Catholic Life Insurance

[rapidrobert]

Knights of Columbus are very well known and trusted. They spend Millions of dollars per year on charity work. They are a non-profit and spend their excess capital on doing things like renovating the Vatican. They also spend big time dollars for the poor and the terminally ill. Great organization.

I don't sell for them- it's a little too constricted of a market. Plus Oklahoma is only %6 Catholic.

 

[Mattschmidt]

Their Best's rating was C- at the time. Fraternal or not, who in their right mind would knowingly trust a C- company? What agent with a teaspoon full of conscience would sell that stuff?

Greg the insuranceman wouldn't hesitate. As long as he doesn't have to disclose this to the prospect during the sales process. He doesn't believe in talking about the companies financial ratings

 

[GreenSky]

People feel safe if an insurance agent is associated with religious sector.

And many find that playing the "god card" while at the same time selling something is a deal breaker.

Rick

 

[rousemark]

And many find that playing the "god card" while at the same time selling something is a deal breaker.

Rick

Not normally a problem with a religion based fraternal as their focus is on like minded people.

 

[Larry Tew]

Knights of Columbus are very well known and trusted. They spend Millions of dollars per year on charity work. They are a non-profit and spend their excess capital on doing things like renovating the Vatican. They also spend big time dollars for the poor and the terminally ill. Great organization.

I don't sell for them- it's a little too constricted of a market. Plus Oklahoma is only %6 Catholic.

Indeed they are, but fraternals using the "non-profit" label the way most of their agents use it are in violation of their company's compliance departments. And... fraternals do not have the market cornered on contributing back to society even though the money used for fraternal expenditures comes from not having to pay federal taxes.

 

[VolAgent]

Indeed they are, but fraternals using the "non-profit" label the way most of their agents use it are in violation of their company's compliance departments. And... fraternals do not have the market cornered on contributing back to society even though the money used for fraternal expenditures comes from not having to pay federal taxes.

There is no such thing as a non-profit insurance company. Any agent who thinks that is an *** or a fraud. The insurance company HAS to generate a profit, otherwise the DOI would shut it down. Now, what is done with those profits is a whole other matter.

It is the same with credit unions. The credit union has to turn a profit, otherwise the regulators quickly put a stop to things. What it does with those profits is its concern, but the banking or the insurance business has to turn a profit in both cases.

 

[Larry Tew]

Exactly. The fraternal agents use that line because they think it makes them and their company appear more noble than regular companies.

 

[Newby]

Aren't you guys confusing cash reserves with profit?

Mutuals can't make a profit can they? Credit unions? AARP?

They can have great years financially but they can't take it as a profit...unless I'm missing something.

 

[VolAgent]

Aren't you guys confusing cash reserves with profit?

Mutuals can't make a profit can they? Credit unions? AARP?

They can have great years financially but they can't take it as a profit...unless I'm missing something.

Nope, profit. NYL, MM and NWM are extremely profitable. That is why Met, Pru and the like went stock, so the execs could cash in.

They all turn a profit on their operations, mutuals, credit unions and fraternals generally grow their reserves and/or surplus plus reinvest in their members in some manner. Mutuals and credit unions give out dividends and it seems fraternals give out scholarships and participate in other community enrichment programs.

 

[ddiaz841]

One of my clients bough KoC WL long ago. About a year ago they hit him up for a premium increase if he wanted to maintain his projected cash value.

This is not possible. The only way they would get a premium increase is to pay back a premium loan that had accumulated so to prevent the policy from lapsing. If they stopped making payments and allowed their dividends to reduce premium, which would increase the loan amount if the dividend wasn't high enough.

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No protection if the company goes belly up.. Most state guaranty plans don't cover fraternal.

This is not true. Fraternal's are mutual companies that qualify. The only difference is a fraternal has a fraternal dept. attached to them.

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I think you mean UL not WL

KofC doesn't sell UL's, they only sell WL, Term, Blended Life, Annuities, LTC, and DI.

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"I think you mean UL not WL " I don't think so, it's been a long time since I looked at a fraternal policy, but as a fraternal they reserve the right to do just about anything. Fraternals are not like mutuals or stock companies, they are in a different world. Fraternals have the right to adjust policies in both benefit and premium across the board. This never was an issue before, but I can see where it might become one lately, especially those hit hard by this ecomony.

KofC doesn't reserve the right to increase any premiums on life products. All WL premiums are guaranteed.