Protection Products

Crafting an Underwriting Cover Letter


Protection

When applying for a large life insurance case, it all comes down to underwriting. It’s part science, part gut feeling, but the underwriter can’t consider all the facts unless you provide them.

A cover letter can be the key to getting insurance issued. It helps differentiate your case while providing underlying details around financial needs, medical history and lifestyle.

This is your opportunity to influence the underwriter and explain why your client is a good risk to insure. A good cover letter will: 

 

the NeedEXPLAIN THE NEED
What is the purpose(s) for the requested insurance coverage? Paint a clear picture and be detailed.

the NeedJUSTIFY THE AMOUNT
How was the amount of coverage determined? Explain your process and substantiate it.

the NeedEXPLORE FINANCIAL DETAILS
How will the policy be funded? Communicating the complete financial picture is KEY to getting a policy issued and some cases may involve full financial statements.

the NeedDISCLOSE EXISTING COVERAGE
What other in-force and applied-for insurance exists? Include clear ownership and beneficiary designations, amounts, and information on any policies that will be replaced.

the NeedVALIDATE PRODUCT SELECTION
Why did you choose this product? Set the expectation of the quoted rate class and why you chose it.

the NeedREVEAL UNDERWRITING CONSIDERATIONS
What critical lifestyle factors exist? Share the underlying facts up front – favorable or not. It’s better to form an opinion, rather than change the opinion of an underwriter. Include details such as exercise, diet, preventative medical care, and longevity of parents, as well as non-medical items such as foreign travel and avocations. 

the NeedCREATE A CONNECTION
What personal details are relevant? Establish your relationship and don’t be afraid to include commentary on key facts. Make it known this is a good risk to insure.



THINK LIKE AN UNDERWRITER

When reviewing your letter, it’s important to think like an underwriter. Ask these questions one last time:

  1. Is there a clear, insurable interest?
    Life insurance is highly regulated, and the underwriter is on the hook to validate the policy. Make the impact and intent of the policy clear.

  2. Does the coverage make sense?
    The coverage requested should be consistent with what the carrier typically issues, and a good risk for them. If the plan is out of the box, take care to detail how and why.

  3. Can future payments be sustained for the lifetime of the policy?
    Document and explain any mitigating circumstances on negative financial reports or other issues that would lead to an adverse action.

If the insurance is related to a business, the letter needs to extend beyond the basics, including tax forms, an overview of ownership/beneficiary structure, detailed financials and more.

 

CARE: CLIENT ADVOCACY + RISK EVALUATION

Your Ash Brokerage underwriting and case management teams are partners in client advocacy. Each of us has unique roles and talents. But, we’re here for the same reason: We’re in the business of caring.

Every day, we show up and get to work, fighting for your clients. When advisors need strategic problem solvers who go beyond what’s expected, time after time, we’re their first call.

Highly trained and experienced in both medical and non-medical underwriting challenges, our team has a diverse insurance industry background, from brokerage to home office, including an on-staff medical director, a registered nurse and strong relationships with the underwriting teams at insurance carriers.

Give us a try on your next case and see why we don't just process cases - we compete to win.

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