I'm not sure if that title is correct, but here is what I am curious about: My quoters includes lots of carriers and I am able to compare quotes. My question is how do these quotes compare to ones that would be offered by companies that people have their other insurance with? For instance, if someone had their home and auto insurance through State Farm and wanted a term policy, how would State Farm's rates compare to all of the options that I have at my disposal?
Captive Rates vs. Non-Captive
- Thread starter wealthpro
- Start date
- 2,263
The client would lose potential discounts with State Farm on their bundled policies of P&C.
- 2,263
There have been times when the money saved through the discount on P&C policies has paid the premium on the life policy for some carriers ( until they catch that and adjust the discount upon renewal). Losing a discount by adding an outside life policy does not make sense if the dollars don't match up ( savings on life premium vs loss of discounted premium on P&C products)
- 2,195
Since your Name is Wealth Pro, I assume you are selling Life and not P&C, because I don't know what you have at your "disposal."
How do State Farm's Term Life rates compare with independent life insuerers? The best way to answer this is to make a State Farm agent friend and have them send you some quotes to compare. Simply agree to send an Occassional P&C line of business to them.
What I have found with many of the Captive P&C insurers Life rates is...for lower dollar term policies [$50K and what not] if they can get their clients through underwriting the overall math can work in the favor of the Captive P&C. That is when considering the discount for the home/auto. In extreme situations, it can result in what could be considered free life insurance.[The discounts for the home/auto are greater than the cost of the Life.] - [Although that term and phrase are illegal in the many states in regards to insurance.] Keep in mind that the client than needs to leave their home, auto, and life unchanged for the duration of the life product. So...this can be a real issue.
For higher dollar policies its usually the Independent Life Insurers that win hands down.
Now... I mentioned underwriting and this is a HUGE difference from many of the Captive P&C Life policies, many of them are HUGELY restrictive. Cholesterol, lifestyle, international travel, you name it.
But...do the local groundwork here. Reach out to a Farmers Agent and a State Farm agent and do some comparative estimates. You will make friends [ or frenimies] share leads and be all the wiser.
Best of Luck
- 16,881
That has never been true in my experience. Anytime I have replaced State Farm life insurance policies that has always comes up as something they tell them to strike fear. But once we make them give us a quote with and without the life insurance there is no additional discount from having the life insurance. I’ve moved many people completely away from state farm in my years is in the field. Because in the towns that I work they have some really bad agents as well as some agents that are probably just fine. One in particular clean cheated and bullied constantly.
But every single one that we checked the rates that their PNC would go up too if they cancel their life insurance always ended up where the rates did not change.
I have Nationwide. I have a very small perm policy on my son through them, buying it for $15/mo gave me a $5/mo discount on my bundle. So in my case, if I drop the life it will cost me $5 more per month. Can't speak for other carriers.
I did compete with state farm last year and beat them no problem on a term policy.
I did compete with state farm last year and beat them no problem on a term policy.
Some also straight-up lie.
I have had multiple clients say that they checked with their agent and were told that they couldn't get disability insurance (anywhere) because of "x" health issue or "y" professional situation.
No, they can't get disability insurance with YOU. It doesn't mean they can't get it.
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