Subscribers Feedback - Simplified Issue

In the July 2013 Update News Compulife discussed problems it was having in relationship to "Simplified Issue Products" and asked subscribers to email their views and answers to questions posed. We promised to provide the feedback and keep individual identities anonymous:

1. Should Compulife ignore United of Omaha's request, and place the Simplified Issue products into our software?

Subscriber 2 - Yes, if you can get the rates from agents, but UoO might change info so the agents are unable to provide that info eventually

Subscriber 3 - Unless prohibited by law, yes, we would like the Term Life Express (TLE) on Compulife [it is NOT prohibited by law]

Subscriber 4 - Only if Compulife compares the SI product to other SI products. Why is it different than comparing a 15 year rate guarantee to a 20 year rate guarantee?

Subscriber 5 - No. Honor their request. They have a valid point.

Subscriber 6 - Yes. More info the better.

Subscriber 7 - Yes

Subscriber 8 - I don’t think so. – since you are risking with their GUL Pricing which is very competetive and will be a great loss if they take it off…(even though I'm using their own software for quoting, it’s still very helpful when I'm looking for a quick price quote.

Subscriber 10 - yes

Subscriber 11 - not sure, maybe go about this via a separate category

Subscriber 12 - You really don't want to tick them off. A compromise or a mutually agreeable solution would be nice.

Subscriber 18 - Yes

Subscriber 19 - YES. MANY COMPANIES OFFER DIFFERENT PRODUCTS TO ACCOMPLISH THE SAME GOAL. IT IS AN AGENT'S JOB TO STEER THE PROSPECT TO THE BEST PRODUCT FOR THEIR INDIVIDUAL SITUATION AND KNOW THEIR UNDERWRITING GUIDELINES. IF AN AGENT IS JUST QUOTING PRICES, THEY ARE SIMPLY ORDER TAKERS. THERE ARE TOO MANY COMPANIES THAT BYPASS AN AGENT AND CUT US OUT BY OFFERING PRODUCTS BY DIRECT MAIL, ONLINE APPLICATIONS ECT.

Subscriber 21 - Yes

Subscriber 22 - YES. I would love to see a simplified and guaranteed issue option on compulife. If you had that with a link to forms you would help those carriers sell a ton of business. !!!!!!!

Subscriber 24 - Yes, it serves a purpose and the U of O’s excuse of ignorant agents or agents using TLE comparisons as a reason for lack of production is absurd. You can’t fix stupid… or excuse makers! But you should not punish those of us who understand the portfolio and would be selling a lot more if it were easily available as it had been on Compulife.

Subscriber 25 - Yes

Subscriber 26 - My answer is yes. The main reason it appears they do not want this product quoted is that it is not price competitive.

Subscriber 28 - Yes

Subscriber 29 - I could answer that either way but I think I would probably honor their request. Building trust and respect will help in the long run.

Subscriber 30 - I thought to simply separate the “defined type of product” as I was reading your bulletin, then after reading their email response, I saw they suggested the same. I thought “perfect”. They are willing to do this.

2. Do you sell Simplified Issue products?

Subscriber 2 - yes

Subscriber 3 - Yes

Subscriber 4 - No

Subscriber 5 - Yes

Subscriber 6 - Yes

Subscriber 7 - Yes

Subscriber 8 - Some

Subscriber 10 - not really

Subscriber 11 - yes, especially for people with medical history

Subscriber 12 - Yes when the situation dictates. Very small portion of my sales.

Subscriber 18 - Not often

Subscriber 19 - YES. ABOUT 50% OF OUR NEW BUSINESS IS SIMPLIFIED ISSUE

Subscriber 21 - Yes

Subscriber 22 - Yes, and it’s a pain in the ass to quote them. It is the worst thing we deal with and you could fix that.

Subscriber 24 - Yes

Subscriber 25 - Rarely

Subscriber 26 - Yes I do. On the term side there is Sagicor, Assurity, ANICO, Liberty Bankers, Mutual of Omaha and Fidelity. Also Life of the Southwest marketing by National Brokers. At the moment the most competitive are Sagicor for non smokers and Life of the Southwest for smokers.

On the permanent side there are a plethora of carriers. Compulife has very few, however fexquotes.com has a decent database

Subscriber 28 - Yes

Subscriber 29 - Yes including Guaranteed Issue products.

Subscriber 30 - Yes.

3. Do you use Compulife to sell Simplified Issue products?

Subscriber 2 - Somewhat, not as a target, but if I am looking for Assurity or if I am looking at $25k and below, I start at Compulife for easy quoting. If there were more companies showing, I would look at those

Subscriber 3 - Yes, 100% of the time unless our producer requests a specific product that is not available on Compulife.

Subscriber 4 - No

Subscriber 5 - No

Subscriber 6 - Yes. Non-med anyway. Assurity and ANICO mainly as I never want to take the trouble to boot up MOO's software.

