In this unprecedented climate with COVID-19 and market and economic downturns, clients are more focused than ever on their long-term security and protection. Financial advisors and wealth professionals are emphasizing risk management solutions to help complete their comprehensive planning and fiduciary role with clients. Amidst these turbulent times, BGAs and insurance professionals are busy serving clients’ needs with virtual underwriting and coverage solutions.
We should always be thinking about clients’ foundational and critical insurance needs in general; yet, it truly comes to light during times of a health crisis or market volatility.
Brokerage General Agencies (BGAs), insurance professionals and carriers serve an important role in these turbulent times. With Coronavirus specifically, clients are concerned about their livelihood and protecting their loved ones with life insurance, disability and critical care coverage. They are realizing the threat of an extended period of care or loss of income. It goes without saying the anxiety that comes with unknown volatility.
The challenge of serving and securing coverage for clients in a self-quarantined and social distancing environment has already been met and the insurance industry has long been prepared with solutions.
Expedited Coverage and Tele-Underwriting Options
Many insurance carriers have options for expediting the application and underwriting process for clients. This allows advisors to bring solutions to their clients and help them gain better structure and stability in their financial portfolio. As many financial advisors are aware, the traditional life insurance application and underwriting process can take several weeks to complete based on the case complexities or means of submittal and delivery used. They often await paperwork submittals, medical exams and other input necessary in the underwriting process.
In this new climate, there are better accelerated options available. Advisors and clients can fulfill insurance gaps without a face-to-face meeting and still gain the coverage they need. Many insurance carriers have options for clients who are otherwise healthy and have no major medical issues, including:
- No medical exam policies to shorten the underwriting process
- Fluidless exams
- Expedited applications and preliminary inquiries to determine a client’s coverage options
- Tele-Applications that can be done over the phone, in many cases with an immediate underwriting decision
- Options for E-Delivery of applications and insurance documents
These options, which already exist within the insurance community, provide a means for solving critical insurance needs in a Coronavirus environment and advancing a client’s objectives. It is further important to note that Coronavirus and other pandemic cases are covered by life insurance and may be covered by disability insurance.
BGAs and brokerage specialists, in particular, are able to represent the broader insurance marketplace, not just one company or line of solutions. Their role is to analyze avenues for client coverage and work across the vast marketplace of carriers to objectively determine the most advantageous offers for clients.
Like many insurance professionals, brokerage firms consult with advisors and clients to review and stress test a client’s existing policy. They determine if a client’s current coverage is still effective amidst current climates and their long-term objectives.
Bringing Security and Structure to Clients
In a time when markets cause anxiety in a portfolio, insurance is one of the many strategies that can bring security and structure for clients. Insurance consultants conduct due diligence on the financial strength and soundness of carriers. They assess and fight for coverage options on behalf of the financial advisor or client, particularly when one carrier or insurance company may have declined coverage or rated the client in an unfavorable manner.
The insurance community is among the distinct risk management consultants within the financial services industry. They work tirelessly with advisors and clients to complete their financial planning and fiduciary role. For more information on finding BGAs and insurance professionals within your community, you may visit nailba.org, aalu.org, naifa.org, to name a few elite organizations.