Your Favorite TRUE Graded Plan and Why?

[Abrasax]

Just to be clear, by Graded, I mean an X%, Y%, 100% payout during years 1-3 as opposed to the modified plans that pay ROP + interest for the first couple years. It's much easier for most prospects to see the value in the former over the latter. And I'm not talking about GI plans.

I'd like to get a good list of the true graded plans and find out why people prefer the ones they have.

It seems to me that your go to, price buster, and GI carriers are largely determined by your state, but finding good Graded carriers seems to be the trickiest trick to add to the bag.

What say the experts?

 

[HoosierLife]

I really like the concept of a true graded plan, but I’ve only written a handful over the years.

I used Aetna’s for CHF 40/75/100 and full comp.

I also like Sentinel’s 30/70/100 for Oxygen use.

I’ve written Foresters and RNAs 30/70/100 maybe one time each in 8 years.

What usually kills graded is comp and rates. AND the fact that you can get level coverage somewhere else at standard rates with level coverage.

 

[DayTimer]

I really like the concept of a true graded plan, but I’ve only written a handful over the years.

I used Aetna’s for CHF 40/75/100 and full comp.

Wait ... Aetna does 40% 75% for CHF with full comp? Up to what age, Josh? What about charge backs for death?

 

[Newby]

Sentinal’s Graded is useful. Was full comp until recently but is still near full comp.

KSKJ graded is very good. Nothing special during the first 12 months but months 13-24 have a minimum of 40% coverage and max of 60% coverage (depends on the age of the applicant.) has same comp as the prefered and standard product which is 100% for non-smokers it’s around the ballpark of Gerber’s rates. For smokers it’s higher.

Trinity/Family Benefit graded is useful occasionally.

I agree with Josh that graded plans were never all that common to write. The majority of cases could definitely get 1st day full coverage. And of the ones that couldn’t the majority of those need GI. Graded plans are nice occasionally are the least common.

 

[goillini52]

Sentinal’s Graded is useful. Was full comp until recently but is still near full comp.

KSKJ graded is very good. Nothing special during the first 12 months but months 13-24 have a minimum of 40% coverage and max of 60% coverage (depends on the age of the applicant.) has same comp as the prefered and standard product which is 100% for non-smokers it’s around the ballpark of Gerber’s rates. For smokers it’s higher.

Trinity/Family Benefit graded is useful occasionally.

I agree with Josh that graded plans were never all that common to write. The majority of cases could definitely get 1st day full coverage. And of the ones that couldn’t the majority of those need GI. Graded plans are nice occasionally are the least common.

True Graded DOES give 1st day coverage. 40% 0f a $10K policy is $4,000 of 1st day coverage.

 

[Newby]

True Graded DOES give 1st day coverage. 40% 0f a $10K policy is $4,000 of 1st day coverage.

I like first day too. But everything has to be weighed out. There are times that a two year wait is preferable if the premium is a huge difference. It depends on the mindset of the applicant. Is he more focused on the premium? Or on when coverage starts?

I used to have a 3-year waiting period GI that had crazy low rates. They were priced about the same as Oxford prefered non-smoker but it was GI and was the same rate for smokers and non smokers. I had people that qualified for 1st day coverage but smoked and just wouldn’t pay the smoker rate. Some of them when I showed them the GI company’s rate with a three year waiting period jumped at that. They were certain (in their mind) that they had a long time to go and just wanted the lower rate.

In hindsite, every single one of those that I sold is still on the books. None of them died during the 3-years. And they all got an unbelievably great rate.

It’s all got to be considered. Rate, when coverage starts, and what is most important to the applicant. And of course comp to the agent is in the equation too.

1st day having meaningful coverage is best. BUT only up to a certain price point beyond Gerber or AIG.

13th month starting meaningful coverage is next best but not if it’s way higher than Gerber/AIG.

24 month waiting period- it better be priced in line with Gerber/AIG

36- month waiting period- it better blow every other GI rate out of the water.

 

[rousemark]

United Life ROP +4% first year but then 50% of DB 2nd year, 100% third. Very near GI. No underwriting if 3 questions answered "no" .

 

[goillini52]

I like first day too. But everything has to be weighed out. There are times that a two year wait is preferable if the premium is a huge difference. It depends on the mindset of the applicant. Is he more focused on the premium? Or on when coverage starts?

I used to have a 3-year waiting period GI that had crazy low rates. They were priced about the same as Oxford prefered non-smoker but it was GI and was the same rate for smokers and non smokers. I had people that qualified for 1st day coverage but smoked and just wouldn’t pay the smoker rate. Some of them when I showed them the GI company’s rate with a three year waiting period jumped at that. They were certain (in their mind) that they had a long time to go and just wanted the lower rate.

In hindsite, every single one of those that I sold is still on the books. None of them died during the 3-years. And they all got an unbelievably great rate.

It’s all got to be considered. Rate, when coverage starts, and what is most important to the applicant. And of course comp to the agent is in the equation too.

1st day having meaningful coverage is best. BUT only up to a certain price point beyond Gerber or AIG.

13th month starting meaningful coverage is next best but not if it’s way higher than Gerber/AIG.

24 month waiting period- it better be priced in line with Gerber/AIG

36- month waiting period- it better blow every other GI rate out of the water.

I agree, you have to take everything into consideration and in the case of going with GI over Graded, let the prospect make that decision.

 

[HoosierLife]

Wait ... Aetna does 40% 75% for CHF with full comp? Up to what age, Josh? What about charge backs for death?

Normal chargeback rules applied. It’s not GI. I want to say ages 60-75 for graded. Actually that might be their modified.

It might go higher.

 

[HoosierLife]

45-80 is from the agent guide. But that guide is 5 years old. I know they don’t pay out on 45-59 now. So maybe 60-80?