of the underwriter. No matter how much you think you know about the applicant, the underwriter will know more.
Unless we're applying for the maximum the company will issue (especially term), I let the company underwrite for the maximum face that best class will pay for, but I might tell the applicant that his standard or select rate will be $x for a certain face amount (less than what I'm having them underwritten for).
I always have the company hold the case for issue instructions once they've made an offer. If they offer a better rate class than what we thought, I offer them either a lower premium than they thought they would get (they like that) OR I offer them more coverage than what they thought they could get for the same premium (they like that too).
Or I could quote them preferred and then tell them they got standard. They don't like that.
- 11,275
Under-promise, over-deliver... ESPECIALLY in underwriting and quoting.
There is a reason why there is a "standard" rating. It is the standard. I think it is foolish to quote anything other than standard UNTIL you have done the medical underwriting.
There are DISCOUNTS available from the standard rating... but let's get you underwritten first and let the underwriters tell us what you will qualify for.
There is a reason why there is a "standard" rating. It is the standard. I think it is foolish to quote anything other than standard UNTIL you have done the medical underwriting.
There are DISCOUNTS available from the standard rating... but let's get you underwritten first and let the underwriters tell us what you will qualify for.
- 742
My point is use an analyzer, don't just quote standard for everyone.
- 11,275
My point is... UNLESS you are a medical underwriter... never assume anything.
- 742
Who said anything about assuming they are preferred JUST based on what they told you? You would be foolish to think that every "quoted" preferred cases ended up preferred approved as an agent. I have placed over 7,000 life policies - quoting standard is ridiculous because of "under promising and over delivering." Quote accurately, let the client know that if everything they just told you is true AND that labs are good that is what it will be. Not, "let's start with standard and see what happens."
- Thread starter
- #10
- 2,960
Ok, I'm gonna go with Larry and DHK here. Here's the reason.
I quoted a guy at preferred for 8 hundred and something a year. He and his wife talked about how healthy he was. No meds. Hadn't been to the doctor in years. Then the paramed came back with blood in the urine. It was a small amount and he had it since he was a kid, but it got bumped down to Standard.
So I have to tell them it'll be 12 hundred a year instead and they had already written the check for the first year premium. That wasn't fun, even though they went ahead and paid the difference.
Since then I quote standard and tell them it could be less if they do good on the test. :-)
I think that's what I'll keep doing. Thanks for the input guys!
I quoted a guy at preferred for 8 hundred and something a year. He and his wife talked about how healthy he was. No meds. Hadn't been to the doctor in years. Then the paramed came back with blood in the urine. It was a small amount and he had it since he was a kid, but it got bumped down to Standard.
So I have to tell them it'll be 12 hundred a year instead and they had already written the check for the first year premium. That wasn't fun, even though they went ahead and paid the difference.
Since then I quote standard and tell them it could be less if they do good on the test. :-)
I think that's what I'll keep doing. Thanks for the input guys!
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