Have you ever been declined for life insurance or been treated unfairly in the underwriting process. I’m not talking about being declined with stage 3 colon cancer or not getting the best rate class because you missed the height and weight guideline for that rate, but being declined for life insurance for something that makes no sense at all or being bumped a rate class when you meet all the criteria to have received it.
How can that happen? The easy out for life insurance companies and far too many life insurance agents is that, seriously, they don’t care. Companies have underwriting guidelines and 99% of them can’t see outside of that book. The can’t see or accept the exception to the rule and honestly I believe they are afraid to do it once for fear that they may have to do it again. The agents are a pathetic lot in that they are too lazy to shop cases ahead of time, or dig for all of the health facts so they will know what companies to avoid, or consider it a burden to start again when their client runs into a wall.
There are legitimate declines and rate bumps, but there are far more that are simply a case of using the wrong life insurance agent who didn’t have the knowledge and experience to know how to use the right company to get the right outcome. I don’t have the exact numbers or percentages, but at Hinerman Group it’s fair to say that more than half of our clients have been declined before coming to us and it is also common for many to have been unfairly rated for reasons that should garner the best rate class at another company. We regularly turn declines into approvals. I think equally telling is the fact that I rarely have to call a potential client and tell them I can’t help them at all.
As a customer I think the best course of action is to start by quizzing any potential life insurance agent about their familiarity with your particular underwriting challenge if you have one, or their willingness to continue to try elsewhere for the best rate if their best rate quote doesn’t pan out. If they don’t have a good working knowledge of your impairment, start somewhere else. If they aren’t willing to go the extra mile, go somewhere else.
Bottom line. All life insurance agents and companies aren’t created equal. If you have been the victim of bad underwriting or customer service from your agent, call or email me directly. My name is Ed Hinerman. Let’s talk.