Americo Decreases Rates on Final Expense Product

[MisterRandyWatson]

If you didn't know, effective today, Americo has decreased rates pretty substantially on its Ultra Protector I product (simplified whole life, immediate coverage). They've also made their policy fee commissionable.

This is good news. I love working with Americo--no POS phone interview, they're helpful when you call in, they process business lightning quick--but they haven't been competitive. Apparently, they've been listening to what agents are saying. Plus, they seem to be starved for business as they're paying an additional $100 per app bonus all month.

Their new rates compare much more favorably to Foresters, Assurity, Settlers, et al.

55 Male NT $5,000 (PAC):
Assurity: $18.24
Settlers Gold: $16.83
Foresters: $18.03
Americo: $19.75 (down from $$22.57)

55 Male Tobacco $5,000 (PAC):
Assurity: $21.81
Settlers Gold: $23.46
Foresters: $23.71
Americo: $25.88 (down from $29.77)

55 Female NT $5,000 (PAC):
Assurity: $15.79
Settlers Gold: $13.26
Foresters: $14.53
Americo: $15.77 (down from $17.87)

55 Female Tobacco $5,000 (PAC):
Assurity: $19.28
Settlers Gold: $18.36
Foresters: $19.78
Americo: $18.83 (down from $21.48)

 

[jdeasy]

If you didn't know, effective today, Americo has decreased rates pretty substantially on its Ultra Protector I product (simplified whole life, immediate coverage). They've also made their policy fee commissionable.

This is good news. I love working with Americo--no POS phone interview, they're helpful when you call in, they process business lightning quick--but they haven't been competitive. Apparently, they've been listening to what agents are saying. Plus, they seem to be starved for business as they're paying an additional $100 per app bonus all month.

Their new rates compare much more favorably to Foresters, Assurity, Settlers, et al.

55 Male NT $5,000 (PAC):
Assurity: $18.24
Settlers Gold: $16.83
Foresters: $18.03
Americo: $19.75 (down from $$22.57)

55 Male Tobacco $5,000 (PAC):
Assurity: $21.81
Settlers Gold: $23.46
Foresters: $23.71
Americo: $25.88 (down from $29.77)

55 Female NT $5,000 (PAC):
Assurity: $15.79
Settlers Gold: $13.26
Foresters: $14.53
Americo: $15.77 (down from $17.87)

55 Female Tobacco $5,000 (PAC):
Assurity: $19.28
Settlers Gold: $18.36
Foresters: $19.78
Americo: $18.83 (down from $21.48)

You are correct that it makes them competitive again. It's only a rate reduction on Ultra I, but, that was all I ever wrote anyway.

Also, pipe smokers, cigar smokers, and smokeless tobacco users will get non tobacco rates. Always have, that's not new, but, their non tobacco rate still wasn't competitive with Foresters tobacco rate. It's a 15% rate reduction. They are also making some app. changes. The new app won't be available until the first qtr of 2011. I not sure what all it entails. They have supposedly loosened underwriting.

I got my old Americo apps out of storage today.

 

[AgentPipeline]

Americo has been a good company to work with. I'm glad to see them back in the Final Expense market. The 15% rates decrease was really needed.

Here are a few bullet points from their agent recruiting pieces:

• 48 hour issue on clean applications
• Simple application process
• 3 products to fit different needs – including guaranteed issue
• Face amounts down to $2,000
• No Medicare exams
• No point-of-sale teleunderwriting
• Pipe & cigar smokers qualify for non-smoker rates
• Commissionable Renewals
• Commission paid daily

 

[ChicagoProducer]

I'd like to see Americo's application however. My main FE carrier can go diabetics and hypertension/high blood pressure either controlled with medication as Standard Approved. But they are roughly $1.20 higher than Americo in the above examples....

 

[jdeasy]

I'd like to see Americo's application however. My main FE carrier can go diabetics and hypertension/high blood pressure either controlled with medication as Standard Approved. But they are roughly $1.20 higher than Americo in the above examples....

They say they are revamping their application and underwriting and will have a new app out in the first quarter of '11.

These changes are very needed and I wrote an Americo today. The first one in about 6 months and the the last one I wrote was because the guy was a cigar smoker and could get non tobacco rates.

The problems with Americo that still reman are, number 1-they do not ask for meds on the application, yet they do a script check. That puts the agent in an untenable situation. number 2-they still require agents to deliver the policies, they will not send directly to the client.

One other good thing they do is allow the frist drat to be up to 45 days out. Say you are writing an app on the 20th of a month and the person wants a draft date on the 3rd, but don't want it to be on the 3rd of the next month, Americo will let you go to the 3rd of the month after the next. That's not an issue very often, but it does happen. I had one last week where the lady wanted the 3rd, but, didn't want it to be on Nov. 3. She wanted Dec. 3. I called the company and they made a "one time exception" and let me do it. If I had used Americo, it wouldn't have been an issue at all.

They have made a huge step in the right direction with this rate reduction. They still have issues to work out.

 

[Newby]

Hey! Apparently one of the Beatles has been shot!

 

[FE4U]

Hey! Apparently one of the Beatles has been shot!

Was it Ringo?????????????????

 

[Newby]

Was it Ringo?????????????????

I think it was the one with terrible taste in women.

 

[Insuranceman]

Where can I get a contract ?

 

[Tahoe Ray]

Come on, who deleted Rearden's "chill up the leg" comment...that was good!