Subscriber 7 - Yes and it’s easiest way for me to quote. If they don’t show up in compulife, very good chance those products won’t get sold

Subscriber 8 - No, I would rather suggest that you add a new field for SI category, and I think that will satisfy everyone and end the discussion.

Subscriber 10 - I would if I sold SI

Subscriber 11 - no

Subscriber 12 - Yes

Subscriber 18 - No

Subscriber 19 - YES. IT IS MY FIRST GO TO COMPARISON OR QUICK QUOTE RATE SOURCE

Subscriber 21 - Yes

Subscriber 22 - No

Subscriber 24 - Yes

Subscriber 25 - Yes

Subscriber 26 - To some extent, especially for the term products. Not at all for the permanent plans.

Subscriber 28 - Yes

Subscriber 29 - No. The product varies so much from company to company it is difficult to compare by price. It is also difficult to filter through all the products in the program that are not SI. This may be more of an operator deficiency. I have to use individual rate cards or company quoting software. Sometimes I use Compulife to see what is available for small amounts like under $25k. This is very helpful.

Subscriber 30 - No, because it is not separated. Each respective company defines what “simplified issue” is. After that, it is ultimately up to the agent to know the UW guidelines and what the application looks like regarding the questions. A suggestion: Put a link in your software hyperlinking to the company “forms” page. Yes it is a deep link, and yes the agent will need to be appointed with the company to access it. The website will just prompt for a user/pw, then proceed to the deep link in most cases where the agent can easily “double check” and review the questions or navigate over to them.

4. Do you use Compulife to sell against Simplified Issue products?

Subscriber 2 - Yes, but I wish there were more products showing

Subscriber 3 - No, I use Compulife to generate business based on the case presented. Compulife is a sales tool, not a sales avoidance tool. This seems to be a strange question.

Subscriber 4 - No

Subscriber 5 - On rare occasion. The environments for SI & "Individually underwritten" usually have a clear seperation. An SI environment occasionally produces a lead or two to take through CompuLife.

Subscriber 6 - Yes.

Subscriber 7 - NO, I’ll give choice. Don’t want to have an exam cost is X, are okay with exam and cost could be Y

Subscriber 8 - No

Subscriber 10 - I would if I sold SI

Subscriber 11 - no

Subscriber 12 - At times, depending on the clients health status and their willingness to have a blood draw, HOS sample, etc.

Subscriber 18 - No

Subscriber 19 - YES. MANY TIMES A PROSPECT IS QUOTED A SIMPLIFIED ISSUE PRODUCT BY ANOTHER AGENT AND NOT A NLUL TO EARN AN ADVANCED COMMISSION. IF A CLIENT IS OK WITH FULL UNDERWRITING, WE'LL DO WHAT IS BETTER FOR THE CLIENT, NOT THE AGENT.

Subscriber 21 - Yes

Subscriber 22 - No

Subscriber 24 - NO, SI products are quoted/sold as such and with the explanation that they cost more due to the “SI” approach. Also the u/w criteria/guidelines help us get properly priced life insurance for those who fit the criteria of SI better than “rated” u/w term or ul. IN fact, our approach is the opposite to selling against, we use the comparisons to help people go forward with the buying decision for either a fully u/w or SI product and having them side by side helps that process!

Subscriber 25 - Yes

Subscriber 26 - Absolutely, especially for anyone who can health qualify. However a large portion of my internet inquiries are for no exam products. The advantage of using Compulife is that client knows up front what the extra cost is. It increases my credibility with prospects that I never meet face to face.

Subscriber 28 - YES – Although to be honest I wish there was a separate Non-Med category merely for convenience.

Subscriber 29 - No. They are apples and oranges. Most of the time I use Compulife to quote SI for small amounts or final expense. Occasionally I will have a client that doesn't want to have blood drawn so I will quote a SI product for them. Once they see the price difference the needle doesn't seem so bad.

Subscriber 30 - No, it’s a different market. I would LOVE to see SI as well as GI under their own categories in Compulife. I do not sell a company’s products when I have to jump through hoops to do business with them as it often is an indicator the difficulty a client would have when needing their services.

5. Is it fair/unfair to include Simplified Issue products in categories with fully under written products?

Subscriber 2 - Sort of, but really it is incumbent upon the agent to understand the difference. No exam = higher premium, limiting the questions = even higher premiums.

Subscriber 3 - No. The consumer has a choice, go through full medical underwriting for an opportunity for a more competitive premium. Or pay more for the convenience of a non-medical product. I pay $3.00 for a cup of coffee at a local drive through. I could get by at about $0.50 if I made the coffee myself. Consumers pay for convenience.

Subscriber 4 - Absolutely unfair

Subscriber 5 - Unfair. Simplified products are usually for a different market where you are simply trying to catch as many 5-figure face amounts as quick/easy as possible. The clientelle here will likely go un-insured without this option.

Subscriber 6 - No. Most seasoned producers know the difference from the product names. You can also notate it is SI in the product name.

Subscriber 7 - I don’t think unfair

Subscriber 8 - In my view it’s a total different product line so it’s not really compared to each other, and as mentioned before I would suggest you add a new category for simplified issue pricing…or at a minimum to write out in bold that it’s a SI Product.

