Declined Cases:Finding Solutions Where There

Were None Before

Michael Suska, B.Sc. CFP CHS National Sales Director

Individual InsuranceHumania Assurance

Decline Rates

• Life Insurance: 5-8% (15-18%)• Critical Illness and Disability Insurance:

approaching 30%

Unable to fulfill promise made to clientsNot compensated for efforts as the advisor

Reasons for Declines

• Client’s health history• Family history• Build• Risky employment• Risky avocations and

hobbies

• Drug use• Driving record• Bankruptcy• Foreign travel

New Options AvailableAlternatives in the Canadian market Now offer Simplified Issue coverage:

•with higher face amounts•with unique qualification processes •covering risks not traditionally accepted•expanding coverage to Life, DI and CI•with no deferral periods•using an internet based process for instant coverage•ROP available on all products

Options Now Available

• Life insurance up to $300,000• Critical Illness insurance up to $100,000• Disability Insurance up to $2,500/month

• Term 10 and 20 available• Life coverage issue age 18-60; coverage to age

70• CI and DI issue age 18-55; coverage to age 65

Deferral vs. Pre-Ex

• Deferred often covers only accidental death during the 1st 24 months of the policy

• Pre-ex covers all claimable events not related to a pre-ex

• Example: client with a cancer history dies within first 24 months from heart attackWhich pays? Deferred or Pre-ex based coverage?

Practice Development

Taking steps to reduce loss of income and clients due to declines and uninsurablity will benefit your practice moving forward and help you recoup lost revenue from recent cases.

Implementing a Declined Case and Hard to Insure strategy will:•Help fulfill promises to prospects and clients•Improve revenue streams previously lost and not recoverable•Make your practice more referable:– Going back to lost cases from the last 2 years– Becoming known as the one who can help when it

appears nobody else can

Practice Development

Next Steps

• Compile a list of all declines and heavily rated cases from the past 24 months– Use your MGA’s resources

• Review options using open eligibility and quoting process available online

• Contact lost clients to re-engage and reopen previously declined cases

• Implement new strategy with declined cases moving forward

Declined Cases:Finding Solutions Where There

Were None Before

Michael Suska, B.Sc. CFP CHS National Sales Director

Individual InsuranceHumania Assurance