Protective Life and Costco

[BNTRS]

I wouldn't go Costco hating too hard. They take some pretty extraordinary efforts to provide value to their members.

As far as selling insurance goes, some people are going to buy from them and some people are going to buy from you. There are plenty of reasons to buy from several of the licensed agents/brokers on this forum vs. Costco and if you can't quickly articulate that to your prospects, you have something to work on over the weekend.

 

[scagnt83]

It's a UL policy with a lower than normal premium for the first 5 years and then a higher than normal one for the next 15. I'm guessing that they're hoping people will only look at the initial premium.

Bingo!! There is the selling point for us agents.

"Do you want to pay more over the next 20 years or less over the next 20 years? My Protective product makes you pay less over that 20 years."

 

[WinoBlues]

It's a UL policy with a lower than normal premium for the first 5 years and then a higher than normal one for the next 15. I'm guessing that they're hoping people will only look at the initial premium.

I am going to order an illustration and sample policy. If it a significant bump in year six I sure like to get a list of those policy holders. Year six inventory.

CNA Valley Forge had a smoker policy that gave non smoker rates to people that said they would quit smoking. However, in year five they had to prove it. We rewrote a lot of that in years five and six.

 

[Cash]

It's a UL policy with a lower than normal premium for the first 5 years and then a higher than normal one for the next 15. I'm guessing that they're hoping people will only look at the initial premium.

Typical Costco. I am sure plenty of people a part of the Costcult will by it.

 

[fjman]

Maybe I can return my "defective" policy 3 years later and expect a refund... ?

 

[WinoBlues]

Maybe I can return my "defective" policy 3 years later and expect a refund... ?

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It's a UL policy with a lower than normal premium for the first 5 years and then a higher than normal one for the next 15. I'm guessing that they're hoping people will only look at the initial premium.

I got an email from a client this morning. I say client because I have insured his family for 20 years and have at least 8 policies that I can trace back to him not counting the two I paid claims on his first wife. Profile: Male and ages 60 and 58, he is retire Navy and soon to be retired county bus driver. She is retiring as a 30 year bookkeeper from a large church.

He has a ten year Protective app in underwriting on his wife. Wants to know about the Costco Protective. I have her at $56mo for 15 yrs with Protective. Costco only quotes 10 and 20 year on the site. So I ran a couple comparisons. No illustrations or sample policies. The ten year looks good but the 20 year looks even better when compared to my Protective 20 year. First five years $56. then $67 for the remaining 15 years. Mine would be $71. for 20 years.

Sure I can get her down to about $65. for 20 years with a different plan. But she loses the option of continuing the same premium at age 78 and going DT which they liked.

 

[briko3]

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I got an email from a client this morning. I say client because I have insured his family for 20 years and have at least 8 policies that I can trace back to him not counting the two I paid claims on his first wife. Profile: Male and ages 60 and 58, he is retire Navy and soon to be retired county bus driver. She is retiring as a 30 year bookkeeper from a large church.

He has a ten year Protective app in underwriting on his wife. Wants to know about the Costco Protective. I have her at $56mo for 15 yrs with Protective. Costco only quotes 10 and 20 year on the site. So I ran a couple comparisons. No illustrations or sample policies. The ten year looks good but the 20 year looks even better when compared to my Protective 20 year. First five years $56. then $67 for the remaining 15 years. Mine would be $71. for 20 years.

Sure I can get her down to about $65. for 20 years with a different plan. But she loses the option of continuing the same premium at age 78 and going DT which they liked.

I think what you'll find when you do the actual paperwork is that even though you put in Height/Weight, etc., it gave them a better rate than they would actually get. What are you running your protective rate at? If standard, you'll what I mean.

 

[WinoBlues]

I think what you'll find when you do the actual paperwork is that even though you put in Height/Weight, etc., it gave them a better rate than they would actually get. What are you running your protective rate at? If standard, you'll what I mean.

Standard since that is where she will fit based on build and Medical Hx.

Are you saying they will underwrite them differently? As in different manuals?

 

[briko3]

Standard since that is where she will fit based on build and Medical Hx.

Are you saying they will underwrite them differently? As in different manuals?

No, I think that they quote better than they will actually get. You're quoting standard and they're quoting preferred.

 

[WinoBlues]

No, I think that they quote better than they will actually get. You're quoting standard and they're quoting preferred.

I called them and asked for a Std illustration. I have not compared it to a Protective illustration I can run. _maybe_ after the guaranteed period there is a difference but the Guaranteed rate kick but Std v Std.

Now, how long will these rates be available? Who know.