In high risk life insurance underwriting, the concept of “all cases are not created equal” is only true if we are all on the same page with risk separation. In analogous terms, risk separation or risk differentiation can be compared to the equal but different paintings of two artists.
They begin with the same ability, similar canvas and brushes, equal paints, and the same subject on which to base their work. Yet, when finished, one piece hangs in the Metropolitan Museum of Fine Art and the other in the reception area of a small life brokerage agency. Why?
The subtle strokes which dispel vagueness or confusion, can often dictate an artist’s success. Similarly, the ability to recognize high risk cases combined with the foresight necessary for risk separation, can often lead to inspiring underwriting results.
Case Study: RDU Turns Decline into Major Win
Our recent experience: a 70-year-old woman applying for $1,250,000 of UL coverage, declined due to multiple falls over the past (6) months due to possible neurological impairment.
The opportunity to "insure her insurability" was created by BSMG’s Risk Differentiation Underwriting (RDU) program. This same women was reassessed and approved on a preferred non-smoker basis and decided to increase the applied-for amount to $2.5 million with an applicable target premium of $109,800
Financial advisors today must be aware of unique benefits tied to the differentiating of ones individual mortality risk from the law of large numbers. This is key to driving success in our large case underwriting endeavors.