Subscriber 10 - no, that’s like saying its unfair to include 10 yr vs 20 year

Subscriber 11 - it can be misleading to those (brokers and consumers) not versed in SI plans

Subscriber 12 - Honestly, I would like to see a Simplified Issue Category. I don't necessarily think it is unfair but sometimes the SI products are hard to find especially if you don't know the insurance company. All SI products in a category would be helpful.

Subscriber 18 - It is fair, however there may be a way to label it as a simplified issue product.

Subscriber 19 - I AM FINE WITH IT THE WAY IT IS BECAUSE WE KNOW WHICH ONES ARE SIMPLIFIED PRODUCTS AND ARE LICENSED WITH ALL THOSE COMPANIES.

Subscriber 21 - It is BOTH Fair and Unfair. It is almost impossible to educate each casual broker which products quoted are SI with out a verbal conversation and I don't have time to do that with EACH AGENT

Subscriber 22 - Simplified issue should be included in the normal term sort, but fully underwritten term should be excluded when sorting by simplified issue products

Subscriber 24 - It is “fair” but the inclusion with the fully u/w products does make them hard to find due to how far down most of them show based on premium. The SI is obviously more expensive and thus way down the list in most instances and unless you know what you are looking for odds are you won’t be quoting them due to the price. (U of O’s problem I guess when an agent only sees the price and doesn’t know the plan) BUT when you have input the medical info into the CL system the SI should show up well especially in the build challenged cases where we can then offer the top rates via SI to the consumer. (United of Omaha’s TLE has a tremendous build chart that has helped us provide the appropriate coverage many times!)

Subscriber 25 - Not unfair provided this is disclosed by the agent

Subscriber 26 - I’d say fair, but for your protection I’d recommend that you make it VERY CLEAR the liability remains with the agent. We need to know our products. But I’m 58, if the agents 20-30 years younger than me are anything like most 20-30 year olds they don’t always perform that due diligence, and will usually blame someone else if they can.

Subscriber 28 - YES – I always encourage my clients to evaluate the pro’s and con’s of both products

Subscriber 29 - It does make it difficult to see the SI products available if you don't know who offers them.

Subscriber 30 - Yes, it is a different product. The agent does need to know what they are selling, after all, and this is a different client/market. Should it be grouped, NO, because if they are going after an SI sale, the agent can’t easily separate it. An agent shouldn’t show SI and UW on the same sheet as it is apples and oranges. They can, however, pull to quote lists, one for SI and one for UW and show them that way. An agent should NEVER go after SI just because they will get paid faster!! There is a specific client for this product, it has its place in the market and should be used when the case is right for it. You don’t buy a sail boat to wake board behind, do you? You don’t buy a cabin cruiser to lake fish for trout. If the agent is doing their job CORRECTLY, they are discussing the health status with the client and, in turn, selling the appropriate product. I have had some clients tell me flat out… I hate needles or I don’t have the time to be bothered with a long process or I know I need to do this for my family, but do need to keep it simple and quick… well, there is a specific market for SI products and therefore they should be separated.

6. Should Compulife create separate categories for Simplified Issue products?

Subscriber 2 - Either a different page or just a different color display. Maybe you could approach ANY & ALL NO EXAM products as SI and not separate out GI. Then color the SI different or something like that so one could easily scan down the page and see the no exam products??

Subscriber 3 - It sure would be nice. However, the data would be difficult as some products are truly non-medical products and some are non-medical by age/face amount and have several criteria. This would be awesome if you did make this available but would be a task to program.

Subscriber 4 - ABSOLUTELY

Subscriber 5 - No. The agents doing any significant volume in the SI market know which carrier(s) they want to place the business with ahead of time.

Subscriber 6 - No.

Subscriber 7 - That would be nice

Subscriber 8 - Wow, I should have start the questions from the bottom first…. [previously said: I would rather suggest that you add a new field for SI category, and I think that will satisfy everyone and end the discussion. ]

Subscriber 10 - sure just so it would be easier to quote together

Subscriber 11 - yes definitely, this is the solution. Plus it helps Brokers.

Subscriber 12 - I say yes.

Subscriber 18 - I don’t think it matters much, however as someone who is not really in that market it would be an easy way to identify what products are available.

Subscriber 19 - AGAIN, WE ARE COMFORTABLE THE WAY IT IS. THE NLUL AND SI WHOLE LIFE SERVE THE SAME PURPOSE OTHER THAN THE CASH ACCUMULATION FEATURE IN THE SI WHOLE LIFE---ASIDE FROM THE UNDERWRITING.

Subscriber 21 - ABSOLUTELY! Yes!

Subscriber 22 - NOT SEPARATE (see above)

Subscriber 24 - It would actually be nice to have the SI rates including in a regular comparison & also set up in a standalone category. This would allow the informed broker to properly quote a case. If the health info we can input could be utilized in each category it would allow even more appropriate sales/comparisons. MANY people fear the blood draws and are more than willing to accept a higher premium to protect themselves without having to be stuck or questioned by a stranger (paramed).

