Underwriting/pre-screen

[Guest]

Trying to break into the under 65 health market from the senior market has been a good move for me. Marketing is easier, pay is better, travel is less.

However, the biggest obstacle for me has been underwriting. How do you go about pre-screening and at what stage in the sales process do you do it.

Obviously asking health questions on a cold call is out of the question...right?

So do you reschedule a time to talk and then ask the health questions?

What have you personally done that works consistently?

I lose about 50% of my apps right now due to underwriting...that tells me I am not pre-screening properly.

 

[Crabcake Johnny]

Great topic. I don't qualify on the 1st call if I'm telemarketing myself - just generate the lead. When I call back the second time I ascertain if they even have interest in using my services. If they do, then it's qualification time.

"What I do is simply help people who are having issues with their health insurance. Most of my clients needed a lower premium, others wanted immediate coverage and a few just wanted a better plan. What would you like to change about your situation?" Then don't say a word. Their response will tell you everything you need to know.

If interested, I simply tell them that the final rate depends on their health so if they want an accurate quote in need their health info. I want EVERY time they sought medical treatment of the past 5 years:

"Frank, over the past 5 years how many times have you seen a doctor?" Forget about asking if they have "pre-existing conditions." People don't know what that means and will omit that they came off depression meds 3 years ago. Also, I don't leave out "Do you have any pending doctor visits, treatment or testing."

In any case, I collect all their health info then say:

"Ok, so your husband has high blood pressure and takes 10 mgs of Cardizem and his last readings were 135/90 and he got diagnosed 5 years ago. You have season allergies and take OTC medicine as needed and your son has ADD and takes Adderol once a day. What I'm going to do is contact the insurance companies, find out the outcome then I'll call you back and go over your options and recommend a plan."

I lost about 2% of my apps due to underwriting and that 1% is normally when pre-screen flat out lies to me. Then I have to place them somewhere else. But as far as the percentage of people who submit an app? Almost 100% gets placed. I just know better now as to what to submit and what not to submit.

 

[somarco]

If underwriting is a challenge to you imagine how it must be to the consumer who tries this on their own?

The biggest key to underwriting is getting copies of all carriers underwriting guides and reading them thru with a highlighter. You will see similarities and differences from carrier to carrier and will eventually figure out where to go depending on the situation.

Go to pre-screen if you are unsure of a situation. A pre-screen can save a lot of time but is only as good as the information given to the carrier. Leave something out like the fact that your HTN + hyperlipidemia client is also a smoker and you are in for a rejection.

Basically a pre-screen is a mini app. You want to collect information and pass it on for a review.

I never do a pre-screen until I feel I have a committed prospect. I will point out generalities such as a few carriers will turn you down for being 6' 3" and 270# while others will surcharge your rate by 20 - 50%. There is one carrier who might take you at standard rates but we can cover that when we have found the plan that fits your needs & budget.

I never discuss specifics on underwriting with a prospect until I have their assurance that they are through looking around and talking to other agents. Doesn't mean they don't dump on me, but I don't waste as much time as I used to with deadbeats who will rob me.

You have to understand that underwriters wake up in the morning looking for ways to make your life miserable. Every file they touch starts out with a no answer. It is your job to make it easier for them to say yes.

 

[J.R.]

Trying to break into the under 65 health market from the senior market has been a good move for me. Marketing is easier, pay is better, travel is less.

However, the biggest obstacle for me has been underwriting. How do you go about pre-screening and at what stage in the sales process do you do it.

Obviously asking health questions on a cold call is out of the question...right?

So do you reschedule a time to talk and then ask the health questions?

What have you personally done that works consistently?

I lose about 50% of my apps right now due to underwriting...that tells me I am not pre-screening properly.

I have taken John and Bob's approach and thrown in a bit of Borat and J.R. into the mix. If you'd like a copy of the sheet I use when I qualify people e-mail me and I will send it to you.

The questions are not in order, nor are they verbatim, but they do help me keep on track and get the information I need.

 

[Crabcake Johnny]

The single largest reason for declines are undiagnosed conditions or conditions that require a follow-up. You know you're screwed when a client says this:

"Yeah, I had some chest pains a year ago and saw a cardiologist. He did an entire work-up and said he couldn't find anything."

Errrrrrrr. Insurance companies hate that. They want a diagnosis. You won't get by with "I've had back problems, my doctor said that right now it's nothing to worry about but we need to keep an eye on it." That app's going nowhere.

Another one: "My doctor said I don't have arthritis but prescribed medication anyway to prevent bone loss. I have to go back for another density scan in a few months but I always have to go and every time the doctor says I'm just fine." Don't bother. If you do bother don't go spending that money yet.

