Policy for my mom?

[WolfOfInsurance]

My mom wants to get a term life policy from me and name me as the beneficiary.

I’m newly licensed. Is that a red flag?

Am I able to legally write her a policy with me as the beneficiary; even tho I’ll be getting paid on commission on the policy?

Anyone of you do this before?

Thanks

 

[fed up]

No red flag there. Most agents write family members at some point during their careers. If you think there is an issue, name the estate as the bene.

 

[WolfOfInsurance]

No red flag there. Most agents write family members at some point during their careers. If you think there is an issue, name the estate as the bene.

Yeah, I figured. Just wanted to be sure I wasn’t missing something.

Thanks

 

[Newby]

If it’s one of your 1st policies it can be a red flag to your Upline and/or the insurance company. A lot of weak agents rip them off by writing themselves or family members and then 30- day free looking it as they fail out of the biz.

The cure for that is to take as earned commission on that case. Up to you. No huge deal as long as mom doesn’t lapse.

 

[scagnt83]

If it’s one of your 1st policies it can be a red flag to your Upline and/or the insurance company. A lot of week agents rip them off by writing themselves or family members and then 30- day free looking it as they fail out of the biz.

The cure for that is to take as earned commission on that case. Up to you. No huge deal as long as mom doesn’t lapse.

Most carriers Ive worked with will not advance for controlled business.

 

[Newby]

Most carriers Ive worked with will not advance for controlled business.

As long as it’s disclosed. They often catch it after the fact.

 

[scagnt83]

As long as it’s disclosed. They often catch it after the fact.

Good point. Im sure youve seen some agents try to sneak it by... lol.

I once had controlled business I wrote and properly disclosed on the app. Annuity. Two years later they were doing "routine audits of business" and came back and asked me about the situation and asked for a letter "explaining the circumstances". Threatened to cancel the contract and refund premiums if I did not supply it by a certain date. Claimed I never disclosed it on the front end. etc. etc.

It was really weird. I fully disclosed it on the app. I sent the letter and all was fine. I also sent the page on the app that I disclosed it on, and made sure to tell them that in the letter. lol

The really crazy thing is the client had another policy with me as agent with the same carrier and they never asked about that. lmao

 

[Allen Trent]

Only red flag would possibly be if she has a spouse or other kids & is naming you only.

 

[WinoBlues]

To add to @Allen Trent comment.

If in California, maybe other community property states also, the spouse may have to sign off if not primary bene also.

Just curious, how much insurance?

I was Owner, Payor, and Bene on my mother and brother's small policies. No issue.

Well, I did get a call from social security asking if my mother had any life insurance. That conversation went poorly.

 

[DHK]

My mom wants to get a term life policy from me and name me as the beneficiary.

I’m newly licensed. Is that a red flag?

Am I able to legally write her a policy with me as the beneficiary; even tho I’ll be getting paid on commission on the policy?

Anyone of you do this before?

Thanks

None of that is an issue in insurance or securities.

Back in my banking days, team members could not open accounts, do loan applications, or do banking transactions on behalf of family members. That's in order to help avoid conflicts of interest and other facets to doing these kinds of transactions.

As others have stated, you won't get advanced commissions on controlled business, but if she pays an annual premiuim payment, you can get the full year's commission at one time because it's all paid at one time.

The amount of coverage will still need to be in alignment wtih the underwriting guidelines. Probably not an issue, but it's not like she can get a $10 million policy without substantiating the need and submitting financials.