Subscriber 25 - To be fair, yes, but I imagine this would be difficult as companies have differing “simplified issue” criteria.

Subscriber 26 - Without question you should. A term database of Sagicor, Assurity, ANICO, Liberty Bankers, Mutual of Omaha and Fidelity plus GTL and Life of the Southwest is what you want Bob. Don’t do that for a year or so though. I don’t need the competition =) (I should 5% off my renewal just for that tip, hehehe)

Subscriber 28 - YES – Only for the purpose of convenience

Subscriber 29 - It would make life much simpler and help agents to see the companies who offer them. Perhaps just a button to select that quoted SI products only or something like the www.gi4sale.com.

Subscriber 30 - Yes, see above.

7. If yes, what is your definition of a "simplified issue" product?

Subscriber 2 - No exam

Subscriber 3 - We do not promote any product as “Simplified Issue”. We promote “Non-Medical” products. The term Simplified suggests Sub-Standard in my opinion. We advise producers that these types of products are Non-Medically underwritten and have specific underwriting criteria for consideration.

Subscriber 4 - I leave this to Bob’s good judgment. [Bob - it's beyond me]

Subscriber 5 - [said no]

Subscriber 6 - [no response]

Subscriber 7 - Generally any product that does not require an exam

Subscriber 8 - There are SI and GI and it should be specified.

Subscriber 10 - don’t know, would have to get others input

Subscriber 11 - no nurse, no APS, pass/fail underwriting questions

Subscriber 12 - A product where there isn't any blood draw, HOS sample or Paramed exam required.

Subscriber 18 - Limited medical underwriting. No urine or blood.

Subscriber 19 - THE PROCESS OF ANSWERING THE HEALTH QUESTIONS ON THE APPLICATION, THE AUTHORIZATION TO PULL A PRESCRIPTION HISTORY AND/OR AN MIB REPORT AND TELEPHONE INTERVIEW. IF THEY PASS THEIR GUIDELINES, THE POLICY ISSUES. ALL COMPANIES USE PREDETERMINED HEALTH QUESTIONS AND DEPENDING ON THE COMPANIES GUIDELINES THEY WILL USE SOME OR ALL OF THE OTHER RESOURCES PREVIOUSLY MENTIONED. TYPICALLY THE CLIENT WILL BE APPROVED OR DECLINED AT THE COMPLETION OF THE PHONE INTERVIEW BASED ON THEIR ANSWERS TO THE HEALTH QUESTIONS AND RESULTS OF THE RX CHECK AND MIB REPORT.

Subscriber 21 - I would define it as No Paramed Exam required.

Subscriber 22 - No exam or specimens.

Subscriber 24 - SI to me/us means an application that does not require an examiner visit for “fluids” or exam and no “oral swab” or collection of fluids by the agent is required. The agent takes the medical information via the application only and a phone interview, APS, MIB, Script check etc is used as needed by the carrier.

Subscriber 25 - A product that may be sold with minimal underwriting assuming various major medical diagnoses have not been made, e.g. heart, cancer, stroke, HIV, etc.

Subscriber 26 - Any life insurance policy that does not require a physical exam.

Subscriber 28 - Non-Med – Although then you need a separate category for those tweener product that require a mouth swab or are tied to a mortgage and may need an APS.

Subscriber 29 - A product that does not require a medical exam or medical records except is unique situations. There are also different levels of product, i.e. Level, Modified, and Graded. Companies sometimes view the Modified and Graded differently. The definitions are not universal. The agent would still need to understand that each company's application will have different questions and qualifications and benefit levels. He would also need to know that the SI underwriting could be from T4 to T8. It would be difficult for any quoting software to distinguish between the various parameters.

Subscriber 30 - The biggest differentiators are NO medical exam (non-med) and limited underwriting questions (I do consider a swab test to be simplified issue if the agent is performing it). Simplified issues does not mean EASY issue, it means, less work to issue and a much quicker decision. Again, the agent has to, in turn, know their product as to which are “more simple and less simple”. UW questions, a script check and MIB check with NO paramedic = simplified issue.

8. Are all Simplified Issue products the same?

Subscriber 2 - Nope, more or less questions, different attitudes, etc

Subscriber 3 - Heavens No. Even fully underwritten plans vary in underwriting criteria. That is why United of Omaha distributes through BGA’s like us. We assist the producer in selecting the proper plan for a specific case or for their general marketing approach and demographics.

Subscriber 4 - I don’t know as I don’t sell them

Subscriber 5 - No. There are some key differences and some more suttle differences. In my experience, most are for the purpose of "List-Billed" products to be added as an employee benefit at a small-medium sized company. Determining factors are #1 Obtaining & maintaining most cases(such as competitive pricing, portability, options available), #2 Ease of doing business(enrollment requirements & invoicing to please the business owner/HR)

Subscriber 6 - No. Some are "SI" meaning the PI only needs to answer no to a set number of questions. There is also non-med like Assurity where a full health history is taken but no labs are ordered.

