When to write outside of Northwestern?

As a Northwestern Mutual agent/advisor you represent one of the most influential and trusted life insurance carriers in the country. You have access to a vast source of information and excellent products to protect your clients.  However, one company cannot be all things for all clients. A time will come when you need to look outside of Northwestern to other companies.  There are two main areas that a BGA can help Northwestern agents, Underwriting, and Products.

 

Underwriting

The most obvious time to look outside of Northwestern is when your client is declined or rated by Northwestern’s underwriting.  Depending on your client’s condition, there may be another carrier that is more favorable.  Developing a relationship with a Brokerage General Agent is an important step, that provides you the freedom
to discuss your client without pressure and determine if there may be a better fit outside of Northwestern.

 

There are several opportunities to go outside of northwestern prior to submission, which can save you and your clients time and headaches.  Some outside carriers can offer non-smoker rates for Cigar smokers, Tobacco chewers, nicotine gum chewers, Nicotine Patch users, and even e-cigarette or vaping users, even with a positive nicotine test.  Some carriers will even off non-smoker rates for Marijuana users, depending on the usage. There is also the opportunity to secure nonsmoker rates only 1 year after quitting cigarettes.

 

There are also several companies with very liberal build charts, so clients that may not fit the proper Northwestern height and weight, may be better suited with another carrier.  There are also carriers that are good with private  pilots, or when a client has a family history of cancer.  Also, some clients with diabetes can even qualify for a “table shave” program where they could get STD rates for a permanent insurance policy.

 

Products

Outside
products may also help you to grow clients beyond the ones you have with Northwestern.  In disability, there are
Blue Collar DI products, High Limit DI, and Impaired risk products.  For Life insurance, outside products offer lower
cost basic term, alternative year term (15, 25, 30), as well as Return of Premium Term, and accelerated  underwriting (No exam) products.  Simplified issue or Guaranteed issue final expense plans are also available. For LTC there are asset-based hybrid products, some with no elimination period for care, and even those with Joint
lifetime benefits.

 

It is our job as a BGA to be the experts on all our products, and to keep you informed about concepts and sales ideas that may pertain to one of your clients.  How can you provide a new solution to a client if we don’t keep you in the loop?

 

Policy Rescue

One last opportunity is the ability to salvage and protect older at risk Northwestern Whole Life policies. There are several reasons why a client may have taken loans on their policy, whether they removed too much value at a time of need, or stopped paying premiums too early, or simply did not listen to the advice of their agent.  Regardless of the reason, if the loans are continuing to grow, then eventually the policy will collapse and create a taxable event to the client.  There is an opportunity to help prevent this collapse by transferring the cash value of the Northwestern policy(ies), including the loan, to a new company and designing the new policy to protect the client from collapse, while still providing a tax-free death benefit.

 

Northwestern Mutual is a fantastic company to work for, and our privilege to work with.  You have many fantastic products at your disposal, and BGA’s have many complementary pieces to help you become a more comprehensive producer.