How To Underwrite For Final Expense (FULL GUIDE)

All right, what is going on, ladies and gents, in this video, we're going to be talking about everybody's favorite topic when it comes to selling insurance, and that is underwriting. Right? So what we're really going to be kind of breaking down here is like the frameworks or the thought process that you guys really need to have when it comes to underwriting. Because underwriting is one of those skills where a lot of people just kind of look over it, right? They don't really know what's going on and they'll just write people left and right. Some people will even like lie on applications. Like the craziest stuff out there happens. But if you really learn this and master this, right, it's going to allow you to find people the best possible rate for the best possible, you know, price on insurance. Find them day one insurance when other people can't. And it's also going to save you a lot of time on declined applications, right? Because what most people do is it's basically called running the gauntlet. So they'll load up a client, they have five insurance companies in order, 1, 2, 3, 4, 5, and they'll just try to get them approved on each individual company until something sticks. And so that process takes hours. Whereas we like to take more of like a sniper rifle approach where we just want to like, we want to hit the first company.

And have like the first company that we pick and the first company we apply for be the correct company for that person, right? So without any further ado, let's go ahead and jump into this, right? And I want to preface this a little bit and say, like, the best way to learn underwriting is by doing and then learning it by doing, right? This training is not going to make you a master at underwriting. I hate to break it to you, but what it is going to do is show you how to think about this so that you guys like are able to save hours and hours on the phone. Because when you approach underwriting with the thought processes that I'm about to give you, it's going to allow you to out compete like 99% of agents. So again, do not expect to learn everything from this training. Like underwriting is one of those things where it's constantly changing. So insurance companies are changing their requirements. Different, different carriers will accept different things. They're always changing their plans. You'll find out about a different health condition every day. Like the human body is pretty complicated. So don't expect to learn everything from this training. The purpose of this training Again, is to give you the basic frameworks you need to know and it's going to save you guys hours on the phone when you guys master the skill. So what you guys have realized is over time you're going to actually pick up so much knowledge just from doing this multiple times over and over and over and over and over on a day to day basis that you'll learn so much about like medicine and health conditions that like, your knowledge on that will be like comparable to a doctor. Right. Like, if you guys have ever talked to Julian and you hear the way he talks about like different medicines, like he knows how to spell every single medicine and how to, you know, what each medicine is for. And I want to like, really, really hit this home. You guys should not expect to be there. That comes with time and you don't need that. But it comes with time, right? So again, the goal with underwriting is we don't need to memorize, you know, hundreds of medications and health conditions and know what this is or what that is. We just need to learn the strategy and understand how the game is played so that we can be efficient. Right. So let's go ahead and jump into it. What game are we actually playing? So I like to compare underwriting. It's kind of like we're playing like the health condition game of Clue, which, if you guys ever played the game of Clue, basically, you know, there's like these seven different characters or whatever and you're in these different rooms and then you have like different weapons and there's essentially like somebody commits a murder at the beginning of the game and you go around and take turns and you ask different questions to try to gather a hypothesis or an accusation of who did it or who killed the person. Right? And so essentially that's kind of what we're doing whenever we're asking underwriting questions, right? We're saying, you know, hey, did you, have you ever had cancer, heart attack or stroke? Okay, we're taking that information down and then we ask a follow up question. Hey, have you ever had, you know, do you have diabetes? Okay, does your diet, is your diabetes ever been out of like uncontrolled or anything like that? And so we're going through asking all these questions, we're inputting it in, and then basically at the end we're going to make an accusation or in this case, we're just going to pick the best company for our client. Right? And this whole process, the same way it is with Clue, it's all a process of elimination. So what we're doing is, as we're finding out different pieces of information, we're playing a game of knockout, and we're just disqualifying them from certain carriers. And so we're only left with a few options. And then I'm going to show you guys how to actually pick from those options later on in this training. So, again, each question that we ask, we're revealing more information about our prospect and their health. And the way I want you guys to kind of think about this is like, you are a detective over the phone. If you were seeing these people in person, you know, you. You would have a lot more clues because you could see the medications and different things, but you're doing this all over the phone. So we have to be really good detectives, right? So. So if they give us, like, a vague or an uncertain answer, we need to dig a little deeper and expand upon that so we can have concrete information to base our