Subscriber 7 - NO

Subscriber 8 - Somewhat, I would include a link right next to the pricing with a PDF of all the details.

Subscriber 10 - no

Subscriber 11 - no, the medical conditions to qualify differ, and the price, and the max amount and duration (T-10 vs T-20 for example)

Subscriber 12 - No

Subscriber 18 - No.

Subscriber 19 - NO. MOST COMPANIES OFFER 1-3 LEVELS OF SIMPLIFIED ISSUE LIFE INSURANCE. THE LEVELS ARE TYPICALLY OUTLINED BY PASSING EACH SECTION OF AN APPLICATION. THEY MAY BE CLASSIFIED BY 4 POSSIBLE CATEGORIES.
1)THE LEVEL DEATH BENEFIT (IMMEDIATE PAYOUT OF THE FULL DEATH BENEFIT)
2 )THE LEVEL DEATH BENEFIT AT A HIGHER RATE.
3) A PERCENTAGE OF THE DEATH BENEFIT DURING YEAR ONE IE;30% DURING YEAR 1, 70% DURING YEAR 2 AND THE FULL DEATH BENEFIT BEGINNING YEAR 3---CALLED GRADED OR MODIFIED DEPENDING ON THE COMPANY
4)THE RETURN OF PREMIUMS PAID PLUS A % INTEREST DURING YEARS 1 AND 2 AND POSSIBLY 3 IE; YEAR 1- ROP PLUS 6%, YEAR 2 ROP PLUS 12% -----CALLED GRADED OR MODIFIED DEPENDING ON THE COMPANY

Subscriber 21 - Of course not, but Not all fully underwritten products are the same either! However there is a sufficient enough difference that it deserves its own category.

Subscriber 22 - NO

Subscriber 24 - No, the u/w on the various products varies via build charts, medical history (especially automatic disqualifiers), medical record requirements etc… the SI is often confused by agents to mean GI!

Subscriber 25 - No

Subscriber 26 - Obviously not. That’s where an informed agent creates value.

Subscriber 28 - Not necessarily as I have noted above. But it is our job to know our products! Remember that little requirement we have as agents called 4 hours of Ethics Training we have to do every 2 years? I always thought the Insurance Companies need more ethics training themselves, just to the point that the marketing person at U of O is making an unethical request! His request doesn’t put the Purposed Insured first, which should be the goal of all Insurance Companies and Agents.

Subscriber 29 - Definitely not. I have about 12 to 15 companies that I use but the company chosen is usually dictated by the medical conditions of the applicant. Sometimes it can be narrowed down to two or three then the premium is a factor.

Subscriber 30 - No and all UW products aren’t either. An agent has to know what they are selling. Why can we give a person who chews tobacco, NON-SMOKER rates with Pru, but ONLY tobacco rates with other carriers? That is not the same either. Why can we give a 225 lb. person one rate class with carrier A and one or two rate classes lower with carrier B or C? That is “not the same UW”. An agent needs to know their product. A comparative rater, like Compulife is a GREAT tool to provide a larger selection of information together, at a glance. It is a basis for further research or discussion and gives a very good place to review a selection of products for the client. This makes it quick and easy when working with a client and allows the agent to sell more policies on the spot, if they know what they are selling.

9. Are there some products called "simplified issue" that you do not consider to be simplified issue?

Subscriber 2 - I have not run into this.

Subscriber 3 - Refer to my comments above. We do not promote simplified issue. If we did, yes, some non-medical products require more strict underwriting criteria than others.

Subscriber 4 - I do not sell these products and, after 25 years in the business, I didn’t know they existed.

Subscriber 5 - Yes. I think of ["List-Billed" products to be added as an employee benefit at a small-medium sized company] as the primary market for SI Life insurance. This is not the same as Non-Medical to me, as many still have paperwork requirements that do not fit the time window allowed per employee in this environment. SI Life Insurance in this environment will also commonly have capability for electronic enrollments where a lot of the basic information required on the apps can be collected in spreadsheet form and imported into enrollment software to pre-populate applications, as well as other features that automate results, payroll deductions, online real-time "List-bill" adjustment capabilities, etc. There is clearly a separation here between SI and Non-Medical!

Subscriber 6 - Yes. Assurity and ANICO.

Subscriber 7 - Yes, some of the no exam term co’s that still will request medical records and at least a couple whole life carriers that do also reserve right to order med records. These are not always as simple and not as quick to issue

Subscriber 8 - Not that I'm aware of.

Subscriber 10 - unknown

Subscriber 11 - not that I know.

Subscriber 12 - Not to my knowledge.

Subscriber 18 - Probably, as I am not an expert with that market place I know there are not a consistent set of underwriting requirements for simplified products.

