Transcript
00:48 – I would like to welcome everybody to our
00:50 – training today today we’re going to talk
00:52 – about guaranteed‑issue and
00:54 – guaranteed‑issue is a process to get our
01:01 – policies issued it’s not a policy and so
01:04 – just understand that this is a process
01:06 – if you think about it why do businesses
01:09 – use life insurance and we and we know
01:11 – all of the good things that life
01:13 – insurance can bring to individuals and
01:15 – to our business owners but as we go
01:17 – through the life insurance underwriting
01:20 – process the biggest issue is our our
01:24 – clients have to qualify for life
01:25 – insurance well the expectation is once
01:29 – they you know fill out an application
01:32 – the expectation is that you know they
01:35 – just have to wait for that policy to be
01:37 – issued but we know that when they’re
01:39 – qualifying that you know they’re there’s
01:42 – things that are going to come up it’s
01:44 – really the reality check of you know I
01:47 – need to they need to qualify you know
01:49 – health‑wise they need to qualify for you
01:53 – know financially needs based all of
01:56 – these things affect what happens through
01:59 – that underwriting process and and in
02:02 – some cases we we do have to you know
02:05 – deliver bad news that they don’t qualify
02:09 – for the insurance but as you go through
02:12 – this process you know for qualifying for
02:14 – insurance there’s really you know you
02:16 – know three ways we can make this happen
02:18 – you know the options in underwriting you
02:22 – know first of all we can go through the
02:23 – regular underwriting process and then
02:26 – that regular underwriting process we’ve
02:28 – just got to jump through all those hoops
02:30 – well another option is guaranteed‑issue
02:34 – guaranteed‑issue is a way for business
02:38 – owners to qualify in a group setting and
02:42 – finally we have now many companies are
02:44 – using simplified issues and really
02:46 – expanding out the simplified issue
02:49 – process and the simplified issue process
02:53 – you just have to really make it make
02:55 – sure you look and see do you fit the
02:58 – parameters for those and they’re
03:00 – typically limited to
03:01 – million dollars or less of death benefit
03:04 – sometimes it’s it’s two you know
03:07 – professionals sometimes it’s two other
03:10 – groups so you just have to see if you
03:11 – qualify in that setting if you look at
03:14 – the regular underwriting process it’s
03:17 – typically one or two people on an
03:19 – application the applications are long
03:22 – because they go through everything about
03:24 – that individual their their health
03:27 – situation their financial situation and
03:30 – you have to make sure that you know they
03:33 – qualify and part of that is going
03:37 – through that medical exam the parramatta
03:39 – exams getting their attending physicians
03:41 – and at the end of the day the cost of
03:44 – the policy is based on those
03:47 – underwriting decisions on the other side
03:51 – with guaranteed‑issue if we have a a
03:54 – company with ten or more participants in
03:56 – it then the company submits a multi life
04:00 – application to the carrier and the
04:03 – carrier will accept the group based on
04:07 – the the company’s application and what’s
04:11 – nice about that is we haven’t asked at
04:14 – this point any medical questions we’re
04:17 – just simplifying that process and
04:20 – eliminating the need for physician
04:22 – statements health statements at but the
04:25 – ratings going to be based on the on the
04:28 – group as a whole
04:30 – and the carrier that were being that
04:32 – we’re using just so you know we can get
04:35 – in some of them you know with some of
04:37 – these companies preferred plus
04:39 – underwriting and so we know some people
04:43 – in this group may not be healthy some of
04:45 – the people in this group may not have
04:47 – qualified for individual insurance so
04:49 – it’s a nice process after the company
04:53 – has submitted their application and the
04:57 – company the carrier has accepted the
04:59 – application now we have to do in
05:02 – individual applications for each
05:04 – employee because each policy is going to
05:06 – be set up based on how we want this
05:11 – group group plan to come together and so
05:14 – the employee Apple
05:15 – occasions gonna have the employees name
05:17 – their employment information who’s going
05:19 – to be the owner of the policy we can
05:21 – have the company be the owner of the
05:23 – policy we can have the employee be the
05:26 – owner of the policy there again the
05:28 – beneficiary can be the company it could
05:31 – be the employee it could be you know fit
05:34 – in could fit in to the employees
05:36 – personal estate planning and then of
05:39 – course we have to have the policy
05:41 – information type of policy and all that
05:44 – there will be at least three knock out
05:49 – questions and these knock out questions
05:51 – are going to be based on is the employee
05:54 – a smoker nonsmoker that will affect our
05:56 – premium cost and the employee has to be
06:00 – engaged actively full‑time at work and
06:03 – if you look at the last question it’s
06:06 – has the employee missed work because of
06:10 – illness and in this case we’re looking
