March 2021 - Page 2 of 2

How to Convert More Life Applications Into Paid Policies

September 25, 2026March 15, 2021 by Tim Fuller

Underwriter reviewing medical and financial data with a client during risk assessment

There’s nothing worse than weeks of underwriting ending with an offer the client won’t accept. Most of those surprises, like a family history issue or driving violations, could have been spotted before the application.

Key takeaways

Most underwriting surprises come from information that could have been gathered at the first meeting.
Only a small share of applicants qualify for the very best rate class; most are approved at Standard or similar.
Impairment fact finders and informal pre-screens let you get tentative offers before recommending a carrier.

Don’t assume Preferred Best. Only a small share of applicants reach the top rate class — most are approved at Standard.

Start with a needs analysis and budget

A basic life needs analysis and a clear picture of the client’s intended premium let us work backward, maximizing the benefit without exceeding the budget, even if the underwriting offer comes back less favorable than hoped.

Ask the right field underwriting questions

Family history, driving record, medications, and avocations are the most common sources of surprises. Asking about them up front lets you quote realistically. More on quoting the right rate class the first time.

Use impairment fact finders

We offer one-page fact finders for dozens of common conditions. Completed forms are reviewed by our Underwriting Department, and when needed an underwriter will call you with targeted follow-up questions. The goal is tentative carrier offers before you recommend a carrier or take an application.

Set realistic expectations

Clients who expect Standard and receive Preferred are delighted. Clients who expect Preferred Best and receive Standard often walk away. Setting expectations early protects the sale and your relationship with the client.

Frequently asked questions

What is a good placement ratio for life insurance?

It varies, but the higher the better. Accurate quoting and pre-underwriting are the most reliable ways to raise it.

Why do life insurance applications end up not taken?

Most often because the final offer is worse than the quote the client was shown, usually due to health, family history, or driving history not gathered up front.

What is an informal inquiry or pre-screen?

A review of a client’s details by underwriters before a formal application, used to get a sense of likely offers from different carriers.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

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Answer the Underwriter’s Questions Before They Ask: A Financial Justification Case

September 25, 2026March 12, 2021 by Tim Fuller

Picture this application: a 35-year-old woman, retired, no income listed, net worth blank, applying for $8 million of term with no stated purpose. Any underwriter would stop and ask why.

Key takeaways

Large face amounts need a clear financial justification, especially when income or net worth isn’t obvious.
In this case the client had just inherited a large estate and needed coverage for estate taxes, which fully justified $8 million.
The five key questions: purpose, how the amount was set, owner and payer, total coverage in force, and supporting documents.

Retired at 35, no income, $8 million of coverage. Without an explanation it looks alarming. With one — a large inheritance and estate taxes — it’s justified.

The case

Female, age 35, listed as retired with no annual income
Net worth left blank
Applying for $8 million of term coverage, purpose left blank

The explanation was simple: she had just inherited a very large estate and left her job, and estate taxes were a concern. Based on the inheritance, $8 million was justified. The application just didn’t say so.

The five questions underwriters will ask

What is the purpose of the insurance?
How was the face amount determined?
Who is the policyowner and premium payer?
How much coverage is in force and applied for?
What documentation supports the amount?

Put the answers in a cover letter

Answering these up front, usually in a short cover letter, prevents weeks of back-and-forth. We can write the letter for you, but the most important source of information is you, since you know the client.

Frequently asked questions

What is financial justification in life insurance?

Evidence that the amount of coverage applied for is reasonable given the client’s income, net worth, and the purpose of the insurance.

Can someone with no income get a large life insurance policy?

Yes, if there’s another justification, such as a large estate, inheritance, or business interest. The purpose needs to be clearly explained.

How can I speed up approval on a large case?

Provide the purpose, how the amount was set, ownership details, existing coverage, and supporting documents with the application.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Aging in Place: How Long-Term Care Coverage Helps Clients Stay Home

September 25, 2026March 11, 2021 by Tim Fuller

Close to 70% of people turning 65 will need some form of long-term care, and most want to receive it at home. Aging in place takes more than a caregiver: it takes a safe home, the right equipment, and help with daily life. Long-term care coverage can pay for much of it.

Key takeaways

Aging in place is the top preference for most older adults.
Many policies cover home modifications, safety checks, medical equipment, and medical alert systems.
Help with household tasks, medications, and caregiver training keeps clients home longer.