Subscriber 19 - NO. MOST SI PRODUCTS ARE TRUE TO THE ACCEPT OR DECLINE PROCESSES. THE PUBLISHED RATES ARE USUALLY SET AT TABLE 4 AND EXPECT THAT THE PEOPLE WHO APPLY FOR THOSE PRODUCTS TYPICALLY HAVE SOME HEALTH ISSUES. THERE ARE A FEW COMPANIES THAT WILL GO BEYOND THE QUESTIONS BASED ON THE PHONE INTERVIEW, MIB OR RX CHECK AND RESERVE THE RIGHT TO REQUEST MEDICAL RECORDS OR A LETTER FROM THE PHYSICIAN. THIS REALLY IS NO DIFFERENT THAN BEING FAMILIAR WITH EACH COMPANIES UNDERWRITING PRACTICES AND KNOWING WHICH COMPANY TO USE BASED ON THE PROSPECTS CONDITIONS. IT'S NOT ALWAYS ABOUT THE PREMIUMS.

Subscriber 21 - Yes, When there is a saliva swab that must be collected from a paramed examiner.

Subscriber 22 - [no answer]

Subscriber 24 - Not really, by understanding the products you know what is required. It is our job as an agent of the carrier to be aware of the requirements for coverage and explain to the consumer what is needed. I guess the only one (s) that concern me are when an exam is required in the future to “keep” the coverage - we won’t sell them b/c this seems way too much like bait and switch.

Subscriber 25 - I can’t answer this one….I don’t see enough of them.

Subscriber 26 - No, since my definition is any plan without an exam. Virtually all of these plans do an Rx check and MIB. In 2013 the speed of the flow of accurate information is incredible.

Subscriber 28 - YES – Simplified issue should just be Non-Med Products

Subscriber 29 - Some companies offer a "streamlined medical exam" that could be classified as SI. The agent can take an oral swab specimen with the application then mail it to the lab so this also could be classified as SI. Standard may be the best rate offered with this. Perhaps a way to filter in or out companies who do this would be nice. Of course the agent should know which of his companies offer this option.

Subscriber 30 - Probably, but we don’t live in a utopic society. If you give me an example, I can more accurately comment, but my base definition remains the same. There can’t be any “perfect solution” unless CL wants to spend an absorbent about of time taking every carriers UW manual and inputting it into a query system to generate a better indication of which carriers would take the case.

Other Comments Received

Subscriber 1 - Bob – I occasionally sell simplified issue products. There are times that it makes sense for the client. It would be helpful for me to have those products segregated from the other products. It is a completely different sale for a different client than from the rest of my business. United of Omaha’s assertion that an agent would confuse these two is preposterous. That same agent could just as easily confuse the pricing on a UL versus Term or on a UL verses Whole Life or Term versus ROP Term. A company shouldn’t manage to the mistakes of the most ignorant of agents. I hate to see you make an adjustment based on the companies ridiculous reasoning. However, it would be helpful for me to have simplified issue products segregated. I would no longer have to page down the list of all products to find a description that says “simple” or “express”.

Subscriber 5 - Similarly, I do not use SI products to sell against clients that I would normally take through the CompuLife process; but it occasionally produces a lead or two for a SI group case.

Subscriber 7 - Tell United of Omaha- I have had several clients that have applied to United of Omaha in past because of their brand and good financial ratings even when other co’s had better cost. Because I know UofO’s simplified issue rates may be higher usually, if they’re not on compulife, I’m not pulling out the rate books to quote and they will usually not be quoted unless the person indicates some interest in a well known company or asks me about financial ratings (which is rare).

Subscriber 9 - I just read the message about United of Omaha refusing to let you include their simplified issue plan in your quoting.

Actually, I would never even think of using Compulife when dealing with a simplified-issue prospect. I use a service called CSQ Actuarial that does a splendid job of comparing many, many plans, and they provide information as to each companies take on various medical conditions, such as diabetes, COPD, etc.

For me, Compulife is a wonderful tool when comparing fully underwritten plans. While it is absolutely true that the agent must go further and choose among those companies the ones that best fit the health profile of the prospect, the comparisons at least tell me the top five to ten plans out there for this person's age, sex, tobacco use, and probable rate class to narrow down my search significantly.

However, it would never occur to me to choose Compulife to search for the right simplified-issue plan. It simply does not come close to what CSQ does. I do think apples and oranges are involved here.

Subscriber 10 - I would like to know the answers to these questions from your subscribers.

I think comparing term products that do not allow for conversion to the carriers full line of products is not fair. For me the conversion is a big deal.

is there any chance in getting a Current Assumption product quoted to age 90 or 100 or 105 like the GUL products?

Is there any chance in including in a GUL summary if the carrier provides some Critial Illness rider that allows for early death benefit payment due to loss of ADLs?

Subscriber 13 - I’m not able to weigh in on whether the simplified issue should be in the software quoting. I only have a couple of insurers I use in Canada to quote for people who would not likely be able to get fully underwritten insurance and since the actual questions are quite important, I don’t think that having a rates comparison is as important as it is in the regular term or whole life market. I think that advisors would need to take care when comparing in this way and that it would not be my recommendation that guaranteed issue quoting be available to the public as it just sets their expectations to think they would be eligible but they may not be able to qualify even though they think “guaranteed” means they can have even if they had a recent cancer diagnosis for example.

