Advisor Today - November/December 2016 - 30

PRODUCT SPOTLIGHT

DI INSURANCE
By Sue Schweitzer

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

Y

ou 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.
30 ADVISOR TODAY | November/December 2016

Optimal IDI underwriting requires preparation and setting
expectations for your client.
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



Advisor Today - November/December 2016

Table of Contents for the Digital Edition of Advisor Today - November/December 2016

FROM THE EDITOR
VIEWPOINT
NEW PRODUCTS
I Love My Job, But I Don’t Want to Do it Forever!
Building a Practice You Love
The New American Dream
A New View of Retirement
College Education Funding: Helping Clients Evaluate What’s Best
Portfolio Allocations for New Market Conditions
Leveraging the Power of Study Groups
An Interview with MassMutual’s James Ocampo on Critical Illness Insurance
Start with “Why”
Best Practices for Selling Group LTCI
From Yes to Success
Meet NAIFA’s New President
NAIFA’s 2016 Performance + Purpose Conference
NAIFA GOVERNMENT RELATIONS
4 Ways to Build an Effective Email Marketing System
ADVERTISER INDEX
BACK PAGE
Advisor Today - November/December 2016 - cover1
Advisor Today - November/December 2016 - cover2
Advisor Today - November/December 2016 - 1
Advisor Today - November/December 2016 - 2
Advisor Today - November/December 2016 - 3
Advisor Today - November/December 2016 - 4
Advisor Today - November/December 2016 - 5
Advisor Today - November/December 2016 - 6
Advisor Today - November/December 2016 - 7
Advisor Today - November/December 2016 - FROM THE EDITOR
Advisor Today - November/December 2016 - 9
Advisor Today - November/December 2016 - VIEWPOINT
Advisor Today - November/December 2016 - NEW PRODUCTS
Advisor Today - November/December 2016 - 12
Advisor Today - November/December 2016 - I Love My Job, But I Don’t Want to Do it Forever!
Advisor Today - November/December 2016 - Building a Practice You Love
Advisor Today - November/December 2016 - The New American Dream
Advisor Today - November/December 2016 - A New View of Retirement
Advisor Today - November/December 2016 - College Education Funding: Helping Clients Evaluate What’s Best
Advisor Today - November/December 2016 - 18
Advisor Today - November/December 2016 - Portfolio Allocations for New Market Conditions
Advisor Today - November/December 2016 - 20
Advisor Today - November/December 2016 - Leveraging the Power of Study Groups
Advisor Today - November/December 2016 - 22
Advisor Today - November/December 2016 - 23
Advisor Today - November/December 2016 - An Interview with MassMutual’s James Ocampo on Critical Illness Insurance
Advisor Today - November/December 2016 - 25
Advisor Today - November/December 2016 - Start with “Why”
Advisor Today - November/December 2016 - 27
Advisor Today - November/December 2016 - Best Practices for Selling Group LTCI
Advisor Today - November/December 2016 - 29
Advisor Today - November/December 2016 - From Yes to Success
Advisor Today - November/December 2016 - 31
Advisor Today - November/December 2016 - Meet NAIFA’s New President
Advisor Today - November/December 2016 - 33
Advisor Today - November/December 2016 - 34
Advisor Today - November/December 2016 - 35
Advisor Today - November/December 2016 - 36
Advisor Today - November/December 2016 - 37
Advisor Today - November/December 2016 - NAIFA’s 2016 Performance + Purpose Conference
Advisor Today - November/December 2016 - 39
Advisor Today - November/December 2016 - 40
Advisor Today - November/December 2016 - 41
Advisor Today - November/December 2016 - 42
Advisor Today - November/December 2016 - 43
Advisor Today - November/December 2016 - 44
Advisor Today - November/December 2016 - NAIFA GOVERNMENT RELATIONS
Advisor Today - November/December 2016 - 4 Ways to Build an Effective Email Marketing System
Advisor Today - November/December 2016 - ADVERTISER INDEX
Advisor Today - November/December 2016 - BACK PAGE
Advisor Today - November/December 2016 - cover3
Advisor Today - November/December 2016 - cover4
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