As our previous articles have highlighted, multiple life insurance carriers have launched accelerated underwriting programs. In fact, in 2017 and 2018 we expect this trend to continue as more major carriers launch new programs or expand existing ones. This is great news for you and your clients, but it also creates confusion as to how well it works. From our vantage point, almost 55% of life insurance applications are approved and issued in as little as 48 hours! On the flip side, about 10% are being denied due to the model risk score, which is calculated from the various records the carrier examines.
That being said, this only equals 65%. So what about the other 35%? These insurance applications were also not approved and yet for a reason very much within your control. The reason for the denials was that the applicants did not meet the carrier’s published guidelines. The carriers are strict when it comes accelerated underwriting (because it is new) so it is important to pay close attention to these guidelines. Does your client have one of the listed medical conditions? Previous DUI? Insurance declined or rated in the past?
By spending five minutes reviewing these guidelines with your client, you’ll quickly know whether they will be considered for approval or discover that a traditional underwriting product would be the better choice. To help you prepare, click on one of the select carriers below to see the guidelines for their accelerated underwriting programs.