Life Insurance Chargebacks, Industry Standard?
- Thread starter todd02
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- 1,581
Wow that's some BS, but typical captives jerking around their agents. I know Allstate does not operate this way & they're the filthy rotten scum of the universe so I'm surprised to hear that. How does that make ANY sense? That's just an @$$hole move!!!!!
I've seen many Allstate agents pull some ridiculous games to get their life numbers as the captives hold your balls to the fire on life insurance & threaten your everything if you don't write enough. Maybe it's their way of combating bogus policies? I know Allstate agents can write business through their EFS and get paid 90% of the 1st year premium. To secure their bonus, they'd write monster policies on friends/family & use the commission to cover the 1st year cost & then cancel it the following year.
Under this concept I guess it could be the company pushing back against the agents? But that being said if the bonus is big enough & the agents have to come out of pocket 1 month more on the life premium it's not going to be enough to stop them....
....ohhhhh the games the captives play.....
You know...you never hear from many SF guys on here..I wonder why? They're captive so SF must be an equal lump of garbage company to their agents so what gives?
- 16,880
Pre-need funeral insurance always charges back 100% if lapse in the 1st year. Prorated in months 7-12 if death in the 1st year.
When it happens late in the first year it makes you sick. But fortunately it's pretty rare with PreNeed.
- 1,926
Prudential charges back 100% if lapsed in first 6 months, 50% 6 months to 12 months. Even if paid as earned.
- 128
I'm bumping this to see if any of you pro's can assist me:
I left NYL on 30 July. I was told my a trustworthy source in NYL that my ledger would be closed in 90 days and I could cancel my own WL at that time and avoid a charge back. I purchased it in May of this year. I am reading my contract with them, all 8,578 pages and can't seem to find the policy in it. It's got to be buried somewhere. I paid annually so it's all paid til May 2017.
Anyone know anything?
many thanks
I left NYL on 30 July. I was told my a trustworthy source in NYL that my ledger would be closed in 90 days and I could cancel my own WL at that time and avoid a charge back. I purchased it in May of this year. I am reading my contract with them, all 8,578 pages and can't seem to find the policy in it. It's got to be buried somewhere. I paid annually so it's all paid til May 2017.
Anyone know anything?
many thanks
- 4,132
Was it a good choice when you purchased it?
If not, why did you buy it?
I've had my NYL policies almost 30 years now. I left them 20 years ago. I didn't cancel mine because there was nothing wrong with them, I just didn't work for them anymore. Not working for them anymore is a poor reason to cancel something you wrote if you felt you made a good choice when you wrote it.
I would suggest keeping it and letting it work for you. I am very happy with mine and very glad I kept it.
If not, why did you buy it?
I've had my NYL policies almost 30 years now. I left them 20 years ago. I didn't cancel mine because there was nothing wrong with them, I just didn't work for them anymore. Not working for them anymore is a poor reason to cancel something you wrote if you felt you made a good choice when you wrote it.
I would suggest keeping it and letting it work for you. I am very happy with mine and very glad I kept it.
I agree, I would keep it (assuming you can afford it).
However, if you do decide to cancel it... since you paid annually and its only been in force for a few months, it could be a situation where they refund partial premium to the payor (unused for x mos) and then the agent gets hit with a chargeback accordingly. I don't know for sure, I would think it is outlined in the contract. ?? I'm sure you could call customer service and ask as a client what happens if you surrender right now. If you have a refund coming, I would expect a chargeback.
However, if you do decide to cancel it... since you paid annually and its only been in force for a few months, it could be a situation where they refund partial premium to the payor (unused for x mos) and then the agent gets hit with a chargeback accordingly. I don't know for sure, I would think it is outlined in the contract. ?? I'm sure you could call customer service and ask as a client what happens if you surrender right now. If you have a refund coming, I would expect a chargeback.
- 128
Thanks for your advice, fellas!
Here's the deal: As I was preparing to depart NYL, I stopped writing so much because I knew Id be leaving and didnt want to leave money on the table. But I wasn't 100% WHEN I'd be leaving as I was preparing to move to Atlanta. They pressured me to get 'something' on the books in order to meet my FYC requirement or else they'd boot me. So I converted to WL. Now that I'm gone, I see that there are other products that will be less expensive and that would be helpful. For the record, I own the fact that I converted of my own free will. They didn't pull the trigger at my head.
When living in the bubble as a captive agent, we newbs don't see the insurance world as it is, we see it as "we" are: constantly being told NYL is the bomb and don't even look elsewhere. I should've left 6 months earlier but live and learn.
I don't any cash value accumulated, obviously and with this product I won't have any for several years.
Thanks again, gentlemen.
Here's the deal: As I was preparing to depart NYL, I stopped writing so much because I knew Id be leaving and didnt want to leave money on the table. But I wasn't 100% WHEN I'd be leaving as I was preparing to move to Atlanta. They pressured me to get 'something' on the books in order to meet my FYC requirement or else they'd boot me. So I converted to WL. Now that I'm gone, I see that there are other products that will be less expensive and that would be helpful. For the record, I own the fact that I converted of my own free will. They didn't pull the trigger at my head.
When living in the bubble as a captive agent, we newbs don't see the insurance world as it is, we see it as "we" are: constantly being told NYL is the bomb and don't even look elsewhere. I should've left 6 months earlier but live and learn.
I don't any cash value accumulated, obviously and with this product I won't have any for several years.
Thanks again, gentlemen.
- 2,195
I am going to say that just because Farmers Does it it is no likely the industry standard.
