How much does an insurance company think that your client is worth? Many times, it is much more than how much your client actually does, and we have their underwriting guidelines to prove it!
Let’s factor in the details that could multiply your sales.
The most common insurance need among clients is to replace the income survivors would have anticipated had premature death not occurred. The starting point for calculating the amount of coverage a carrier will issue for purposes of income replacement is determined by a multiple of current annual compensation based on the proposed insured’s age.
The multiple decreases with age, understandably, because death denies a person fewer potential income-producing years as they get older. Multiples vary from company to company.
|To Age 40||35|
|41 – 50||25|
|51 – 60||20|
|61 – 70||10|
|71 – 80||5|
Carriers will usually only take earned income into consideration unless it can be shown that the insured’s death might have a direct effect on unearned income. Many of our carriers can insure non-working spouses, too, for an equal amount as the working spouse. This could yield two sales instead of one.
Please note that each carrier has their own specific guidelines, so contacting the Life Underwriting Team first to get those details will be key. We’ll do the math for you. Multiplying those sales never looked so good!
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