Over the last few years, drop tickets have become a very popular process to submit life insurance applications. Life insurance carriers were well on their way to developing their technology in electronic applications when Covid-19 pandemic gave them a violent shove it required to ensure the process was readily available. Although this type of advancement is generally a positive thing, there are still some kinks that need to be worked out and information you need to know before you go down the road of using drop tickets as your primary method of submitting life insurance applications. This is not a comprehensive list, but rather a few tips and reminders about submitting drop ticket business.
Before I begin, let me first define “Drop Ticket”. The term drop ticket refers to an electronic way to submit a term* life insurance application. Via the computer, the agent completes very condensed information on the proposed insured and then submits that information to the insurance carrier for processing. The insurance carrier will then complete the rest of the insurance application questions with the client via a phone interview or an electronic process (i.e. email). The insurance carrier will also be responsible for ordering any medical requirements. *At this point, term insurance is the only product that is “allowed” for true drop ticket business.
While this process can be easier and less time consuming for the agent on the front end, there are key considerations you need to understand to ensure this process not only goes smoothly for your client, but also to determine if this is the best fit for your particular client.
- Use Vive: Vive is a drop ticket submission platform ProducersXL offers via ProducersXL.com. We highly recommend using this platform if you are going to submit the application electronically. There are different ways to submit electronic applications, but utilizing Vive, you are ensuring the use of a true drop ticket submission method and that the business is going direct to the carrier. The carriers available on the Vive platform represent the best carriers PXL markets for term insurance, based on price and process. Call if you would like a Vive platform demonstration.
- Set Expectations: In my experience working with agents, the number one issue when using a drop ticket submission method is the client wasn’t informed of the process and what to expect. Educating the client on the process and what they should expect out of this process is imperative for a positive experience for all involved. The client needs to understand they will need to answer additional questions after the drop ticket is submitted and those questions will be in the form of a phone call or an email. Nothing will move forward until these questions are answered, and if the client isn’t expecting the phone call or the email, the entire process will be delayed. Simply educating the client on the front end will greatly improve the chance of success and a more positive experience.
- Know Your Client: Given the nature of how the carriers process and collect information on drop ticket business, it stands to reason that not every client will be a good fit for this process. As mentioned above, the life insurance carrier is going to reach out to the client to collect additional information. This information will be personal regarding medical and financial information. If your client is not comfortable giving information to a stranger on the phone, or completing that information on the computer, they might not be a good fit for this process. Whether it is a phone interview or an email link, it can often take anywhere from 30 minutes to an hour for the client to complete the process. If your client is extremely busy and doesn’t have time to complete the questions, or simply doesn’t want to, this might not be a good fit. If your client is not comfortable using the computer, doesn’t check their email very often, or is hard of hearing, this process might not be a good fit. There can be additional issues, but the point is simple….make sure you know your client and whether they are a good fit for the drop ticket process.
- Sometimes Paper is Good: Given what we have discussed about submitting drop tickets, sometimes you will need to submit a paper application, and that’s not a bad thing. Submitting a paper application gives more control to the agent and to our agency in helping to move the case through the underwriting process. With paper applications, the client will not have to complete any phone interviews or email links, and our office will be in control of ordering the medical requirements. There are times this will be a better process than submitting a drop ticket. Submitting a drop ticket on a 30 year old, in perfect health, applying for a $100,000 term is much different than a 65 year old, who is not in great health, applying for a $1,000,000 term.
Whether you are a champion of technology and electronic applications, or more of an old school “paper” agent, the good news is you have options on how you can submit life insurance applications. Using Vive for drop tickets can be a quick and easy way for you to submit term life insurance business, but without taking all of this into consideration, it can also be a challenge. The good news is by doing the proper vetting and education with your client on the front end, most of the issues can be avoided and you can feel more confident in submitting drop ticket business.
Please reach out to me if you want to discuss any of this in more detail. Thank you for your business.