Setting Expectations for Underwriting
Key Takeaways
Underwriting requirements and timing vary by insurer, product and the evidence needed.
Prepare clients for approval at quoted or different terms, requests for more information, postponement or decline.
Confirm coverage under the actual receipt or policy; payment, application and approval do not automatically establish coverage.
Setting Underwriting Expectations
Client Question: "How long will this take? When will I be covered?"
Check the carrier's current process. Some applications are handled quickly; others require exams, records or additional review. Give an estimate with its assumptions and update the client when circumstances change. There is no universal completion timetable or percentage of applicants who receive higher rates.
| Stage | What to explain |
|---|---|
| Application | Complete answers, authorizations, ownership, beneficiaries and replacement information |
| Evidence | Exam, records or other permitted checks if required; no-exam does not always mean no underwriting |
| Decision | An offer at a particular rate, additional information, postponement or decline |
| Acceptance and issue | Any changed premium or terms require explanation and the necessary acceptance |
| Effective coverage | Check all receipt, premium, delivery and other applicable contract conditions |
Discussing Rates
Preferred and standard classifications are carrier-specific. A preliminary quote is not a promise of the final premium. If an offer differs, explain the insurer's stated reason, seek correction of inaccurate information, and discuss available options without promising reversal.
Temporary Coverage
A conditional receipt or temporary insurance agreement may provide limited protection only under its stated conditions. Read its limits, dates and eligibility requirements. Never reassure a client that they are covered merely because an application and money were submitted.
Source: NAIC life insurance buyer guide.
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
- 4Check whether the carrier offers a home visit or another permitted exam location
- 5Explain expected steps and timing from the exam provider without promising a particular experience
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
- 4Check the actual temporary agreement, eligibility, limits and expiration before describing any 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