Ramps, grab bars, a medical alert system, and someone to help with meals: the things that make staying home possible.

What aging in place requires

Staying home safely often means changes to the home and support with daily tasks, not just medical care. Families frequently underestimate how much is involved.

Benefits found in many policies

Home modifications, such as ramps, grab bars, and bathroom changes
Home safety assessments
Durable medical equipment
Medical alert systems
Caregiver training for family members
Household help: laundry, meal preparation, and bill paying
Medication management

Some home care agencies also provide transportation to appointments, social activities, and updates to family after doctor visits. Coverage varies by policy.

Why it matters in the sale

Emphasizing these benefits speaks to clients’ desire for independence and quality of life. See in-home care benefits and planning for couples without children, for whom aging-in-place support is especially important.

Frequently asked questions

What is aging in place?

Living in your own home safely and independently as you age, often with modifications and in-home support.

Does long-term care insurance pay for home modifications?

Many policies include a benefit for modifications such as ramps and grab bars.

Can LTC insurance pay for a medical alert system?

Some policies cover medical alert systems as part of home care or safety benefits.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Adding Disability Buy-Out Coverage to Buy-Sell Planning

September 25, 2026March 10, 2021 by Tim Fuller

Most buy-sell agreements are funded with life insurance alone. That works if an owner dies, but an owner is more likely to become disabled than to die during their working years, and life insurance won’t pay for that buyout.

Key takeaways

Life insurance funds a buyout only at death; disability buy-out insurance funds it if an owner can’t work.
It provides cash for the business or co-owners to buy the disabled owner’s interest, and pays the disabled owner for their equity.
Reviewing existing buy-sell plans is a natural way to add disability, key person, and personal DI coverage.

If a partner becomes permanently disabled, life insurance pays nothing. Disability buy-out coverage funds the purchase.

The gap in most buy-sell plans

If an owner becomes too sick or injured to work but doesn’t die, the business still needs to buy them out, and the disabled owner needs to be paid for their equity. Without funding, that means loans, installment payments from cash flow, or conflict. See also using an LTC rider to fund a buy-sell.

What disability buy-out coverage does

Provides funds to purchase a disabled owner’s interest after a defined elimination period, often 12 to 24 months
Pays the disabled owner for their equity, as a lump sum or installments
Complements life insurance within the same buy-sell agreement

The agreement should define disability consistently with the policy.

A success story

A producer asked us for a basic term life policy on a business owner. When we raised disability in the continuation plan, the result was an individual DI policy for the owner, with plans for the key executives underway. It was the producer’s first DI sale with us.

Getting started

Offer clients with existing buy-sell policies a complimentary review. We provide fact finders, valuation questionnaires, and approach letters. The review often leads to key person disability and personal DI sales.

Frequently asked questions

What is disability buy-out insurance?

Coverage that funds the purchase of a business owner’s interest if they become totally disabled, under a buy-sell agreement.

How long is the elimination period for disability buy-out insurance?

Commonly 12 to 24 months, to confirm the disability is long-term before the buyout.

Does life insurance cover a buyout if an owner becomes disabled?

No. Life insurance pays only at death; disability buy-out insurance covers the disability scenario.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Term Conversion: Turning One Term Sale Into Several

September 26, 2026March 8, 2021 by Tim Fuller

Most term policies include a conversion privilege that lets clients switch to permanent coverage without new medical underwriting. Too often it’s ignored until the term is about to expire. Planning conversions from the start serves clients better and creates new business for you.

Key takeaways

Conversion lets clients keep their original health rating for life, with no new medical underwriting.
Permanent premiums are based on attained age at conversion, so earlier is cheaper.
Partial conversions over time keep costs manageable, and each conversion is a new sale.

The worst time to discuss conversion is after the client’s health has changed — plan it at the point of sale.

What the conversion privilege does

Term coverage lasts for a set period, such as 10, 20 or 30 years. Most term policies let the owner convert some or all of the coverage to a permanent policy without new medical underwriting, within the carrier’s conversion window. The client keeps their original risk class, no matter what happens to their health.

Plan it at the point of sale

One of our brokers talks about conversion during the first sales meeting. Together with the client, they decide how much permanent coverage the client will eventually want and how quickly they can afford to convert. Because permanent pricing is based on the client’s age at conversion, converting sooner costs less.

