Forethought Pulling Out of FE?

jacobtn · 10-21-2009, 05:13 PM

With their new TWENTY PERCENT rate increase on new business, and higher policy fee, I can't see them as a viable option in the future. What gives?

theinsuranceman · 10-21-2009, 07:11 PM

As I've posted here before....the FE companies with the CHEAP premiums are the most financially vulnerable.

WinoBlues · 10-21-2009, 10:50 PM

Oxford increasing theirs also and adding script check. I just see these increases as a raise.

Originally Posted by jacobtn

with their new TWENTY PERCENT rate increase on new business, and higher policy fee, I can't see them as a viable option in the future. What gives?

jdeasy · 10-21-2009, 11:00 PM

Originally Posted by theinsuranceman

As I've posted here before....the FE companies with the CHEAP premiums are the most financially vulnerable.

That's simply not true. RNA has better rates than almost anyone, yet, they are financially strong. Forethought had middle of the road rates. They were not that great before this rate increase. Your LH has had rate increases over the last 3 years, are they not financially strong?

Americo has very good rates. They seem to be very strong financially.

You can't put lipstick on the pig that is LH's super high premiums. That dog just won't hunt here.

Newby · 10-22-2009, 01:24 AM

Forethought hasn't been competitive for over a year in final expense.

I guess Lincoln Heritage is solid enough since they are 73% reinsured by Mutual of Omaha.

jacobtn · 10-22-2009, 02:11 AM

Originally Posted by WinoBlues

Oxford increasing theirs also and adding script check. I just see these increases as a raise.

it's not a raise when you are trying to replace other carriers business. it makes you uncompetitive, so it's a pay CUT.

RichMcK · 10-22-2009, 05:26 AM

"I guess Lincoln Heritage is solid enough since they are 73% reinsured by Mutual of Omaha." Scott is that their life business or medicare supplement line?

WinoBlues · 10-22-2009, 05:44 AM

Rates are going up on all the companies. So X is the lowest today, Y will be tomorrow And Q is always the highest. I just need to have all the companies and not be captive to any.
If I am replacing business that is cheaper, then I deserve a pay cut.

Originally Posted by jacobtn

it's not a raise when you are trying to replace other carriers business. it makes you uncompetitive, so it's a pay CUT.

TristanTLC · 10-22-2009, 05:56 AM

Originally Posted by jdeasy

Americo has very good rates. They seem to be very strong financially.

.

You lost me there. Have you seen their quarterly? Looking better than 1st, but still not great.

jacobtn · 10-22-2009, 07:02 AM

Originally Posted by WinoBlues

If I am replacing business that is cheaper, then I deserve a pay cut.

You CAN'T replace business that is cheaper, that's my point. If I can offer someone a cheaper rate on the same death benefit, with all things being equal, than I just made a sale. With Forethought that is no longer possible because they are uncompetitive.

Why would anyone sell, or buy at higher rate? Would you?

Newby · 10-22-2009, 04:44 PM

Originally Posted by RichMcK

"I guess Lincoln Heritage is solid enough since they are 73% reinsured by Mutual of Omaha." Scott is that their life business or medicare supplement line?

From what I understand, it's their life insurance business.

GreenSky · 10-22-2009, 05:42 PM

I've been selling LHL life's med supps for a couple of years. Probably one of the few that do this in CA.

I was told that MoO reinsures their med supps.

Rick

Newby · 10-22-2009, 06:14 PM

Originally Posted by GreenSky

I've been selling LHL life's med supps for a couple of years. Probably one of the few that do this in CA.

I was told that MoO reinsures their med supps.

Rick

It's a mix of Wilton, Hanover and Mutual of Omaha. I don't know what the percentages are.

I believe them to be solid. If they have good rates in your area, they are good. They are not competitive in our area.

WinoBlues · 10-22-2009, 10:39 PM

OK, let me rephrase. It is not a pay cut if you are not trying to replace inforce business. If you are writing new business, then you just find the most competitive product that has the benefits that fit the client. Same for add on business. If you are captive, Heave off the shackles. If we live and die by replacement, Well.... If Forethought is not competitive, BFD, it is see ya baby!

Oh and also. Makes a differance if you are a insurance salesman or an Insurance Agent. IMHO.

Originally Posted by jacobtn

You CAN'T replace business that is cheaper, that's my point. If I can offer someone a cheaper rate on the same death benefit, with all things being equal, than I just made a sale. With Forethought that is no longer possible because they are uncompetitive.

Why would anyone sell, or buy at higher rate? Would you?