I Feel Pressure from my Agent... Why?

Joe Leech, Master Broker

The title sort of says it. Regardless whether it's me or a competitive broker/agent, nearly all of us strongly urge the applicant to "get an application going".

Other than the agent appearing to protect their personal sales interest, is there a reason?

The answer is "YES" and it's really in the applicant's best interest to do this.

Why? Because nothing becomes official or "binding" until a policy is issued and everything else is somewhere between "a best expected or hoped for situation" and maybe what an agent claims with the idea that a prospective client won't read the policy when issued.

You good and  ethical agents will not only expect you to read your policy when issued, but ideally meet with you to go over it.

You see when an application is submitted, it is only that.. you are  applying to an insurance company for a certain amount or type of coverage a certain price point.

You hope they wil accept your offer.. but within that offer, that company really wants to know things about you concerning your health. Now chances are if you  are the person your application represents you to be, your application  will result in the issuance of a policy as you applied for.

But even when issued, YOU HAVE TEN DAYS FROM THE DATE OF ISSUE TO DECIDE TO KEEP THE POLICY AND COVERAGE. That's the law. You can decline to keep it and receive a full refund of your deposit..

At this time, you may ask "What's this deposit nonsense?" The short answer is that as expense will be undertaken by the insurance company to evaluate you, possibly coordinate with a doctor, etc. they want to know you  are serious and not just curious. So, it's standard industry procedure for you to affirm you are seriously considering their company by attaching a deposit (customarily one month's premeium) with your application. This also protects YOU..  When the policy is issued, even in your ten day free look, you are then generally covered. Important to you!

Well ... what are the options after I put in my application?

The company can do one of four basic things:

• They can issue the policy as applied for.
• They can decline to issue the policy.. period.. and will generally tell you and you only why. This is privileged information and personal, the agent will NOT get a copy.
• They can counter propose with adjusted (usually higher). However coverage will most often be offered at a risk cost the company feels they can affod.
• In this last option, the company may exclude (waiver) coverage for certain conditions. This may be a permanent or a temporary waiver. Premeium may or may not be adjusted.

THE BOTTOM LINE is that no one, including your agent, knows. The only way to KNOW is to put your offer in writing.

You have the right to put in multiple simultaneous applications. One thing to possibly look for, if you are cash concerned, to to see what company wil immediate deposit your application fee on receipt and those which wil hold it until a policy is issued.

Another thing to ask or know is if you can make the application fee via a credit card. There are advantages to doing it this way. First, if the card was debited and you ask for a credit under the ten day free look period, credit cards tend to be back credited more quickly than a company cuts a refund check. Then the other reason, particularly if you have a "rewards associated" credit card it to earn those bonus points toward whatever...

So as you end your reading, you now know why the agent is "pressuring" you for your application and you understand why it is in YOUR best interest...