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:
EXPLAIN THE NEED
What is the purpose(s) for the requested insurance coverage? Paint a clear picture and be detailed.
JUSTIFY THE AMOUNT
How was the amount of coverage determined? Explain your process and substantiate it.
EXPLORE 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.
DISCLOSE 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.
VALIDATE PRODUCT SELECTION
Why did you choose this product? Set the expectation of the quoted rate class and why you chose it.
REVEAL 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.
CREATE 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.
When reviewing your letter, it’s important to think like an underwriter. Ask these questions one last time:
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.
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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