Transitioning from SI WL to Fully Underwritten Term

[antireed]

Hey all!

I am a recent veteran of final expense -- mainly writing simple issue whole life products for senior citizens. I've become pretty accustomed to setting an expectation on price. Really, unless you overlooked something in their medicine cabinet or answered a question wrong, you usually knew what they were going to pay down to the penny.

However, I recently made the switch to fully underwritten term life policies focused more towards income replacement and mortgage protection for people of all ages. The first thing I noticed was how cut and dry price quoting is...not. It seems that there's a lot more wiggle room for underwriting to mess with the rate. Even if I get a client in the correct risk class, underwriting can still jack that rate up to 4x what I quoted to my client with my software (specifically, I'm mostly writing Trendsetter with TransAmerica).

Basically I feel like I'm shooting from the hip a lot more when it comes to rate quoting.

How do I adjust accordingly to this?

Any suggestions for a someone making the jump from the "fixed limit Hold'em" of insurance (SI Whole Life) to the "no limit Hold'em" of insurance? (Fully underwritten Term)

 

[Cash]

Learn to not sell on price. It is a different mindset totally but that is how you make it outside of FE or MP or any type of programed sales.

 

[Newby]

Hey all! I am a recent veteran of final expense -- mainly writing simple issue whole life products for senior citizens. I've become pretty accustomed to setting an expectation on price. Really, unless you overlooked something in their medicine cabinet or answered a question wrong, you usually knew what they were going to pay down to the penny. However, I recently made the switch to fully underwritten term life policies focused more towards income replacement and mortgage protection for people of all ages. The first thing I noticed was how cut and dry price quoting is...not. It seems that there's a lot more wiggle room for underwriting to mess with the rate. Even if I get a client in the correct risk class, underwriting can still jack that rate up to 4x what I quoted to my client with my software (specifically, I'm mostly writing Trendsetter with TransAmerica). Basically I feel like I'm shooting from the hip a lot more when it comes to rate quoting. How do I adjust accordingly to this? Any suggestions for a someone making the jump from the "fixed limit Hold'em" of insurance (SI Whole Life) to the "no limit Hold'em" of insurance? (Fully underwritten Term)

I always quote a higher rate class than I expect them to get. Just delivered a policy Friday that I quoted as Standard plus and it got issued Prefered Plus.

I find under promising and over delivering is always easier than the other way around.

Just say your rate should be this or better.

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I always quote a higher rate class than I expect them to get. Just delivered a policy Friday that I quoted as Standard plus and it got issued Prefered Plus. I find under promising and over delivering is always easier than the other way around. Just say your rate should be this or better.

I should add that my term sales are face to face. I don't buy the term leads where all the agents are competing for the same customer and everyone is low balling.

 

[antireed]

Overquote. Gotcha. Makes sense. How much would you recommend overshooting the Standard rate though? For example, TransAmerica uses a standard rate, but there are 8 or so substandard classes that increase the rate by 25% to 400%.

How often would something like a 400% rate increase be issued to someone? Should I usually stick to quoting 25-50% higher than the quoted rate?

 

[Newby]

Overquote. Gotcha. Makes sense. How much would you recommend overshooting the Standard rate though? For example, TransAmerica uses a standard rate, but there are 8 or so substandard classes that increase the rate by 25% to 400%. How often would something like a 400% rate increase be issued to someone? Should I usually stick to quoting 25-50% higher than the quoted rate?

Just set their expectations at a realistic number. And in error on the high side if possible. If they're getting tabletop like that you should be able to find a lot of that in the fact-finding. It shouldn't be a surprise very often. And then it's more about getting them approved and it is about the exact premium.

 

[TwiLight]

One thing is to know your percentages from the company on what they issue for fully underwritten term.

EX: Company issues:
8% as Pref +
22% as Pref
40% as Standard

Also, if you do not quote the best rate, someone else will and you will struggle on the case. Give them the range that 70% of people will fall into best to standard and evaluate them based on what you know.

Learn your underwriting basics.... RX, Ht/Wt, conditions. Learn your underwriting guides, etc.

As a whole in the Fully underwritten world, you can expect to place 50-60% of your business. That is just the way it is.