Subscriber 14 - I read through most of your bulletin regarding U of O simplified issue policy. Although I do not sell a great deal of S.I., I'd like to. Don't take this as criticism but your email exchange, although very well written, seems to be focused more on the problem, (U of O not allowing the product in Compulife) instead of the solution. In my opinion, a simple solution that would likely satisfy both Compulife, your subscribers and U of O, (and perhaps other carriers), is to separate the SI products from the fully underwritten products so that the agent can identify those products without having to memorize the product line-ups for well over a hundred companies.

My email back:

How would I define which products are "SI" and which are not?

If a company says that there "non-med" product is "SI", should I include it even though the agent must complete a typical Part II?

And if I put the non-med product in the SI category, and the company asks me to ALSO put it in the fully underwritten category, even though they are the same, should I do that?

Subscriber 14 - Those are good questions, Bob. Personally, I think that you should just lump the non-meds and SI's together regardless of whether the agent needs to complete the Part II. I think that what really differentiates the SI and non-meds from the fully underwritten policies is the requirement for the paramed exam. Perhaps in the drop down menu the pull-down menu could identify the SI and non-med quotes as: Non-Med/SI and then have the available products below that category.

Subscriber 15 - also, reading the Update News in regards to United of Omaha Simplified Issue Product... I noticed you quote United Home Life, which is mainly simplified and guaranteed issue... could you put those products in separate categories for proper consideration in order to pull in United of Omaha....just a thought...

Subscriber 16 - I am a big fan of your product. I use it daily and have found the rates and info to be 100% accurate. I support your position – I use and pay Compulife for information. If it is available, I would expect you to present it. I thank you for maintaining this philosophy.

Since I am direct with just a few of the carriers, it would be helpful to know more about a product, especially if it’s a carrier I am not that familiar with. Maybe you don’t need a new category to list SI or GI products but possibly a little more information in the “product name” field. Instead of “Term Life Express 20” it can read “Term Life Express 20 (SI)”.

Subscriber 17 - I do not write much simplified issue, but I do occasionally write it. My thinking is to include a separate category with some kind of guidelines as to what constitutes simplified issue and a disclaimer that all simplified issue policies are not equal. The agent should be able to explain the details to prospective clients. Without being familiar with many such policies I don't know how difficult that might be, but it seems like a reasonable approach from what I do know.

Subscriber 18 - If someone is using Compulife to spreadsheet term rates it really does not matter. They will not get far enough down the list for them to even see the SI rates. I think this is moot. United of Omaha should be more concerned with how competitive there underwritten products are. I also feel that most Brokers that are writing with a variety of companies are forced to learn that there are different products within some of the companies. For example: Pruco Life has the two term products. By seeing the different pricing scenarios it forces the Broker to ask what is the difference. It is almost a prompt to learn about the products. Hell, I didn’t even know United of Omaha had a simplified issue product. Maybe they should reach out to your subscribers and market their products to us.

Subscriber 19 - A GUARANTEED ISSUE POLICY HAS NO HEALTH CONDITIONS OR OTHER STIPULATIONS----YOU APPLY FOR IT, YOU GET IT!!!! NO GRAY AREAS. ANY OTHER QUALIFIERS SHOULD CLASSIFIED AS SIMPLIFIED ISSUE. OUT OF THE COMPANIES ON GI4SALE (IN OHIO) ONLY TWO ARE A TRUE GI. UNITED HOME LIFE AND AMERICO. THE OTHERS ARE SIMPLIFIED ISSUE

I DEFINITELY FEEL THAT SIMPLIFIED AND GI SHOULD BE SEPARATE! SOME COMPANIES OFFER TWO DIFFERENT PRODUCTS FOR THIS REASON

Subscriber 20 - I understand MoO's position on the comparison issue of SI versus fully underwritten.

Wouldn't it satisfy everyone and make life easy for all, except maybe you, to created another category strictly for SI term? For that matter I think MoO has a SI GUL as well.

My belief would be that more advisors would use it. It may also serve a dual purpose of attracting rates from other carriers that have similar products that don't want to be "left out" when they see that MoO's SI term and GUL rates are available separately for quoting.

Subscriber 21 - I guess you should have a separate category for simplified issue products or the "non-medical" products out there for an apples to apples comparison.

[note: the following will also be in our report regarding claim denials]
Years ago, I sold a simplified issue policy to a client who at 2 years and 30 days from application died from an accident. The insurance company denied the claim saying that he had not disclosed that he had a condition that would have kept them from issuing the policy. I pointed out the 2 years and 30 days. They said it was only 1 year and 364 days since they had "issued" the policy as it took them almost 45 days from application receipt until they "issued" the policy.

I am very careful now with these simplified issue policies.

Subscriber 23 - I use Compulife desktop for 95% of my term quotes. The ones that require a table rating I use other means. By UOO not having their TLE on there is a pain and sometimes I just don’t quote it.

