Increase Cases You Earn Commission on up to 14%
Are you leaving money on the table with every sale you make? You can increase placements and commissions by asking for cash with every app in the form of a TIA, or temporary insurance agreement.

According to industry research, agents who ask clients if they want this coverage have a significantly higher placement ratio. In the example we discovered, placement went from 64% to 78%, a 22% increase. Think about what this increase could mean for your commissions. Given this statistic, why wouldn't you ask your clients if they want temporary coverage?

You're not the only one who benefits from this extra step. Let’s take a closer look at TIAs and how they can help your clients.

What Is a Temporary Insurance Agreement?

A temporary insurance agreement (TIA) provides conditional coverage for your client while the app is in underwriting. To get it, they’ll need to submit the first premium payment along with their application. Each carrier's rules vary in terms of how much temporary coverage your client can get, and when that coverage starts (when the app is signed, for example, versus after the medical exam is complete). Your client also still needs to qualify, but in general, if they’re under 70 and have no major health problems, they shouldn’t have a problem.

Considering the underwriting process can take weeks or even months, this temporary coverage offers clients peace of mind in the meantime. If they pass away during the underwriting process, the carrier pays their death benefit (unless the carrier can prove the proposed insured wouldn't have been issued the policy). Later, if your client isn’t approved or decides not to accept the carrier’s offer, they’ll get their money back, so there’s nothing for them to lose.

Industry Research Proves TIAs Increase Commissions

Part of what we offer our partners here at Pinney is our network. We attend industry meetings and serve in industry organizations like NAIFA and MDRT. We talk to our partners, friends, and competitors at industry gatherings. And when we hear that something is working, we bring that information to you.

Lately, we’ve heard many success stories involving temporary insurance coverage. Two well-known direct marketing call centers have experienced big increases in revenue and placed cases when their clients agree to pay for temporary coverage during the underwriting process. Here's the specific example that led us to look into the issue further.

Two well-known direct marketing call centers have experienced big increases in revenue and placed cases when their clients agree to pay for temporary coverage during the underwriting process.

An agency began requiring a TIA in order to submit an application to the carrier for processing. As a result, placement jumped from 64% to 78%. That's an increase of 22% in placed cases, which accounted for 14% more commission. Not only did it generate more revenue due to the increased commissions, but this change also decreased costs. It lowered the cost of processing each case due to more cases being placed, assuming a fixed cost for processing 100% of the agency's submissions.

Asking the question and explaining the value of temporary coverage to your clients will increase your number of placed cases, and as a result, your commission. When a client accepts and offers payment, they’re committed to the purchase. Now you know you’ve truly made that sale and proved the value of this coverage.

Based on this example, why wouldn’t you take the time to ask?

Need Guidance on the Carriers' TIA Rules?

In our experience, many agents don’t ask clients if they want temporary coverage because the rules at each carrier are different. It can slow down your sales process to stop and look them up. At the same time, we don't want to see your clients go without this coverage, and we don't want to see your placement rate potentially decrease.

To help, we decided to make this step as easy as possible for our partner agents. We created a PDF carrier matrix to help you navigate the differences between each carrier’s TIA process. We've already emailed our partners a link to this document, and we'll also embed it in the Insureio quote path. Now, there's no good reason not to ask this one simple question.

Pinney Insurance temporary insurance agreement (TIA) carrier matrix

Will You Ask about Temporary Coverage?

If asking a single question could increase the number of cases you earn commission on by 14%, would you do it?

We hope your answer is yes. There’s no reason to skip this step in the process when it produces such a dramatic increase in cases placed. Your client also benefits, getting peace of mind during the weeks (or months) of underwriting.

If you're not a Pinney partner yet, we'd love to have you on the team. Click here to learn more about working with us.

Do you already ask your clients if they want temporary insurance during the underwriting process? Does it increase your percentage of placed policies? Tell us in the comments!