A Little Extra

I was reading Life Insurance Breakpoints and I thought I would share a story with you.

The other day I got great news back on an insurance policy that I submitted on a husband.  He came back the best underwriting class possible.  Wasn’t that great?  Well when I submitted the application, price was a deciding factor into the amount of coverage he was going to get.  This meant that the application was submitted for the most amount of coverage for a set premium.  Just to fill you in it was 20-year term insurance if anyone was wondering.

I get the great news and the insurance company sends me the policy.  Well I take one look at the policy and see that the face amount is now about $465,ooo.  I go right to my illustration system just to check on the bands.  Come to find out if this client took out a $500,000 death benefit the policy was actually going to be just over $30 cheaper per year.  Over 20 years that will save this client over $600.

The policy didn’t automatically adjust for this.  The insurance company didn’t automatically make an adjustment.  The insurance company this policy is with has a Comdex rating of 99.  This puts it in the top 1% financial rating of all insurance companies.  My point is that unless who ever you are working with is aware of this and physically runs a couple of more illustrations, no one might even realize this.

For this client, I helped them get the extra insurance coverage while saving  money.  It just ends up taking an extra few days between mailing the policy back and getting the new corrected one.  All it took me was 10 minutes to run the illustrations and a trip to the post office.

If you have questions, contact me.

What extra things do you do for your clients, that they aren’t aware of?

Tagged as: illustrations, life insurance, premium bands, term insurance