Key Q&A on Principal’s Expanded Accelerated Underwriting

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Here are the top Questions & Answers we have received –

Q. If someone went through Accelerated Underwriting for $1M of coverage prior to the expansion,  can they come back through for additional coverage now? 
A. YES!  That insured can come back through for the expanded amount.  For example, a 38 year old who obtained $1M of coverage would be eligible for an additional $2M through the program (see chart and limits below).  There is no guarantee that they will qualify, even if they qualified previously-but they have a good chance at qualifying.

Q. What is Digital Health Data and how is it obtained?
A. Digital Health Data (DHD) are health records that can be obtained digitally, most often through a client’s patient portal at their doctor’s office.  To be used for insurance purposes, DHD records would need to include the results from lab work completed within the past 24 or 12 months (depending on age).  If DHD is needed on a case, Principal will send a message to the client using Human API (copying the Field Office Contact).  We ask the client to share their patient portal information so we can access the lab results.

Q. Do the expanded limits apply to all products?
A.  YES!  The expanded face amounts and parameters apply to ALL products – permanent as well as term.

Q. Can the client complete their portion online or does it have to be on the telephone?
A. The client has the option!  For Term insurance where a Drop Ticket was submitted (all cases other than NY), the client will get an email with the option of clicking the link to complete or calling the Teleapp line.  For permanent cases, please indicate the client’s preference on the Field Office Report.  Note – for higher face amounts (over $5M personally owned or $2M business owned), a drop ticket is not available.  However, the Part B can be completed online or via Teleapp.

Q. Can Accelerated Underwriting be used for business cases?
A. YES!  AU can be used for all cases – business, trust or personally owned. 

Principal’s recent announcement of expanded Accelerated Underwriting limits makes it easier and more efficient to sell Principal term!!!

  • Increased Accelerated Underwriting limits – You can now get up to $3,000,000 of coverage through AU!!! (See chart below for age/Digital Health Data(DHD) parameters).  The goal of the increased amounts and DHD is to get as many people through the underwriting process without requiring new exams.
  • Drop Ticket – The Principal Drop Ticket experience is easy (few inputs) and FAST.  See the example below where the offer came out

same day! As of April 1, all term apps falling within the new AU parameters must come in via Drop Ticket.

  • Upsell – We will point out if the client qualifies for additional coverage at the approved risk class!
  • Term – the term product remains incredibly competitive with excellent conversions.  Plus – our term allows face decreases after year 1!

Case – 38 Male, $750,000 10 year term

Drop Ticket was entered at 9:30 AM

Client completed the online Part B and signature by 11:00 AM

Review / approval came out that afternoon- Super Preferred!

Upsell –

  • $750,000 was requested but client was approved up to $3M
  • Due to banding, client could get 33% more death benefit for 15% more premium      
    • $750,000 = $266.48 premium
    • $1M  = $307.50
    • $2M = $540.00
    • $3M =  $772.50