decisions off of. Right Side note, guys, definitely take notes on this. Write these things down, especially the big frameworks and ideas I talk about, and, like, start implementing these into your day to day of underwriting, because this is what's going to be like a big needle mover for you, right? So again, anytime we get a vague or an uncertain answer, we need to expand upon that to get concrete information. So in an example, if our client is like, yeah, you know, I think I, you know, I might have, like, a little bit of copd, right? We need to figure out, like, what the hell is a little bit of copd? You either do have COPD or you don't. Right? So when you say you have a little bit of copd, did your doctor, like, diagnose you with it or was it asthma or, like, what did they tell you? Right. If they say they have a little bit of copd, they usually have copd, Right? Another example, you know, I think my doctor said I had one of those, but, you know, I don't even know if they put it in my records. If their doctor said that they had one of those, let's assume they put it in the records. Right. Oftentimes people will say this with, like, a stroke or a mini stroke. Yeah, you know, I think I had, like, a heart attack, but, you know, I'm not sure if my doctor put it in my records. Their doctor put it in the records. So we're looking for hidden clues, right? If we notice, like, a string of medications that are oftentimes linked to heart failure, we should ask them, like, hey, have you ever had heart failure. Right. We're connecting the dots. Essentially, we're putting a P. A puzzle together and we're fitting different pieces with each other. Right. Assumption is public enemy number one. So we never want to assume things about their health. If they're like, you know, oh, yeah, I have seven medications and. And we only get six, we need to find out what that other one is, because oftentimes the way it usually just ends up working out is that one medication that they didn't tell you is the one that gets them DQ'd from the company you were gonna go with. So, you know, we always need to ask, we always need to get all of the information, and we never, ever, ever assume. We don't assume that they're healthy. We don't assume the best case. We don't assume the worst case. We simply just ask. And the way to ask these questions is you wanna maintain a childlike curiosity. So when I'm asking these questions, I'm not going to be accusatory, even though I know I said, like, we're a detective, like, we're not interrogating our clients. Right. And we don't want it to feel like an interrogation because if you think about it from your client's perspective, they're jumping on the phone with a stranger who's asking them, like, everything there is to know about their health. So when we ask these questions, we need to do it like we're genuinely curious and approach it from the mindset of we're trying to help. Right. So. Okay, got it. And I know you mentioned that you had seven medications. To be honest with you, I only have like six down here. What was that seventh medication? Just so I can figure out which company is going to give you the best options. Right. We're always going to have, like, a childlike curiosity. And we're always approaching this from the angle of, like, how can we help them? Not like, you know, give me all of your meds and all of your personal health history for the last 40 years. So that is the whole, you know, that's the health, health condition game of Clue. That's that whole framework. Some things to look out for. These are just like, some helpful things that you'll see. Oftentimes whenever you have three or more medications for one health condition, it's a flag for something more serious. So, like, an example would be if they have three or more medications for diabetes, this is usually an indicator that they've had diabetes with complications like, for example, neuropathy or neuropathy. I don't even know how to say it, but it's basically kidney damage is the other one. Right. So if they have like all of these different medications for diabetes, that usually is an indicator that something else is wrong. If they have three or more high blood pressure medications, it's usually an indication of heart issues or afib. If they have three or more medications for like allergies or asthma or inhalers, usually they're going to have something more serious like COPD, right? So pay attention to that. Usually like 3 is this number where you start to, like, you need to ask a little more questions. Look out for power of attorneys, right? So if somebody has a power of attorney, we're going to want to find this out usually in the underwriting. And a lot of times this is like linked to. If they take memory medications or they have dementia or something like that, a lot of times they'll have a power of attorney. But if they have a power of attorney, which usually, you know, they'll mention it like, oh, you know, my daughter or my son or my, you know, whoever. The power of attorney basically has power of attorney. So they have the ability to sign for this person. So if they have a poa, is what we usually call it. The POA has to be present to complete the application. So look out for signs of this, which would be like dementia or them continually mentioning, like their kid or something like that. Look out for hospitalizations. A lot of times people just don't mention this. If you, if they just went to the hospital, you know, recently. These are things we need to know about and we ask a question about this, but you really want to dig deep on that.

If they can't spell a medication right, you're going to want to ask them to grab the pill bottle, right? Because there's all these crazy medications and a lot of times, you know, people don't speak the clearest over the phone or you're having connection issues. Like, we don't want to just try and fit pieces together. Let's be a hundred percent sure. So if they're saying, like.

