Guaranteed Issue that competes with Mutual of Omaha

[Life Hawk]

PS-- all above numbers would drop if kids WL policies are written where the child becomes the owner & finds out it has cash value between age 18-25

So true... cause they ain't gonna die, well not right now...right?

Key component to all sales is knowing the customer, and helping them get fitted for what they are looking for.

So if average is running close 15 years, then for folks north of 60, a term to 100 with a face fixed face for 20 years (when it fits) might be a good move.

Caveat... clients who it might effect, will not need to worry about cash building in the policy to potentially effect any special benefits they might receive from the state.

2 major reasons I would lean toward Prosperity in @Door2Door 's case is if the client is older and would be better protected by SS billing (policy conservation) and better for @Door2Door because of the (almost certain here) higher commission which is a business decision, and last I checked, we are in the business of being in business.

 

[WinoBlues]

Persistencey for FE policy is horrible per the FE agents here.

FE agents do a lot of replacing FE policies.

 

[Allen Trent]

Persistencey for FE policy is horrible per the FE agents here.

FE agents do a lot of replacing FE policies.

I had always heard FE carriers need policies to make it at least 3-4 yrs minimum to cover all expense ratio items of issuing & servicing policy, but would prefer they not last alot longer than 10 yrs as it increases the risk they will have to pay the death claim. Same kind of issue with the worksite SI term contracts

 

[Door2Door]

I had always heard FE carriers need policies to make it at least 3-4 yrs minimum to cover all expense ratio items of issuing & servicing policy, but would prefer they not last alot longer than 10 yrs as it increases the risk they will have to pay the death claim. Same kind of issue with the worksite SI term contracts

As someone who primarily works FE and does plenty of replacing, I would say most companies just let a policy go pretty easily to unhealthy clients, clients over 75, and clients that have had the policy for 10+ years. Luckily whenever I’ve replaced a 10+ year old policy, it normally has tremendous cash value, they haven’t heard from that company or agent in years, and I can still compete price-wise.

 

[Newby]

Persistencey for FE policy is horrible per the FE agents here.

FE agents do a lot of replacing FE policies.

Persistency IS very low industry wide. But it’s very possible to keep the 13th month average in the 90’s if you are selling competitively priced and properly underwritten policies.

I had a two year run of 100% persistency myself when I was in the field selling Oxford. That tells you two things. I was/am a pretty soft closer. I probably didn’t close some appointments that others would have pushed harder on. But also the cases I sold were hard to beat. Back in those days Oxford and Settlers were two of the lowest priced companies.

 

[myinsurebiz]

It happened to me once. I didn’t or couldn’t find another product that would take him since he was diagnosed HIV IN 1996, remission since 1998, no meds taken since 1998 either. $36 per month $10,000 MOO GI

Great Western all day if over 40 y/o . . .

 

[FETalk]

You just have to walk away if you can’t improve their situation.

I agree. You shouldn't be trying to replace a "guaranteed issue" policy unless you can improve their situation, by providing them with "first day coverage". Especially if they've had the policy for over 2 years or are almost beyond the two year contest-ability period.

 

[Newby]

I agree. You shouldn't be trying to replace a "guaranteed issue" policy unless you can improve their situation, by providing them with "first day coverage". Especially if they've had the policy for over 2 years or are almost beyond the two year contest-ability period.

GI policies are never contestable. What would they contest?

They have a 1, 2 or 3 year modified benefit period depending on the carrier. But it’s never contestable if it’s true GI.

 

[walthamny]

GI policies are never contestable. What would they contest?

They have a 1, 2 or 3 year modified benefit period depending on the carrier. But it’s never contestable if it’s true GI.

I believe they can still be contested over eligibility. If the person claimed US citizen and they were illegal using a dead persons SSN number it can get denied. Its a cash payment for the insurance company so they will run it through the required databases for money laundering before releasing payment. They can also contest state residency, if the person always lived in CA, app was signed in WI, agent is in WI, and a WI address was used to get the policy issued, you dont have a valid contract.

 

[Newby]

I believe they can still be contested over eligibility. If the person claimed US citizen and they were illegal using a dead persons SSN number it can get denied. Its a cash payment for the insurance company so they will run it through the required databases for money laundering before releasing payment. They can also contest state residency, if the person always lived in CA, app was signed in WI, agent is in WI, and a WI address was used to get the policy issued, you dont have a valid contract.

Yes I agree with you on those. But I don’t think the exposure of those types of higher crime ends at 24 months. Do you think they are going to uncover stolen identities, money laundering, etc. and say whoops! It’s 25 months in. We need to let this go.

GI policies have no underwriting contestability. Higher levels of fraud, criminal actions, money laundering, or selling products that are not even approved in a state, that’s a whole other thing.