Guaranty Fund cannot be mentioned during the sales presentation but certainly allowed to mention it in an insurance review since a written disclosure is included with the policy (at least in TN). There is no prohibition that I know of that prevents a discussion of the differences in a Mutual Certificate and an insurance policy.
No Sense....................
- Thread starter cdsnuts
- Start date
Guaranty Fund cannot be mentioned during the sales presentation but certainly allowed to mention it in an insurance review since a written disclosure is included with the policy (at least in TN). There is no prohibition that I know of that prevents a discussion of the differences in a Mutual Certificate and an insurance policy.
- 15,041
Its not, its not even a policy.
Ignoring that, it still isn't better. Both are level coverage and he just restarted the contestability period. Now, it is substantially cheaper.
I bet next time the OP makes sure to touch on the fraternal portion.
What is this assesment possibility you are talking about? I looked in the sample policy foresters provides on their website, and the product guide, and I dont see anything about an assessment possibility in there
- 15,041
Then you haven't looked hard enough. It is there somewhere.
Fraternals do not participate in the state guaranty fund. They do have the ability to assess members should there be insufficient assets to pay claims and otherwise run the insurance company. That can either be in the form of increased premiums or against the cash value in the policy. Both Foresters and Royal Neighbors of America state that their whole life premiums are guaranteed. So, they retain the ability to make an assessment against the cash values if necessary to protect the solvency of the company.
In a sense, it is just semantics. If they reduce the cash value and thus the death benefit, you are now paying the same but for less death benefit.
- 29,524
It's covered on the "Foresters our shared strength" 2 sided flyer. Says they've assessed members twice...the last time was over 100 years ago.
Form 503515 US(05/14)
- 25,046
And it was never...... before the first time.
On this brochure it is on page one.. The brochure mentions the state guaranty associations and says Foresters is not a member so I guess it would be OK to carry a copy of this with you if the question comes up.
http://seniorheritage.net/pdf/Foresters-StrenghtsCompany.pdf
http://seniorheritage.net/pdf/Foresters-StrenghtsCompany.pdf
- 29,524
This cracks me up. A good salesman could passionately argue both sides of the certificate/policy argument and be right "enough". Just take your lumps, learn, and move on. Put the agent that beat you in a file so you're more careful not to give him ammo when you replace him next time. It kills me when a new agent has the insured call ME to cancel. Like JD says, some lesson s have to be learned.
Sorry this lesson was " weapons grade" expensive.
Sorry this lesson was " weapons grade" expensive.
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