06:12 – at one company it’s three days and the
06:14 – preceding three months so there again
06:17 – not an onerous application to go through
06:20 – and finally this is a key if the
06:24 – business is going to own the policy the
06:28 – employee has to sign a consent form to
06:31 – make sure that we qualify for all the
06:33 – Internal Revenue Code rules so if you
06:38 – look at this where do all these roads
06:40 – leave whether we’re using regular
06:42 – underwriting simplified issue or
06:44 – guaranteed‑issue all of these can come
06:47 – down to where we’re looking at
06:50 – individual life insurance policy so
06:52 – we’re not going to use a group policy
06:54 – we’re going to use individual policies
06:57 – and what’s nice is we can still pick the
07:00 – product whether we want a traditional UL
07:05 – policy and IUL policy or whole life
07:09 – policy the type of policy we can still
07:12 – get to the pipe products we can get to
07:15 – what we can do is simplify the
07:17 – underwriting process to get to where
07:20 – where we want to be for our clients and
07:23 – so if you look at what you can do here
07:26 – you can present to your benefit asone
07:29 – errs
07:29 – not only the benefits of life insurance
07:32 – but we can simplify that underwriting
07:34 – process and also have the individual
07:38 – policies to make sure that we satisfy
07:41 – the goals of not only our business owner
07:44 – but the employees that are gonna be part
07:46 – of the program the first step to any
07:51 – multi life case and working in the
07:53 – guaranteed‑issue market we we have to
07:56 – start with the census we have to know
07:57 – how many employees are going to be in
07:59 – the group we need to know the makeup of
08:01 – the group so that we can design each
08:05 – policy to benefit each individual or the
08:09 – business in the right way so it’s so it
08:11 – takes a little bit of extra work on the
08:13 – front end in the design part of the case
08:16 – but when we get to working with the
08:19 – clients and and each individual we can
08:22 – simplify the process for them I
08:26 – appreciate you getting on this week next
08:29 – week I want to go through a case study
08:31 – and walk through how we can use
08:35 – guaranteed‑issue and then specifically
08:37 – in the buy/sell
08:38 – arena with our business owners and I’m
08:41 – going to take through a case study that
08:43 – that I worked on where we insured over
08:46 – 30 lives at one time to cover a buy‑sell
08:48 – agreement and that generated over over a
08:52 – million dollars in commission so I
08:55 – appreciate you getting on look forward
08:58 – to you getting on next week thank you
Transcript
00:48 – I would like to welcome everybody to our
00:50 – training today today we’re going to talk
00:52 – about guaranteed‑issue and
00:54 – guaranteed‑issue is a process to get our
01:01 – policies issued it’s not a policy and so
01:04 – just understand that this is a process
01:06 – if you think about it why do businesses
01:09 – use life insurance and we and we know
01:11 – all of the good things that life
01:13 – insurance can bring to individuals and
01:15 – to our business owners but as we go
01:17 – through the life insurance underwriting
01:20 – process the biggest issue is our our
01:24 – clients have to qualify for life
01:25 – insurance well the expectation is once
01:29 – they you know fill out an application
01:32 – the expectation is that you know they
01:35 – just have to wait for that policy to be
01:37 – issued but we know that when they’re
01:39 – qualifying that you know they’re there’s
01:42 – things that are going to come up it’s
01:44 – really the reality check of you know I
01:47 – need to they need to qualify you know
01:49 – health‑wise they need to qualify for you
01:53 – know financially needs based all of
01:56 – these things affect what happens through
01:59 – that underwriting process and and in
02:02 – some cases we we do have to you know
02:05 – deliver bad news that they don’t qualify
02:09 – for the insurance but as you go through
02:12 – this process you know for qualifying for
02:14 – insurance there’s really you know you
02:16 – know three ways we can make this happen
02:18 – you know the options in underwriting you
02:22 – know first of all we can go through the
02:23 – regular underwriting process and then
02:26 – that regular underwriting process we’ve
02:28 – just got to jump through all those hoops
02:30 – well another option is guaranteed‑issue
02:34 – guaranteed‑issue is a way for business
02:38 – owners to qualify in a group setting and
02:42 – finally we have now many companies are
02:44 – using simplified issues and really
02:46 – expanding out the simplified issue
02:49 – process and the simplified issue process
02:53 – you just have to really make it make
02:55 – sure you look and see do you fit the
02:58 – parameters for those and they’re
03:00 – typically limited to
03:01 – million dollars or less of death benefit
03:04 – sometimes it’s it’s two you know
03:07 – professionals sometimes it’s two other
03:10 – groups so you just have to see if you
03:11 – qualify in that setting if you look at
03:14 – the regular underwriting process it’s
03:17 – typically one or two people on an
03:19 – application the applications are long
03:22 – because they go through everything about
03:24 – that individual their their health
