Best Claims Process?

[Norton]

So I'm meeting with a 62-Male/NT tomorrow after talking with him over the phone last week. He just got married and wanted to meet after his honeymoon and wedding stuff was over... Says he has a Farmers term policy that 'can't be beat'. We'll see about that.
However, he mentioned a few times how he'd be most interested in a policy with a very smooth, simple, dependable claims process. I think with a new bride, he's starting to look ahead and wants to make sure things go smoothly when the time comes -- I haven't been in the industry long enough to know if there's much of a difference with the claims process from carrier to carrier... but if he's telling me that's a hot-button topic for him, how could you use it to differentiate a policy from any other one?

(for the discussion, let's say I have companies like NA and AmGen for GULs, and Americo/MoO/UHL/AmAm/RNA for non-med.)

 

[WinoBlues]

So I'm meeting with a 62-Male/NT tomorrow after talking with him over the phone last week. He just got married and wanted to meet after his honeymoon and wedding stuff was over... Says he has a Farmers term policy that 'can't be beat'. We'll see about that.
However, he mentioned a few times how he'd be most interested in a policy with a very smooth, simple, dependable claims process. I think with a new bride, he's starting to look ahead and wants to make sure things go smoothly when the time comes -- I haven't been in the industry long enough to know if there's much of a difference with the claims process from carrier to carrier... but if he's telling me that's a hot-button topic for him, how could you use it to differentiate a policy from any other one?

(for the discussion, let's say I have companies like NA and AmGen for GULs, and Americo/MoO/UHL/AmAm/RNA for non-med.)

With the exception of AmAm I have all those and more. Hands down for me the best claims process company over the last 28 years and hundreds of claims is United Heritage. On non contestable claims they have the checks mailed or overnighted within 24 hrs of notification of death by the funeral home. Not the death certificate, just faxed notification. Not a percentage of the claim but the full amount. Recently did one, guy died on Monday night. One check for funeral expenses and another for the balance to the $250k were in the mail Tuesday. Checks got there before his service on Friday.

My mother died on a Sunday. We received the checks on Tuesday.

 

[Norton]

Hands down for me the best claims process company over the last 28 years and hundreds of claims is United Heritage. On non contestable claims they have the checks mailed or overnighted within 24 hrs of notification of death by the funeral home. Not the death certificate, just faxed notification.

Nice... Although my 'UHL' is the other one, United Home Life/UFFL. Any other thoughts on how I should approach this client?

 

[meclimit]

Most carriers require the same thing for any claim -- a certified copy of the death certificate stating the cause and manner of death and a claim form. If the claim is for a small amount, some will just take the funeral home's word that the insured is deceased. Additional documentation is usually required for trusts/estates. Why not get a sample claim form from the carrier you recommend and show it to him?

Some carriers who may be known for speedy underwriting have horrible track records when it comes to contestable claims. Why? They want to get the policy issued as quickly as possible, with the thought that if someone is lying on the application or not completely disclosing their health history, the carrier can use the contestable period to re-underwrite the case. Faster underwriting is not always better.

 

[goillini52]

Most carriers require the same thing for any claim -- a certified copy of the death certificate stating the cause and manner of death and a claim form. If the claim is for a small amount, some will just take the funeral home's word that the insured is deceased. Additional documentation is usually required for trusts/estates. Why not get a sample claim form from the carrier you recommend and show it to him?

Some carriers who may be known for speedy underwriting have horrible track records when it comes to contestable claims. Why? They want to get the policy issued as quickly as possible, with the thought that if someone is lying on the application or not completely disclosing their health history, the carrier can use the contestable period to re-underwrite the case. Faster underwriting is not always better.

He's talking about fast claims paying (so his widow will get the money quick and hassle free "when the time comes")...not underwriting.

 

[Norton]

He's talking about fast claims paying (so his widow will get the money quick and hassle free "when the time comes")...not underwriting.

No worries, I get what he was saying... and actually, it was a pretty darn good 'first post'. Some agents tout 'quick and easy underwriting' as a selling point; it's a valid observation to say that some of those same carriers are more likely to contest a claim on the back end, as opposed to those who do more checking up front. (I don't know how often that's true, but it stands to reason...) I do like the suggestion of getting a claim form to show the process. 'Showing' can be more effective than 'telling'.

 

[goillini52]

No worries, I get what he was saying... and actually, it was a pretty darn good 'first post'. Some agents tout 'quick and easy underwriting' as a selling point; it's a valid observation to say that some of those same carriers are more likely to contest a claim on the back end, as opposed to those who do more checking up front. (I don't know how often that's true, but it stands to reason...) I do like the suggestion of getting a claim form to show the process. 'Showing' can be more effective than 'telling'.

My comment was directed at meclimit.

Yes it was a good 1st post. I'm not comfortable with the issue now, underwrite at claim time policies either...on FE or Med Supps. I know lots of agents don't like POS, but I prefer them...especially the ones that approve it on the spot.