Agent Churning, or Stupid Client...what Would You Do?

[jdeasy]

The owner is still the owner. The policy benefit has been signed over, not ownership. Every single time I still delivered the policy to the owner.

These people never got their policies and have every right to free look them.

No, if they are "irrecvocably assigned to a funeral trust" then the trust is the owner. Or whoever it's irrecovably assigne to is the owner. The owner gets the annual statements. The owner is only one that that do anything with the policy at that point.

If it's assigned from day 1 then they very well have sent the policy to the owner.

 

[Meghan28]

I recently visited a customer who has told me something i have heard before about Lincoln customers and did not believe. She told me she has had her policy for well over a year but recently the premium went up. That did not make sense. So she got her statement out and sure enough it did go up. I saved her about $35 per month and with level coverage. I just wonder how they can do this to customers. She was so mad. Keep up the good work Lincoln. And...thank you!

 

[VolAgent]

No, if they are "irrecvocably assigned to a funeral trust" then the trust is the owner. Or whoever it's irrecovably assigne to is the owner. The owner gets the annual statements. The owner is only one that that do anything with the policy at that point.

If it's assigned from day 1 then they very well have sent the policy to the owner.

So I went and looked a couple I had done. The assignment and dec page are confusing. The assignment says you are assigning ownership, while the dec page lists lists the owner as the owner of the policy and not the trust.

Perhaps more pertinent, if you are making the assignment for immediate Medicaid eligibility you have to sign again below a notice stating that you give up all rights to cancel the policy and receive a refund of premiums under the Right to Cancel provision. So, it appears Newby is correct. If you irrevocably assign a policy to a funeral trust, that money is gone, even if you could otherwise free look it.

 

[jdeasy]

I recently visited a customer who has told me something i have heard before about Lincoln customers and did not believe. She told me she has had her policy for well over a year but recently the premium went up. That did not make sense. So she got her statement out and sure enough it did go up. I saved her about $35 per month and with level coverage. I just wonder how they can do this to customers. She was so mad. Keep up the good work Lincoln. And...thank you!

There's something not right about that.She might have added that stuff they call and try to add to policies. It's a discount card that they charge around $10/mo for. Other things they call to add on. Her whole life rates did not go up unless she added coverage. They are bad but not that bad.

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So I went and looked a couple I had done. The assignment and dec page are confusing. The assignment says you are assigning ownership, while the dec page lists lists the owner as the owner of the policy and not the trust.

Perhaps more pertinent, if you are making the assignment for immediate Medicaid eligibility you have to sign again below a notice stating that you give up all rights to cancel the policy and receive a refund of premiums under the Right to Cancel provision. So, it appears Newby is correct. If you irrevocably assign a policy to a funeral trust, that money is gone, even if you could otherwise free look it.

I can't imagine the free look is waived on assignment. But it may mean that the policy was sent to the owner and thus the free look period is over?

 

[VolAgent]

There's something not right about that.She might have added that stuff they call and try to add to policies. It's a discount card that they charge around $10/mo for. Other things they call to add on. Her whole life rates did not go up unless she added coverage. They are bad but not that bad.

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I can't imagine the free look is waived on assignment. But it may mean that the policy was sent to the owner and thus the free look period is over?

Nope, that was on the app, a policy was then generated and sent to me for delivery to the owner listed on the application.

Without researching further, I assume it means one of two things. Sorry, no free look period. Or two, you can free look, but you aren't getting the money back. It will stay in the funeral trust for the insured's benefit. I would assume the later.

This was a form that had been filed with the state. So I have to believe it does impact the free look period.

 

[jdeasy]

Nope, that was on the app, a policy was then generated and sent to me for delivery to the owner listed on the application.

Without researching further, I assume it means one of two things. Sorry, no free look period. Or two, you can free look, but you aren't getting the money back. It will stay in the funeral trust for the insured's benefit. I would assume the later.

This was a form that had been filed with the state. So I have to believe it does impact the free look period.

Newby is on the road and that's why he hasn't chimed in. Be interesting to see what he says about it.

 

[Newby]

Normally there is a free look on pre-needs. But they have the option to sign that away for a first day exemption for Medicaid. They shouldn't be told to do that unless they are already on Medicaid or applying for Medicaid within the next 30-days.

The policies are always delivered to the applicant, not the funeral home or the trust. The free look should start on the day they receive the policy unless they signed it away.

 

[rousemark]

Nope, that was on the app, a policy was then generated and sent to me for delivery to the owner listed on the application.

Without researching further, I assume it means one of two things. Sorry, no free look period. Or two, you can free look, but you aren't getting the money back. It will stay in the funeral trust for the insured's benefit. I would assume the later.

This was a form that had been filed with the state. So I have to believe it does impact the free look period.

This might well be a technicality but the assignment is considered as having taken place post issue. That is the reason the policy may list the insured as the owner on the dec page.. then the assignment overrides that ownership. A policy is subject to being returned during the free look and being rescinded by the company as if the policy never existed. If the policy never existed, the trust assignment could not have taken place.

 

[HoosierLife]

This might well be a technicality but the assignment is considered as having taken place post issue. That is the reason the policy may list the insured as the owner on the dec page.. then the assignment overrides that ownership. A policy is subject to being returned during the free look and being rescinded by the company as if the policy never existed. If the policy never existed, the trust assignment could not have taken place.

Learn something new everyday!

 

[rousemark]

Learn something new everyday!

Don't take that to the bank, but that is my understanding of it.. I am never wrong but I am sometimes mistaken.