Use partial conversions

Clients don’t need to convert everything at once. For example, a client with a $1 million, 10-year term policy might convert $500,000 next year, another $250,000 in five years, and then decide near the end of the term whether to keep the last $250,000. Each step fits the budget and adds flexibility. Conversion rules, windows and eligible products vary by carrier, so check the contract.

Stay proactive

Many clients don’t know their term policy can convert. Reaching out is a reason to stay in touch, and it can lead to referrals from family and friends. Each conversion is a new permanent sale with new compensation. For clients whose needs have changed, see our life events that should trigger a coverage review.

Frequently asked questions

Does converting term life require a medical exam?

No. Conversion within the policy’s conversion period generally requires no new medical underwriting, and the client keeps their original risk class.

Can a client convert only part of a term policy?

Often, yes. Many carriers allow partial conversions, so a client can convert in steps as budget allows. Confirm minimums with the carrier.

How is the premium set on a converted policy?

The permanent premium is based on the insured’s age at the time of conversion and the original risk class, so earlier conversions cost less.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Life Insurance With Type 2 Diabetes on Oral Medication: How Credits Improve the Offer

September 25, 2026March 5, 2021 by Tim Fuller

Type 2 diabetes treated with diet and oral medication, such as metformin, is one of the most common impairments on life applications. Combined with a heavier build, it often starts as a table rating. With the right carrier, credits can bring that down significantly.

Key takeaways

Type 2 diabetes with diet and oral medication only, good control, and no complications may reach Standard Plus at some carriers for clients 50 and older.
Build combined with diabetes usually worsens the rating, but credits can offset it.
A 54-year-old woman with Type 2 diabetes and a heavier build went from Table 4 to Table 2 with credits.

Initial workup: Table 4. After credits for non-smoking, driving record, cardiac testing and blood pressure: Table 2.

What helps a Type 2 case

Treatment with diet and oral medication only, rather than insulin
Stable, good A1C readings over time
No complications such as kidney, eye, nerve, or heart disease
Controlled blood pressure and cholesterol
Diagnosis at an older age

Some carriers may offer Standard Plus to clients 50 and older with excellent control, diet and oral medication only, and no complications.

Case study: credits make the difference

54-year-old female, non-tobacco, applying for $1 million of term
Type 2 diabetes treated with metformin
5’3”, 220 lbs
Initial workup: Table 4

One A+ carrier applied credits for being a lifetime non-smoker, income over $100,000, a preferred-or-better driving record, negative cardiac testing, and controlled blood pressure. Final offer: Table 2.

Shop carriers with credit programs

Not every carrier applies lifestyle and health credits. Knowing which ones do can save your client meaningful premium. See underwriting upgrade programs and how A1C affects ratings.

Frequently asked questions

Can you get life insurance with Type 2 diabetes?

Yes. Many Type 2 diabetics qualify for Standard or better with good control and no complications, depending on the carrier.

Does taking metformin affect life insurance rates?

Metformin itself isn’t the issue; underwriters look at diabetic control, complications, and other risk factors.

What are underwriting credits?

Positive factors, such as non-smoking, good driving record, or favorable cardiac tests, that some carriers use to improve a rating.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Help Clients Hedge Long-Term Care Risk: Start With the Cost of Care

September 25, 2026March 4, 2021 by Tim Fuller

Talking about the cost of care is one of the least threatening ways to start a long-term care discussion. It turns an uncomfortable topic into a numbers conversation, and it gives you the starting point for designing coverage.

Key takeaways

Start by asking where the client would want to receive care, then show today’s and future costs for that setting.
Coverage doesn’t have to insure the entire risk; clients can self-fund part of it.
Shorter benefit periods or a higher starting benefit without compound inflation can cut premiums significantly.

Long-term care coverage isn’t all-or-nothing. Clients can insure the part of the risk they can’t afford to carry themselves.

Highlight the cost of care

Ask where the client would want to receive care: at home, in assisted living, or in a facility. Then show what one to three years or more of that care costs today and what it could cost when they’re likely to need it. We can provide current costs by location and inflation-adjusted projections. National figures are in our 2025 cost of care summary.

