How to Select Final Expense Companies

[2001mason]

When consumers don't understand something, they will only focus on price. If health plan A is cheaper than health plan B they will always take A UNLESS they understand advantages to plan B.

Agents do the same thing with selecting insurance companies to sell. They tend to focus more on commission levels than how sellable a product is. While commission is real important, ALL final expense companies pay real good commission. But some companies are MUCH more saleable than others. A true sales professional will select the BEST companies first and THEN make sure you are getting the highest level of commission you can get on that company.

Here is a list of questions you should ask about the main companies you are going to carry with you. If your main company has weaknesses in certain areas, you should have backup companies that fill in for the weaknesses. Only you can decide which questions are the most important to you.


1. How competitive are their rates?
2. What is the A.M. Best rating of the company?
3. How do their marketing materials look? Do they supply them at no cost?
4. Can you easily download all forms from their website?
5. Does their website have GOOD reporting that you can easily access?
6. Is there a lead program?
7. Does this company allow monthly billing as well as bankdraft? Does that option affect YOUR commission?
8. Does this company allow the ages of 0-85? If not what ages are you limited to?
9. Does the company have immediate payout upon death or do they require a death certificate?
10. Does the company pay double for accidental deaths? Are child/grandchild riders available?
11. Is there a nursing home rider included? Is there a terminal illness rider included?
12. What are the minimum health requirements this company will accept? Guaranteed issue? Hospital, nursing home, AIDS?
13. Is there a height/weight chart? Can obese clients qualify for immediate coverage?
14. Do they count all tobacco users as smokers or is smokeless allowed?
15. How does this company treat non-insulin dependent diabetics? How about diabetics who take insulin?
16. Does this company consider maintenance medicines as ongoing treatment? (Example: if someone had a heart stint surgery 5-years ago and still takes a blood thinner, how are they rated?)
17. Does this company offer limited pay plans as well as lifetime pay (Paid up in 10-yr, 20-yr etc.)? If they do, what commission levels to those pay types pay in comparison to the lifetime pay?
18. Does this company allow single pay? If they do, on what ages? What is the minimum face amount? What ages do they allow?
19. How easy is it to look at their application and YOU as the agent determine with 95% accuracy where any given client will be placed once you have the health information of the client?
20. Is there a clear agent field guide for underwriting?
21. Does the company allow telephone sales? If yes, do you have to mail or fax anything to anybody?
22. How much is the policy fee? Is it commissionable? (If not, reduce the commissions by at least 5% when comparing to companies that pay on the policy fee.)
23. What is the first year commission level that you will get?
24. What is the commission level for years 2-10?
25. Is there commission after year 10? If so, how much?
26. Are there bonuses, trips, lead credits etc.?
27. Does this company have any brand name awareness to consumers?
28. Does this company market direct to consumers and compete with their own agents?
29. How easy is it to reach someone at the company when YOU need agent support?

Excellent information for this new guy, thanks!
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This is a two part question:
1st. A poster earlier asked on opinions for the top 5 FE companies. Nobody mentioned Royal Neighbors. I am contracted with them and have spoken to people at their office and they are very helpful. Do not many people rep them?

2nd. Based on Newby's 29 questions and people who have worked with these companies, what are your opinions on the top 3-5 companies with SPWL policies?

Thanks.

 

[Newby]

Excellent information for this new guy, thanks!
- - - - - - - - - - - - - - - - - -
This is a two part question:
1st. A poster earlier asked on opinions for the top 5 FE companies. Nobody mentioned Royal Neighbors. I am contracted with them and have spoken to people at their office and they are very helpful. Do not many people rep them?

2nd. Based on Newby's 29 questions and people who have worked with these companies, what are your opinions on the top 3-5 companies with SPWL policies?

Thanks.

Nothing wrong with Royal Neighbors other than a VERY confusing website and reporting. A lot of agents really like them. I have always been a little uncomfortable selling fraternals.

For small single pays I like Settlers (surprise) and Assurity has a decent one. When you get larger $25,000+ you can add RNA Americo, Oxford, Baltimore Life and a whole lot of other ones.

Monumental claims they allow their ten pay to be sold as a single pay that blows the other companies away but I've never been able to understand the calculations. They have a real complex worksheet for it.

 

[2001mason]

For small single pays I like Settlers (surprise) and Assurity has a decent one. When you get larger $25,000+ you can add RNA Americo, Oxford, Baltimore Life and a whole lot of other ones.

Newby,

RNA Americo is one company or did you mean Royals Neighbors and Americo?

I have American Americable for my Single Pay now. Are the companies you mentioned easier to work with, better rep and better commission?

Thanks.

 

[jdeasy]

Excellent information for this new guy, thanks!
- - - - - - - - - - - - - - - - - -
This is a two part question:
1st. A poster earlier asked on opinions for the top 5 FE companies. Nobody mentioned Royal Neighbors. I am contracted with them and have spoken to people at their office and they are very helpful. Do not many people rep them?

