Lincoln Heritage Life Ins Co

[Newby]

Here's why I think LH's premiums are on the high side:

Their policies come with an accidental death rider that is superior to most other ADD plans. Here's what is included:

(1) Accidental Death.......................................$5000.

(2) Single dismemberment...............................$2,500.

(3) Death due to auto accident......................$10,000.00

(4) Deat due to common carrier accident..........$20,000.00

(5) Death due nact of war or terrorism.............$20,000.00

(6) Transportation of mortal remains.................$1,000.00 (If they die while out of town or out of state)

PLUS: Automatic enrollment in the Funeral Consumer Guardian Society

Probably biggest reason is the underwriting is so liberal and the MDB ages 0-85, not ages 45-80 as with most other Co.'s.

They have their Preferred Plan for healthy people which I've heard is very price competitive.

When I sell a FE policy I don't hold a gun to their head and make em buy. They make the choice and decision to purchase, not me. I just show them what I have available.

If you think that clients are being mis-treated because they are not being shown the cheapest premium on the market....well that's like one grocery store selling steaks $0.20 per pound more than another grocery store. Is the more expensive store mis-treating its customers? (Maybe they're just selling a slightly higher quality steak?)

And probably just as important, when you or the client dials the Home Office....a real human being answers the phone, usually within 3-4 rings.

PS Rick: I was going to pull for you winning the Ca. Insurance Commissioner position, but now I'm not so sure.

I agree that I like when posts stick to the facts of why you do or don't like something. Good post Greg!

Now to debate your facts since I obviously don't agree with them;

1. All the accidental and common carrier stuff is fine IF it's free or costs about .50 (fifty cents) but as we all know, accidental coverage is RARELY a benefit, rarely pays off and most people, given the choice shouldn't pay much if anything extra for it. If LH REALLY wanted to give families the best deal, they wouldn't force them to buy this. It should be optional NOT mandatory.

2. Automatic Enrollment in the FCGS- Again, would be OK IF it was optional and the family could opt out and save the huge premium LH is charging for it. I believe the FCGS to be a sham as far as REAL consumer guardian societies go (just my opinion). I belive it was invented for the sole purpose of helping LH sell their insurance at a higher cost to the consumer.
I believe that any agent selling FE should be more familiar than the average person with local funeral homes and funeral pricing and could assist his client families at NO extra cost if asked. I know I do. I recently assisted a client family to a complete funeral for less than $5,000 that was extremely tight on their budget but didn't want to be forced to cremate.

3. The rapid settlement upon death (after the policy is more than 24-months in force) IS an actual benefit. But again, I would prefer to choose if if I need it or not. FOrcing EVERYONE to pay for that when they may not need it is a waste of money and the extra premiums could mean extra THOUSANDS of dollars in the pocket of the beneficiary if the agent would have given him choices.
As all good FE agents SHOULD know, that benefit is available to ALL policies through companies called Funeral Funding Exchanges (2 of which are owned by Lincoln Heritage and ForeThought.) The exchanges charge a fee (usually 3%) and advance the money immeadietely for any policy over 24 months old.Some people don't need this as some funeral homes will still give 30-days for free (getting to be fewer and fewer of those.) Also, not everyone will use the policy to pay for a funeral anyway so many wouldn't mind waiting a couple of weeks for their money if they recieved a couple of thousand extra.

4. The liberal health questions are good but ONLY for UNHEALTHY applicants. It penalizes healthy ones with the higher premiums required to pay for it.

5. Their preferred plan is not a good option. If they are healthy enough for the additional health questions and underwriting they could qualify for MUCH lower premiums with other companies such as RNA, Oxford and others. Plus it lowers the agent's commission drastically which is why it's not even offered b many LH agents (apparently Greg is in that group.)

6. Humans who speak English answering the phone- good. Other companies have this too but they are getting fewer and fewer. I'll give you a point for that one but we also have to give that credit to Settlers, Oxford and a few others.

7. Modified Death Benefit -Ages 0-85- Good if an agent needs it. I've ALWAYS found options for people of all ages so I never needed it. I know some agents use LH for these cases ONLY and I believe those agents are doing the right thing. Substandard health clients DO have to pay higher premiums. My argument is that you should NOT punish your healthy clients with them.

I have replaced LH policies where a lady had $7,000 and got $11,000 for the same premium. Recently I had a man who bought $20,000 LH and I replaced it with $30,000 for $3 per month more.

 

[theinsuranceman]

This is all some excellent information; and I don't disagree with any of it.

