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How many simplified issue can you write will you are waiting to get paid on the "bigger" case? Won't the premium be almost the same or even higher meaning that that you can write 5 cases for example at $50/month vs a $150/mo term and get paid faster at the same time.
Spoken like a true FE agent....
If a person is able to pass underwriting then they are much better off with a fully underwritten policy. SI policies cost a good bit more vs. a Fully Underwritten policy.
So if the person can pass UW and are not a deadbeat who is going to lapse the policy in 2 months, and you are an ethical agent, then you sell them a Fully Underwritten policy.
The only exception to that is if they are dead-set against a medical exam. But over my 10 years I have found that those who are serious about coverage are willing to do a medical exam 99% of the time.
You also forgot to mention that FE has almost 4x the lapse rate in the first year vs. Fully Underwritten, and 3x the second year, 2x the third year, and does not reach the same lapse rate as FU until year 8.
So in otherwords you do 3x the work, but your renewals are 3x less.... plus for the clients that were able to pass UW they pay a higher premium than they should have... and often for a carrier that has a lower financial rating.
*If you work the FE "demographic" then I have no problem with pushing FE policies. But when an agent recommends a FE policy for a person with a good job and their life together and could pass UW.... and fails to tell them that they could pay 50% less for a FU policy... or demonizes the UW process in the presentation. That is when I have an issue.
Many also do not realize that at the average FE levels of DB the FU policies are often non-med.
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