The perception that an underwriting postponement means ‘game over’ is flat-out wrong, caution experts, nonetheless anticipating more of them.
The prevalence of obesity is so common today it’s indirectly led to a longer underwriting approval process as insurers check under every rock for potential future problems with applicant clients. As a result advisors get worried when a client gets an underwriting postponement.
But advisors shouldn’t worry, says one seasoned player in Montreal.
“There’s no question that the industry in general is getting more concerned about various issues simply because they want to protect themselves,” said Montreal-based Tim Landry, a 46-year veteran in living benefits. “If you’re scheduled for a doctor’s appointment about anything your case is going to be postponed until the appointment’s done. That’s an automatic. Don’t even think about applying.”
It’s a standard that’s been around as long as Landry’s been in the business so if you’re new to insurance you might want to relax because it [underwriting postponement] is going to happen from time to time. So don’t sweat the small stuff.
In addition, a postponement is a better alternative to some of the other things that can happen to a new client applying for insurance coverage.
“I would rather a postponement than a refusal,” said Landry. “I guess if I were to rank them taking the negative ones, I’d say postponement would be the best one, the next one would be a rating because you’re fully covered but just paying more for it. Then probably an exclusion and last of all a decline.”
But even in the case of a decline it’s not necessarily permanent.
“You can get declines that are subject to reconsideration in ‘x’ period of time and you can get declines that are permanent,” Landry suggested. “So a decline that’s subject to reconsideration in three years, let’s say, is better than a decline that’s permanent. I mean it’s not good but it’s better than a decline that’s permanent.”
So, whether you’re new to the business or a seasoned vet, don’t worry be happy.
Postponement isn’t the end of the world.
But advisors shouldn’t worry, says one seasoned player in Montreal.
“There’s no question that the industry in general is getting more concerned about various issues simply because they want to protect themselves,” said Montreal-based Tim Landry, a 46-year veteran in living benefits. “If you’re scheduled for a doctor’s appointment about anything your case is going to be postponed until the appointment’s done. That’s an automatic. Don’t even think about applying.”
It’s a standard that’s been around as long as Landry’s been in the business so if you’re new to insurance you might want to relax because it [underwriting postponement] is going to happen from time to time. So don’t sweat the small stuff.
In addition, a postponement is a better alternative to some of the other things that can happen to a new client applying for insurance coverage.
“I would rather a postponement than a refusal,” said Landry. “I guess if I were to rank them taking the negative ones, I’d say postponement would be the best one, the next one would be a rating because you’re fully covered but just paying more for it. Then probably an exclusion and last of all a decline.”
But even in the case of a decline it’s not necessarily permanent.
“You can get declines that are subject to reconsideration in ‘x’ period of time and you can get declines that are permanent,” Landry suggested. “So a decline that’s subject to reconsideration in three years, let’s say, is better than a decline that’s permanent. I mean it’s not good but it’s better than a decline that’s permanent.”
So, whether you’re new to the business or a seasoned vet, don’t worry be happy.
Postponement isn’t the end of the world.