2nd. Based on Newby's 29 questions and people who have worked with these companies, what are your opinions on the top 3-5 companies with SPWL policies?

Thanks.

I probably write as amany applications as any on here and my top 5 are; RNA, Americo, Monumental, AmCon and Foresters. I would also throw in 5 Star as a bonus.

I would write everyone with RNA if they didn't have so many business prevention ruls. I also hat their POS interview. Americo is great for smokers and especially for pipe, cigar and smokeless tobacco users. I had 3 of those today. Monumental ig good all around and no POS. AmCon will take people that others won't. Foresters will take some meds that others won't.They all have their niche and it takes a while to learn it with each company and some, like RNA move the needle on you once you get them figured out.

I like that 5 Star has gone away from the mndantory POS. The agent can chose to do the POS and get an immediate answer or they can chose to send it in for traditional underwriting. There may or may not be a PHI conducted. The choice is in the agent's hands.

You don't really need 5 companies. 3 would work just fine until you master those and then add one at a time until you know them inside and out. I have found that more production buys much goodwill and understading.

 

[2001mason]

I probably write as amany applications as any on here and my top 5 are; RNA, Americo, Monumental, AmCon and Foresters. I would also throw in 5 Star as a bonus.

I would write everyone with RNA if they didn't have so many business prevention ruls. I also hat their POS interview. Americo is great for smokers and especially for pipe, cigar and smokeless tobacco users. I had 3 of those today. Monumental ig good all around and no POS. AmCon will take people that others won't. Foresters will take some meds that others won't.They all have their niche and it takes a while to learn it with each company and some, like RNA move the needle on you once you get them figured out.

I like that 5 Star has gone away from the mndantory POS. The agent can chose to do the POS and get an immediate answer or they can chose to send it in for traditional underwriting. There may or may not be a PHI conducted. The choice is in the agent's hands.

You don't really need 5 companies. 3 would work just fine until you master those and then add one at a time until you know them inside and out. I have found that more production buys much goodwill and understading.

Thanks for the info Jdeasy. What do you mean by business prevention rules?
I am contracted with RNA, Foresters and Monumental at the moment. I have my paperwork in for American Continental. American Continental is the same as AmCon correct?

 

[Newby]

I probably write as amany applications as any on here and my top 5 are; RNA, Americo, Monumental, AmCon and Foresters. I would also throw in 5 Star as a bonus.

I think what he is asking about is who would you use for single premium.

 

[jdeasy]

Thanks for the info Jdeasy. What do you mean by business prevention rules?
I am contracted with RNA, Foresters and Monumental at the moment. I have my paperwork in for American Continental. American Continental is the same as AmCon correct?

Well they don't call their changes business prevention rules, but the agents do. You have to write for RNA a while to get what that means. Like for instance this latest new rule, a client cannot move their draft date back a few days, or even one day, without having to pay two months premium.

Or, how about this new rule? A person cannot name their fiance as their beneficiary unless the fiance has the same amount of insurance and is naming the applicant as their beneficiary.

This is just an example of new RNA rule changes in the last few months. It seems the decision makers just sit around try to come up with things to make doing business with them more difficult. At this time last year they had a 'premium committment" form that we had to have signed at POS with all applications in addition to the application. Cooler heads did prevail on that one and it was done away with.

They are a good company with great rates and outstanding member benefits. It's a shame they don't want to promote business.

 

[magagent]

I guess you could always switch to AMAM and UHL... I better behave the local tattle tell might be reading the board.

Well they don't call their changes business prevention rules, but the agents do. You have to write for RNA a while to get what that means. Like for instance this latest new rule, a client cannot move their draft date back a few days, or even one day, without having to pay two months premium.

Or, how about this new rule? A person cannot name their fiance as their beneficiary unless the fiance has the same amount of insurance and is naming the applicant as their beneficiary.

This is just an example of new RNA rule changes in the last few months. It seems the decision makers just sit around try to come up with things to make doing business with them more difficult. At this time last year they had a 'premium committment" form that we had to have signed at POS with all applications in addition to the application. Cooler heads did prevail on that one and it was done away with.

They are a good company with great rates and outstanding member benefits. It's a shame they don't want to promote business.

 

[Newby]

For small single pays I like Settlers (surprise) and Assurity has a decent one. When you get larger $25,000+ you can add RNA Americo, Oxford, Baltimore Life and a whole lot of other ones.

Newby,

RNA Americo is one company or did you mean Royals Neighbors and Americo?

I have American Americable for my Single Pay now. Are the companies you mentioned easier to work with, better rep and better commission?

Thanks.

I left out the comma. I meant RNA, and Americo.

You just have to look at each of them. I think Settlers gives a much better benefit on single pays than other companies I've looked at on policies under $25,000. But their commission is lower also so for many agents that is a deal killer.

 

[0b1kanobee]

You don't really need 5 companies. 3 would work just fine until you master those and then add one at a time until you know them inside and out. I have found that more production buys much goodwill and understading.

Which 3 would you recommend to absolutely have?