Americo's NEW Nonsmoker Rates For Smokers

[Newby]

We've discussed this before. What does Chronic mean? But you could still throw that one out if you want.

Chronic means that it’s a permanent condition. It’s always there. It can be treated and lived with but it doesn’t go away. Think of the difference in seasonal asthma and chronic asthma.

A chronic kidney condition would be one that will need meds for ongoing treatment. Not a treatment or surgery to cure it.

 

[Newby]

For the client? Probably not.

I think what we will find is that this product will be IMO dependent, I.e. there will likely be an IMO or two who will hype this product to their agents, and that is where the vast amount of rigged field sales business will come from - one or two IMOs pushing the Eagle product

If you have access to FEX quotes, you will quickly be able to “do the math” showing you that most clients can get a much larger death benefit at today’s age smoker rate with another carrier than they will have with Americo 3 years down the road. In most cases, you will be able to give the client true whole life - the premium never increases and the death benefit never decreases for just $10 or less per month more.

And if they qualify for Lifeshield, then the smoker rate at current age is likely less than Americo’s non-smoker rate, e.g. 60 year old male smoker 10k benefit $47.16 with Lifeshield, where Americo’s non-smoker rate for same age & benefit is $49.67 ... but Lifeshield is $10k til the day the client dies, whereas with Americo, the death benefit will be only $5550 if the client cannot or does not prove smoking cessation by the end of year 3

Which product would you rather sell to your father?

I agree with what you say that Americo is one of the companies that is more IMO driven not agent driven. All things being equal agents don’t choose to write higher priced companies just because of higher initial resistance and then the ongoing struggle to keep it on the books as the customers keep getting much lower rate offers from everywhere else.

Time will tell if this turns out to be a stroke of genius by Americo to have the rate be very competitive for the first three years and then convert to the really high rate until they are three years in.

But your statement that on true whole life the premium never increases is not accurate. Whole life policies have been around forever that have structured laddering of the premiums. Whole life just has to have guaranteed premiums. No surprises. But there can be guaranteed rate increases if they are designed that way from the beginning.

Prudential sold a popular laddered premium policy for many years that was Whole-Life. The idea was that they could have lower premiums while they were young and delay the higher premiums until they were older and likely had a higher income. Stonebridge Life sells/sold a Whole-Life GI plan by mail that starts out with a very low premium but goes to a very high premium at the 37th month.

These still fit the definition of whole-life because there are no surprises. Everything is guaranteed to work exactly as the policy states. And they are guaranteed to endow at age 121 (100 on the old ones). The invention of flexible premium UL without the endowment guarantee is why those old style WL policies went away.

Modern day FE agents are just used to LEVEL PREMIUM whole-life which has become the norm in our world. But we need to all be aware that other kinds exist because you can run into anything out there. I’ve run into the Stonebridge version that has just been sold in the past few years. The first time I ran into one of those Stonebridge policies I was confused until I caught it about the 3rd time I read the policy. They don’t make it jump out at you.

 

[Life Hawk]

...the devil is always in the paper work...

INSURANCE is: White paper, Black ink, and Green money

But in the course of sales... simplification and knows are a salesman's greatest friend...

I understand companies feeling the need to modify product to help gain market share... but as an agent I want it simple straight forward because clients prefer that...

...as to IMO driven companies ...if they don't treat their agents right ...they won't treat their clients right

My first client is my family... my second client is not the company

 

[rousemark]

I agree with what you say that Americo is one of the companies that is more IMO driven not agent driven. All things being equal agents don’t choose to write higher priced companies just because of higher initial resistance and then the ongoing struggle to keep it on the books as the customers keep getting much lower rate offers from everywhere else.

Time will tell if this turns out to be a stroke of genius by Americo to have the rate be very competitive for the first three years and then convert to the really high rate until they are three years in.

But your statement that on true whole life the premium never increases is not accurate. Whole life policies have been around forever that have structured laddering of the premiums. Whole life just has to have guaranteed premiums. No surprises. But there can be guaranteed rate increases if they are designed that way from the beginning.

Prudential sold a popular laddered premium policy for many years that was Whole-Life. The idea was that they could have lower premiums while they were young and delay the higher premiums until they were older and likely had a higher income. Stonebridge Life sells/sold a Whole-Life GI plan by mail that starts out with a very low premium but goes to a very high premium at the 37th month.

These still fit the definition of whole-life because there are no surprises. Everything is guaranteed to work exactly as the policy states. And they are guaranteed to endow at age 121 (100 on the old ones). The invention of flexible premium UL without the endowment guarantee is why those old style WL policies went away.

Modern day FE agents are just used to LEVEL PREMIUM whole-life which has become the norm in our world. But we need to all be aware that other kinds exist because you can run into anything out there. I’ve run into the Stonebridge version that has just been sold in the past few years. The first time I ran into one of those Stonebridge policies I was confused until I caught it about the 3rd time I read the policy. They don’t make it jump out at you.

Will be a dream come true for some agents...First, they will be able to replace the smoker business that they and other agents have written in the last couple years for a new first year commission.. Then 2 years down the road, (you don't have to with three) they can replace the Americo they wrote for yet another first year commission by showing the client how much their premium is going up within the next year. Replacement artist's dream come true... And, just think there are no lead cost for the majority of those apps.

 

[Newby]

Will be a dream come true for some agents...First, they will be able to replace the smoker business that they and other agents have written in the last couple years for a new first year commission.. Then 2 years down the road, (you don't have to with three) they can replace the Americo they wrote for yet another first year commission by showing the client how much their premium is going up within the next year. Replacement artist's dream come true... And, just think there are no lead cost for the majority of those apps.

That’s the part that you have to wonder if they have thought all the way through.

 

[HoosierLife]

That’s the part that you have to wonder if they have thought all the way through.

Lol. They haven't.

 

[DayTimer]

But your statement that on true whole life the premium never increases is not accurate. Whole life policies have been around forever that have structured laddering of the premiums. Whole life just has to have guaranteed premiums. No surprises. But there can be guaranteed rate increases if they are designed that way from the beginning ... Moderrn day FE agents are just used to LEVEL PREMIUM whole-life which has become the norm in our world. But we need to all be aware that other kinds exist because you can run into anything out there. I’ve run into the Stonebridge version that has just been sold in the past few years. The first time I ran into one of those Stonebridge policies I was confused until I caught it about the 3rd time I read the policy. They don’t make it jump out at you.

Good stuff, Newby. I may be 50 but I'm still a newbie at this, so I appreciate when someone with experience such as yourself shares that experience without trying to bolster his ego by trying to make me look dumb.

I'm still learning and I appreciate all the help I've gotten from good folks on this forum.

 

[HoosierLife]

Well someone is trying to use Americo to their advantage. Did you see the sticky? 133% commission and $12 facebook leads. Good marketing honestly. That's Eagle comp plus the 8% bonus.

 

[myinsurebiz]

Why are you trying to sell products when you aren't licensed

My #1 Fan . . .

 

[Life Hawk]

My #1 Fan . . .

View attachment 4482

Hi Matt welcome to the forum... most of the guys on here are as about as straight as an arrow... not sure you'll fit in.

That includes me as well...