- 3,165
Funny guy.... It's ok to be jealous!
TDF
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Are the Big Companies Our FE Competition?
- Thread starter LonghornMark
- Start date
Funny guy.... It's ok to be jealous!
TDF
Sent via my Sprint Phone using Insurance Forums App
- Thread starter
- #22
LonghornMark
Expert
- 47
Wow Newby, I didn't know that. What would be the normal turnaround time from death claim to payment in hand from like an RNA or Monumental or any other FE company?
- 2,960
You nailed it bro!!!!!!
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- 17,077
Monumental is inconsistent. I've had them settle claims within a week but also had them drag their feet on non-contestibles.
I've never been involved with RNA on a death claim that I can remember.
Foresters is the worst I've ever had experience with.
The good news is, as long as the policy is non-contestible, funeral homes usually just assign the policy over to a funeral funding company (ForeThought owns one) and they are paid within 24-hours. Then the funeral funding company waits on the insurance company to pay them rather than the funeral home.
The funeral funding company charges 3% to advance the money and most funeral homes eat the 3%. That is a big equalizer since it makes it where all life insurance money is available to the beneficiary immediately upon death.
The only policies that won't work are:
1. Policies that were sold within the last two years
2. Policies that are not assignable (some group plans are not assignable.)
3. Policies that have no living beneficiary named. (Estate as beneficiary won't work.)
Well, in general, they are designed not to pay a month or so later after a death claim is received. Most likely it is paid before any Funeral is scheduled especially after contestability.
Some don't require a death certificate and pay 50% like 5star, and other companies pay right away regardless.
The big mutuals and larger size policies, generally speaking, will most likely look into the death more then just a death certificate with policy face amounts above 100k.
Regardless, sometimes with the limited UW, it is just as good or better deal for the client then any Mutual company can offer since this is not there market and they may have to take an exam just for say 25k in coverage.
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- 26,147
I am sure many on us have paid hundreds or claims in our careers. And yes they can be all over the board within contestabilty . Out side or contestabilty they have to pay quickly.
I write both traditional and FE equally so sometimes a higher priced FE policy is better for a sick client. But for the standard, HBP & lipids, it may be better for the agent.
Non contestible claims pay quickly period. Rarely are DCs available before funeral arrangements are made. At least in the states I work in.
I had a suicide pay out just shy on a million dollars a week after they received the claim. UH has paid out $250,000.00 the same day they receive notification from the the funeral home. Usually within 24 hours off death.
I am involved in most of my claims to one degree or other. I expect companies to do it quickly. Same with funeral homes getting the DC timely. I can be a real pain in the ass if either jack around one or my clients.
BTW, private claims adjusters and PI are the worse to deal with. IMHO.
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In some states, death certificates just aren't available quickly. In Indiana, unless there is an autopsy or some other holdup, they are available within 48-hours of death.
5-miles away, in Kentucky, hardly any death certificates can ever be received quicker than 30-days and I've seen them take almost 90 days.
That's why the companies that pay the death claim without a death certificate are a big advantage to the consumer if they want to pay a funeral with the policy. Otherwise someone is paying the 3% extra for a funding company to advance the money.
- 26,147
Wow, 48 hours is great. Here it is normal 10 to 20 days depending on the county. Many of the funeral homes here are corporate. They are much more rigid in charging the assignment fee. Even on a company that pays quickly. Which chaps my ass.
