Problem:
You have a busy client with a significant health problem who looks at the insurance application process as a "hassle". Let's say that the client is a 64-year-old man who had a stroke four years ago. There are two problems in this situation. #1 He may have a ratable condition (stroke) and #2, he might not be thorough enough when he completes the application because he is busy, hurries through it, and sees it as an unnecessary nuisance.
Solution:
Explain to the client the purpose of the insurance application and how it helps the underwriter to make sound decisions that directly affect what the premium will be. More often than not, details allow for a more favorable underwriting rating. Points you might make to your client include: - A completed application form that the underwriter perceives to be credible, results in less frustrating work for the underwriter and it may lead to a quicker turn-around time.
- The quality of the medical information that is recorded in the application is likely to be based on how consistent it is with the information in the medical records, so accuracy is important.
- The applicant may want to provide details in areas where ambiguities might exist. If the application and the medical records fail to provide relevant information about the stroke, the underwriter may be more conservative than necessary. The underwriter might think that the outcome of the stroke was worse than it really was. So what accurate information included in the application would help the underwriter to make an appropriate assessment of this stroke?
- Month and year (or at least year) it occurred?
- Was the stroke "minor" or "major"?
- Type of initial neurological deficits (like leg weakness or speech problems) that occurred right after the stroke?
- How long it took before the deficits improved or cleared?
- What life style (diet and exercise) changes were undertaken?
- Since the stroke, whether or not there had been any other strokes or stroke warnings (often called "TIAs")?
- Have blood pressures been well controlled since the stroke?
- Have prescribed preventative medications been used such as blood thinners? Blood pressure medicine?
- Currently, are there any residual neurological deficits?
- Currently, what is the physical functional status?
- What physical activities does the client do?
- Are there any limitations to performing any physical activity?
- How long has the client been back to work?
- Prior to the date when the application is to be taken it might help to write down notes to use as a memory aid or as an addendum to the application. In addition to providing details of a condition like a stroke, the client can list all of his prescribed and over-the-counter medications, his physicians, their specialties and their contact information.
Comment: If the client realizes how much the application's content might influence the life insurance premium, it is more likely that the client will be motivated to be thorough and complete. The client should realize that the application should be completed keeping in mind the underwriter who reads the application is a detail-oriented individual who decides on what the premium will be. Also, the client who has done well medically should see the application process as an opportunity to help himself as opposed to "being hassled" by having to fill out what he believes is an unnecessary form. I have a brief video on this topic that can be found at: http://www.screencast.com/t/fMfIDLq0
Please let me know if you would like to share your own strategies or would like to hear about a particular topic. I wish you success in placing your cases. |
