Important Information Regarding Guaranteed Issue Whole Life (GIWL)

[Tahoe Ray]

But don't you think someone would have come along and said, "Hey, your GI is way too low compared to the average? And the market your going to get isn't the one you want."

Yeah, and that guy/gal gets overridden because SALES!

I can't speak to FE but I can talk about annuities. These are multi-billion dollar companies.

In the late 90s/early 2000s, several companies had riders that as long as there was money in the contract, the rider was active. The benefit was dollar for dollar (not pro rata as they are now) so savvy agents/advisors stripped every dollar out of those contracts and left just enough to keep the lifetime income in force. Clients won, companies lost.

10 years later, they still didn't learn their lesson. They had riders that were so good (and actuarily unsound) that several other companies (like AXA and TransAmerica) were forced to literally buy people out of their contracts for more than their policies were worth to mitigate potential losses.

So while there may be a few people sounding the alarm, when things are going well at these carriers, no one listens. After all, if you hit your bonus several years in a row, no one cares in the end. Everyone gets fired and just goes to a new company.

 

[Todd King]

But don't you think someone would have come along and said, "Hey, your GI is way too low compared to the average? And the market your going to get isn't the one you want."

I told them this very thing. The response I got was that they could handle it but was also excited that they would be selling their WL more. I also told them they were going to have a tough time getting agents to write it at 90%.

But they know better than we do, obviously! (sarcasm very much intended)

 

[Life Hawk]

Yeah, 90% isn't commission I'm really willing to write anymore on WL, annuities maybe, but not so much so on WL.

 

[DonP]

Hell I don’t even get excited about 130% anymore . I bet I have 10 people the last month that called me to buy life ins . I’ve put them all off as I’m writing 30 plus mapd a week and don’t have time during open enrollment. I won’t even get out of bed for less than 120% .

 

[shonceman]

Yeah, 90% isn't commission I'm really willing to write anymore on WL, annuities maybe, but not so much so on WL.

I’ll write at 90 FYC if renewals are strong. But unfortunately, that’s not the case here. I’ll also write at 90 if the combo of underwriting and price is more favorable to the client than other options. I’ve only written one WL with SOFN, but that’s one more than most other agents!

 

[Baseball7]

Funny, some of us can chew gum and walk at the same time.

 

[mudhound]

Gosh goodness! Is there anyone who offers gi

 

[goillini52]

Gosh goodness! Is there anyone who offers gi

AIG, Great Western, Gerber, UHL.

 

[Rob Owen]

I’ve written a lot of business with SOFN both the simplified and GI. They are more than competitive on their rates. I’ve also written a lot of business wit Foresters, RNA, Transamerica, and many others. I’ve been satisfied with the results that they provide. Yes SOFN only pays 90 and the others between 125 and 140. But I’ve gained so given so many clients much more coverage for the $$ than many other carriers. I’m sad to see the GI gone but SOFN has helped me and many of my clients.

 

[Baseball7]

All good things must come to an end