03:27 – situation their financial situation and
03:30 – you have to make sure that you know they
03:33 – qualify and part of that is going
03:37 – through that medical exam the parramatta
03:39 – exams getting their attending physicians
03:41 – and at the end of the day the cost of
03:44 – the policy is based on those
03:47 – underwriting decisions on the other side
03:51 – with guaranteed‑issue if we have a a
03:54 – company with ten or more participants in
03:56 – it then the company submits a multi life
04:00 – application to the carrier and the
04:03 – carrier will accept the group based on
04:07 – the the company’s application and what’s
04:11 – nice about that is we haven’t asked at
04:14 – this point any medical questions we’re
04:17 – just simplifying that process and
04:20 – eliminating the need for physician
04:22 – statements health statements at but the
04:25 – ratings going to be based on the on the
04:28 – group as a whole
04:30 – and the carrier that were being that
04:32 – we’re using just so you know we can get
04:35 – in some of them you know with some of
04:37 – these companies preferred plus
04:39 – underwriting and so we know some people
04:43 – in this group may not be healthy some of
04:45 – the people in this group may not have
04:47 – qualified for individual insurance so
04:49 – it’s a nice process after the company
04:53 – has submitted their application and the
04:57 – company the carrier has accepted the
04:59 – application now we have to do in
05:02 – individual applications for each
05:04 – employee because each policy is going to
05:06 – be set up based on how we want this
05:11 – group group plan to come together and so
05:14 – the employee Apple
05:15 – occasions gonna have the employees name
05:17 – their employment information who’s going
05:19 – to be the owner of the policy we can
05:21 – have the company be the owner of the
05:23 – policy we can have the employee be the
05:26 – owner of the policy there again the
05:28 – beneficiary can be the company it could
05:31 – be the employee it could be you know fit
05:34 – in could fit in to the employees
05:36 – personal estate planning and then of
05:39 – course we have to have the policy
05:41 – information type of policy and all that
05:44 – there will be at least three knock out
05:49 – questions and these knock out questions
05:51 – are going to be based on is the employee
05:54 – a smoker nonsmoker that will affect our
05:56 – premium cost and the employee has to be
06:00 – engaged actively full‑time at work and
06:03 – if you look at the last question it’s
06:06 – has the employee missed work because of
06:10 – illness and in this case we’re looking
06:12 – at one company it’s three days and the
06:14 – preceding three months so there again
06:17 – not an onerous application to go through
06:20 – and finally this is a key if the
06:24 – business is going to own the policy the
06:28 – employee has to sign a consent form to
06:31 – make sure that we qualify for all the
06:33 – Internal Revenue Code rules so if you
06:38 – look at this where do all these roads
06:40 – leave whether we’re using regular
06:42 – underwriting simplified issue or
06:44 – guaranteed‑issue all of these can come
06:47 – down to where we’re looking at
06:50 – individual life insurance policy so
06:52 – we’re not going to use a group policy
06:54 – we’re going to use individual policies
06:57 – and what’s nice is we can still pick the
07:00 – product whether we want a traditional UL
07:05 – policy and IUL policy or whole life
07:09 – policy the type of policy we can still
07:12 – get to the pipe products we can get to
07:15 – what we can do is simplify the
07:17 – underwriting process to get to where
07:20 – where we want to be for our clients and
07:23 – so if you look at what you can do here
07:26 – you can present to your benefit asone
07:29 – errs
07:29 – not only the benefits of life insurance
07:32 – but we can simplify that underwriting
07:34 – process and also have the individual
07:38 – policies to make sure that we satisfy
07:41 – the goals of not only our business owner
07:44 – but the employees that are gonna be part
07:46 – of the program the first step to any
07:51 – multi life case and working in the
07:53 – guaranteed‑issue market we we have to
07:56 – start with the census we have to know
07:57 – how many employees are going to be in
07:59 – the group we need to know the makeup of
08:01 – the group so that we can design each
08:05 – policy to benefit each individual or the
08:09 – business in the right way so it’s so it
08:11 – takes a little bit of extra work on the
08:13 – front end in the design part of the case
08:16 – but when we get to working with the
08:19 – clients and and each individual we can
08:22 – simplify the process for them I
08:26 – appreciate you getting on this week next
08:29 – week I want to go through a case study
08:31 – and walk through how we can use
08:35 – guaranteed‑issue and then specifically
08:37 – in the buy/sell
08:38 – arena with our business owners and I’m
08:41 – going to take through a case study that
08:43 – that I worked on where we insured over
08:46 – 30 lives at one time to cover a buy‑sell
08:48 – agreement and that generated over over a
08:52 – million dollars in commission so I
08:55 – appreciate you getting on look forward
08:58 – to you getting on next week thank you