For Those of You That Write Fraternals

[rousemark]

I didn't answer the question because I don't know. Nor do I care. I don't use the Shenandoah story as a scare tactic. But, if I were going to I would have all the facts. I wouldn't tell stories about someone's uncle that knew somebody that heard that an FE agent was taken to court over a rescinded claim.

You are the one that said, , "I bet anything that the Shenandoah people would have jumped at the chance to get 60% now vs 100% years down the road.".. I was just wondering what you were basing that statement on.. Was it "years down the road" ? So it wasn't years down the road that the Shenandoah folks got their money as you implied? You just made that up to fit your agenda?

 

[WinoBlues]

I've only been on the Forum a little over 2 years and this is probably round 4 or 5 on this subject. Nothing new being said here, but it's entertaining.

You are right. I am to sober to argue, even if I am 1,000% correct.

 

[rousemark]

You are right. I am to sober to argue, even if I am 1,000% correct.

I am always sober when I argue... May be "stupid" or "Idiotic" but I am sober..

 

[Newby]

Good thread. One thing I think agents put too much faith in though is State Guarantee programs. It's not like FDIC insurance. It's not even consistent from state to state.

I know in Indiana it doesn't cover you unless you bought the policy in Indiana and also live in Indiana when you die. There are other exclusions too.

And there isn't enough reserves to cover everyone. There are limits. That's why the states forbid us from telling people about it. No one is "guaranteed" to get it.

The best protection is selling financially sound companies. But that's not a perfect science either.

 

[WinoBlues]

I've only been on the Forum a little over 2 years and this is probably round 4 or 5 on this subject. Nothing new being said here, but it's entertaining.

Got to go pick up some sheet rock then headed to the post. Give a couple hours then I will be back.

 

[rousemark]

Good thread. One thing I think agents put too much faith in though is State Guarantee programs. It's not like FDIC insurance. It's not even consistent from state to state.

I know in Indiana it doesn't cover you unless you bought the policy in Indiana and also live in Indiana when you die. There are other exclusions too.

And there isn't enough reserves to cover everyone. There are limits. That's why the states forbid us from telling people about it. No one is "guaranteed" to get it.

The best protection is selling financially sound companies. But that's not a perfect science either.

Mutual Benefit proved that. And a company can be financially strong today but there is no assurance it will be 20 years from now when the coverage is needed. Especially when you have crooks like Martin Frankle able to get control of companies and then participate in reinsurance for other companies. The fact of the matter is when we sell or buy insurance we have no idea as to what comapny is actually responsible for paying the claims.

 

[PA Bill]

Good thread. One thing I think agents put too much faith in though is State Guarantee programs. It's not like FDIC insurance. It's not even consistent from state to state.

I know in Indiana it doesn't cover you unless you bought the policy in Indiana and also live in Indiana when you die. There are other exclusions too.

And there isn't enough reserves to cover everyone. There are limits. That's why the states forbid us from telling people about it. No one is "guaranteed" to get it.

The best protection is selling financially sound companies. But that's not a perfect science either.

I was taught years ago to say (never really comes up) that the industry has never failed to pay a death claim, referencing the guarantee fund without literally mentioning it. But I know I've talked about it a couple times over the years. Never realized it was illegal.

p.s.- Why not just say (if it comes up) the industry has never failed to pay a death claim? It's true and it covers both fraternals and regular companies.

 

[John Galt]

Good thread. One thing I think agents put too much faith in though is State Guarantee programs. It's not like FDIC insurance. It's not even consistent from state to state.

I know in Indiana it doesn't cover you unless you bought the policy in Indiana and also live in Indiana when you die. There are other exclusions too.

And there isn't enough reserves to cover everyone. There are limits. That's why the states forbid us from telling people about it. No one is "guaranteed" to get it.

The best protection is selling financially sound companies. But that's not a perfect science either.

So they basically copied the draft from the Social Security Act.

 

[Newby]

So they basically copied the draft from the Social Security Act.

Yes but at least SS is the same from one state to the next.

 

[WinoBlues]

Good thread. One thing I think agents put too much faith in though is State Guarantee programs. It's not like FDIC insurance. It's not even consistent from state to state.

I know in Indiana it doesn't cover you unless you bought the policy in Indiana and also live in Indiana when you die. There are other exclusions too.

And there isn't enough reserves to cover everyone. There are limits. That's why the states forbid us from telling people about it. No one is "guaranteed" to get it.

The best protection is selling financially sound companies. But that's not a perfect science either.

That. However, financially sound can be a slippery thing to grasp.