The underwriting process. This has been all over the place.
There’s a medical questionnaire. They’ll be looking at based on the information and pride on that. They’ll be also looking at your resident history, your driver’s record. They’re really looking at how you answer those questions, which should be truthful, but based on those questions, determines if you have a follow on health exam or not. Also the ability to pull your current medical records from your current primary care provider.
And as far as how long that has ranged from a week and a half to having a policy delivered, approve and delivered to eight weeks. And the variable in there, most of the time is access to the ER providers, medical records. A lot of times, you know, that’s the unknown variable. A lot of us, the agent or even the client, has very little ability to help that process along that individual. Where it took eight weeks and we kept on calling the provider’s office. They said they had it. They said, there’ll be working on it. There are some back and forth, but that has been the biggest variable and really out of the hands of the insurance companies or the agent and so just be aware of that.
Income documentation. So we also had our recent lesson learned on that. You’ll hear the $10 million mark is kind of that magical limit where below that, as far as the death benefit of stated income documentation is not required. It requires a verification signed by the agent and the client below 10 million. However, if there is something that doesn’t make sense. So say for example, the client is a janitor per se and they’re trying to pull off $6 million death benefit policy. That’s going to raise a lot of flags and at that point, what we’re seeing is the underwriter’s asking for tax returns to show that even though maybe that janitor is married to a real estate investor and has a large net worth that they’re looking at really the annual income of the individual. And I even stated that person is married to someone who has multiple extensive real estate portfolio and then the tax returns, they’re going to look for the AGI on there or the gross income numbers to match the claim. So just be aware of that. We can kind of push the limits, but you’re applying for life insurance and you would want the companies to do proper underwriting because that’s the risk that they’re taking. Again. I think it can get frustrating, but basically part of the company, you can appreciate that they’re doing their due diligence correctly.
Oh, that example sounds really familiar. My wife is not a janitor. But yeah, what do you do with if a lot of the people are business owners and they’re really good at making their income go down to nothing? So they’re a really good passive real estate investor. And the ATI is like 25,000 until at that point.
Well, it had all the time we do what a cover letter, and we can present a story just ahead of time and it may all make sense. And as long as we can present that story, it’ll go through, I think doing it upfront that way is a lot more beneficial and believable than kind of after the fact than coming in and saying, oh, but this and this, that’s a big lesson learned when we have those types of policies that we’re trying to get through we really want to just create a strong story. We’ll write a cover letter, provide maybe some documentation ahead of time just to show, and they’ll be more favorable that way and more likely to go approved.
And then going back to the other question just a little while ago on putting the policy on your kid or their little baby, think about getting it on your spouse, especially if your spouse is a woman, because they live longer than guys. They’re just cheaper to insure too.