Starmount Life

[SportsNut]

This is a new one on me... just ran across Starmount Life, Baton Rouge, La. this week. They appear to have two products: Term to 95 and Modified WL which amounts to 5yr banded term rates for the first 10 yrs, with 2 increases scheduled, then it converts to WL to age 120 guaranteed prem.

The Term to 95 is a group term product which the rates can change if everyone in the group's rates are changed. The Modified product I am not certain about as their info is not clear and they do not publish the rates of the proposed 5 and 10 yr inceases on the Mod WL product either. Of course the person who is in the middle of attempting to obtain coverage has no idea what they are getting except "Laf in-Surce". Enough doubt has been cast here that they will be getting "Laf in-Surce" elsewhere - from me.

The company is rate B++ (Good), has apparently been upgraded according to AM Best and has previously been largely in the dental business in MS & La. (seems like an oxymoron - dental ins in MS & La... forgive me is your from either state). Any of you grizzled Vets run into this company before and have any specific info to add that would be helpful in discussing this company with a client...?

 

[Newby]

This is a new one on me... just ran across Starmount Life, Baton Rouge, La. this week. They appear to have two products: Term to 95 and Modified WL which amounts to 5yr banded term rates for the first 10 yrs, with 2 increases scheduled, then it converts to WL to age 120 guaranteed prem.

The Term to 95 is a group term product which the rates can change if everyone in the group's rates are changed. The Modified product I am not certain about as their info is not clear and they do not publish the rates of the proposed 5 and 10 yr inceases on the Mod WL product either. Of course the person who is in the middle of attempting to obtain coverage has no idea what they are getting except "Laf in-Surce". Enough doubt has been cast here that they will be getting "Laf in-Surce" elsewhere - from me.

The company is rate B++ (Good), has apparently been upgraded according to AM Best and has previously been largely in the dental business in MS & La. (seems like an oxymoron - dental ins in MS & La... forgive me is your from either state). Any of you grizzled Vets run into this company before and have any specific info to add that would be helpful in discussing this company with a client...?

Yes, I reviewed their policy with someone last year. It starts out very cheap and jumped up huge after the 5th year and stayed level after that. They are owned by one of the larger companies I think it was NGL but it might have been TransAmerica.

I think they will allow brokers to sell it but commissions were barely there plus you would have a lot of pissed off people in year 6 with short memories.

 

[TwiLight]

They are owned by one of the larger companies I think it was NGL but it might have been TransAmerica..

Starmount is a private company owned by the Sternberg Family (known for owning dept stores).

 

[WinoBlues]

The term rates were in compulife, not sure if still there.

 

[jacobtn]

replaced them easily both times I came across their policies.

 

[Robert Barney]

The term rates were in compulife, not sure if still there.

There are three Starmount products in Compulife. The problem is the company is rated B++ and a lot of users set their Best rating minimum somewhere in the A's.

 

[SportsNut]

I was able to obtain the rates from Starmount Life.
M 69 n/s on their Mod WL:

Yrs 1-5 = 32 mo
Yrs 6-11 = 70.15 mo
Yrs 11-> = 199.50 mo

Case closed. Of course they offer the product to entice someone in with the low rate and do offer conversion options on some of their other products, some with limited qualifying and some with no qual... rates vary of course. Bottom line is folks can beat this rate all day long, but some are drawn to the low starter rate... and always will be. Sort of like the free sample... how much money as that term made over the years?

Thanks to all for the feedback here.

 

[onefastpony]

I ran into a Starmount policy this weekend. Lady was 79NT had the policy for over seven years, it was converted from Starmounts ValueLife Gold plan to the StarLife Gold plan. Both were term policies. However the lady was only paying $68 month for 26K of coverage with no rate increase unless across the board. Coverage was guaranteed until age 95.

I explained to the lady that yes, the rates can go up, how much, I don't know.

All in all though, how does this company make any money on this product? I know with the WL products that the C.V. offsets the company's net risk. It seems this product would be a company killer with the losses.

I did give the lady my card and said if they raised her rates to call me.

 

[Newby]

I ran into a Starmount policy this weekend. Lady was 79NT had the policy for over seven years, it was converted from Starmounts ValueLife Gold plan to the StarLife Gold plan. Both were term policies. However the lady was only paying $68 month for 26K of coverage with no rate increase unless across the board. Coverage was guaranteed until age 95. I explained to the lady that yes, the rates can go up, how much, I don't know. All in all though, how does this company make any money on this product? I know with the WL products that the C.V. offsets the company's net risk. It seems this product would be a company killer with the losses. I did give the lady my card and said if they raised her rates to call me.

I've never run across a Starmount policy that didn't have huge rate increases built in to the policy. That's kind of their gimmick. Are you sure you looked it over good. It's usually built into the premium table. Even their whole life premium has a huge increase at the 10th year.

 

[onefastpony]

I've never run across a Starmount policy that didn't have huge rate increases built in to the policy. That's kind of their gimmick. Are you sure you looked it over good. It's usually built into the premium table. Even their whole life premium has a huge increase at the 10th year.

She didn't have the policy available. I only had the conversion letter. She didn't know where the policy was.