I hope that you and your loved ones remain in good health and good spirits in these uncertain times. When last you heard from me, it was to address the first wave of changes to life insurance underwriting that were implemented in response to the outbreak – primarily consisting of postponement of applications for pending travel and the addition of good health statements to the delivery process. While these changes were somewhat restrictive and had a mild impact on the regular application process, they were relatively easy to grasp and eventually were applied in a near-universal fashion.
I write today because, since the start of April, we have begun to see a new wave of changes that are more restrictive and less uniform. As such, it will be incumbent on you, the agent, to stay educated so that you don’t steer your clients in the wrong direction at the outset of the application process. Our team is ready and available to answer any questions and provide assistance in navigating the rapidly changing landscape of underwriting.
In addition to the earlier changes (which remain in effect), some carriers have announced new limitations in the following categories:
Automatic postponement for older applicants
Automatic postponement for rated cases where the applicant suffers from a respiratory disease or disorder
Automatic postponement for rated cases for various age brackets
Automatic postponement for 30 days post-recovery for those diagnosed with Covid-19
Inability to bind coverage
As I mentioned, the trouble is that these limits are not uniform. Some carriers are refusing to take new applications from insureds aged 80 and up, while other carriers draw the line at age 70. Some carriers will not issue coverage at Table D rates (or worse) starting at age 65, while others draw the line at age 50. Some carriers have yet to announce any changes. This impacts your work directly, as quotes or illustrations that were run previously may no longer be valid.
If you have not already familiarized yourself with the Covid-19 section of our website, now would be a good time to do so. The “Covid-19 Underwriting Changes” spreadsheet is being updated on the fly and provides a bird’s-eye view of the differences from carrier to carrier. I would encourage you to look here first and to contact me or a member of our sales team if you have further questions.
Thank you for your partnership. Please continue to lean on us for our expertise as we all strive to provide valuable protection for our clients and their families.
Stay safe out there!
Duncan Advisor Resources – Brokerage General Agency
A LifeMark Partner
311 Main Street, Irwin, PA 15642
T 800.517.9901 x2116 F 804.482.2979
For Financial Professional Use Only
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment advisory services offered through Investment Advisor Representatives of Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Duncan Financial Group, LLC and its subsidiaries are separate entities. #294398