If you have a great closing ratio you're not doing a good pre-screen. I know agents saying they close 1 out of 6 or 1 out of 8 leads. Impossible. With a thorough pre-screen most people simply don't qualify for individual coverage or underwriting will terrorize them. That why I deal with an ass-load of leads.

When I talk to a prospect now and I hear stuff like "Yeah, I've had some shortness of breath" the rest of the conversation to me sounds like the teacher on Charlie Brown. I'm done.

 

[Guest]

So, why are you calling them back after the first call if not to give a quote? You generated interest the first call, then what? You can't say you will call back with a quote, because you have not pre-screened. I see a 3 call minimum in your process before a quote is given: First call generates interest, Second call is pre-screen, Third call is presenting quotes/choices.

What are you telling them after the first call?

 

[Crabcake Johnny]

1st is just to generate the lead. 2nd is to ascertain interest. If no interest there's never a 3rd call. If interested I qualify. This is when it's get very case-by-case and really depends on how much time they have. I don't need to call pre-screen anymore for your run-of-the-mill conditions. I'll show them quotes on the 2nd call and even do an app for some singles if the situation fits.

If not, then I have to set up a 3rd call to go over quotes. A lot of this involves a 6th sense and reading people correctly. There's a difference between calling someone six times who has little interest and just jerks you around and calling 6 times to someone with high interest who's truly busy or simply needs to speak with you often to trust you enough to write the deal.

 

[Alsky]

Is there anything you are doing or saying to solidify your tele-appointments?

I repeat the time and day a couple of times, and ask them to write it down and to please call me if they need to reschedule the appointment before I get off the phone and send an email the day of the appointment to confirm.

It seems it is easier to no show the appointment when it is a tele-appointment vs face to face appointments. Many times I have to reset the appointment due to the prospect being busy when I call.

I know its the nature of the beast but just wondering if I can tweak my approach.

 

[Crabcake Johnny]

People who actually want your help remember the appointment and pick up the phone. People who don't want your help also remember the appointment and don't pick it up. Don't stress over it - get a lot of leads.

 

[TXINSURANCE]

Simple Pre-Screen:

1. Who is looking to get coverage? (Internet leads are often keyed in wrong)

2. How soon are you looking to start a plan (they say 6 months you need to wrap up the call and put them on your follow up list)

3. Does anyone have any pre-existing conditions? (Yes I believe this is a good question - but the answer is usually NO until you follow up with...)

4. Does anyone take any prescription medication in the past 12 months? (This tells you there conditions)

5. Verify Information - Zip Code, Date of Births, Height and Weights, and Tobacco usage.

6. Quote plans, overcome objections, and TRIAL CLOSE - this is where most agents fail (they don't ASK for the sale)

I do NOT recommend carrier PRE-SCREEN - i.e. send to carrier to see likely outcome - if you have to do this, I am of the opinion you just don't know your underwriting guidelines very well. This is something I used when I was new in the business and found it to be inaccurate and complete waste of time (my opinion of course...)

Other tips...

-Keep your guard up. If someone starts asking about Maternity - your immediate response should be IS ANYONE PREGNANT? HAVE YOU TAKEN A HOME PREGNANCY TEST THAT SHOWED POSITIVE?

Or odd questions normal healthy people would not ask such as "What if my kids tonsils need pulled out?" - My response DO YOUR KIDS TONSILS NEED PULLED OUT?

It is often times pulling teeth to get people to be straight with you - but if you put the ball back and their court they usually dig themselves a hole. The important thing is to LISTEN more than TALK and respond ACCORDING to what your client is saying.

I also recommend having a wide range of INDIVIDUAL COMPANIES AVAILABLE since underwriting guidelines are so drastic between companies - for example:

High Blood Pressure -

Company #1 - Decline if BMI over 25, other meds
Company #2 - 10 year waiver
Company #3 - 25% rate up
Company #4 - Preferred

Asthma...

Company #1 - Waiver
Company #2 - Waiver
Company #3 - Rate up 25 - 50%
Company #4 - Possible preferred or waiver

Height and Weight tables vary drastically as well from company to company. Some companies rate up sooner than others , or even decline - Tobacco is a factor with h/w on most carriers as well.

Here is my bottom line...

Individual is not an easy business. We spend a lot of time during the day cleaning up after other agents failed, or customers thought they were smart enough to figure this out on their own (which is laughable if they knew how complicated it was).

My whole life is individual under 65, it is all I do - and all I have ever done. You need 2-3 REPUTABLE companies and you need to learn when to use them, be careful chasing your commissions around it will blow up with individual insurance. Making proper recommendations is the ONLY way to last in this business - I assure you.

Good luck this can be a GREAT business - Individual is the future of Health Insurance, the market is booming and good times await us - enjoy.