Right, like, let's just have them grab the pill bottle, spell it out, and let's type it in. And again, don't ever skip medications. So let's talk about the process of elimination when we're on the, on the phone. And I'm going to give you guys, like an example that will kind of demonstrate how this, how this works. So when we're underwriting, it's a process of elimination. So each question that we ask is going to limit the carrier options further and further and further until we're only left with a few options. And again, later in this video, I'm going to show you guys how to pick between those options. So our goal with each question that we ask is to knock out certain companies so we know exactly who to pick. We're always looking for a day one company, preferably, right? That's what we're optimizing for. But our goal is just to limit the options as much as possible with the health questions. So we're not trying to find out what they qualify for necessarily. We're more so trying to find out what they don't qualify for, and then we're going to pick from what's left. So an example that I like to use is, like, imagine we have, like, 15 different types of fruit in a bowl, right? And basically our goal is we need to find the perfect piece of fruit for our client. And we have to find out, like, which fruit are they not allergic to, right? So here's our fruit. We got an apple. We got a watermelon, grapes, banana, strawberry, cherry, raspberry, pineapple, blueberry, orange, lemon, kiwi, pear, mango and lime, right? So, you know, let's say we're playing this game of knockout. And, you know, first thing, our clients like, hey, you know, I only want to look at red fruit, right? So we've just knocked out most of our options. You know, we can only look at the red fruit now. So now we have an apple, a watermelon, a strawberry, cherry, and raspberries, right? So now we have limited options. And then we go, okay, well, you know, we can only look at berries because, you know, a different health question pops up. So now we only have raspberry and strawberry. And then if they. They say, hey, you know, we're only going to look at fruits that are commonly used in ice cream. Now we're just left with a strawberry. So essentially, we've narrowed down all of our options and filtered them out. So, you know, we had 15 options, then we had five, then we had two, and then we were left with one, right? And so underwriting is basically the exact same way. So you're asking your clients these different questions that are going to filter down your options until we find a strawberry or whatever, carrier option, or fruit or whatever, you know, clue, whatever example is, you know, makes the most sense for you guys. That's essentially what we're doing. We're playing knockout. And every time we ask those questions, we're just left with a few Options left, right? So is there ever a time where we can stop asking health questions, Right? When can we stop asking health questions? When are we, like, good to go? We can just run with it. So one thing that you guys are going to need to be super habitual about, and I want you to write this down on whatever you're taking notes on and, like, circle it, you know, stab it with a Sharpie, underline it, highlight it, tattoo it on your, you know, on your. On your left wrist. Whatever you have to do is every time that you input something into toolkits, you need to click get quote, right? And so what this does is. Let me actually pull this up app toolkits.

Here we go.

So what this does is every time that I click Get Quote, it's going to refresh my options, right? So let's say, you know, I'm looking here and we got 25,000 in coverage. There's no health question. Health conditions. Now all of a sudden, let's say I add copd, right? Date of last treatment was today. We got diagnosed five years ago. Let's say I'm just going to click stuff here to get through that. So it's still showing that we have all of these different options. We need to click get quote. And now all of a sudden, you can see the prices went up and we have more limited options, right? And so the reason we click Get Quote is to have an idea of what's left. So they said, boom, I got copd. Okay, here's what's left right? Now let's say they say, you know, I had a heart attack.

A heart attack last year. That's the only heart attack I've had. Get quote, scroll down. Now we have even less, less options right now. What if they say that they had, you know, cancer.

They had cancer, blood cancer last year.

And they got diagnosed in 2022.

Now we only have these three options, right? Like, we're continually getting more limited and more limited and more limited. So when do we know when to stop, right? So we are only going to stop asking questions if we're just left with guaranteed issue options, right? So usually, like right now, the only guaranteed issue options we have are Core Bridge, which is AIG and Great Western. So if we put in a health, health condition, right? Like, let's say, for example, I asked them about if they smoke. I asked them, you know, about cancer, and they say, yeah, I have cancer right now.

Current cancer. No matter what cancer it is, it's not really going to.

Right? This isn't going to matter.

Now I only have two options. So if they're both guaranteed issue, I don't have to ask any other health questions because I already know they have current cancer. It's going to be one of these two options and we're just going to pick the cheaper one, which in this case is Great Western, right? So that is how I know when to stop is when I have only guaranteed issue. And so the reason that we click get quote every time is because what I don't want you guys to do is you ask this current cancer question, right? You get, you ask about cancer, right? Like, let's pull up the script. We'll go to health, health questions.

You ask about cancer, heart attack or stroke, they tell you they have cancer. And then you go through and ask all of the remaining questions. You can get all of the medications. You just added like an extra 20 or 30 minutes to what could be a two, three minute interaction, right? So that's why we always click get quote and we check if we only have guaranteed issue options left. And if we do, we can stop asking questions and move on. So let's look at another example, right? So they said, you know, if they have current cancer, we only have these two options. We would go with Great Western because it's like $15 cheaper here.

Now let's look at a different example, right? Let's say the client says they have diabetic neuropathy.

We, we put that in and we click and get quote. And now we only have two day one options, right? So we have Royal neighbors and we have Transamerica. Do we need to keep asking health questions, yes or no? The answer is an emphatic yes, right? Because.

