There’s a perception that there are many myths about Business Assurance and how complex the underwriting process can be. In our experience if you follow a few golden rules these myths can be laid to rest!
1. Invest time at the application stage
One of the most important aspects of writing Business Assurance cases is the completion of application forms. They are long and take time to fill in, but if extra time is taken at inception to fully complete the forms, the likelihood of delays or problems at underwriting stage are significantly reduced.
Generally, incomplete forms create delays at the underwriting stage due to missing information and as a result these cases often take longer to process.
2. Include your client’s daytime telephone number
Make sure the application form has captured a daytime telephone number, so your clients can be contacted to arrange appropriate times for medical examinations. We understand that your clients are busy people, but the quicker medical examinations can be arranged and attended, the quicker the underwriting processes can begin. Set the right expectations for your clients and of course make sure these medical appointments are not missed, as this will inevitably increase the underwriting time.
3. Speak to us!
Speak directly with Standard Life’s Specialist Business Assurance Underwriting team before submitting/completing all your cases on 0845 60 60 054 (call charges may vary).
You can discuss any part of the application process with them allowing you to pay particular attention to each client’s personal circumstances. The team are happy to receive faxes (0131 245 4488) of any documents you wish to discuss. This will allow us to set the right expectation for both you and your clients before the application is even submitted.
4. Who should the Critical Illness lump sum be paid to?
Establish how your clients feel about the Critical Illness part of their life policy. Would they want the lump sum to be used by their co-partners/directors to buy out their share of the business? Or would they want the lump sum for themselves?
5. Remember the sum assured is collective
If you are using Business Assurance to insure more than one person within a company, please remember that it is the collective sum assured that is underwritten and not their individual amounts. Standard Life will also need to know if the company is insuring or intending to insure other key people within the business. Please see GEN76 Underwriting Limits, for our routine limit levels.
6. Ensure the money ends up with the right people
Use Trusts and Cross Option agreements to ensure monies end up in the
right hands after death. To find out more about the agreements why not try askTECH.
Any references to tax and legislation is based on Standard Life’s understanding of law and HM Revenue & customs practice at the date of publication.
Tax and legislation are liable to change. Tax relief may be altered and the value to the investor depends on their financial circumstances.
No guarantees are given regarding the effectiveness of any arrangement entered into on the basis of these comments.
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