My main beef is with the how-can-you-sleep-at-night melodrama and subsequent butthurt all this nonsense causes. I won't discourage anyone from selling LH. We should be so lucky that every prospect we sit in front of has an LH policy already.

Well, actually I do have TWO problems with Lincoln Heritage policies: 1.) that there aren't more of them for me to replace in my sales territory; and 2.) apparently LH doesn't teach its career agents to ask for and run referrals very effectively.

When replacing a policy, I always ask, "who else of your friends and family did the Lincoln Heritage agent go see?" But the LH man never seems to have asked for referrals. Bummer. I would love to be able to find a LH agent's referral chain, and gobble those up like Pac-Man chasing ghosts.

I suppose the LH's qualified lead program must be friggin' awesome since they're apparently too swamped to trifle with referrals.

What you speak of is training from some mgr, not LH itself.

 

[MisterRandyWatson]

What you speak of is training from some mgr, not LH itself.

This is excellent news.

So if you would, please forward to me the names of some LH agents and managers in the greater DFW area who run an effective referral-based business. Or better yet, if you could forward me the names, addresses, and phone numbers of just a few of their clients, I'd appreciate it.

Or, if you'd like me to test your working hypothesis that premium costs don't affect your persistency, I'd be happy to present a Settlers, Foresters, Oxford, Americo or Assurity policy to your clients...you know, strictly for science.

Thanks in advance, and I'll be waiting eagerly by my inbox.

 

[theinsuranceman]

This is excellent news.

So if you would, please forward to me the names of some LH agents and managers in the greater DFW area who run an effective referral-based business. Or better yet, if you could forward me the names, addresses, and phone numbers of just a few of their clients, I'd appreciate it.

Or, if you'd like me to test your working hypothesis that premium costs don't affect your persistency, I'd be happy to present a Settlers, Foresters, Oxford, Americo or Assurity policy to your clients...you know, strictly for science.

Thanks in advance, and I'll be waiting eagerly by my inbox.

You don't appear to need any help from me. How much full-time experience selling FE do you have? Do you write much biz.?

As far as trying to replace some of my clients, I don't think you could afford the round trip airline ticket, nor room and lodging, that you would incur.

Right now you are a 9 post midget on this forum.

 

[WinoBlues]

You don't appear to need any help from me. How much full-time experience selling FE do you have? Do you write much biz.?

As far as trying to replace some of my clients, I don't think you could afford the round trip airline ticket, nor room and lodging, that you would incur.

Right now you are a 9 post midget on this forum.

ouch! ...

 

[Newby]

This post has gotten off track again.

Basically, some agents like Lincoln Heritage either for the lead program or extra features or something else.

Other agents find them too expensive and easy to replace.

We all sell what we like and believe in.

 

[myinsurebiz]

Right now you are a 9 post midget on this forum.

typical response . . .

 

[MisterRandyWatson]

You don't appear to need any help from me. How much full-time experience selling FE do you have? Do you write much biz.?

As far as trying to replace some of my clients, I don't think you could afford the round trip airline ticket, nor room and lodging, that you would incur.

Right now you are a 9 post midget on this forum.

Why all the butthurt, Gregory? I know sarcasm is oftentimes difficult to detect in written form, but like the drill sergeant on "Stipes" said--lighten up, Francis. But seriously, calm the eff down and dial in your joke detector. I'm not looking to replace your clients, big'un.

Also, I wasn't aware that insurance selling experience and sales success correlate with how many posts someone has on the internet.

Perhaps my sales will improve once I hit the 100 post mark, and they'll likely double when I hit 200 posts. And when that elusive 1000 post plateau is reached (which you're right on the cusp of, chief) look out!

Is that how it works?

 

[GreenSky]

Perhaps my sales will improve once I hit the 100 post mark, and they'll likely double when I hit 200 posts. And when that elusive 1000 post plateau is reached (which you're right on the cusp of, chief) look out!

Is that how it works?

No, you need to get over 6,000 to call yourself and insurance agent.

Or at least you can say you have way too much free time.

Rick

 

[theinsuranceman]

Why all the butthurt, Gregory? I know sarcasm is oftentimes difficult to detect in written form, but like the drill sergeant on "Stipes" said--lighten up, Francis. But seriously, calm the eff down and dial in your joke detector. I'm not looking to replace your clients, big'un.

Also, I wasn't aware that insurance selling experience and sales success correlate with how many posts someone has on the internet.

Perhaps my sales will improve once I hit the 100 post mark, and they'll likely double when I hit 200 posts. And when that elusive 1000 post plateau is reached (which you're right on the cusp of, chief) look out!

Is that how it works?

No hard feelings. I thought that you were inexperienced selling FE by the logic of your post.