AARP unisex whole life

[WinoBlues]

There is a large percent of AARP certificates that say “ premiums can be changed on a class basis”

Other newer certificates say “premiums are guaranteed not to change” but when you read out loud the “policy changes” verbage to your prospect that’s the game changer.

So the policy face amount can change but not the monthly premium? Isn't that rate change? The rate per thousand?

 

[Life Hawk]

Right. I missed that. Thanks. I may save this case yet, although I've found it hard to do when somebody makes a decision like he did. It almost doesn't matter what you say. Often people are just more comfortable staying with the devil they know.

When bumping up against these types of contracts the two best methods I have found to sale around them lay in two areas:

1- cash build up... many folks think they have a policy that creates cash as well... make a quick phone call for Face and Cash... speaker phone... watch their eyes.

2- who does their family contact... lesser of the two... but if you create a friend out of the prospect... then just ask who their agent is... then ask who will the family need to contact... will they have to do all the paper work... do they have to use the postal system... as folks get older they like to know someone will take care of things... they don't know anyone from AARP.

The above is not full proof by any measure...

 

[shonceman]

Lookee what I just found on the mobile version of their website. Way down at the bottom of a long “fine print” section:

Pursuant to Texas Administrative Code 28 TAC § 21.107(d) this provides notification that the association’s directors are not elected by its members and the directors may approve rate increases

How about that!

 

[shonceman]

 

[Life Hawk]

When in smells to good to be true... keep sniffing.

 

[nfl72]

"They're contradicting themselves. Right under "Guaranteed Rates Will Never Increase", it says they CAN raise the rates....just not individually".

can somebody post a copy of the contract actually stating that?

ty in advance

 

[Newby]

Newby, I just took a call from a guy I wrote up but hasn't been issued yet. He wants to cancel. Says he's staying with AARP & NYL because they gave him a better deal. I went through the whole group certificate vs individual policy thing with him, and told him to call them and ask if the rates are guaranteed to never change. He said he would do that.

But then I remembered that the reason they have a "permanent" plan to offer is because of competitive pressure from agents like us. Globe Life in response to similar pressure raised their termination age to 90 when I was still telling people it was 80.

So, I thought I would check their website. On the page for Permanent Life Insurance, it does indeed say that it's a group plan. But under the heading "Features and Benefits" I found the following:

Features and Benefits

• Up to $50,000 in life insurance coverage
• Guaranteed rates that will never increase
• No medical exam - just health and other information
• No waiting period
• Permanent insurance you can keep your entire life
• Simple application; most who apply are accepted
• Higher coverage options also available. Call 1-800-865-7927

Point 2 seems to indicate something different from what I've been telling people. Am I wrong? Seems like they'd be in lawsuit territory for false advertising if they attempted to change rates now, given the verbiage above.

It’s Group. The old verbiage was “You can never be singled out for a rate increase.” Any agent should read that to mean (and be correct) that they can raise the rates on everyone as a group.

Being covered under a group plan is never as good as owning individual coverage in my opinion. And my opinion comes from years and years of people who were caught off guard when their group plan changed or ended simply because the policy holder on the group decided to change it. Never because of any financial issues.

For years Whirlpool was a huge employer in my town. Every employee had a $10,000 group life coverage. And they were all told it would never go away. These guys were Convinced that it was just as good as owning their own coverage.

A big part of my pitch has always been Take as much FREE group coverage as you can get. But never count on it. And never pay for it. You have no control over whether the group will stay together or change. Do not risk your family’s finances on group life insurance.

It worked for many. But failed a bunch too. The group coverage gave them a false sense of security.

So a few years later Whirlpoole pulls out of town and moves to Mexico. But they minimized the damage by keeping all the retirees on the old contract all covered the same as they had always been. Same retiree health coverage. Same $10,000 life benefit. They were upset but Whirlpoole calmed them down. ...for two years.

After two years they ended the health benefits and the retirees had to all go on Medicare which upset everybody but was better in reality. A year later they ended the $10,000 group life benefit. That caused some screaming and crying. A lot of them started talking about a class action lawsuit.

But what they found out was...it was group coverage. Group can always be changed or ended by the policy owner. That is the difference between group and individual coverage.

I’m no lawyer. I don’t know every detail of the nuts and bolts of group coverage. But I know enough to know that if the premium is anywhere close at all, I would never choose a group plan from any organization over an individual plan of my own.

 

[shonceman]

So, I went online and requested information on the permanent plan. They mailed me a brochure with the rates and an app. It looks like they've recently made some changes. Now there are separate male & female rates, and their rate guarantee is pretty plainly stated at the top of the page (...will never increase for any reason). The language I found earlier from the Texas Administrative Code is still on the website, but nowhere on this material. With these changes, I'm not so sure about the possibility of future rate increases.