The key to selling and getting Disability Income Insurance underwritten is largely dependent on the successful and complete field underwriting done by the agent. This will help you create a sense of urgency with your prospect as well as insure the smooth process of underwriting the application, as well as avoid surprises. The following are some key points that the agent should follow in the application process:
- Get complete and accurate job description from the prospect. If he/she is a bookkeeper, that is self-explanatory. However, if the client is an accountant, additional information might be level of education or certification. If client is a 'business owner', then more details as to what kind of business it is and normal duties are helpful.
- Full details of amount and source of income. Salary, profits, distribution of profit, and any other source of income is extremely important. Also very important is any unearned income such as rental income, retirement benefits, or dividend distributions.
- Proof of Income - W-2's, Tax returns, schedules
- Health history. It is vitally important that all health issues, as well as injuries and treatment be disclosed and dealt with at the time of application. Prepare your prospect ahead of time to avoid surprise or disappointment. The agent is in a much better position to deal with it at the time of application rather than having to re-sell the case upon delivery. Client build (height and weight) is extremely important to know.
Some of the most common health issues that result in exclusions, ratings, and even declines are as follows:
- Muscular-skeletal issues, primarily back/spine such as spinal fusions or herniated disc to name a couple. Chiropractic treatment, no matter how infrequent or whatever the reason, has to be disclosed completely at the point of sale, not at policy delivery time. There may be exclusions and/or ratings and/or limited benefit periods.
- Mental/Nervous conditions such as anxiety. These typically result in exclusions.
- Obesity-Depending on build, can range from a rating, to a rating with limited benefit period, and even decline.
- History of cancer, no matter how long ago it was
- Cardio-Vascular Issues
- Complete information for all medical professionals your client has consulted. Clear detail will help us locate medical records, and speed up the underwriting of Disability Income Applications.
- Cover letter to underwriter "introducing" the applicant as well as explaining any circumstances that needs to be considered in the underwriting process.
We at Advisors Insurance Brokers have many years of experience selling and underwriting Disability Income Insurance. We are here to help you design, present, sell and implement the Income Protection Program for your client. We do our best to be an advocate for you and your client, however, the more information you can provide up front, the faster and smoother the underwriting process goes.