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Full Underwriting v Simplified Issue
The development and distribution of simplified
issue life insurance policies has raised the question for many agents of
which product (simplified issue or fully underwritten) is the right one
for their client.
The answer is simple: the product the prospect
wants; however, deciding which product that would be is much more
complicated. There are several factors to consider:
- How important to them is price?
- How much cost difference is there between the
products for this prospect?
- Does the prospect understand why (convenience)
they are paying more for simplified issue, and will they replace you
later because of price?
- How much does the prospect value convenience?
- Is the prospect impatient, or are they willing
to wait through a full underwriting process?
- Does the prospect’s unique underwriting profile
allow them to qualify for a simplified issue product?
- Is the prospect uncomfortable with submitting to
a medical exam?
Some of these questions will be answered by using a
well planned sales system (visit
www.LifeLeads.net
), and the rest will come from your knowledge of the products you are
selling. As always, proper planning equals sales!
- While nothing is absolute, normally simplified
issue is best for:
- Prospects forty (40) and under that meet the
product’s underwriting guidelines
- Prospects that value convenience more than price
- Prospects that have a limited tolerance for the
normal underwriting time period
and fully underwritten products are best for:
- Prospects that value price over everything else
- Underwriting issues beyond the allowances of
simplified issue
- A projected issue age beyond the allowances of
simplified issue
- A coverage amount beyond the allowances of
simplified issue
If you take the steps necessary to offer your
prospect the right product for them, you will have every reason to
believe that you should be moving in the right direction towards a sale.
About The Author
Mr. Osman is the pen name of a nationally
recognized award winning life insurance Master General Agent and
consultant and has been developing life insurance leads and teaching
closing techniques for almost twenty five years. Contact him at
LifeLeads.net (605-362-2576) or at
eric@lifeleads.net.
Copyright Eric Osman © 7/10/06
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