Skipper.

 

[Newby]

One thing is to know your percentages from the company on what they issue for fully underwritten term. EX: Company issues: 8% as Pref + 22% as Pref 40% as Standard Also, if you do not quote the best rate, someone else will and you will struggle on the case. Give them the range that 70% of people will fall into best to standard and evaluate them based on what you know. Learn your underwriting basics.... RX, Ht/Wt, conditions. Learn your underwriting guides, etc. As a whole in the Fully underwritten world, you can expect to place 50-60% of your business. That is just the way it is. Skipper.

Or best yet put your term contracts under Skipper or Jeff Root or somebody who totally specializes in term and get some great guidance on your cases.

 

[RookieYankee]

Hey all!

I am a recent veteran of final expense -- mainly writing simple issue whole life products for senior citizens. I've become pretty accustomed to setting an expectation on price. Really, unless you overlooked something in their medicine cabinet or answered a question wrong, you usually knew what they were going to pay down to the penny.

However, I recently made the switch to fully underwritten term life policies focused more towards income replacement and mortgage protection for people of all ages. The first thing I noticed was how cut and dry price quoting is...not. It seems that there's a lot more wiggle room for underwriting to mess with the rate. Even if I get a client in the correct risk class, underwriting can still jack that rate up to 4x what I quoted to my client with my software (specifically, I'm mostly writing Trendsetter with TransAmerica).

Basically I feel like I'm shooting from the hip a lot more when it comes to rate quoting.

How do I adjust accordingly to this?

Any suggestions for a someone making the jump from the "fixed limit Hold'em" of insurance (SI Whole Life) to the "no limit Hold'em" of insurance? (Fully underwritten Term)

I have learned the same thing. The few times I have been asked for term I screwed up and rated standard then I get them rated... ugh! It's a learning lesson.

What I normally do is if they are diabetic I put their age by two years as one rating. If they have something else I'll go up by two more years.

Another thing I have learned was use one or two main companies and sell more on the riders and benefits so if they get a policy at a preferred rating they will find value in the policy. I like to use Transamerica's living benefits or Banner Life's OP term.

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Or best yet put your term contracts under Skipper or Jeff Root or somebody who totally specializes in term and get some great guidance on your cases.

I have a subscription with Jeff Root and read a lot and ask a lot of questions there. Great place for guidance.

 

[WinoBlues]

Hey all!

I am a recent veteran of final expense -- mainly writing simple issue whole life products for senior citizens. I've become pretty accustomed to setting an expectation on price. Really, unless you overlooked something in their medicine cabinet or answered a question wrong, you usually knew what they were going to pay down to the penny.

However, I recently made the switch to fully underwritten term life policies focused more towards income replacement and mortgage protection for people of all ages. The first thing I noticed was how cut and dry price quoting is...not. It seems that there's a lot more wiggle room for underwriting to mess with the rate. Even if I get a client in the correct risk class, underwriting can still jack that rate up to 4x what I quoted to my client with my software (specifically, I'm mostly writing Trendsetter with TransAmerica).

Basically I feel like I'm shooting from the hip a lot more when it comes to rate quoting.

How do I adjust accordingly to this?

Any suggestions for a someone making the jump from the "fixed limit Hold'em" of insurance (SI Whole Life) to the "no limit Hold'em" of insurance? (Fully underwritten Term)

You did not quote them correctly.

Field Underwriting is more learned than taught. You can not compare it to SIWL. There typically are no guides other than build. Quoting is more in line with axiom of junk in junk out.

Example DM. A very well-controlled type II say A1c <6.2 could get standard assuming build was std or better and no other issues. I quote them a rage os T2-Std. if I have a guy early 60s Std build, HBP & Cholesterol Meds in the A1c 7.2 area I am going to start the quote at Tbl 2 with probably Banner But I will show them what T4 will look like. I like to quote ranges. If it is a lead I may show them what a P+ rate looks like that someone else will show but I also show them what the requirements are. I want to show them why the other guy is lowballing them.

As Newby mentioned a strong upline is gold. I believe Jeff goes through Pinney so he has access to the underwriter there who is a valuable resource. Not that Jeff needs him much.