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Life Insurance Field Underwriting Education: Why It’s Important

Most life insurance producers haven’t been adequately trained in field underwriting.

This lack of education is a detriment because this specific skill is a valuable one to possess.

Let’s take an in-depth look at what field underwriting is, why it’s so important to be good at it, and what problems could come up.

Definition of Life Insurance Field Underwriting

Field underwriting is the process of a life insurance producer making an assessment or gathering meaningful information about a prospect’s insurability on the spot or “in the field.”

Problems With a Lack of Field Underwriting Education

Imagine this scenario:

You’ve spent a fair amount of time with a prospect, laying out how and why your products and services will be a benefit to them. You’re asking questions, (though you’re not really sure they’re the right ones because you missed that training session!), and your potential customer decides to pull the trigger.

After going through the whole application process, the prospect is rated, or worse – denied. You’ve wasted their time and yours.

Is this happening to you more often than you’d like to admit?

Benefits of Doing Field Underwriting Well

The Benefits of Proper Field Underwriting Include:

  • Saving time.
  • Closing more cases.
  • Setting realistic expectations.
  • Building your credibility and reputation.
  • Favorable word-of-mouth leading to more sales.

When you get the life insurance field underwriting training you need, your story can have a much happier ending!

Take a close look at the biggest advantages of going out into the “field” well prepared.

  • It saves time. We all know that the old saying, “Time is money” is true.
  • You’ll increase your closing rate because you’ll close more cases.
  • It allows you to set realistic expectations for your clients.
  • It builds your credibility as a life insurance producer and gives your reputation a boost.
  • If you satisfy one client, it could lead to favorable introductions to others.

Knowing if your prospect is insurable or not upfront can make all the difference between a disgruntled or a satisfied customer.

Tips for Effective Field Underwriting

Tips for Effective Field Underwriting

  • Familiarize yourself with your prospect.
  • Include a well-written cover letter.
  • Use the right tools.

You know it’s important, but how can you develop field underwriting skills?

Here are a few ways to make sure that you’re on the right track.

1. Familiarize Yourself With Your Prospect.

Ask the right questions about their health history.  

Ask about the medications they take, and why. Are they currently or have they suffered from cancer, diabetes or heart disease? If so, be sure to get details about their treatment, including the dates. 

You should also be able to express how you met this particular prospect. Was it a referral from a friend? Are they a neighbor? 

2. Include a Well-Written Cover Letter.

An effective cover letter provides helpful information that can make the underwriting process quicker and prevent any hold-ups by being clear about the need or purpose for the insurance. 

Keep in mind that it’s not all about the length of the cover letter. It can be short and sweet, as long as it provides the important information.

3. Use the Right Tools.

At Leisure Werden & Terry, we have the best multi-carrier field underwriting and quick-quote management tool in the industry. 

It’s called XRAE and it can implement over 30,000 underwriting rules based on over 500 potential questions in less than one second to determine the “best case” underwriting classification for multiple carriers. 

Here’s what else it can do:

  • Input a client’s information and compare it to several carriers.
  • Track the status of quick quotes.
  • Forward a client’s information for further evaluation.
  • Keep a permanent record of responses.  

The Bottom Line

Knowing how to be an effective field underwriter can save you and your clients time and money, as well as establish a solid reputation for you.

Updated 7/2021

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