New Guaranteed Issue Product From AIG

[Rearden]

Watch out for this product, gentlemen.

100% chargeback of commission during first year.

100% chargeback months 1 through 6, and 50% chargeback months 7-12.

Pricing not low enough to seriously consider using a carrier like this with the aforementioned negatives above.

 

[BYSFG]

I got excited for a second there reading the title. Thanks for the heads up though.

 

[AboutThatLife]

is that chargeback in case of claim or...?

 

[Rearden]

is that chargeback in case of claim or...?

Good question.

Charge back on lapse.

 

[rousemark]

Good question.

Charge back on lapse.

Charge back on claims through year 2.

 

[Rearden]

What is the motivation for these brand name carriers to offer such a crappy product like this?

 

[The Admiral]

Commission charge back for lapses: 100% in months 1-6 and 50% in months 7-12.

Commission charge back for death: 100% in months 1-12 and 50% months 13-24.

No renewal year commissions.

 

[rousemark]

What is the motivation for these brand name carriers to offer such a crappy product like this?

They know there are agents that will use them just because they are a brand name.

 

[Baseball7]

Makes very little sense to charge back EARNED comission. But did I see 80-85 y/o coverage? Looks like the 50 y/o rates fall between Gerber and GW. Sadly at 85 it is nearly better to bank the money cause in 2.7yrs you could have the same amount.

 

[digfesales105]

Its a GI product with no phone interview. I don't mind the 100% repay.

Its GI. ??? There is huge risk in it being GI so if it is solid business then the chargeback issue...isn't an issue. It's when agents write it to get the sale is when this becomes an issue. This is way better than Kemper. NGL is very quick to come after debt. Gerber isn't worth it.

This product will be good to write for about 2-3 years and they will start cutting back. We just grabbed it and I can't wait to offer it.