SOLVING CLIENT LIFE INSURANCE PROBLEMS
'A couple is adopting a child from abroad and they have a problem,' reports a P/C agent 'It seems that the adoption agency requires that the child carry Life insurance before he or she can be delivered. The couple called their Life agent-we carry only their P/C-and he couldn't help them. They called us in desperation. I want to help them, although I realize there's not much profit in this. What can I do?'
This is our suggestion: Have the couple gather all existing Life policies. Approach the problem on several fronts. First, ask one of the couple's carriers to issue a policy as an accommodation, despite the lack of verifiable medical history about the child. Second, evaluate the following possibilities through the agency's carriers:
- a single-premium Juvenile policy;
- a joint-Life or First-To-Die policy for one or both of the parents plus the child;
- or, if underwriting problems for the child are complicated, a single-premium Whole Life policy or annuity on the child. (The joint-Life policy would probably provide improvements in coverage at lower cost.)
A third, but perhaps unnecessary, category would include an Accidental Death policy, a Second-To-Die policy (available for otherwise uninsurable cases), or Trip Health-Accident-Accidental Death coverage which might satisfy this unusual need.
And finally, the P/C agency might obtain Guaranteed-Issue Life coverage or an accommodation from a Life company.
In any event, emphasize to that couple that your All-Lines service agency is willing to do what their Life agent was unwilling or unable to do. Go all out to help the client's insurance needs, even when the potential profit is slim or zero. Add that you have much broader facilities than their existing carrier for doing so.
WHAT IT MEANS TO YOU
Although this problem would seem to cause much trouble, it's a chance to review all policies that the couple carries elsewhere, including Life, Disability, Medical Expense, and (assuming the agency has the licensure and expertise) equities. View any opening, regardless of size or shape, as leading to the entire account. Each solution should lead to referrals.