The ultimate goal as a life insurance professional is to conduct good field fact-finding and field underwriting so that you are able to give the best options to your prospect. The reason your clients have an interest in life insurance can vary to include protecting their family, retirement income, burial expenses, college planning, and more. So how do you go about this part of the process? First, have a good fact-finding process you follow. There are plenty of fact-finding documents that can help you have this conversation. Learning about a client’s family, their assets, current insurance policies, and household income are just some of the important facts you will uncover. 

Once the goal of the prospect is discovered you are able to offer the best product option from the wide variety of life insurance types, and sub-types, from term insurance to universal life, and whole life insurance. If they are looking to protect their family in case something was to happen to them then a term life could fit the bill as an income replacement option. Maybe you uncover your prospects have maxed out their 401k contributions and are looking for other ways to supplement their retirement income. Now an Index Universal life might be the way to go. A permanent cash-growing plan that your prospect can contribute that will give the opportunity for cash-free income in retirement, permanent death benefit coverage, and in some cases long-term care-type benefits. 

The next part of the process now that you have an idea of the goal and type of policy that will fit the situation is looking at can your client medically qualify for a policy. Field underwriting is incredibly important so that you can give a quote that is accurate for a particular client’s situation. 

 Some field underwriting considerations: 

Age: Obviously it is less expensive the younger you are. Usually, you are healthier when you are in your 20’s and 30’s than you are in your 50’s and 60’s. 

Male vs Female: A women’s life expectancy is longer than a man’s. Therefore, premiums are less for women than for men. 

Health History: This category has several factors. 

First: are they going to the doctor and if so, what for? 

Second: are they on any medications? 

Third: what are their height and weight? 

Fourth: do they smoke cigarettes or cigars or use chewing tobacco? If they quit, how long has it been?

Lastly: what does their family history look like? Has a parent died at an early age due to a heart attack or cancer or are they still alive in their 90s? 

Extracurricular Activities: What does this have to do with pricing? Everything! If your customer is a race car driver on the weekends or a scuba diver in shark-infested waters or likes to jump out of a perfectly good airplane once a month, they are at higher risk for death. Underwriters are not big fans of these activities. On the other hand, does your customer participate in 5K’s, or are they an avid gardener or belong to a gym? If this is the case, they could qualify for a better-rate class. 

MVR: Does your client have a clean driving record or do they have speeding tickets and DUI’s? If they are reckless with driving, they might be reckless with their health. 

Career: This is similar to activities, especially if your customer is an electrician or works at a nuclear power plant. Any high-risk occupation could classify them as a risk. 

With the answers to these important questions, you can now give the most accurate rate quote possible. 

Also, keep in mind that individual insurance carriers can look at a particular client differently. Just because one company might give your client a standard rate does not mean they cannot get a preferred rate with another. 

At the end of the day when you prepare, and give accurate quotes based on the goals of the prospect, you are more likely to place more business, have happier clients, make more income and garner more referrals. 

Contact the team at Pinnacle Financial Services to assist with your next life case. From easy issue final expense to cash value Index Universal life we can make sure you have the best options for your client.