From Yes to Success

Here are six ways to make your next IDI application sail through underwriting.

You got your client to say yes. One of the hardest parts of sales may seem to be helping your clients understand the need for income protection. But once you’ve gotten that client signature and the application is submitted, you’re in the clear, right? Not quite.

From initially approaching a client about the need to protect his income, to working with your General Agent to find the right carrier and submitting an application, you’ve invested a good deal of time in making the sale. However, while most of the hard work has been done, the sale is not complete.

That’s because the next step for an IDI sale is underwriting. An IDI application requires underwriters to review a significant amount of documentation, such as medical history and financial statements, before an application is approved.

One of the questions I’m most often asked by producers is how they can help ensure their client’s application is wellreceived by a carrier’s underwriters. Each time I’m asked this question, my response is that optimal IDI underwriting requires two things: preparation and setting expectations for a client.

Whether you write one IDI policy a year or are a genuine IDI expert, here are a few tips that may help improve your experience.

Tip 1: Partner with a trusted resource. Working with a General Agent can help as you navigate the sales process and position yourself as an expert to your client. These experienced, knowledgeable specialists have a deep understanding of IDI products and have numerous insights from years of working with different carriers. Also, they can help you with everything from sales logistics, such as how to prepare to sell the product and how to navigate the sales and underwriting processes, to how to manage client expectations throughout the underwriting process.

Tip 2: Prepare a client to submit personal information. An IDI application can get detailed. One of the most important aspects to discuss with a client is the amount of personal information, including medical history and tests, financial statements and occupational history that will be needed for a carrier to analyze his or her application. While most of this information is requested up front, additional documentation could be needed throughout the process, so make sure to prepare a client by letting him know that other information could be requested after his application is submitted.

Tip 3: Understand that IDI underwriting may be different from what you’re used to. Some producers assume that the underwriting process for IDI is similar to that of other products, such as life insurance. However, IDI applications are viewed under a more detailed underwriting process, as a different type of risk is being assessed.

To assess a client’s insurability for IDI, a carrier doesn’t just need detailed medical history; it also needs a clear picture of your client’s financial and occupational history. That’s because, while life insurance underwriters are looking for conditions or activities that may increase the risk of a client’s death, IDI underwriters are investigating a person’s risk of becoming disabled. And since the chance of becoming disabled before age 65 is greater, and the policies could potentially pay out large benefit amounts over a long period, it’s important that the carrier does its due diligence to ensure that your client’s application has been thoroughly analyzed.

Tip 4: Just because you’ve taken an application doesn’t mean you can move on. IDI isn’t a “submit and forget” type of sale. A number of IDI policies aren’t issued as applied for, as clients may have injuries or medical conditions that could prevent them from receiving full coverage. This type of approval is known as a modified offer, and it doesn’t mean that your client received suboptimal coverage. It just means that there are limitations for what is covered by the policy.

If an application comes back with a modified offer, it’s important that you’ve made your client aware of the possibility so he isn’t taken by surprise if this happens. This is an area in which your General Agent can be a lot of help, and she should have tips on how you can approach this subject.

Tip 5: Present documentation up front. As mentioned previously, there is a lot of information that a carrier needs to analyze with a client’s IDI application. To help, many carriers have a list of the information that should be included with an application. While it may feel like a laundry list of information, submitting