A Little Reconnaissance RE AARP / NY Life

[sellingdog]

A little reconnaissance RE AARP / NY Life

Hello all, I don't post much but I recently replaced two AARP policies that were Term, no problem the prospects saw the evil of this product. But I did want to find out a bit more about their "whole Life" offering. So I went online and requested information and actually have taken out a policy to see what is in it, which I will cancel after the free look.

While I am waiting for the policy to come, I thought I would post the application and marketing materials for those of you who would like to see it. I hope that some of you with experience will help me pick this apart. If you look at the 3 questions, it appears at first glance that their underwriting is fairly liberal for those who are marginally healthy, and a bit expensive. But upon reading the three questions, they cover about 12 questions on the average FE policy application! looking at the application it is not too expensive unless the rates change (which it says they won't according to the marketing).. I do note on this it does say "Certificate of Insurance", not sure if that makes any difference.

Here are the health questions:

1. In the past 2 years, have you had treatment or medication for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease or disorder, diabetes, liver or kidney disease, AIDS, AIDS related Complex, or immune system disorder?

2. In the past 2 years, for any condition, have you been admitted to or confined in a hospital, sanitarium, nursing home, extended care or special treatment facility?

3. In the past 3 months, have you consulted a doctor or had treatment, medication or diagnostic tests of any type?

I hope this helps some of us when we run into these in the field.
Application attached as PDF woops no it's not too big a PDF but I have it if you want it.

 

[myonbroker]

My understanding is that the real "Issues" and escape clauses come in the "Terms and conditions" portion of the contract. I have been trying to get my hands on this document for a while. Did that get sent to you? They refuse to send it unless you buy the policy.

 

[sellingdog]

I have the application which I will break down into a manageable PDF so that you can see it. We will have to wait until the policy comes in to disect it..... I don't plan to give them a dime...

 

[John Galt]

A little reconnaissance RE AARP / NY Life

Hello all, I don't post much but I recently replaced two AARP policies that were Term, no problem the prospects saw the evil of this product. But I did want to find out a bit more about their "whole Life" offering. So I went online and requested information and actually have taken out a policy to see what is in it, which I will cancel after the free look.

While I am waiting for the policy to come, I thought I would post the application and marketing materials for those of you who would like to see it. I hope that some of you with experience will help me pick this apart. If you look at the 3 questions, it appears at first glance that their underwriting is fairly liberal for those who are marginally healthy, and a bit expensive. But upon reading the three questions, they cover about 12 questions on the average FE policy application! looking at the application it is not too expensive unless the rates change (which it says they won't according to the marketing).. I do note on this it does say "Certificate of Insurance", not sure if that makes any difference.

Here are the health questions:

1. In the past 2 years, have you had treatment or medication for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease or disorder, diabetes, liver or kidney disease, AIDS, AIDS related Complex, or immune system disorder?

2. In the past 2 years, for any condition, have you been admitted to or confined in a hospital, sanitarium, nursing home, extended care or special treatment facility?

3. In the past 3 months, have you consulted a doctor or had treatment, medication or diagnostic tests of any type?

I hope this helps some of us when we run into these in the field.
Application attached as PDF woops no it's not too big a PDF but I have it if you want it.

Good job, its actually a group permanent policy. If you look carefully in the terms you will see that the PI is not protected on rate increases. They cant be singled out individually but they can increase the rate across the board on the whole group or class.

 

[sellingdog]

AHHH, good info, thanks thats why I posted this.

 

[jacobtn]

AHHH, good info, thanks thats why I posted this.

What part of the state are you in?

 

[sellingdog]

West TN. Memphis area, I spend alot of time selling policies on Beale St. easy sale but the persistency sucks

 

[onefastpony]

I was finally able to get a hold of another AARP group permanent plan. I've gone over the plan and it should be easy pickings for a healthy client.

First off it does not say whole life insurance since it is not whole life.

Second. When the client says that the payments are guaranteed to never increase you can say that is correct, however; everything else in the policy other than the premium can change at any time without your approval.

Third, my favorite part is the section of "When Insurance Ends."

Now the front of the certificate says "Paid Up" at age 95 yet if you read the contract on one of the pages is has a "when insurance Ends" page. It states that the insurance will end prior to the 95th birthday of the last premium due.

Then further in the contract it lets you know what your payment options are if your "Insurance Ends."

Those options are under Non-Forfeiture values:

"If insurance ends and it has no CASH SURRENDER VALUE there are no options available. If the insurance has CASH SURRENDER VALUE when it ends, the OWNER can elect to surrender the insurance for its CASH SURRENDER VALUE or the insurance will continue as a paid-up insurance.

"The amount of paid-up insurance is as stated in the Table of Values on the schedule pages."

 

[goget]

How are the premiums versus other whole life products? The other day I saw a 400 lb lady age 61 paying $14 a month for $10k term in 5 yr increasing bands. Whole life with trans was $37 I believe. The policy increased every 5 yrs and ended at age 80. She never understood what she had but after explains it to her she simply said" I could die tommorrow and I come out much better with this". I couldn't argue as at 400 lbs and smoking it will be a miracle if she loves to age 70.The truth is I bet the avg Fe client lives 10 yrs less than the avg american as they just eat terrible and go to the dr less.so that age 95 whole life is probably good for 99.999999999% of Fe clients. Also that tee policy only had 2 health questions do almost any client can get it. Matter fact I don't even know if aarp or aaa even check rx or mib. Since its a group policy I think they price in all risks almost like a GI if you just answer no to the health questions. On another note I wrote the 400 Pounder with ta by saying one line. "Are you a gambler "she said No my grandma lived to 99 and Said " I can't allow you to put your family in jeopardy and one day your daughter sees my card and calls me in tears looking for her mommas policy and I have to tell her you never bought one and her term expire at 80 and started writing her.

 

[jdeasy]

How are the premiums versus other whole life products? The other day I saw a 400 lb lady age 61 paying $14 a month for $10k term in 5 yr increasing bands. Whole life with trans was $37 I believe. The policy increased every 5 yrs and ended at age 80. She never understood what she had but after explains it to her she simply said" I could die tommorrow and I come out much better with this". I couldn't argue as at 400 lbs and smoking it will be a miracle if she loves to age 70.The truth is I bet the avg Fe client lives 10 yrs less than the avg american as they just eat terrible and go to the dr less.so that age 95 whole life is probably good for 99.999999999% of Fe clients. Also that tee policy only had 2 health questions do almost any client can get it. Matter fact I don't even know if aarp or aaa even check rx or mib. Since its a group policy I think they price in all risks almost like a GI if you just answer no to the health questions. On another note I wrote the 400 Pounder with ta by saying one line. "Are you a gambler "she said No my grandma lived to 99 and Said " I can't allow you to put your family in jeopardy and one day your daughter sees my card and calls me in tears looking for her mommas policy and I have to tell her you never bought one and her term expire at 80 and started writing her.

They won't pay if the person dies in the contestable period but that's not an issue for this prospect, {suspect}, anyway. She's not a believer and you didn't convert her into a believer.

I'm not a gambler but I would bet that she lapses the whole life and goes back to term.