Setting Expectations for Underwriting
Key Takeaways
Agents who set realistic expectations retain 70% more clients when ratings come back higher
The average fully underwritten policy takes 4-6 weeks—clients who expect 2 weeks get frustrated
15% of applications result in table ratings—preparing clients prevents lost sales
The Underwriting Reality
Client Question: "How long will this take? When will I get my policy?"
Setting realistic expectations is crucial: the average fully underwritten policy takes 4-6 weeks, and 15% result in higher-than-quoted rates.
What to Explain
| Stage | What Happens | Timeline |
|---|---|---|
| Application | Basic info, health questions | Day 1 |
| Medical Exam | Paramedical exam (if required) | 1-2 weeks |
| Underwriting | Review of application, records | 2-6 weeks |
| Decision | Approved, rated, or declined | 3-8 weeks |
| Policy Issue | Policy delivered, coverage begins | 1 week after approval |
Possible Outcomes to Discuss
- Preferred Plus — Best rates, excellent health
- Preferred — Great rates, minor issues
- Standard — Average rates, typical health
- Table Rating — Higher rates due to health concerns
- Decline — Cannot offer coverage
Explaining the Medical Exam
A client nervous about the paramedical exam
Setup
You've completed the application and need to schedule the medical exam. The client is anxious about needles and medical procedures.
Client says:
“Wait, I have to do a medical exam? What does that involve? I hate needles. Do I have to go to a doctor's office? Can't you just use my regular doctor's records?”
Practice Objectives
- 1Explain the paramedical exam process calmly
- 2Describe what happens (vital signs, blood, urine)
- 3Address the needle concern with empathy
- 4Explain that it comes to them at their convenience
- 5Reassure them it's quick and routine
The Rating Possibility
A client who might not get standard rates
Setup
A client with controlled high blood pressure has applied. You need to prepare them that they might not get standard rates.
Client says:
“So the application is in. You quoted me $50/month. That's what I'll pay, right? How soon will I get my policy?”
Practice Objectives
- 1Gently explain that quoted rates are preliminary
- 2Describe how underwriting might affect pricing
- 3Prepare them for possible table rating
- 4Explain what happens if rates come back higher
- 5Set realistic expectations while staying positive
Underwriting Taking Long
A client frustrated by slow underwriting
Setup
It's been four weeks since the application and the client is calling to complain about the delay.
Client says:
“It's been a month! What's taking so long? You said it would be two to four weeks. I'm paying for temporary coverage and I don't even know if I'm going to be approved. This is ridiculous.”
Practice Objectives
- 1Acknowledge their frustration—it's valid
- 2Explain what might be causing the delay
- 3Offer to check on the status
- 4Reassure them about their temporary coverage
- 5Set updated expectations without over-promising
The Unexpected Rating
A client who got rated higher than expected
Setup
Underwriting came back with a table rating. The $50/month premium is now $75/month due to weight and borderline blood pressure.
Client says:
“What do you mean $75 a month?! You told me $50! This is a bait and switch. I knew this was too good to be true. I'm not paying $75.”
Practice Objectives
- 1Stay calm—don't get defensive
- 2Explain what happened in underwriting
- 3Acknowledge their frustration as reasonable
- 4Discuss options (accept, appeal, shop elsewhere)
- 5Be honest about what's possible
- 6Help them decide if the rated policy still makes sense
Before submitting an application for a client with health concerns, you should:
Quote standard rates to keep them interested
Prepare them that underwriting might affect pricing
Guarantee they'll be approved since you're an experienced agent
Submit and deal with any rating issues later