Develop a strategy

Once clients see the impact on their assets, help them decide how much risk to insure. Some prefer to cover part of future costs and self-fund the rest. Others want full protection for a spouse or to preserve a legacy. Both are valid plans.

Manage the premium

Start with a design that covers the full projected cost, then show alternatives.
Shorten the benefit period to three to five years, which covers most care needs.
Consider a higher initial daily benefit with less inflation protection; dropping compound inflation can cut the premium substantially.

More options in five ways to make LTC more affordable.

Become the cost-of-care resource

Advisors who know local care costs become a go-to resource in their community. Use us as your reference point for data and illustrations.

Frequently asked questions

How much long-term care coverage does a client need?

Enough to cover the portion of expected care costs they can’t comfortably pay from income and savings. Many choose to insure part of the risk.

How long does a typical long-term care need last?

It varies widely. Many needs last a few years, which is why three- to five-year benefit periods are common.

Does leaving off inflation protection lower LTC premiums?

Yes, often substantially. A higher starting benefit can partly offset future cost increases.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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What Business Overhead Expense Insurance Covers, and What It Doesn’t

September 25, 2026March 3, 2021 by Tim Fuller

Most small business owners couldn’t step away for a long weekend, let alone several months. If illness or injury kept them out, the business could close. Business overhead expense (BOE) coverage is designed to keep it open, but owners should understand exactly what it pays for.

Key takeaways

BOE reimburses the business’s regular fixed operating expenses while the owner is disabled.
It generally doesn’t cover the owner’s own salary, inventory, or new equipment purchases.
Pair BOE with personal disability insurance so both the business and the owner’s income are protected.

BOE keeps the business alive. Personal disability insurance keeps the owner’s household running. Most owners need both.

What BOE typically covers

Rent or mortgage interest on business property
Utilities, phone, and internet
Salaries of employees (other than the insured, and often other same-profession employees)
Equipment leases and loan payments (with some policies or riders)
Business insurance premiums, accounting and professional fees, and other regular fixed expenses

What BOE typically doesn’t cover

The owner’s own salary or draw, which is covered by personal disability insurance
Inventory, merchandise, or cost of goods
Purchases of new equipment
Salaries of replacement professionals, unless a special rider is added; see the salary replacement rider for physicians and dentists

Definitions vary by carrier, so review each policy’s covered expenses list.

Why it’s a door opener

Asking “What would happen to your business if you couldn’t work for several months?” opens a conversation most owners have never had. It protects employees, keeps the business valuable enough to sell if the owner can’t return, and premiums are generally tax-deductible. See why small businesses need BOE.

Frequently asked questions

Does business overhead expense insurance cover the owner’s salary?

No. BOE covers business expenses; the owner’s income is protected by personal disability insurance.

Does BOE cover employee salaries?

Yes, generally for employees other than the insured, though same-profession employees may be excluded unless a rider is added.

Are BOE benefits taxable?

Premiums are generally deductible, and benefits are taxable income to the business but offset by the deductible expenses they pay.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Using RMDs to Fund Survivorship Life Insurance

September 26, 2026March 2, 2021 by Tim Fuller

Many retired couples take required minimum distributions they don’t need to live on. Redirecting those after-tax dollars into a survivorship life policy can turn a taxable distribution into a larger, income-tax-free inheritance. Getting the case approved, though, takes careful preparation.

Key takeaways

RMDs generally begin at age 73; unneeded distributions can be repositioned into second-to-die coverage.
Survivorship life pays at the second death, when heirs face the SECURE Act 10-year rule and possible estate or state taxes.
Underwriters need a real purpose — estate liquidity, equalization or asset distribution — not just “increase the legacy.”

“To increase the legacy” is not a purpose underwriters accept. Estate liquidity, inheritance equalization and ease of distribution are.

Why RMDs and survivorship life fit together

RMDs generally begin at age 73. Clients with enough other income often reinvest these distributions or leave them in a taxable account. When the IRA eventually passes to children, most non-spouse heirs must empty it within 10 years under the SECURE Act, often during their own peak earning years. Using the after-tax RMD to pay premiums on a survivorship (second-to-die) policy creates an income-tax-free death benefit at the second death, which can offset those taxes or simply leave heirs more. See IRA planning under the SECURE Act.

