Substandard offers in the insurance industry are more frequent than ever before. One shouldn't be unhappy about receiving a negative offer when applying for insurance but knowing more about why they got the offer is worth understanding. Offers can consist of ratings, exclusions, no reconsideration and more. Some of the basics are below:
Rated - Eg. a critical illness offer with a 25% rating is more common that you would think and this is actually good news as most offers are rated 100% and higher. So if you here that you got a rating of 25% it's simply a matter of understanding and many times it is family history related. Critical illness is the most ratable product on earth. Life insurance, Boe and disability coverage also can having a rating.
Exclusion - disability insurance is famous for exclusions as is health insurance and business overhead protection. Eg. client works in the back yard, pulls a muscle and has some back discomfort means any offer will normally have a back exclusion but the good news is most times it is possible to have this reconsidered. We usually go back to an underwriter and ask what the time line is for reconsideration if any to help with case management.
No reconsideration - this is the bad news because the restriction is permanent. This should not be taken lightly as it can affect things every time someone applies later in life. Working with a broker can be effective especially for declines as there are products available in the market place and many times 2 or 3 companies are utilized to come up with solutions.
The number of substandard offers are endless in our insurance world today and taking the time to understand them helps to make informed decisions. It can be overwhelming but working with a broker can ease the pain of the process.