Instant decision versus two-week underwriting: what to tell the client and when

The client asked a simple question: "So am I covered?" The honest answer depends on the product, and agents who blur it create the lapses that show up in month two.

Instant decision products. Coverage is effective when the policy is issued and the first premium is drafted, which can be the same day. Tell the client the date. "You're covered as of today once the first draft goes through on the 5th" is a sentence they can repeat to their daughter.

Fully underwritten products. The application is submitted; the carrier may request a phone interview, a prescription check, medical records, or a paramed. Coverage starts on the policy date after approval. In the meantime, a conditional receipt may or may not provide temporary coverage, and the conditions are strict. Tell the client the realistic window and what could delay it.

What not to say. "You're covered now." Not on a fully underwritten app you just submitted. If something happens during underwriting and the family expects a payout, the agent who said that is in a bad spot.

Managing the wait. Set a check-in date at the table: "I'll call you Thursday with an update either way." Then do it. Apps in underwriting that don't get a check-in call are the ones the client cancels because they assumed silence meant denial.

When a case refers. A refer isn't a decline. It means a human underwriter looks at it. Tell the client that, tell them what the underwriter is likely looking at, and ask if there's anything they didn't mention. There often is.

How do you explain the difference between instant and full underwriting at the table without scaring the client off the better product?