The underwriting challenge

Many middle-market retirees don’t have traditional financial justification. With a federal estate tax exemption of $15 million per person ($30 million per couple) from 2026, most won’t owe federal estate tax, and retirees have little earned income to replace. Carrier marketing sometimes promotes RMD strategies, but underwriters decide what gets issued.

Percent-of-net-worth justification

Many carriers are open to coverage for estate liquidity, inheritance equalization or making assets easier to divide. Some will allow coverage as a percentage of the client’s net worth, even without traditional need. The percentage varies by carrier, and existing coverage counts against it. State estate or inheritance taxes, which can apply at much lower levels than the federal tax, can also support a stated purpose.

How we help you place the case

Don’t just submit an application and hope. Share the client’s situation with us and we’ll informally shop it with receptive carriers. When you submit, we can write a cover letter that explains the purpose clearly. It’s worth the effort: a permanent policy on an older couple is a meaningful case for the client and for you. See also RMDs in life insurance sales.

Frequently asked questions

Can I use my RMD to pay for life insurance?

Yes. Once the RMD is withdrawn and taxes are paid, the remaining money can be used for any purpose, including premiums on a life insurance policy such as survivorship life.

Why use survivorship life for an RMD strategy?

Survivorship life insures two people and pays at the second death, which is when an inheritance passes to children. It usually costs less than two individual policies.

How do underwriters justify coverage for retirees?

Many carriers allow coverage based on a percentage of net worth for estate liquidity, equalization or ease of distribution. The stated purpose matters, so a clear cover letter helps.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Term Life Insurance for Business Loans and Debt

September 26, 2026March 1, 2021 by Tim Fuller

When a business owner borrows money, the lender is betting on that owner staying alive and able to run the company. Term life insurance is the most cost-effective way to protect the loan, the business and the owner’s family. Here’s how to structure it.

Key takeaways

Lenders, including many SBA lenders, often require life insurance on key owners, usually with a collateral assignment.
Match the term length and amount to the loan balance and schedule, and consider extra coverage for the family.
Term policies with living benefits can also help if the owner has a major illness while the loan is outstanding.

A collateral assignment pays the lender first — and the rest goes to the owner’s beneficiaries.

Why lenders ask for life insurance

If the owner dies, the business may struggle to repay. Lenders often require coverage on the owner or key people as a loan condition. The policy is typically owned by the borrower and assigned to the lender through a collateral assignment, so the lender is paid first and any remaining proceeds go to the beneficiaries. Confirm the lender’s specific requirements before applying.

Sizing and structuring the coverage

Amount: at least the loan balance, and often more so the family or business has money left after the lender is paid.
Term length: match or exceed the loan term. A 10-year loan pairs naturally with 10- or 15-year term.
Ownership: personal ownership with a collateral assignment is common; business ownership may also work depending on the structure.
Conversion: choose a policy with a strong conversion privilege in case the need becomes permanent.

Debt can also support additional key person coverage when losing the executive would affect repayment.

Living benefits add another layer

A heart attack, stroke or cancer diagnosis can hurt a business as badly as a death. Some term products include critical and chronic illness benefits that pay part of the death benefit while the insured is living. For a borrowing owner, that money can help keep payments current during recovery. Availability varies by carrier and state.

A natural door-opener

Business loans create a clear, immediate need, and the conversation often leads to broader planning: buy-sell funding, key person coverage and succession. See our business insurance needs checklist. Contact us and we’ll help you find competitive term options that meet lender requirements.

Frequently asked questions

Do banks require life insurance for business loans?

Many do, especially for SBA loans and loans that rely heavily on one owner. Requirements vary by lender and loan size.

What is a collateral assignment?

It is an agreement that gives the lender the right to be paid from the death benefit up to the outstanding loan balance. Remaining proceeds go to the policy’s beneficiaries.

How long should the term be?

At least as long as the loan. Many advisors choose a slightly longer term or a policy with a good conversion option in case the loan is extended or the need continues.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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How to Convert More Life Applications Into Paid Policies

Start with a needs analysis and budget

Ask the right field underwriting questions

Use impairment fact finders

Set realistic expectations

Frequently asked questions

Tim Fuller

We’re Here to Help

The case

The five questions underwriters will ask

Put the answers in a cover letter

Frequently asked questions

Tim Fuller

We’re Here to Help

Tim Fuller

We’re Here to Help

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller