Have you noticed? Yes, it’s an election year! DIS is joining the contentious climate with a completely new set of conundrums … The DI Debates. Tune-in!
What the candidates said:
- When asked for alternatives to the industry-wide practice of exceptionally long underwriting periods, QuoteBot had nothing to offer. In fact, he suggested that clients need to accept the status quo.
- DIS offered several ways to use simplified issue DI plans to reduce the underwriting process and speed the approval process.
Who got it right?
Medical underwriting and financial underwriting often require considerable documentation, medical examinations, record requests, and underwriter analysis, all of which can add up to several weeks before the carrier makes an offer. Some consumers balk at the lengthy process. Others are unwilling to undergo the required examinations and blood tests. The simplified underwriting option might be just what the doctor ordered for these clients.
Mr. QuoteBot appears to be unaware of ways, including simplified underwriting products, to reduce the DI underwriting time. Remarks from Mr. DIS on the other hand, exhibit a solid understanding of the issue. The DIS candidate correctly cited that simplified underwriting improves underwriting times by reducing the need for financial documentation and medical exams.
When a quick turn-around time is important to the client, consider simplified issue DI plans. Today’s simplified underwriting products offer flexible benefit periods and waiting periods. These products usually come with a maximum benefit amount and are best suited for clients with moderate income protection needs. As with all insurance products, simplified underwriting products may cost a little more because the carrier hasn’t evaluated the risk as fully as a fully underwritten product. That is an even exchange though, the client pays a bit more for the convenience while the carrier accepts a bit more risk.
DIS case managers are dedicated to shepherding fully underwritten and simplified underwriting applications through the approval process. The first step is to make sure the required documentation is submitted with the application. The case manager then works with the carrier to get the completed application to the underwriter quickly. Savvy DI professionals can reduce the approval process timeline even for fully underwritten disability products with the help of a capable case manager.
Where to go for more info:
- DIS Services Blog, June 12, 2012, Choose the Perfect Disability Income Prospect
- LIfeHealth Pro, August 04, 2010 Disability Insurance Underwriting Made Simple
- DIS white paper: Three Underwriting Secrets