Guaranteed Issue FE at great rates

[jdeasy]

OK I have the information from Cincinnati Equitable now. It's not what I wanted to hear but here it is:

They have become nervous about the volume of guaranteed issue business they started receiving. As of today, they are going to send a memo to all agents that the product will no longer be guaranteed issue, it will be simplified issue.

The rates were too low to remain a guaranteed issue.

They are also nervous about how much replacement applications they were getting. With a 3-year graded policy, they aren't comfortable replacing in-force policies.

I told them we will need an agent guide of what they will and won't accept for the product to be useful at all in the field. They are going to try to get that to us soon.

They are going to go back to the drawing board to design a final expense product that will be attractive with guaranteed issue (at higher rates) as well as a good product for your healthy clients. As we all know, that will take a while.

I wish the news was different. It was great while it lasted. Hopefully the product will remain somewhat useful depending on what the agent guidelines will accept.

They changed from GI to simplified issue without informing the agents of this change? As you know, I'm contracted with them and received no notification from them. If it wasn't for reading this board, I wouldn't know it now.

Terrible way to do business.

 

[Newby]

They changed from GI to simplified issue without informing the agents of this change? As you know, I'm contracted with them and received no notification from them. If it wasn't for reading this board, I wouldn't know it now.

Terrible way to do business.

I agree. I don't like it. They will be sending a memo out.

 

[GreenSky]

I agree. I don't like it. They will be sending a memo out.

Are they GI in California?

Rick

 

[theinuranceguy]

Are they GI in California?

Rick

 

[Newby]

Are they GI in California?

Rick

Yes, there is no change in California.

You're good to go Rick!