You’ve met with your client, completed an application, and submitted the application for processing. Next thing you know, you have an email saying the application is “Not in Good Order.” What?! How did this happen? What did I do wrong?
Nothing! NIGOs are part of the process, and even our top producing advisors receive NIGO emails.
What are NIGOs?
NIGO is an acronym meaning “Not in Good Order,” which immediately presents a negative connotation. No one wants to hear that something they have submitted is not in good order. However, NIGOs are the most common implication that occurs with an application. Reasons for NIGOS range from product training being completed after submission of an applications, incorrect assets listed, missing forms and missing details on why the product was recommended to the client.
Also, every carrier and product is different. Carrier requirements vary as well, which can be confusing for any financial advisor. Just keep in mind: NIGOs are a part of the process. They’re not scary, since they’re bound to happen, and are nothing but simple human errors.
How to Maybe Avoid NIGOs
First, confirm that product training has been completed with the licensing department. If you have not completed training for a product and submit an application for business, it will not even be viewed by the carrier until product training is complete. Why slow down the process? First, complete the training. Then, meet with your client to sell the product.
Now that you are trained to sell that product, it is time to complete the application process.
The four most important things you can do:
Slow down! We know you have completed applications before. However, each case is different. Human error is why NIGOs occur; if you slow down, you may notice any inconsistencies throughout the application. For instance, the address might be off by a digit, or the Social Security number might not match the other pages.
Never leave anything blank. If it does not pertain to your client’s case, answer that it is not applicable. On an application, blank spaces raise flags during processing. Luckily, electronic applications will stop you from submitting an application with blank spaces.
Always call for assistance. The Impact Case Processing team is here to help you with the application process. They want to ensure that the application moves through submission as quickly as possible for you.
Get to know your client. Applications can go through more extensive underwriting due to misinformation or missing information presented on the application. It is important to ask the tough questions about your clients’ medical and personal history to make sure you find more apt carriers for their situation. Field underwriting is imperative to make sure you are presenting the best options to your clients!
Pay special attention to suitability and the replacement comparison form, if applicable. The suitability area is by far the most complex area of an application and needs the most attention. Lastly, if a replacement is occurring, be sure to properly complete the replacement comparison form. Most of the time, the client needs to call their current provider for this information.
How to Deal with NIGOs
After filling out the application with your client, set the expectation that you will have to meet with them again. Some advisors believe they have tarnished how their clients view them because they must obtain more information or signatures after completing the application. Being issued an annuity or life insurance is a large task and it is best to inform your client that, after submission, you may have to meet again to finalize the application. This will ensure that your client is not caught off guard and that they’re involved in the process. That way, you can cover your bases for unexpected NIGOs.
After receiving a NIGO, you will need to be in communication with the processing team to finalize the application. Always keep a look out for emails from the Impact Operations Team and respond as quickly as you can. These emails inform you of the NIGOs and the requirements to resolve the issue. You may have to meet with your client again to obtain signatures or initials. If you do, you can email, fax, or even overnight those documents to Impact or the carrier for resolution.
Don’t forget!
At the end of the day, we are all humans and errors occur. You are most likely going to receive a NIGO email after submitting an application. The best thing you can do is set that expectation for your client, slow down, never leave anything blank, call Impact for assistance, and pay close attention to the complicated areas of an application. Remember, NIGOs are a part of the process and even the best financial advisors receive them.
