Having Trouble with Co's Asking for Tax Returns on Older People

[WinoBlues]

Thanks didn't know American national had one but I just ran some illustrations and comparisons against north American,transamerica,american general and sagicor. Its really not competitive and north American looks the best with American general second. But I do like American nationals underwriting.

Competitive starts with the policy you can get issued.

Assuming you are shopping these to the underwriter beforehand ask if they will take records of deposits. Many self employed people understand they have to show more to qualify for things like mortgages. They do not like it but the understand it. That or stack simplified issue.

 

[VolAgent]

I'm with Larry and Dan. I suspect there is more to this. They are probably getting conflicting information and want clarification. It is one thing to let the client ballpark their income, it is another to do it for them. If the OP is doing the later, I suspect that is driving the problem.

Also, just how many times has this happened? Multiple times with one carrier? If so, the OP has probably gotten flagged and can expect more of this until proving himself/herself.

 

[Cash]

Competitive starts with the policy you can get issued.

I am going to save that if you don't mind.

 

[jlata1]

well when a 72 yr old wants $250k at $1400 a month and says he makes $80k it creates a flag. I deal with some people who deal in cash business's like ahmed the convience store owner.What they make I have no idea nor do I care. I ask the questions and write down what they tell me .Some co's are picky others aren't.

 

[WinoBlues]

well when a 72 yr old wants $250k at $1400 a month and says he makes $80k it creates a flag. I deal with some people who deal in cash business's like ahmed the convience store owner.What they make I have no idea nor do I care. I ask the questions and write down what they tell me .Some co's are picky others aren't.

Then you get what you get. This is not FE, field underwriting is more than reading the app to the prospect.

 

[UW Guy]

Then you get what you get. This is not FE, field underwriting is more than reading the app to the prospect.

Preach it!! Could you start tell this to the Kool-aid drinkers I have to work with? They leave financials off all the time and just say that we'll get it on the PHI. And the needs analysis program they use is interpreted as loosely as Vlad Putin looking at a border.

Income replacement factors with most carriers go down a great deal over age 55-58 (like to 4-7x annual income) so if his 72 yo is walking around with an old $250k he's had forever and isn't giving a convincing NW or other financials I can see him getting hassled.

 

[jlata1]

you sure you're an underwriter. american national which is standard is 10-15 times earned income ages 50-60.

 

[WinoBlues]

you sure you're an underwriter. american national which is standard is 10-15 times earned income ages 50-60.

Each company has their own numbers. Just like the difference in cognitive test over 70. post what you find as the best multiples. I write South East Asians and bump up against this problem all the time.

 

[DHK]

well when a 72 yr old wants $250k at $1400 a month and says he makes $80k it creates a flag. I deal with some people who deal in cash business's like ahmed the convience store owner.What they make I have no idea nor do I care. I ask the questions and write down what they tell me .Some co's are picky others aren't.

It's also in how you ask certain questions.

With business owners that are cash-based... I would ask "How much would the IRS say that you earn?" Not only is that more realistic for underwriting, but it helps to know what they could get for disability coverage, if they were eligible.

 

[jlata1]

It's not like I'm asking for $5 mil. It's a crappy $125k expensive ul or whole life on a 70k plus yr old. $200k on a 65 yr old.ill just stick with American General and american national who seem more lenient.