AIG "AGLA" Universal Life? Any good?

Discussion in 'Life Insurance Forum' started by natu100, Aug 6, 2008.

  1. vanzky46
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    vanzky46 New Member

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    First of all I wanna say SORRY, maybe AGLA is not the first company to offer Chronic, Critical and Terminal Illness ABRs. If they're not please tell me who. I appreciate.

    Yup Im only 3, 4, 5 days with AGLA. I just may ask, what company are you representing now. Do you sell product that has better benefits than AGLA offering especially the LIVING BENEFITS we are offering? Please tell me your product.

    I dont know how you really monitor the MARKETPLACE, and I think you should really do. Maybe your product is the most INFLUENTIAL in the marketplace since maybe they do alot of advertisement.

    And last thing, I feel sorry you've got FED UP with the 20-page application and the saliva kit for non med apps.
    - - - - - - - - - - - - - - - - - -

    Tell me what is really good about your product. EDUCATE me so I can learn MMORE and I will know BETTER. Please.
     
    Last edited: Mar 8, 2013
  2. rousemark
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    rousemark Well-Known Member

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    Several companies offer a no cost ABR.. Others offer them for an additional premium much like the newest ABR rider that AGLA came out with. The problem with the no cost is the insured can never be assured how much money they might receive if a covered event happens. They are at the are at the mercy of the actuarial dept. For example, blindness is a covered event but in the event your client suffers a loss of eyesight, they are only going to be offered a few dollars on the thousand because it doesn't really affect mortality all that much. Where if the client has an ABR rider that charges a premium, the ride will pay a set amount in the event of a loss.

    I was with National Life and Accident long before they became a part of the basis for AGLA. They were a good company and at the time the 12th largest life company in the US but they were not all that innovative and neither has AGLA been. Mallon brought the ABR idea with him from LSW.

    The problem with AGLA in the last several years is they want to be an ordinary company but they play the game as if they are still primarily home service. How they do now that they are being rolled into AIG Life and Retirement along with Sun and American General remains to be seen.

    I do have a couple of companies that have ABRs and even write an AGLA plan occasionally (Special Rep).. But, as an old guy who is seeking to simplify things, I focus more on FE and non medical coverages.. I also write a few cancer policies.. Seldom write an AGLA cancer because while the pay the SR a decent first year commission, they don't pay hardly any renewals

    As I said, AGLAs product is a good product but some of the hype is just that .. hype. I have been both an agent and a manager with AGLA (NL&A) but never did care a lot for kool-aid.. I do thank them for the two retirement checks they send me every month. :)
     
    Last edited: Mar 8, 2013
  3. mcleanbr
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    mcleanbr Well-Known Member

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    Living Benefits off the top of my head.

    Transamerica, Western Reserve Life: Critical Illness, Chronic Illness, Terminal Illness. Similar if not same benefits

    Life of the Southwest: Critical Illness, Chronic Illness, Terminal Illness

    North American: Chronic Illness, Terminall Illness.

    Assurity: Critical Illness, Terminal Illness

    All may have disability option as well.

    Lots of others with Chronic Illness only.

    Others coming out with Critcal Illness. and there may be more that I am missing.
     
  4. GAJ638
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    GAJ638 Well-Known Member

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    I wrote the AGLA product with the ABR"s several years ago. I had a stroke claim on a policy 3 years ago. It took them 6 months to approve the claim. It was a $50000 policy and the client ended up finally receiving abour $5500. After that the policy was reduced to a $25000 face amount. You do the math.
    Last year I had another client with prostate cancer. After a year of filing claims, AGLA losing claims, the client having to go to the doctor and pay to get the reports that the Claims dept said the doctor would not send(the reason the doctor did not send the report because the Claims dept would not pay for it.) After 12 months of back and forth, 2 weeks ago the client was told that there would no benefit paid for the cancer. The reason? He was not sick enough.

    I will not recommend them to anyone. Just my opinion.
     
  5. rousemark
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    rousemark Well-Known Member

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    That is what a lot of people (including many AGLA agents) don't understand about the no cost ABRs. They only pay in relationship as to how the condition affects mortality. If it is a slow growing cancer like prostate cancer, they are going to pay little if anything because it does not have a drastic effect on mortality.

    AGLA does have the defined benefit Select Choice rider for which they charge and additional premium. The problem is they limit it to a maximum of 15% of the face amount so on a 100K policy the largest benefit you can guarantee in the case of a covered event is 15K.
     
  6. vanzky46
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    vanzky46 New Member

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  7. rousemark
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    rousemark Well-Known Member

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    I certainly apologize if I came across as being upset with you. I didn't mean to as I have no reason to be.

    I am not upset with AGLA.. I will probably write a QOL plan next week on my son-in-law. The thing that turns me off is some of the hype I see being put out that just isn't true.. "We were first with ABRs, We are the only company with ABRs, etc." I was there when the QOL was introduced and some managers were putting out that info to their agents at that time even though it was not true.

    Also they put out a couple of sales aids, one was a young man that developed cancer shortly after the policy was issued and when he accelerated 50K, he received 45K in cash.. Nothing wrong with that.. It really happened. However, the problem is many agents represent to the clients (and many agents really believe it) that is the benefit that would normally be paid for cancer.. The truth is you have no way not having the slightest idea what it will pay until the claim is filed.. Depending on the type and severity of cancer the benefit may be as little as 3K for a 50K acceleration. Of course, in that case the client would not have to take it but my point is the free ABRs cannot be counted upon to deliver when needed. It is a nice benefit and it is without cost unless you use it but don't count on it protecting you mortgage if you get a serious illness.

    On the other hand the ABRs for which there are a premium charge can be counted on. They will pay a set benefit, usually 50% -100% of the face amount immediately upon the occurrence of a covered event. AGLA has one of these riders but they limit it to 15% of the face amount.

    As far as other issues with AGLA, the requirement of a oral fluid and a 20 page app for a 25K or 50K app is ridiculous.. I have other companies that I can write 300K on a one page app.

    AGLA has also been putting the squeeze on agent compensation. They have constantly increased the amount it takes to saty "in the box" for the monthly bonus.. far faster than inflation .. They ahve also really made it to where it is not profitable for the agents to write the health insurance. None of this really bothers me as they having messed with Special Reps comp.

    As far as a "better deal", that is subjective.. AGLA is probably as good as any that has free ABRs.. Their UL is fairly competitive and the ABRs give you an additional talking point as long as you don't lead the client in to thinking the free ABRs could perform teh same function as critical illness coverages.
     
    Last edited: Mar 14, 2013
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