4 Recent Claims, Will I Get Canceled?

[1manshow]

Also go shop your life insurance rates with a real life insurance company. Don't buy life insurance from a company that sells car insurance.

What I mean is in general that P&C companies are not usually very competitive on life insurance

So..which is it ? You're actually comfortable saying things like this to a consumer?

If you think either one of these statements gives you "credibility" in the clients eyes.....that might explain why some folks trust their P&C guy with their life business

 

[RenegadeAgent]

To answer the initial question: The very fact that your renewal paperwork is sitting there in front of you, means that you have not been "non renewed". They will not cancel you mid-term for number of claims. That does not mean that they won't in the future. Give your agent a call and see what the number of claims is, and in what time period that would prompt the company to non-renew your policy.

As others have mentioned above, these are all claims that you are free to file under your policy, but also know that filing this many claims does carry consequences.

 

[djs]

What I mean is in general that P&C companies are not usually very competitive on life insurance. The agents as a general rule OFFER life insurance but often don't know much about it.

There can be exceptions though.

Most P&C agents aren't into selling life. To much work for very little money, given they tend to sell term or low face permanent policies.

Turns out, they are frequently very competitive in the term market. Maybe not if you just look at the monthly premium, but many captive companies sneak in a discount on the home/auto policies for having a life policy. This discount frequently will cover a large part of the cost of the term policy, making it a net much less than what a life agent can sell them.

Dan

 

[joshb]

What I mean is in general that P&C companies are not usually very competitive on life insurance. The agents as a general rule OFFER life insurance but often don't know much about it.

There can be exceptions though.

I gotcha. Thats not necessarily the company being the issue more the agent, but I see what you are getting at. Now P and C companies like Dan said do offer competitive rates when you factor in the multiline discount. State Farm and Autoowners both add in good discounts and that discount can sometimes even cover the cost of the life policy, basically giving them the life policy for free.

 

[bobson]

In my state the worst thing they can do is tell you they are raising your comp deductible or not writing comp insurance for you at all.
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I usually agree with Newby but not in this case. There is nothing wrong with the claims you turned in. This should not affect you rates or renewal.

However, Newby is correct in that P&C agents are not usually the most knowledgeable about life insurance and often as captive agents do not have access to the best product.

Can I get a definition of "best product" please? Can you use it in the form of a sentence?

 

[djs]

Oh, I can do that...

The 'best product' is the one I sell and the one I tell you that you need.

Given that I'm primarily a P&C agent, dabble in life when the situation calls for it, I took a bit of an issue with using a thread about a claims question to push an opinion about life insurance. Then I figured this thread really isn't the place to worry about it to much.

Truth is, if you are talking about a policy under a $1M (term) or under $250K perm, and its on yourself (not second to die or other types of worthwhile but not standard policies), its really hard to beat the package deals some P&C agents can pull together.

I simply tell my clients that I am their insurance agent, if they need insurance, I'm in the business to take care of them. If I don't write what they need at a reasonable premium, I refer them somewhere that does. I'll shop it for them, give them the options, let them choose. That is part of my value add.

Dan

 

[VolAgent]

Oh, I can do that...

The 'best product' is the one I sell and the one I tell you that you need.

Given that I'm primarily a P&C agent, dabble in life when the situation calls for it, I took a bit of an issue with using a thread about a claims question to push an opinion about life insurance. Then I figured this thread really isn't the place to worry about it to much.

Truth is, if you are talking about a policy under a $1M (term) or under $250K perm, and its on yourself (not second to die or other types of worthwhile but not standard policies), its really hard to beat the package deals some P&C agents can pull together.

I simply tell my clients that I am their insurance agent, if they need insurance, I'm in the business to take care of them. If I don't write what they need at a reasonable premium, I refer them somewhere that does. I'll shop it for them, give them the options, let them choose. That is part of my value add.

Dan

Here is the problem, if you change home and auto companies, suddenly that life policy isn't so cheap anymore. If you're not insurable anymore, or even just rated, you are stuck.

That is why P&C companies do it, to tie the client to them and make it harder to leave due to rate increases, poor service, bad claim experience, etc. The discount isn't for the benefit of the policyholder.

 

[joshb]

Here is the problem, if you change home and auto companies, suddenly that life policy isn't so cheap anymore. If you're not insurable anymore, or even just rated, you are stuck.

That is why P&C companies do it, to tie the client to them and make it harder to leave due to rate increases, poor service, bad claim experience, etc. The discount isn't for the benefit of the policyholder.

Just because a P and C company writes life insurance, does not mean the life rate is not competitive. I have a life policy with Nationwide, and it is very competitive At the time I bought it 4 years ago, it was one of the best rates available for me. Now that I have home and auto with Nationwide it makes it that much better (with the discounts my life is almost free). Combined billing is easier as well. I see no negatives at all having life with my P and C company.

 

[djs]

VolAgent - I think you are starting from a mistaken premise. Most P&C carriers life products are reasonbly priced at a lower death benefit. If you get over $1M in term, you might have a case, below that, probably not so much (does vary, but $1M is a reasonable point).

As a P&C agent, I haven't seen it tie clients down near as much as you are implying. Yes, it is a bit more emotional to change, but clients still do.

I can't tell you how many state farm clients I have written even though they had a small life policy with State Farm. I just got them a better deal.

Dan

 

[Newby]

Wow! I just saw that I ruffled a few P&C feathers on here. Sorry guys. I did say there are some exceptions.
But if you think a high percent of P&C agents know much about life insurance or that ANY captive company is consistently the best deal...I respectfully disagree.