Top Tips for Placing Modified Offers

Not every application for individual disability insurance results in a policy exactly as applied for. It’s possible your client’s application will result in a modified offer. Policy modifications can include exclusions or limitations, premium ratings or removal of riders.

It’s important to set expectations with your clients from the beginning. Let them know that modified offers provide much needed income protection and some modifications may be removed at a later date.

Here are tips for placing modified offers:

Ask questions and set expectations from the beginning.

You can help avoid surprises by setting the stage for a modified offer in advance. Get to know your clients by asking about their occupations, hobbies, health and medical histories. The TeleApp Instruction flyer lists potential issues to discuss, such as chiropractic care, hospital admissions and prescriptions. Explain that underwriters will take all these factors into account when making an offer for coverage. By managing your clients’ expectations up front, you can help them appreciate a modified offer.

Emphasize what the modified policy does cover, including leading causes of disabilities. 

Your client qualifies for coverage. That’s a big relief! Emphasize that the modified offer still provides great coverage. While a certain condition may not be covered, a host of other conditions are. And the client may not get a better offer. Other carriers will see the same medical history and risk profile.

Share the top reasons for disability and which ones will be covered by their new policy. Cancer, fractures, heart disease, nervous system and mental disorders are the most common disabilities affecting The Standard’s individual disability insurance claimants.¹ And disability can happen to anyone at any age. In fact, one in four 20-year-olds becomes disabled before reaching retirement age.²

Position any offer as a positive opportunity for your client to gain important income protection.

Let them know that the modification can be removed.

In some cases, modifications can be reviewed at a later date. At the time of offer, we’ll tell your client if the policy modification will be reviewable and how soon a request for review may be submitted. If the issue resulting in the modified policy has improved, your client may wish to apply to remove the modification. Full underwriting will be required.

Share these flyers to help your conversations with clients: Exclusions Explained and The Value of Modified Offers.

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