Anyone Selling Penn Treaty - LTCi quickpass?
- Thread starter MSIS
- Start date
- 9,744
Why would anyone get a client involved with a company that has had such myriad financial problems and issues for well over ten years now?
- Thread starter
- #3
- 9,744
Great, sounds like a very safe and financially sound business plan.
- 924
Penn Treaty's marketing plan to allow people to apply with "5 easy questions" via telephone or in person and get an immediate binder good for 30 days was a good idea. I thought it would get people in the door for some solid comparisons, but so far there has not been any interest in the idea of simple and easy LTCI applications.
This is a complex area and people want guidance. I had someone come in the other day who wanted to know "in general terms" what LTCI would cost. I told him "About $2,000." I then asked about medical conditions. As he went through the list, I raised his price from $500 to $1,000 after each condition. I ended up at $4,500 which I knew 1) he could not afford, and 2) would be damn close to an illustration figure if he or I wanted to take the time to run an illustration. About all I did was confirm for him that he was not a candidate. From my end, I have had about equal numbers of people turned down (or rated more than I expected) as have been accepted as presented.
In my own view, if the big guys will not take someone, then maybe alternatives to LTCI should be explored. Sure, Penn Treaty will take someone turned down by Hancock, Allianz and Genworth. But will it be anywhere close to affordable?
This is a complex area and people want guidance. I had someone come in the other day who wanted to know "in general terms" what LTCI would cost. I told him "About $2,000." I then asked about medical conditions. As he went through the list, I raised his price from $500 to $1,000 after each condition. I ended up at $4,500 which I knew 1) he could not afford, and 2) would be damn close to an illustration figure if he or I wanted to take the time to run an illustration. About all I did was confirm for him that he was not a candidate. From my end, I have had about equal numbers of people turned down (or rated more than I expected) as have been accepted as presented.
In my own view, if the big guys will not take someone, then maybe alternatives to LTCI should be explored. Sure, Penn Treaty will take someone turned down by Hancock, Allianz and Genworth. But will it be anywhere close to affordable?
Mr supplemental
Expert
- 25
You really have to wonder why a company with their history of problems would want to specialize in writing "secure risk" clients.
- 1,926
Come on, really, do you think PT will keep the rates at what they go in at? Do you want a policy your clients can"t afford anywhere else, to end up having to drop it in the future due to rate increases? i would never put a client here, IMO.
- 924
Good point.
Crazy Rick
Expert
- 92
What's their alternative? I'll tell you what they are. 1) Living in the mold-ridden basement of their son or daughter's house. 2) No relatives want them or they don't have any? Fourth floor of some medical facility where they will enjoy their very own foot-locker and wet pajamas all day and sharing a wide open room like One Flew over the Coo-Coo's Nest. Yes, I'm right.
Yes, PT takes the hard-to-write clients and yeah, their rates are high and yeah, they'll probably raise them in the future, but what they offer is at least something better than the alternatives above and it's not the producer's fault they didn't plan on long term illnesses or injuries when they were younger.
It kills me when older (80 yrs old), prospects baulk at the premium. $4500 a year I got this one little old lady on four different medications and that was from MetLife. And she has nothing now! "I have to discuss it with my husband". Fine, but what's your concern? Baulking! "Wow" is what I heard on the other end of the phone. Wow? What do you mean? Miss? That's good for your age? Jeeeezzzzzz.
- 558
I like the Quick Pass for those I can't get in anywhere else, but it's a LOOOOONNNG process and I don't feel like I'm in control. They get interviewed by someone else to determine what plans they should offer. Aside from that, it's pretty painless. No check up front, they go through the process before knowing the full cost. Which is both good and bad. Sticker shock is common. But if you prepare your clients well ahead of time, it will be a slam dunk and all you have to do is collect your commission check.
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