Former LH Agent Needs Guidance

[Newby]

I actually went to a funeral yesterday and I know the owner of FH. He said they use homesteaders life. He alsosaid the commission was great. So lets say a 58 yr old guy Buys a $10k preneed policy paid up in 10 yrs and the premium is $100 a month for 10 yrs. About what does the agent make and what does the funeral home override? Does the agent make any renewals in yrs 2-10 and if so are they greater than a regular Fe policy?

It's all over the place Herbie. Some funeral homes want half the commission others want none. The ones I work with just want the funerals.

Much higher than FE commissions but no renewals.

Payment would be higher than $100 monthly but most pre-need payers I work with don't care how much the monthly payment is. They pay them off early on a same as cash conversion.

My most recent one the lady is paying $850 monthly for three years. She bought two $15,000 funerals. Didn't even tell her husband. He's on a need to know basis. She actually pranked me the next day and called and told me he hit the roof. When I went silent she said Just Kidding! I about had a heart attack.

 

[sirherbie]

So are you saying the commission could be as much as 200-220% of the first yr premiums the pay as there's no renewals? What if the client pays for 18 months and"lapses" it. Is there a chargeback over a certain period of time and if so what's the time frame?

 

[Newby]

So are you saying the commission could be as much as 200-220% of the first yr premiums the pay as there's no renewals? What if the client pays for 18 months and"lapses" it. Is there a chargeback over a certain period of time and if so what's the time frame?

Premiums don't matter. Just face amount and age.

If they quit paying in the first 12-months it's 100% chargeback. That's only happened twice in 20 years to me.

Death in the first six months is 100% chargeback. That happens more often but not a problem. You know which ones are likely to do that. Just pop the money in reserves and cross your fingers.

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Premiums don't matter. Just face amount and age. If they quit paying in the first 12-months it's 100% chargeback. That's only happened twice in 20 years to me. Death in the first six months is 100% chargeback. That happens more often but not a problem. You know which ones are likely to do that. Just pop the money in reserves and cross your fingers.

You need to move to KY. I've got a once in a lifetime spot available. Double six figures every year. AFTER chargebacks. No lead cost. But you'd need to wear a monkey suit.

 

[WinoBlues]

So you are telling me that LH is the only insurance company because of FCGS that will pay in 24 non contestble claims and no state certified death certificate needed? But on LH's website "file a claim" the certified death certificate is needed for claim approval!! Show the forum the link because it has to me made public?

You have several things wrong. First, in my County it is the Counties that issue DCs. Not all companies require DCs or even claim forms. I did one recently with, I think, NGL that did not. Some companies, not all, will pay within 24 hours with a simple proof of death from the funeral home. Had one, United Heritage, that paid +- $20,000.00 to the funeral home with the balance of the $250,000.00 to the beneficiary in about 24 hours. They overnighted a check to the funeral home and one to me the same day we faxed the notice of death in. Had it in my hand in less than 24 hours.

I think what JD meant was the assignment company will release funeral funds to the funeral home. Not the insurance company paying the claim in 24 hours. Not sure if that includes the balance to the beneficiary though.

I have personally handled hundreds of claims. Tiny and large.

If you left LH, cool. I am sure there are real reasons to leave any organization. But claims is not one with them as far as I know. On the other hand I do not write Oxford any longer and there awful slow claims process is one reason. So there is no way that all companies pay within 24 hrs of death, claim or receiving a DC.

 

[Iwillpay]

You have several things wrong. First, in my County it is the Counties that issue DCs. Not all companies require DCs or even claim forms. I did one recently with, I think, NGL that did not. Some companies, not all, will pay within 24 hours with a simple proof of death from the funeral home. Had one, United Heritage, that paid +- $20,000.00 to the funeral home with the balance of the $250,000.00 to the beneficiary in about 24 hours. They overnighted a check to the funeral home and one to me the same day we faxed the notice of death in. Had it in my hand in less than 24 hours.

I think what JD meant was the assignment company will release funeral funds to the funeral home. Not the insurance company paying the claim in 24 hours. Not sure if that includes the balance to the beneficiary though.

I have personally handled hundreds of claims. Tiny and large.

If you left LH, cool. I am sure there are real reasons to leave any organization. But claims is not one with them as far as I know. On the other hand I do not write Oxford any longer and there awful slow claims process is one reason. So there is no way that all companies pay within 24 hrs of death, claim or receiving a DC.

From what you are saying now it varies from company to company. In Florida though the Death Certificate is from the State. So I guess it depends on the State.

The part with the assignment appears to be the same acroos the States.

Once the policy is incontestable they will advance the funeral amount to the funeral home and then get paid from the insurance company.

That 250K claim was awesome. Paid in 24 hours !!!!!
Was it a term plan?
Did you get any business from the 250K ?

 

[WinoBlues]

From what you are saying now it varies from company to company. In Florida though the Death Certificate is from the State. So I guess it depends on the State.

The part with the assignment appears to be the same acroos the States.

Once the policy is incontestable they will advance the funeral amount to the funeral home and then get paid from the insurance company.

That 250K claim was awesome. Paid in 24 hours !!!!!
Was it a term plan?
Did you get any business from the 250K ?

I wrote the original policies on the husband and wife. They were Graded Premium Whole Life. I have written several other family members and of course the child rider conversions.

UH, is unusual in that. I think it has to do with having a PreNeed side as well. But many/most companies pay non contestable claims quickly. I had a suicide pay ($1 million) in a few weeks even with the delay in getting the DC. If a company is habitually slow on claims and service, I dump them.

 

[sirherbie]

Wino since you've handled 100's of claims list the cos that are the slowest in paying incontestable claims and who's the fastest ?

 

[WinoBlues]

Wino since you've handled 100's of claims list the cos that are the slowest in paying incontestable claims and who's the fastest ?

The slowest in the last year or two has to be Jackson National or Oxford. The fastest is United Heritage and I think the other was NGL. SNL, paid a contestable claim within a day or two of getting the last requirement and that included a doctor review. Worst contestable claim was Genworth, my uncle, close second was CNA/Valley Forge. Both of those were very small claims.

Honestly, while some are slower than others they all pay.

Some people say that companies try to find a reason to not pay. That has not been my experience.

 

[Iwillpay]

The slowest in the last year or two has to be Jackson National or Oxford. The fastest is United Heritage and I think the other was NGL. SNL, paid a contestable claim within a day or two of getting the last requirement and that included a doctor review. Worst contestable claim was Genworth, my uncle, close second was CNA/Valley Forge. Both of those were very small claims.

Honestly, while some are slower than others they all pay.

Some people say that companies try to find a reason to not pay. That has not been my experience.

The fast ones all have or had pre-need insurance.

 

[louiefrias]

I got lucky. My IMO's business direction was coupled with only 2-3 carriers. From the mortgage business I can tell you "more" is not better. It's too confusing. Learning the best ones upfront, then using them gets you further. You cannot be all things to everyone,