Canceling Replaced Insurance Policies

[hardworker]

OK, let's go through this again. So you're saying have the customer stop the EFT at the bank and this goes for whether or not the policy has cash value in it? Do you automatically assume it has cash value if the policy has a certain amount of age on it? Will the customer be able to cancel the bank EFT over the phone or do they have to go into the bank? Is it better to let the previous policy lapse and if not don't they have to cancel in writing via fax or will the insurance company let them cancel over the phone?

 

[JoshC]

OK, let's go through this again. So you're saying have the customer stop the EFT at the bank and this goes for whether or not the policy has cash value in it? Do you automatically assume it has cash value if the policy has a certain amount of age on it? Will the customer be able to cancel the bank EFT over the phone or do they have to go into the bank? Is it better to let the previous policy lapse and if not don't they have to cancel in writing via fax or will the insurance company let them cancel over the phone?

No, you call the replaced company from the table and have them change the policy to direct bill. As far as the lapse goes, if it has no CV built then just let it lapse. If it does have some CV, you can request the cash for them. I have actually had a few clients who just let the policy ride on APL for a few months until the cash ran out if there was only a couple hundred in there. Shows how much they value coverage.

 

[jdeasy]

OK, let's go through this again. So you're saying have the customer stop the EFT at the bank and this goes for whether or not the policy has cash value in it? Do you automatically assume it has cash value if the policy has a certain amount of age on it? Will the customer be able to cancel the bank EFT over the phone or do they have to go into the bank? Is it better to let the previous policy lapse and if not don't they have to cancel in writing via fax or will the insurance company let them cancel over the phone?

I don't assume anything. We call the company and see what the cash surrender value is. Even if they have the policy. Had one last week where the policy showed $1400 cash value. When we called the company they told her about her $1100 loan she took 2 years ago. She had "forgot" about that.

Some companies will let them stop the bank draft by phone. Depends on the company how many days out. Some it's 1 day and some it's 10 days. Some require a written notice. Just have to call each one and find out case by case.

 

[sirherbie]

I run into very few replacements. If I do and its more than 2 weeks till there draft I'll usually write a letter and let them sign it. Most of my replacements the policy is less than w yrs old so there's little cash so I just turn it to quarterly direct and it will run out over 3-4 months.Jd just curious how old a policy the client had with $1400 cash in it? When a policy is 4 yrs or older unless its a terrible company I don't see many opp's to give a much lower premium.

 

[John Galt]

I run into very few replacements. If I do and its more than 2 weeks till there draft I'll usually write a letter and let them sign it. Most of my replacements the policy is less than w yrs old so there's little cash so I just turn it to quarterly direct and it will run out over 3-4 months.Jd just curious how old a policy the client had with $1400 cash in it? When a policy is 4 yrs or older unless its a terrible company I don't see many opp's to give a much lower premium.

Depends on what carrier you are replacing. I have replaced 10 year old policies before, got the PI $4500 back and still place them with level coverage for $40 less per month and included add and 2 no cost riders. It really depends on the whole pie....but they are out there.

 

[sirherbie]

Must have been a debit company like United to be 10 yrs old and that uncompetitive . I stay out of the most populated areas of a county thus much less projects and poverty that have debit policy's The downside is more driving .

 

[John Galt]

Must have been a debit company like United to be 10 yrs old and that uncompetitive . I stay out of the most populated areas of a county thus much less projects and poverty that have debit policy's The downside is more driving .

No you are not even close. Actually it would surprise you who I replaced on that one...it surprised me.