AIG Coming soon LIMITED PAY Guaranteed Issue Whole Life

[WinoBlues]

GI market is a lucrative market when you write it direct. And, I guess it is even when you use agents since so many do it...However, with agents, you do get more adverse selection because they don't put their healthy clients in FE..

That is why we can never have nice things . We, agents, have killed some nice GI and Graded plans.

 

[FETalk]

Sadly the GUL market seems to be drying up. Same with the ROP term and GUL products. Actually not the market but the offered products.

Yeah, I noticed that too, especially in regards to the ROP term products - a lot of companies are getting rid of the their ROP riders.

 

[rousemark]

That is why we can never have nice things . We, agents, have killed some nice GI and Graded plans.

Wasn't really the agents that killed them.. It was the companies underpricing the products to have a competitive edge. If the companies had considered the true nature of the business they would receive, they would have had to price it higher. Can't blame agents for sending companies what they ask for.

 

[WinoBlues]

Yeah, I noticed that too, especially in regards to the ROP term products - a lot of companies are getting rid of the their ROP riders.

I believe ROP was a lot stickier than they expected.

 

[Life Hawk]

I believe ROP was a lot stickier than they expected.

True that. One major hit was when the market went south during 07 and 08. I had a great little carrier with term ROP properly priced that pulled the product when new financial regulations where introduced.

 

[Tahoe Ray]

I believe ROP was a lot stickier than they expected.

People definitely want their money back paying 2-4x the premium of a policy that doesn't do that.

For a few years, I had a self-funded health policy that returned a healthy (50%+) amount of unused premiums.

When my wife decided to go back to work our premiums would have dropped 75% on her group. I opted to keep the plan and wait until she could enroll again so that I could get the ROP for the year.

I can see how ROP term would be sticky as well.

 

[Life Hawk]

ROP is a product that men are better better able to see the value in.

 

[Newby]

I'm surprised that a big insurance company like AIG doesn't have a regular FE product.

Traditional Life companies don’t understand FE. 95% of traditional life agents and financial advisors who call me wanting contracts say they need to pick up a couple FE companies and they usually mention either AIG or Gerber. They have no knowledge that ANY FE companies exist that are not GI. It’s a whole different world to them when you explain it.

But they generally go right back to doing what they have already done but write Gerber for cases they get declines on fully underwritten.

We even give the best underwriting software (Formerly known as cheat sheets) to them for free these days that makes a brand new agent an expert on underwriting on his first day in the field. But those guys go straight to GI. I guarantee you AIG is a whole building full of those guys.

 

[FETalk]

Traditional Life companies don’t understand FE. 95% of traditional life agents and financial advisors who call me wanting contracts say they need to pick up a couple FE companies and they usually mention either AIG or Gerber. They have no knowledge that ANY FE companies exist that are not GI. It’s a whole different world to them when you explain it.

But they generally go right back to doing what they have already done but write Gerber for cases they get declines on fully underwritten.

We even give the best underwriting software (Formerly known as cheat sheets) to them for free these days that makes a brand new agent an expert on underwriting on his first day in the field. But those guys go straight to GI. I guarantee you AIG is a whole building full of those guys.

It sounds like you're referring to just the agents/financial advisors, but what about corporate (CEO's, CFO's, Board members etc.); you would think that those individuals would know which products, markets etc. are profitable, as their only job is to make money for their shareholders and policy owners (mutual ins. companies).

Also, I would imagine that companies like AIG/Gerber/Metlife etc. "ran the numbers" on the entire FE market, before they decided to enter the "fray" with their Guaranteed-Issue FE products.

 

[Newby]

It sounds like you're referring to just the agents/financial advisors, but what about corporate (CEO's, CFO's, Board members etc.); you would think that those individuals would know which products, markets etc. are profitable, as their only job is to make money for their shareholders and policy owners (mutual ins. companies).

Also, I would imagine that companies like AIG/Gerber/Metlife etc. "ran the numbers" on the entire FE market, before they decided to enter the "fray" with their Guaranteed-Issue FE products.

Home office executives are very isolated from the real world.