We have diabetes right here.

They have diabetes with neuropathy. What if they are also overweight? Or what if they have a pending surgery coming up? Or what if they have a felony? Or what if, you know, they.

Like they have heart failure or something. We haven't found out about it. Like, we need to ask questions. We need to go through the whole thing. Unless after we click get quote, we only have guaranteed history carriers. That's the only time when we stop asking the health questions, right? But that will happen oftentimes and that'll save you guys a ton of time, right? So another thing too is a lot of times people will have. This is a separate point from knowing when to stop asking questions.

A lot of times like you'll talk to people that have been declined for coverage in the past, right? This is why we always ask about this. So if they tell you they've been declined for coverage in the past during the discovery phase. We want to loop this back in as we're going through the health questions. Right, right. So if they've been declined, we need to figure out, like, who have they been declined for and why did they decline them? Right. Because if they were declined for a carrier that has, like, more liberal underwriting, like, for example, sbi, the chances that they're going to get approved for Mutual of Omaha are also, like, very low. Because usually SBLI is easier to get approved for than Mutual. Or if they got declined for Transamerica, we know that they're probably not going to get approved for Mutual of Omaha. Right. And so we can piece these different clues together. This is why I'm saying it's so important to, like, pay attention, take notes, and, you know, piece these clues together is like, when you find a piece of information, use it to your advantage because it usually is a clue. So that's past declines. You definitely want to pay attention to that. The next thing we're going to talk about is starting conservative and then expanding out and going more liberal. So basically, whenever we're underwriting, we want to play it conservative in the beginning. Right. And I'll show you guys what exactly that means, because you may be like, why are we making a political reference, talking about underwriting? Don't worry, guys, it'll all make sense in a second. But basically, this is, you know, this whole process is going to allow us to save ourselves time and save the client time and avoid unnecessary declines. So basically what we're doing is we're starting off and we're trying to narrow down the options as much as possible. And then if our options are too narrow now, we can start expanding a little bit more and then expanding a little bit more to include more options. So let me show you guys how this works. So let's look at an example. So the client says that they had a heart attack about one to two years ago. And these are real situations. This happens all the time. You know, they had a. They had a heart attack about one to two years ago, and they aren't sure on when it was. We're going to assume that it was the worst case scenario. It was more recent. Right. We're going to assume that they did have the heart attack a year ago. We're going to put it in as a year. And the reason why is because the year, like if they had it one year ago, that is going to limit our options more. So if we put in heart attack one year ago. Now we're only left with Transamerica, which is our only day one option. Anything that's graded or two year weight is going to have this I right here. So our only day one option is Transamerica now. So then when we're done underwriting, if Transamerica is still our only option, we can clarify and get more concrete info so we can ask them to like go and check their records or you know, kind of like dig a little deeper to find out when that heart attack actually was. And so let's say after we circle back and we dig deeper, they confirm to us, hey, the heart attack was actually over two years ago. So now instead of only having Transamerica, right, We also will have sbli, Mutual of Omaha and Royal Neighbors. All of these other options now popped up that we clarified on the heart attack and said it was two years ago instead of one. But we always want to start saying worst case scenario. If they give us vague options like, oh, it was about one to two years ago, let's assume it was one if they're not sure. And then after we're done with all the other health questions, we can circle back and we can say, okay, you know, why are these other options showing up as graded or two year Wait, why, like why is that? Now we can circle back and go, okay, the reason why is because of the heart attack within two years. And then if we clarify and find out the heart attack was actually two years ago, we open up all of these other options, right? So some things to look at, like troubleshooting, if you're only having like guaranteed issue options, you can read the notes in toolkits that explain why they're being declined. So what this actually looks like is when I scroll down here, I can see each company and why they would get declined. So Transamerica, if they were ever treated for current cancer. So if they have current cancer, it's a decline, American amicable. If they're treated for current cancer decline, current cancer decline. Everyone is like, current cancer decline, right? So that is essentially like how that works is it'll show you why they're being declined. So.

Whoops, that's the script. So you guys can check the notes that will show why they're being declined and then oftentimes like changing the timeline. So for example, I'll go back to the heart attack example. So we'll go heart attack. If this heart attack was over two years ago or was last year.

Only Transamerica is the only day one option. Right. But if the heart attack is two years ago.

Our options open up. Right. So let's go back to one year and let me show you guys where you would find the notes.

So look, 2013.

