By Craig Simms
As a life insurance agent, you’re probably well aware of some of the challenges that come along with getting a policy up and running.
You first must spend time making inroads with new prospects, and getting them interested in buying a policy. Then after they apply for a policy, you have to babysit cases through the often time-consuming underwriting process.
There are so many moving parts – the client has to undergo medical tests, the underwriter needs to review the policy, you need to convince the client to buy the policy – that you and your colleagues are spending most of your time spinning your wheels. That time can be better spent on the first step: finding new potential clients.
Accelerated underwriting is a new innovation in underwriting. Accelerated underwriting is about to attract younger clients, streamline the process, reduce costs and improve efficiency across the board. The best part is there is no additional fee required to receive a policy via accelerated underwriting.
By profiling and using data that is publicly available, such as Department of Motor Vehicles records and LexisNexis, an applicant can get a policy in fewer than 30 minutes after starting the application process – and without having to undergo a single medical test. Imagine how much time that would save you and your staff!
That being said, not every applicant is a candidate for accelerated underwriting. It is designed for younger, healthier clients. It’s incumbent upon the agent to pre-screen applicants to know their likelihood of being approved for accelerated underwriting.
What does that entail?
First, the applicant should be under 60 years of age. Additionally, their life insurance needs should max out $1 million. They also should be in relatively good health: blood pressure must be less than 135/85, and they should not have a medical history that includes heart disease, cancer, sleep apnea, melanoma, alcohol abuse or drug abuse. Finally, they should not have had an immediate family member die from certain kinds of cancer when they were younger than 60 years old.
If you have a client pass that threshold, the next step is very important: Don’t promise anything!
Let them know there is a chance they might qualify for accelerated underwriting. At best, they get a policy in 30 minutes or less. At worse, they have to go through the full underwriting process. But it’s worth a shot, right?
After you get the client to agree to undergo the process, you’ll be asked to help walk them through a questionnaire that will take about 20 to 30 minutes.
At the end of the questionnaire, the person will receive one of three outcomes: immediately receive a policy, have to wait a few days while the application is reviewed by an underwriter or go through the full underwriting process. It’s important to note that there are no medical tests required with either of the first two outcomes.
As long as you properly screen the potential applicants, up to 70 percent of them could get a policy immediately after completing the questionnaire!
So why is this transformative for you as an insurance agent?
First, you can attract new, younger clients who are unwilling or uninterested in going through the often-invasive, time-intensive application process. There are no needles, urine tests or visits to the doctor’s office needed to get a policy.
Second, this will improve your office’s efficiency in a drastic way. No longer will you and your staff be forced to babysit cases, follow up with underwriters and remind clients about missing pieces of their application. Instead, your time can be repurposed to attract even more business!
Craig Simms is senior vice president and chief marketing officer for Vantis Life, a subsidiary of Penn Mutual Life. Craig may be contacted at craig.simms@innfeedback.com.
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