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wow! so no more FE product? or is it still around?
It doesn't affect any of their simple issue products. Term and GUL only.
I concur with DHK. Cash is also right on the money (pun not intended). There are distribution (marketing and processing) costs regardless of whether the "marketing" is expended by way of sales commissions - divvied up within the sales pyramid of company marketing execs, marketing reps, MGAs, AGAs, and the base of the pyramid, the agent - or otherwise.
"Direct" sold term insurance (as well as perm), logically, requires an extra margin of safety relating to risk assumed by the insurer since the "field u/w" filtering is absent in the picture. Moreover, "direct" sold life insurance often is available with a lower max cap on face amounts. Hence the often higher pricing for "direct" sold life insurance.
From the most important perspective - the consumer's best interests - I tend to view the "direct" sold "underwritten" (ie other than real Guaranteed Issue) policies as indicating approval for payment of premiums upon contract issue. Whether coverage actually exists on such remains to be determined in the even of a claim.
Also, let's keep in mind that there is an extra margin of profit for the insurer in "direct" sold life insurance policies. As there is no agent involved who may remind beneficiaries or executors of the existence of the policy, a valid claim that would have been covered if made is potentially avoided.
The Companion life products gone. Some stuff still around FE etc
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OF Omaha ha ha - I guess it's "if" now!
I think you meant to post this in the "no load term life insurance thread".
Here is the official notice:
Companion of New York Announcement
which says:
Due to the New York regulatory environment for term products and products with secondary guarantees, Companion of New York will be temporarily suspending sales for our Term Life Answers (TLA) and our GUL, GUL Plus and GUL Survivor products in New York only. This decision was not made lightly. We will continue to monitor this position closely in efforts to bring these products back to New York in the future.
Now the question is what other companies will follow suit. If a trend develops, I will be issuing a press release warning New York consumers to "get'em while their hot, and before they are gone".
Can you explain this more, please? Companion Life is owned by Mutual of Omaha? And Mutual of Omaha pulled out of New York State?
Now the question is what other companies will follow suit. If a trend develops, I will be issuing a press release warning New York consumers to "get'em while their hot, and before they are gone".