Not All Underwriting Is the Same
An application for coverage that is declined by one carrier does not mean that the applicant will not be able to get coverage through another carrier. Carriers have the right to decline coverage for an applicant if they have a preexisting condition, or even if the coverage applied for is unreasonably high. That's why it is important to perform thorough fact finding and due diligence before applying for life insurance. If you had an application declined, this does not mean that you will be unable to get coverage through another carrier. In some cases, you may be able to get approved for coverage just by amending the declined application with current carrier, depending on the reason for the decline. Each carrier has a different underwriting process, and, in some cases, it comes down to the human element.?Afterall, life insurance is about protecting people, and don't forget underwriters are human as well. They are just people who work for a life insurance company. And despite having a set of rules and regulations, each underwriter can interpret them in a unique way. That’s why it is important to work with a licensed trusted advisor to help you understand the underwriting, rather than simply going online and filling out an application.
For example, if the decline is due to a medical condition such as diabetes, your best bet is to look for a carrier that specifically focuses on insuring people with diabetes. This is the reason for the existence of so many carriers. You can easily say there are as many carriers as there are medical conditions. That's why it is important to me that Strength Insurance Brokerage partners have access to a wide variety of carriers. I always want my brokers to have the ability to provide their clients with the best coverage possible. On a side note, the disadvantage captive agents hold is the variety. They must focus only on the market segments, which their captive insurer focuses its products on. And that's very limiting.?
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Even with a wide range of carriers and products, communication with underwriters is key. Some carriers and their underwriting departments are easier to communicate with than others. We help trusted advisors get through the underwriting process. In cases, where communication breaks down, me and my team step in and provide mediation or guidance through the underwriting process. In some cases, it helps to have a personal relationship with the carrier workers. In other cases, there are carriers that are simply too large or too complex to work with. And in those cases, we help trusted advisors find a carrier that is a better fit for a particular client.
If you are a trusted advisor, I will be running a webinar focused on finishing the year strong on November 8th. It is a free webinar, which can give you some pointers, ideas, and guidance on how to close your cases, or which carriers might be worth considering as alternatives for specific market segments. And if you are currently a captive agent, you are welcomed to attend as well. Mainly because there is no obligation for you from you attending this event. And it will provide you with insight into the benefits of being an independent broker, should you choose to ever move into that space.