Nuts and bolts...

The first technique known as ‘preferred lives’ or ‘cherry picking’ is probably the most discussed in the industry. It refers to when an insurer places their lowest premium in an industry portal price comparison table. As the applicant goes through the sales process, ‘loadings’ are often added to reflect their current state of health, which increases the original low premium quoted for all but the most healthy of applicants. Assuming that only 80% of an advisers protection applicants get the insurers’ cheapest ‘headline rate’, and that the 20% of applicants excluded are 25% more likely to...