For financial advisors, placement ratio is a critical metric that often indicates success and efficiency. This figure represents the percentage of cases that successfully transition into in-force policies. For instance, if an advisor submitted 100 applications and 80 resulted in active policies, the placement ratio would be 80%. On average, an experienced life insurance advisor might achieve a placement ratio ranging from 50% to 70%. 

Multiple factors such as experience, sales skills, and specific market conditions can impact placement ratios, but there are several strategies that advisors can implement to help improve their placement ratios. We'll explore five actionable ways to increase placement ratios, ultimately leading to greater client satisfaction and business growth. 

Strategies to enhance placement ratios

Thorough client assessments

Advisors are crucial in recommending policies that align with their clients' needs and are likely to be approved. Conducting a thorough client assessment helps identify suitable policies based on factors like age, health status, and financial situation. For instance, recommending a Variable Universal Life (VUL) policy to an 80-year-old client may be challenging due to potential suitability concerns.

Advisors can improve client assessment by gathering comprehensive information about the client's financial situation, goals, and needs. Advisors should delve into specifics such as income sources, debts, expenses, and savings. Additionally, exploring the client's long-term financial objectives and potential risks helps tailor insurance solutions accordingly. 

Accurate pre-qualification processes

Implementing a robust pre-qualification process is essential to filter out clients who may face challenges meeting underwriting criteria. Several issues can make it harder for clients to obtain life insurance coverage, such as significant health conditions like cancer or heart disease, smoking or substance use, occupation-related risks, participation in high-risk hobbies such as skydiving, financial instability like bankruptcy, age-related concerns, and frequent travel to high-risk areas. 

Insurers assess these factors to determine risk levels and may offer coverage with higher premiums or lower death benefits, exclusions, or even denial based on the severity of these issues. Clients should be transparent about their circumstances with advisors to explore available options and navigate potential challenges in securing life insurance coverage.

Utilize digital field underwriting tools

Tools like Modern Life's fact finder can streamline underwriting by gathering crucial client information upfront. This digital approach not only enhances efficiency but also aids in identifying potential underwriting challenges at an early stage, allowing advisors to tailor recommendations accordingly.

With Modern Life, advisors receive a unique link to send to clients. Clients can provide basic financial and medical information, details on existing coverage, and HIPAA consent. Clients can also provide information on a second insured person if seeking joint coverage. Advisors get a notification when the form is submitted for review. From there, advisors can easily generate instant quotes for specific term and permanent products based on the information provided with just a click.

Client education

Educating clients about underwriting is critical to fostering accurate disclosure and managing expectations. Advisors should explain how health and lifestyle choices can impact insurability and emphasize the importance of transparency during the application process.

Advisors should also highlight that underwriting can vary based on the type of insurance and coverage amount. By demystifying underwriting and offering clear guidance, advisors empower clients to navigate the process confidently and make informed decisions about their life insurance needs.

Modern Life’s dedicated brokerage team can help advisors educate clients by providing needs analysis calculators and presentation materials.

Build strong relationships with underwriters

Establishing and nurturing relationships with underwriters is invaluable. Advisors who work closely with underwriters can gain insights into specific insurer preferences and guidelines, enhancing the likelihood of successful policy placements. Additionally, partnering with a brokerage with strong underwriter connections can provide advisors additional support and expertise.

Modern Life has extensive underwriting and carrier connections to help ensure clients receive the best coverage, even for complex cases involving stroke history, nicotine usage, and criminal records.

Plus: Utilize trial applications for impaired risk clients

Advising impaired risk clients requires a nuanced approach due to the complexity and lengthiness of the underwriting process. These clients often have pre-existing health conditions or other factors that can complicate their insurance applications. To improve placement ratios for these clients, advisors can employ trial applications with Modern Life. With a trial application, advisors can compare rates and product options from multiple carriers before sharing them with clients.

Next steps

A high placement ratio is a measure of an advisor's success and indicates efficient client servicing and underwriting practices. By implementing these strategies—from client assessment and pre-qualification to digital underwriting tools and client education—advisors can significantly improve their placement ratios, ensuring better outcomes for both clients and their practices.

In addition to our digital underwriting capabilities, Modern Life’s brokerage team has decades of experience and offers white glove service, including advanced sales strategies, needs analysis calculators, and presentation materials. 

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