In the world of FE, Best ratings have very little meaning.
Advice on Carriers
- Thread starter KCBell73
- Start date
In the world of FE, Best ratings have very little meaning.
- 5,243
That..and SNL doesn't even have a rating
Lol an F rating means squat. Bottom line these are small policies were cash value means zip and the death benefits will be paid.15 mins ago I just wrote a Snl graded with cancer "a little over 12 months ago". I could have written aetna but wether it was over or under 12 months plus needing a 2 nd wed draft swayed my decision .
- Thread starter
- #54
Maybe in ur sales u don't promote the stability of the carriers u choose to contract with. But I prefer to not just pick my carriers out of a hat. When a client objects with "I wanna shop around" I simply say. "I've done all the shopping for you. Look." I show him a fex quote lineup and explain why the cheaper ones either won't work with their medical conditions or or aren't solid stable companies. And I end with "cheaper isn't always better ... particularly in such an important decision as this". It's worked more times than not.
Now if I started contracting with just anyone? I couldn't say "I only work with stable companies that are A or better rated." Blows a big part of my credibility and trust building out. Not going there.
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- 5,243
Lol...guess I missed that memo...shows you important it is to me.
That is all fine and dandy but it's still very subjective. When I was at New York life they liked to promote the fact that they were AAA rated by Fitch, A++ by AM Best, Aaa by Moody, AA+ by Standard and Poors and if you were dealing with a company less than those ratings then you were dealing with inferior carriers and exposing yourself to risk. So according to New York Life agents the carriers you are offering are a BIG RISK.
Do you believe the carriers you are offering pose a risk of default? I doubt it. With these small policies, they are usually less than 300K so they are not at risk. It's just another sales tactic IMO.
- Thread starter
- #57
I didn't say I believe the ratings mean that much. But to my prospects it sounds good and helps build trust. Therefore helping win sales.
- 5,243
You believe it works for you....keep doing it. That's all that matters
Ever heard of Mutual Benefit? Executive Life? Kentucky Central? Those and a few dozen more had A+ ratings with Best and all went under while many of the B companies thrived. And, just because a company has an A today doesn't mean they have it tomorrow. Settlers Life was a great, dependable "stable" company with $205 million in assets and yet 16 years ago they were forced onto receivership. They are back and now have an A-.
I have never had an FE client ask about the ratings of the company. Many companies that have strong financials choose not to pay Best for a rating. If you want to promote the stability of the companies, you can always use Standard Analytical.. Even most unrated companies will show a stronger position that the "top" companies. When it boils down to it, the state insurance commission is the final arbiter on the financial strength of the companies.
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