You can spend months, sometimes years, developing a case. Before you submit that hard-earned application, spend 10 minutes adding a well-crafted cover letter.
A cover letter is a critical part of the underwriting process, giving you the chance to present a more accurate portrait of your client than the application may allow. A well-written letter that includes background on a client's risk factors can help move the application through underwriting. A poorly written cover letter or—no cover letter at all—could result in a quick decline.
To ensure your cover letter does its intended job, start by reiterating the type of policy your client would like and the face amount. Next, explain the purpose of the coverage – personal or business – and provide any additional details (e.g. whether the personal policy will be tied into loans or used for income replacement or estate coverage). For business policies, include the applicant's position within the company and any unique talent that would be difficult to replace. If a buy-sell agreement exists, detail how it will be tied into the company's value. For loan coverage, provide details on the loan. Be sure to note any additional companies where your client has submitted applications for insurance.
Follow with these three key points:
Explain how you and your client arrived at the desired face amount, provide details about any bankruptcies or poor credit scores, and explain any unusual situations that may merit special consideration.
Provide a summary of your client's relevant medical history. For any significant conditions your client has or had, include details on current and past treatments, medications and any outcomes. Note which rating class was quoted.
Share any relevant information regarding lifestyle risks, such as hobbies, exercise routines or travel preferences. If relevant, note any history of driving violations.
Finally, be sure to end the letter with your contact information so the underwriter can easily reach you for more information.
Spending a little extra time up front to provide the underwriter with necessary information can save time during the underwriting process. Try it on your next case!
Submitted by: Alar Hakk, CLU, ChFC, Sales Development Specialist of North American Company for Life & Health
Postema Marketing Group is a full-service Independent Marketing Organization (IMO) dedicated to providing world-class products and services to our clients. We have partnered with some of the strongest names in the insurance industry and proudly serve independent agents from coast to coast.
GET IN TOUCH.
Check us out on Social Media! Remember to Like, Follow, and Connect with us so you never miss out on the Latest Blog Posting's, Webinars, Updates, and Much More!
This site is not for the general public. It is for licensed insurance agents only. No portion of this website, or information contained therein, can be reproduced on other public or private websites without express written consent by Postema Marketing Group, LLC. Failure to comply with this policy will result in legal penalties. The materials contained in this site are for the purpose of providing our agents with a quick guide to products available through Postema Marketing Group. While we make every effort to maintain the accuracy of information provided on this site, Postema Marketing Group, LLC. DOES NOT GUARANTEE the accuracy of information provided on this site and is NOT RESPONSIBLE FOR ERRORS AND OMISSIONS. All information should be verified with Postema Marketing Group by the Agent.