About Mark Pace

T. Mark Pace

When there is an immediate need for cash at the time of someone’s death, it has been my experience that life insurance, when properly acquired and managed, is one of the best tools ever invented for the creation and transfer of wealth. However, life insurance is rarely acquired properly and, because it is mistakenly assumed to be a "buy and hold" asset, it is never managed. The resulting financial disasters are far too frequent and completely avoidable.

If you would like to learn more about any Pig-in-a-Poke blog posts or discuss any other life insurance issues, contact T. Mark Pace at Mark@objectivereview.com

 

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Pace’s Pig-in-a-Poke

About Pace’s Pig-in-a-Poke

Pace’s Pig-in-a-Poke, provides an arena for sharing the four great passions in my life. My three foundational passions are:

  1. Invest in yourself first;
  2. The genius in all of us, and;
  3. We can all live a long healthy life.

These three support my life work and my fourth passion; LIPM™ (Life Insurance Property Management).

As the blog title suggests, my focus is on debunking all of the myths, misuse, and muddled thinking that has accumulated in the life insurance industry. And, from time to time, I will go outside of the specific world of life insurance and share my views on my other three passions.

I hope you find my blog worthy of your attention, informative, and occasionally inspirational. I welcome your comments, questions and suggestions.

Mark Pace

Poor underwriting ratings not etched in stone!

Health impairments are not the end of the life insurance world…

The Poke: Many advisors and brokers will tell you that once a case has been brokered for a person with health impairments seeking life insurance, whatever rating the insurance company comes back with is the best you can ever expect. Even if the case has been shopped aggressively – e.g.: the broker sent it to 10 carriers – once you are rated, that’s it, game over, tout fini!

The Poke Exposed:

Understanding this pig-in-a-poke starts with recognizing the bidding mentality permeating many other types of price negotiations is still prevalent in life insurance brokering.

This mentality assumes two things:

  1. To get competitive bids you send applications to three or four companies and wait to see which one comes back with the best offer. When the best offer comes back… well, that is the best deal you can get.
  2. There is a standard practice for preparing medical files used by almost every agent in every case.


Both of these assumptions are not true, not by a long shot.

First off, shopping around often causes more harm than good because underwriters don’t like it when they know they are one of several bidders on a policy. They react by spending as little time as possible on the case and simply fire off their initial reaction. (It’s as if they think, “This client wants their policy in the worst way so that’s the way they’re going to get it!”)

Secondly, there are as many ways to prepare medical files as there are agents ready to review and replace an existing life policy!

Pace’s Poke Remedy:

The first step is to avoid the bidding process or replace it with an experienced advisor’s ability to seek the best service and value from an insurance company that respects him or her and values their business. (How this is done is a topic for another blog…). The second step is to assess the medical file to determine if it needs to be cleaned up and if it can be cleaned up.

Cleaning up a file could be as straightforward as discovering a medical test was not completed or that there is faulty information in the file. It takes time and resources to perfect a medical file and that is why most agents and advisors simply gather it up and fire it off to multiple carriers… as is.

Once the file has been cleaned up, an appropriate summary needs to be written by someone who has case underwriting experience. This is someone who knows how underwriters think, what they look for, and how to make the information they regard as critical readily available. A summary justifying an underwriting classification prepared by an expert carries much more weight than just a pile of facts. Expert analysis makes an underwriter’s job easier especially when the expert stands ready to answer an underwriter’s questions and concerns… this is the icing on the cake.

(PS: If you are in need of this level of expertise and help, consider learning more about Level 5 Underwriting™ from ObjectiView.)

(The material provided in Pace’s Pig-in-a-Poke is for informational purposes only. T. Mark Pace and ObvjectiView are not authorized to, and do not provide accounting, income tax, or legal advice. You are encouraged to seek out assistance from your accounting or legal professional before taking any action.)

About the author

Mark Pace
Mark Pace
When there is a need for immediate liquidity at the time of someone’s death, it has been my experience that life insurance, when it is properly acquired and managed, is one of the best tools ever created for the creation and transfer of wealth. However, in my 35 plus years of experience, life insurance is rarely properly acquired and never managed… thereby creating a monumental financial disaster for many individuals that should never happen.

If you would like to learn more about this Pig-in-a-Poke subject or discuss any other life insurance issues, contact T. Mark Pace at Mark@objectivereview.com

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