I think SI is a niche market. With some agents, they are only quoting simplified issue and are buying the mortgage leads to work that market.

Is Compulife able to add a “simplified term or UL” option? You’ve added options for ROP, UL’s to various ages, and also various paid up UL’s which have been very, very helpful when doing prelim quotes for our agents. Could a ‘simplified’ drop down solve all of this? Fidelity Life, Americo, Assurity are a few others that are also ‘simplified’ that I’m aware of.

I’ve voiced my opinion to our regional manager and she referred this back to a XXXXXXX. They are saying that rates were never provided from them directly to you and are worried about the accuracy. I told her I’ve been using Compulife for over 12 years and you are by far the best multi carrier quoting software system.

When we quote ‘simplified’ products for our agents, we have to educate them on the actual underwriting that goes into it. It’s not guaranteed issue and not fully underwritten. Not all products are the same but they are very similar (health questions on app, MIB, MVR, Rx check, random phone interview). the agents then need to pre-qualify their clients again to make sure they will fit this ‘simplified’ underwriting plan.

Hope this helps and hopefully we can get TLE back on there.

Subscriber 24 - Thank you for your efforts Bob. We would be selling A LOT more United of Omaha TLE if it were still available to “us” on Compulife.

Subscriber 26 - [from the bulletin:]My question to those who think Simplified Issue products should be segregated into their own categories is, are all Simplified Issue products equally simple to apply for?

Obviously they are not. However, in my opinion, within the next 10 years paramed companies will face very serious challenges. Carriers are looking to cut costs, and the $200+ cost of a paramed exam will be phased out. It already is. Just look at Sagicor’s rates, ANICO’s expansion of the non-med face limits, Transamerica too.

So in essence simplified issue products are no different than fully underwritten plans. Some are more challenging than others to navigate your client through. Bottom line is, know your client as best you can. I think I heard that back when Reagan was President

Subscriber 27 - With regards to MOO not wanting TLE in the quoter, I find that absurd. Agents very well know the difference between a fully underwritten product and a fully underwritten product and it’s very handy in fact to see what the difference is. By not including it they can guarantee themselves far less opportunities. I say put it in there no matter what they say.

The deeper issue is that you REALLY need to have a separate category for simplified issue whole life products general in your software and then have them listed as Level, Graded, Modified and GI/Modified. In the quoter I would also allow people to quote all whole life as a category which would show everything from level to GI. This is very helpful in that you may very well find that a Gerber GI policy is actually cheaper than a particular Graded plan with another carrier. This is a huge market that was missed and others have come in and made a really nice business for themselves by providing a quoter purely for those products. There is nothing odd or complicated at all about the products and they just purely need their own category. I know I’ve stated all this in the past and the only reason I’m stating it again is that you asked. Mixing them in with your UL products paid to 100 or 121 just makes no sense. I’m not saying you have to agree with it, I’m just saying that’s the way it is as someone who does this every single day. So much so that I’m forced to pay for the other software and use it religiously for those products as I would never flip back and forth between UL categories to look up a quote and there are a bunch of companies not in your software that I need to see.

Subscriber 28 - First of all I am always impressed that you find the time to communicate your thoughts and share what is going on with you and your company. I have no idea where you get the time to do this. I think I read everything you write 90 to 95% of the time. Sometimes I’m just overwhelmed and don’t have the time to digest fully some of your articles but I glance at all of them to make sure it’s not something the requires my immediate response. I just got back from vacation and discovered your request.

LET’S GET SOMETHING STRAIGHT IMMEDIATELY!
I WOULLD BE OUT OF BUSINESS IF IT WASN’T FOR COMPULIFE!
MORE TO THE POINT I WOULD BECOME ONE OF THOSE AGENTS SELLING LIFE INSURNCE AT MY CLIENTS EXPENSE.
IF UNITED OF OMAHA PULLS THEIR PRODUCTS I JUST WON’T SELL THEM BECAUSE I WILL NOT KNOW THEY EXIST. HOW MUCH DUMBER IS THAT?!

Who’s is the person making the argument for U of O? And do they have the support of the company? I would demote this marketing person immediately or fire them as their thoughts do not put the companies best interests first by a long shot. Did this person ever sell Life Insurance? Did he ever even talk to folks that purchase Life Insurance?

His arguments are flawed on so many levels.

Compulife is merely a tool to evaluate companies on many different levels so we have the ability to put our clients first by finding them the product/company that best fits their specific set of criteria. Compulife allows me to QUICKLY research and educate my clients, on the merits of one particular product/company over another based on their specific set of criteria, but only as a starting point, until I can fine tune my research by talking to my broker or a marking at the company or directly with an underwriter.

Compulife is the only reason I’m able to put my clients first instead of the Insurance Company.

Compulife allows me to be an honest agent.

If United of Omaha is successful in getting you to pull their listing then they are supporting the sale of their product in secret, behind closed doors and truly at the expense of their clients which is very bad policy!