Oxford Life is Giving Out 120% Street Level!

[Newby]

Is Furnal Exp policy easy to get. Is it like underwriting for a life policy. Can someone explain it to me??

There is fully underwritten life insurance= full underwriting, takes a physical exam.

There is simplified issue/ AKA Final Expense- health questions on app, usually a phone interview. Less strict on health.

When you use the word Funeral it has to be a funeral preplan policy (in most states) and that means guaranteed issue, limited pay or single pay, and in most states a funeral director HAS to sign off on the contract and give a full price guarantee.

Any policy can be used to pay a funeral but not all policies are Funeral Preplan policies. Make sense?

 

[WinoBlues]

I use the term Final Expense here because that is the norm. I much prefer Simplified Issue. Seems more appropriate for me since that is how I use it. Some times it is for burial sometimes it is for other needs.

 

[Sales71]

There is fully underwritten life insurance= full underwriting, takes a physical exam.

There is simplified issue/ AKA Final Expense- health questions on app, usually a phone interview. Less strict on health.

When you use the word Funeral it has to be a funeral preplan policy (in most states) and that means guaranteed issue, limited pay or single pay, and in most states a funeral director HAS to sign off on the contract and give a full price guarantee.

Any policy can be used to pay a funeral but not all policies are Funeral Preplan policies. Make sense?

Thank u. That makes lots of sense
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In the simplified life policy does it also has the 2 years contistitability clause?

 

[pbbaseball]

almost positive they don't offer paid up options, just cash value. unless they've pulled the product in the last 6 months, they also do overpriced med supps in many states, single premium life, and fixed annuities

 

[Mark]

Do they still stick in the contract if the policy lapses in the first 2 years, you have to give back all your commissions or did they change that?

 

[Newby]

Thank u. That makes lots of sense
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In the simplified life policy does it also has the 2 years contistitability clause?

ALL life insurance has 2 year contestability. The only exceptions are guaranteed issue life insurance (uncontestable) and in certain states all policies are non-contestable if they replaced a policy that had been in force over 2 years.

For instance, if I sell someone a Preneed insurance and they have cancer when they buy the policy and they die of cancer (or any other health reason) 13 months later, their death benefit is not contestable because there are NO limits to qualifying for that policy. They would have a 70% of face death benefit.

If I sold that same person a life insurance that was not guaranteed issue, it would be contested by any company to make certain the person actually did qualify for the coverage. Contesting doesn't mean the claim won't be paid. It means the insurance company is going to make certain they qualified for coverage.

 

[VolAgent]

ALL life insurance has 2 year contestability. The only exceptions are guaranteed issue life insurance (uncontestable) and in certain states all policies are non-contestable if they replaced a policy that had been in force over 2 years.

For instance, if I sell someone a Preneed insurance and they have cancer when they buy the policy and they die of cancer (or any other health reason) 13 months later, their death benefit is not contestable because there are NO limits to qualifying for that policy. They would have a 70% of face death benefit.

If I sold that same person a life insurance that was not guaranteed issue, it would be contested by any company to make certain the person actually did qualify for the coverage. Contesting doesn't mean the claim won't be paid. It means the insurance company is going to make certain they qualified for coverage.

So what happens in KY if you replace a graded policy with another graded policy? Does it still have a two year limited benefit? Does the incontestability only refer to challenging the health statements?

 

[Newby]

So what happens in KY if you replace a graded policy with another graded policy? Does it still have a two year limited benefit? Does the incontestability only refer to challenging the health statements?

Graded has nothing to do with contestability. If a policy is graded, it's still graded no matter what it replaced. But the grading would be non-contestible.

For example: If you sold someone a policy that has 30% first year, 70% 2nd year and 100% after 24 months and they had to answer health questions to get the policy, and died 15 months in, the insurance company would have to pay the 70% benefit EVEN if they committed sucide or didn't health qualify for the policy.

In states like KY it is REAL important to do replacement forms and I have run across several agents (hacks) recently that absolutely were very involved in the replacement and failed to do the form. In one case the man died of a heart attack 3-months into the new policy and the policy was useless to the funeral home because there was no replacement form filled out. That agent is definitely going to lose his appointment with that insurance company and may have a complaint filed with the KY insurance commissioner.

It's not hard to do replacement forms and they protect the agent AND the consumer. I don't know why any agent would cut that corner.

 

[magagent]

I know why.. You must forget how lazy some agents are.

Graded has nothing to do with contestability. If a policy is graded, it's still graded no matter what it replaced. But the grading would be non-contestible.

For example: If you sold someone a policy that has 30% first year, 70% 2nd year and 100% after 24 months and they had to answer health questions to get the policy, and died 15 months in, the insurance company would have to pay the 70% benefit EVEN if they committed sucide or didn't health qualify for the policy.

In states like KY it is REAL important to do replacement forms and I have run across several agents (hacks) recently that absolutely were very involved in the replacement and failed to do the form. In one case the man died of a heart attack 3-months into the new policy and the policy was useless to the funeral home because there was no replacement form filled out. That agent is definitely going to lose his appointment with that insurance company and may have a complaint filed with the KY insurance commissioner.

It's not hard to do replacement forms and they protect the agent AND the consumer. I don't know why any agent would cut that corner.

 

[VolAgent]

I know why.. You must forget how lazy some agents are.

Actually knew an agent who wouldn't do replacement. TN doesn't have the same rule as KY, so it didn't affect incontestability, but he didn't want the other agent to know his business was getting replaced.