How not to sell loadings, as identified by Ronald Verzone of United Underwriters.
"He believes that in order to get consumers to sign insurance
applications, too many advisers quote unrealistically low rates. "Perhaps up to
40% of those who apply for coverage may not qualify for a company's standard
rate. When an application is processed and all relevant medical information has
been reviewed, it comes back at a higher cost than the original quote." Then the
adviser has to go back to the customer with the bad news. While advisers can try
to blame it on the underwriter, that does not stop the client feeling betrayed,
disappointed, unhappy and angry. It is not very professional either. As well as
not serving the best interests of the consumer, it ultimately does a disservice
to the industry and the adviser. "The customer does not get the protection, the
adviser loses a sale as well as the customer's trust, and the industry gets a
Hat tip - Brian Klee.