No get quote. So I can see here why is Great Western graded? Well, it's saying if heart attack within two years graded. If heart attack within two years return a premium, which is just graded. Right. Much of Omaha, if heart attack between 1 and 2 years ago graded real neighbors within 2 years graded if ever heart attack for AM family choice decline spli within 2 years graded. So now I can go, hey, I know you said that you had that heart attack one to two years ago. Can you get me like, an exact, like, timeline on when that was? Oh, you know, it was actually in October of, or let's say it was, you know, January of 2022. Okay. And that was the only hardest IQ ever had. Boom. SBOI now comes up as our other option. So that's essentially how that works, is going back and like, reclaim, clarifying the decline reasons. Same thing with medications. If you change like the first date that was filled or the date listed for, like, whenever they were last treated, this will also, like, oftentimes change.

What is an option for you. So let's look at summarizing, repeating. This is a super important practice to do. After you guys ask all of the health questions, you must, must, must repeat back to the client everything that they told you and then confirm it. Right. So if I have, you know, a bunch of these health conditions, I'll just say heart attack just for the sake of example. So I'm going to confirm. Okay, got it. And so everything I got here, down here for you was the heart attack in 2022 and around January, and you haven't had, like, any other heart attack since then. That's the only heart attack that you've ever had. And that's everything that's going on with you. There's nothing else that, that you know would pop up in your, in your medical records, Is that correct? Yes, that's correct. Perfect. So I'm just reconfirming with them, like, I'm reading out everything that we have that's already listed down to make sure that there's nothing else we need to add or change. And then I'm confirming it with them and asking if there's anything else. And you do this every single time that you're finished with underwriting, because what happens is oftentimes they're going to forget to tell you something. And then whenever you like say that they're either going to correct you or they're going to tell you something that they completely missed. And that one thing, just doing this habit over and over again could save you guys hours over the course of like one week. So just summarize everything they say and repeat it back to them after they're finished. So perfect. Now let's talk about how we're actually going to pick which company to go with.

Let me get a sip of my water. I bought this gallon jug the other day, show you guys. It's like comically big.

So I never have to refill up a water bottle ever. I just fill it up at the beginning of the day. I got all the water that I could possibly need. So let's talk about picking the best company, right? So basically whenever we pick a company, we use a three tiered system to determine which company is going to be the best fit for our client. So basically the way this is work this works is the items at the top of the list are going to take priority over the ones at the bottom. So here's our three tiered list. The first thing that we're always going to look for is trying to get the client day one, right? Then we're going to look for price. If it's more than a $7 difference, I'll explain that in a minute. And then we're going to look at the preferred company, right? And so we have a list of all of the companies that are preferred at Zoosurance. As we add more companies and the companies change, this will probably change. So just pay attention to it. Check this whenever you go through it because it may be different from when I'm filming this. So again, we're optimizing for day one first. Then we're optimizing for price swings that are more than $7. And then we're going to go for preferred company. So I'll show you guys how this whole thing works so you guys can like understand this. So day one options, right? What does this mean? So we're always going to prioritize a day one insurance company over anything. This basically just means the plan is not going to be graded or guaranteed issue. So there's no waiting period. Once they pay their first premium, that's when the plan starts. That's what day one is. This is always our goal, right? We always want to find the client a company that starts from day one. And I will always pick a day one option for my client, even if it's more expensive. And the reason why Is because we're just, we're playing a game of risk. And so if I get my client something that takes two years to kick in and they, you know, it happens all the time, they pass away within the first two years. Their family doesn't get paid the full amount. They just get what they put into it and plus a percent. So I'm always, always, always going for day one. Even if it's, you know, a few dollars more expensive. Day one. Day one. Day one. Over to your waiting period. So how do I know if something's day one or not? It's very simple. Inside of toolkits, there's a little I, right? This like, little thing that says like I for information, this is going to be either graded or guaranteed issue. If it does not have an eye, that means that it starts from day one. It's literally that simple. So for example.

For show you guys here, day one companies will be the ones that do not have an eye on them. So for example, sbli, this plan with no I is day one. If it's, if there is an eye, that means it's graded or guaranteed issue. Core bridge is going to be almost always guaranteed issue. But the thing you guys need to know is like, it's not like, it's not like Mutual of Omaha is a day one company. They have day one plans and they have graded plans and two year waiting period plans. So Transamerica has day one options and they have graded options. They all have like different plans. So I could see SBLI graded.

