Time is the enemy of the producer. It is said for every day beyond a life insurance application date, the probability of placing the case goes down by 1 percent. Even more frustrating is finding out all of the effort you put forth, once the case is finally placed, generates a $500 to $1,000 annualized premium and perhaps even less.
The challenge for advisors is to develop new business that flows quickly through the underwriting pipeline, provides larger commissions and minimizes the likelihood of generating another application on the same client. Two ways to accomplish this are:
1. Minimize the obstacles. Do what you can to get the best possible shot at closing the case. This includes some basic field underwriting by asking basic medical questions, so there’s less chance for an underwriter to come back requesting additional information.
A red flag should go up when you’re meeting with a client to review a sales ledger run, and you see him or her take three or four prescription drugs. Always give clients a realistic expectation of what the proposed coverage is going to cost. Set the bar low enough, so you can under promise and over deliver.
2. Promote products and ideas that lead to transactional sales, especially those that don’t take disposable income out of a client’s pocket. When a case comes back from underwriting as standard, for example, rather than preferred, the change may be more palatable to the client by showing the premium is unchanged, although the face amount has been reduced somewhat.