Underwriting

Table Shave Programs

Does your case need a shave?

Table shaving is a special underwriting program when your low to moderately rated clients would have been appoved with ratings of table 2, 3, 4 or even 5 because of thier health history and the carrier approves them using standard rates only. In essence, the carrier is "shaving" off the tables.

There are only a few life companies that continue to offer these "Table Shaving Programs" or similar variations of a table shaving program.

How does this help you place more business and make more money?

If each "table" after standard increases rates from 25% to 50% more depending on the company a table 3 rating can be 150% more expensive than the standard rate class. Rated policies are always more difficult to place. Your client appreciates all your hard work but does not accept the rated policy since the premiums are too high. No policy is placed in force, and you don't make a penny.

However, if that same client rated table 3 is now offered standard rates, think how much easier it's going to be placing this in force, not to mention how great your client will feel when you tell them they have been approved at standard rates. You should have no problem placing this in force, as well as getting a few well deserved referrals after your client fully appreciates how much more it could have been and you get paid for all your hard work and effort.

Example #1

Female age 55 non smoker rated table 3 due to medical history wants 250K of term coverage for about 25 years.  Her annual premium for 25 year term is $2,221.50 from one of our highly rated carriers. 

However, by qualifying for standard rate class using the table shaving program offered by one of our other highly rated carriers her annual premium is only $1,888 for the same 250K and its guaranteed 25 years just like the 25 year term.  

Example #2

Male age 35 non smoker rated table 3 due to medical history wants 750K of term coverage to age 65.  His annual premium for 30 year term is $1,811.50 also from one of our highly rated carriers.

However, by qualifying for standard rate class using the same table shave program guidlines above, his annual premium of $1,792 is again less than the rated term premium.  His premium savings difference may not be as dramatic but deliivering the standard rate class news should be easier.

Not every rated case can be successfully molded into a standard rate class and lower premiums.  Please call us and we will be happy to discuss the possibilities of your case being issued standard and the specifics of each carriers' table shaving program. Call us now: 866-759-0886