And it has an I next to it or I could see SBLI day one. So it's not like all the companies are either graded or day one. They all have different plans. Which is why you need to look out for the I. I can't just go in here and say, oh, rural neighbors is a day one option. So therefore, you know, if I see rural neighbors, it's day one. Nope, it's the I. That's why we referenced that here. So if you see the I graded guaranteed issue, no I, that means it's day one and what are we optimizing for above all else? Day one. Perfect. So the next thing is price. So the next thing that we're going to look at is basically to prioritize finding the clients the best rate possible. Right? But the thing is we only care about price. If there's more than a $7 difference between the carriers. If there's more than a $7 difference, we go for price. If it's less, I do not care. Right and most of the time the client doesn't care either. The only exception to that rule is if they're like on a super tight budget and something as small as like $5 per month could be the difference between you getting the deal or not and then being able to afford the insurance. So that's like the only instance where we make an exception to this rule. Other than that, like, I don't care if it's a $7 swing, right? Because let's say. Let's look at an example, right? So let's say Trans. Excuse me. Transamerica is $60.30 a month and SBLI is 73, 37amonth, right? In this instance, I'm choosing Transamerica because it is the cheaper option by over $7, right? It's $13 cheaper, which means I'm going to pick the one with the cheaper price. Pretty simple, right? The price. This is not too hard to notice. If there's more than a $7 difference and it's day one, you're going to go with that option right? Now, what if the price there's not more than a $7 difference? And it's close, it's under $7. Then we're going to go to our third priority, which is preferred carriers. So basically we've made a list of the easiest companies to work with. These are basically ranked from best to least. So you want to prioritize the carriers that are at the top of this list whenever you're underwriting, right? So the whole reason we designed this is like, this is a very simple system. You don't have to think about it. If you just follow this tiered priority list, you always pick the right company for the client, no matter what, right? So preferred carriers, I'm not going to go through all these different things. These are just like nice things to know about each carrier. Benefits or downsides to each one. The top of the list, we have sbli. This is always our go to if it's close. Then we have Mutual of Omaha, Royal Neighbors, American Amicable, Transamerica, AIG and Great Western. The time of filming this, we have seven carriers. When you're watching this, we may have more, we may have less, who knows? So let's look at an example and see how we would actually use this whole system in action. So let's say we, we, you know, put in the health questions and this pops up. So we have up here at the top, right? We have Transamerica for 5105. We have SBLI for 5105. We have Mutual Omaha for 5122, American Amicable for 5431. Royal Neighbors for 5705. Right. So what most people would do and what most people assume is they just go off of the cheapest option to the most expensive option. So they're just going to go, okay, Transamerica is the cheapest. I'm going to try this one first. So they'll go Transamerica 1, SBLI 2.

American amicable for royal neighbors 5. Right. Because we have the system, we're actually going to approach it a little bit differently. So let's kind of look at it. So what's going to be priority number one? That's going to be sbli. Now, why is SBLI going to be our first priority whenever we're picking carriers here? Well, if you guys look here, the price. 51. I apologize if you guys can't see this. I'll just tell you what it is. SBLI says 5105. Transamerica says 5105. So they're literally the exact same price. Right? They're both day one. I don't see any eyes over here. No eyes. So they're both day one. They're the same price. If we look at our list, SBLI is number one on our list, right? SBLI is the preferred carrier every single time. Meaning SBLI is going to be our number one choice here, which is why SPLI is number one. Now, why is Mutual Omaha number two and not Transamerica? Well, the reason why is it's not more than $7 difference. It's like 17 cent difference. So this is 5105, and Mutual Omaha is 5122. Mutual Omaha is the carrier number two on our preferred carriers list, as you can see. I don't know why this is so difficult to scroll. What the hell?

I have to refresh this page for you guys.

Hold up. All right, so Mutual of Omaha is number two on a preferred carrier list, and the price is not more than $7. So Mutual Omaha is going to be number two. Now, Transamerica has to be up next, right? Nope. Next is Rural Neighbors because it's priority number three. Everything's day one and the price is within $7. Right. I can see here trans or royal neighbors 57, transamerica 51. It's only a $6.04 difference. I'm going to go Royal Neighbors before I go Transamerica here. And so why am I listing these out in Order to. Because let's say, for example, they got declined SBLI or they couldn't do SBLI or whatever, then I would go to Mutual Omaha. Then I would go to Royal Neighbors, then I would go to American Amicable, and then I would go to Transamerica. Right. So Royal Neighbors is priority number three, because it's day one, it's within $7 of Transamerica, and it's actually our third company on the preferred carrier list. Right. So I'm just going down this list. It's very simple. There's no thought to it. There's nothing that goes into it. I'm literally just going down the list and finding what the next best option is. If they're all within $7. Right. And then last but not least, American Amicable. This one is 5431. So it's still within $7. This is the, you know, next. Next up, one after Real Neighbors on the preferred carrier list. So I would go svli, Mutual, Royal Neighbors, American Amicable, and then Transamerica. Last case Resort. So you guys are saying, like, Tim, why on earth. Why do you hate Transamerica so much? And it's not that I hate them. It's just that they're a company that comes with a lot of baggage. And when I say that, I mean, like, they tend to be. They tend to be more of a headache dealer. So they're not going to give you an instant approval whenever you fill out the application. You're going to have to wait a few days to hear back, which means you then have to call your client back to get them back on the phone to tell them if they got approved or denied. And if they get denied now, you've had to wait a few days before you can get them back on the phone to pivot to a different option. Not to mention they just drown you in administrative work, like paperwork and just random bs. So they end up like, if you write a bunch of Transamerica.

It'S just going to end up bogging you down and costing you more time. So that's why I put that at number five. Most of these other ones will tell you immediately if the client is approved or not, and SBLI will actually tell you while you're inside of the application most of the time. So let us look at a different example.

So.

I'm trying to zoom in more. One sec.

All right, so now what do we have here? We have Royal Neighbors number one. How can I zoom in a little more? There we go. There we go. Perfect. So we Got Royal neighbors number one here and then Transamerica number two, SBLI three, Mutual Omaha four and Great Western five. So how did we go from this to this? Well, let's kind of look at this. This is an entirely different client so that all the health is different. But why are we going in this order now? And why is Transamerica, like why. How can we have Transamerica as two if here I was like, you know, this is going to be five. So let's look at it. Let's just apply the rules. It's just that simple. So Royal Neighbors is priority number one because, hey, there's no I and it's the lowest price company. So this is 57, Transamerica is 60, Spli 73, Mutual is 63 and Great Western is 74. So of all of these, which one has is day one. So these three are day one. These two on the bottom have eyes. So these three are day one dot Right. What's the cheapest? Well, Royal Neighbors is the cheapest. And then we have Transamerica and then we have SBLI. Is it within $7 of each other? No, it's actually like $16 more expensive. SBLI is like $16 more expensive than Royal Neighbors here. So in this case, we're going to pick Royal neighbors number one. So we've got rural neighbors as number one. It's the priority number one. And because it's day one in a lower price company, that's why it's number one. So let's look at Transamerica. So Transamerica is also day one. So we're basically picking between two companies. Now. These are the only two day one that are left because we already have rural neighbors as number one. So Transamerica is going to be priority number two because it's day one. And even though it's at the bottom of our preferred list, right. It's five out of seven. It's $13 cheaper than spli. So it's not within $7. So we're going to have to default the price. $13 more expensive spli is than transamerica. So now we got spli. This is going to be priority number three because it's day one over these other three options. So you guys are saying like, hey, well, I thought you just went with Transamerica over SBLI because it was more expensive. But SBLI is more expensive than Mutual Omaha. Yes, it is. But look here there is an I with Mutual Omaha, meaning that this is going to take two years to kick in. So again, you have to you have to use these rules, you have to use the three tiered priority list. Day one is always the priority. And then price as long if it's more than $7. If it's within $7, we're going to default to preferred carriers. Right? So that's how I'm figuring this out. And then next up we have Mutual because it's not day one. And even though it's cheaper than sbli, it's not day one. So SBLI takes priority over Mutual. Then Great Western is last because it's the most expensive and it's day two. And that those are two examples that should give you guys like a better idea of how this whole system works. You guys will see this in action when we do mock underwritings, which I'll, you know, add to the, to the rest of this training for you guys to watch through just to kind of, to get an idea because you'll see this over and over and over. You guys will get practice using the system. And then as we add more underwriting trainings, you guys can watch those to kind of, you know, improve your skill set and get prepared for all that. So next thing we're going to talk about is the toolkits legend.

This is basically kind of like a map legend. Just you guys know what, like what each of the different things mean. So the question marks and toolkits, this is basically just like why the they're coming back with a different rate class. So for example, if it's going to be like standard is usually lower than preferred. So like, why are they offering a standard and not preferred? Well, the reason why is because if a heart attack was within the last two to 10 years, it's going to be standard. Right. Why is American Amicable coming back graded instead of day one? Well, the reason why is because if there's a heart attack between two and three years, it's going to come back graded. So the question mark, this is just going to tell you like if they're offering a rate class other than their cheapest one and their best option, it's just going to tell you why if you hover over it. So that simple. This usually doesn't matter too much, but it can be helpful if you're trying to figure out like why someone's getting declined for other companies. So the red dots, these are basically warnings about the carrier or the plan. So if you hover over the red dot, it's just going to give you more information. So for example, look at Mutual. Mutual always has a red dot. Because of this, it's just saying, like, whenever they sign the app, they need to be near their home address because they use like, IP and all the, like tracking their IP address. And then Transamerica, they just talk about, like, comorbidity scores, which I'm not going to get into. But basically the red dot is just kind of like a warning. It's usually like, it's not an issue, but it's just helpful pieces of information to keep in mind. The red dots. Right. So what is the yellow star? This is, this means true Social Security billing. So all of the companies with yellow stars, they're gonna bill on the exact dates that people are drafted or that people get their Social Security check. So you might be saying, like, you know, that's cool, but like, why couldn't I just put it on the first of the third? Like, why is true Social Security billing? Like, actually, why does that matter? Well, let me show you guys. So I've attached here, this is the Social Security benefit payment schedule for 2024. Maybe you're watching this in a later year. If so, great. But this is when I'm filming. This is 2024. So basically, if we look at this, I'm not going to go through this whole code, but essentially these little, like outline blue boxes, this is people that are getting paid on the first of the third. So if I look here.

