Competing Against Globe Life

[bboman23]

Bboman, what do they call this product? Lately running into a lot of grandkid policy inquiries to go with my FE clients.

Children's whole life
United of Omaha

 

[RichMcK]

1. The Bankers Fidelity policy claims to be an Endowment policy.

2. The last Globe contract I saw was Whole Life on an age 62 male, last week. This Globe contract was a certificate not a policy. Certificates are Not the same as a policy, their value is far worse.

 

[jdeasy]

1. The Bankers Fidelity policy claims to be an Endowment policy.

2. The last Globe contract I saw was Whole Life on an age 62 male, last week. This Globe contract was a certificate not a policy. Certificates are Not the same as a policy, their value is far worse.

That's not really true. Except in one's mind. The monetary value of a certificate is the same as a policy.

 

[RichMcK]

JD, you and I have been in this discussion before. Fraternal certificate premiums are not locked in as policy premiums. Nor are the cash reserves the same as insurance company reserves. Newby has written about this in other posts.

Some insurance companies issue certificates such as through AARP. These certificates can be canceled by the insurance carrier. I have seen this done in my state. I stand by what I said, certificates are not the same as a policy, their value is far worse. Meaning they don't have the guarantees a policy does.

Here is one post Newby wrote: A policy is a closed contract. Neither party can change the terms of it.

A certificate is not. If you read the certificates issued by a fraternal (or your agent guide) you will find that the company can take money back from the certificate IF they need to.

In some states you are required to have them sign a disclosure form that they know the difference. In all states the agent is supposed to be aware of it.

With a strong fraternal, it is very unlikely that they will ever have to do that. If the economy changes for the worse, they will reduce the non-guaranteed fraternal benefits (Foresters did this 4-years ago), raise premiums (Foresters also did and RNA is rumored to do it soon), tighten underwriting (also done) to prevent getting anywhere near a financial situation where they would have to excercise the right to take money back from the members certificates.

But the fact that they CAN do it is a strength and weakness of fraternals....

 

[WinoBlues]

With all the life insurance policies available I can not think of a reason to routinely write a fraternal. I sell insurance not fraternal benefits.

 

[Thad.Sipple]

JD, you and I have been in this discussion before. Fraternal certificate premiums are not locked in as policy premiums. Nor are the cash reserves the same as insurance company reserves. Newby has written about this in other posts. Some insurance companies issue certificates such as through AARP. These certificates can be canceled by the insurance carrier. I have seen this done in my state. I stand by what I said, certificates are not the same as a policy, their value is far worse. Meaning they don't have the guarantees a policy does. Here is one post Newby wrote: A policy is a closed contract. Neither party can change the terms of it. A certificate is not. If you read the certificates issued by a fraternal (or your agent guide) you will find that the company can take money back from the certificate IF they need to. In some states you are required to have them sign a disclosure form that they know the difference. In all states the agent is supposed to be aware of it. With a strong fraternal, it is very unlikely that they will ever have to do that. If the economy changes for the worse, they will reduce the non-guaranteed fraternal benefits (Foresters did this 4-years ago), raise premiums (Foresters also did and RNA is rumored to do it soon), tighten underwriting (also done) to prevent getting anywhere near a financial situation where they would have to excercise the right to take money back from the members certificates. But the fact that they CAN do it is a strength and weakness of fraternals....

"Foresters did this 4-years ago), raise premiums" So they raised premiums on existing policy (certificate) holders, if so how much?

 

[jdeasy]

"Foresters did this 4-years ago), raise premiums" So they raised premiums on existing policy (certificate) holders, if so how much?

They did not raise premiums on existing certificate holders. Nor can they on the whole life. Certificates have from fraternals have the same guarantees as policies and it's simplay a scare tactic to tell people otherwise. A false scare tactic at that.

Gurantees are guarantees whether it's in a certificate or a policy.

Now, fraternals can do an assesment but that out side of the guarantees and a completely different discussion than what's being talked about here.

 

[Thad.Sipple]

They did not raise premiums on existing certificate holders. Nor can they on the whole life. Certificates have from fraternals have the same guarantees as policies and it's simplay a scare tactic to tell people otherwise. A false scare tactic at that. Gurantees are guarantees whether it's in a certificate or a policy. Now, fraternals can do an assesment but that out side of the guarantees and a completely different discussion than what's being talked about here.

Thanks for clarification.

 

[rousemark]

They did not raise premiums on existing certificate holders. Nor can they on the whole life. Certificates have from fraternals have the same guarantees as policies and it's simplay a scare tactic to tell people otherwise. A false scare tactic at that.

Gurantees are guarantees whether it's in a certificate or a policy.

Now, fraternals can do an assesment but that out side of the guarantees and a completely different discussion than what's being talked about here.

What happens if the insured refuses to pay the assessment?

 

[GoCubsGo]

What happens if the insured refuses to pay the assessment?

It's not asked, they take it. ha