The third, if I get paid on the third.

January 2024, the third fell on a Wednesday. So the Social Security is only going to pay during weekdays and not during holidays. So if it is a weekend or a holiday, on the third of the first, it's going to fall on a different day. So for example, the third in February fell on a Saturday, meaning they're not going to get paid on the third, they're going to get paid on the second. And so if the insurance company then drafts on the third or drafts on the fifth, it's going to come out a different day than the day that they get paid. Right. Same thing in March. Right. The third was on a Sunday, so they drafted it on the first. So if they got paid on the fir on the third, they get paid on the first in March. So it's off. Right. Or we could look at, and I'm trying to see another example, looks like for the rest of the year or here we go, in November too. In November, the third is on a Sunday, so they're going to pay them on the first. So basically what true Social Security billing is, is it makes sure that it always drafts the date that it gets paid to the person. So it aligns with this billing schedule instead of just drafting it on the third every time, because sometimes the third is on a federal holiday or the third is on a.

Saturday or Sunday. That's essentially what true Social Security billing is. You guys can also reference this and Social Security releases a new one every year. So you can kind of look at this and keep it up to date.

So that's basically just what this little, like, you know, gold star means. It's very simple. So the eyes, what are the eyes? Right. We've already kind of talked about this a little bit. When I see an eye, what does that mean? So an eye basically just indicates that the plan is either guaranteed issue or graded. So if I see an eye, it's always going to be either guaranteed issue or graded. It's not going to be day one. And the cool thing is like, if you hover over the this, it'll tell you how the plan works. So this is telling me, hey, in year one, if they die, they're going to get 30% of the overall face amount. In year two, they'll get 70% and year three, they'll get 100%. So this is not technically like, it's not a two year waiting period, it's graded. Whereas this, in years one to two, they get return of premium or everything they put into it plus 10%. And then years three onward, they get a hundred percent of the Facebook face amount. Right. So the I just tells you if it's graded or guaranteed issue.

The last thing is the dollar signs. So the dollar signs basically mean commission cuts. So if I see a dollar sign on here, that means that my commission is going to be lowered on that particular company. Right. So to be honest with you guys, these aren't like accurate because our commission plan differs. But this is just like if it's return a premium or graded, usually it's going to be a lower commission. So that's just indicating that.

And yeah, that's everything you guys need to know. That's everything on toolkits. And then those are all of all of our frameworks as well. So just to recap main things, you're playing a game of Clue. You need to be detective, don't be like, you know, don't interrogate these people. But we need to dig deeper on questions to get the, get the facts and we don't want to speculate. Right. So some things to look out for, look over the stock. I'm going to include it below this training we're going through a process of elimination. So we're basically trying to knock out specific carriers. We're not trying to figure out what they qualify for. We're trying to knock out everything they don't qualify for. And then we're going to use the three tiered priority list to pick from what's left as far as what's going to be the best option for them. Right? And toolkits. Again, question marks indicate why the company is offering a specific plan. Red dots are warnings, yellow stars are true. Social Security billing and eyes are guaranteed Issue a graded if it doesn't have an eye, it's day one. If it has an eye, it's guaranteed issuer graded dollar signs or commission cuts. Ladies and gentlemen, that is everything that I'm going to be covering in the underwriting frameworks training. If you guys have questions about underwriting because it is a constantly changing thing, constantly evolving, please hit us up. We're happy to help, especially if you have someone on the line or in the middle of a deal. But the main thing is if you master these frameworks, the knowledge will fill in over time just from doing this. So don't stress out. If you don't know every medication and every health condition or anything like that, we don't expect you to. Nobody does. It just takes time to learn. So hopefully you guys got some value from this. If you did, please let me know and I'll see you guys in the next one. Take care.