Average Final Expense Sale

[Mark]

**There are commission chargebacks on the GBL if during
the first policy year a policy terminates due to a death claim.
The chargeback is 100% of commission paid.



Is this normal on Graded Benefit FE products?

Yes, this is the normal on graded.

 

[jdeasy]

**There are commission chargebacks on the GBL if during
the first policy year a policy terminates due to a death claim.
The chargeback is 100% of commission paid.



Is this normal on Graded Benefit FE products?

it's normal for some of the non agent friendly companies. RNA, Foresters, AmCon or LH do not charge back except for the unearned commissions.

I'm sure there are more that do not, but those I know for sure do not.

 

[jtow]

it's normal for some of the non agent friendly companies. RNA, Foresters, AmCon or LH do not charge back except for the unearned commissions.

I'm sure there are more that do not, but those I know for sure do not.

Thought perhaps there was a typo in the underwriting guides! So, guy takes a graded FE policy, then dies in 3 mos. from any cause, and I get charged back the entire commission? That stinks.

 

[BenS]

Thought perhaps there was a typo in the underwriting guides! So, guy takes a graded FE policy, then dies in 3 mos. from any cause, and I get charged back the entire commission? That stinks.

Well obviously you've seen what type of health people that qualify for graded are in. It's a pretty big risk for an insurance company to take. Might be a good idea to keep the money you earn on graded set aside, since they are high risk.

 

[jdeasy]

Thought perhaps there was a typo in the underwriting guides! So, guy takes a graded FE policy, then dies in 3 mos. from any cause, and I get charged back the entire commission? That stinks.

Not if you put them with one of the companies I mentioned. Some companies do charge it all back. Many do not. In the case you mentioned if you had put that person with RNA's graded and they did 3 months later, they would charge you back any unearned commissions, not the full amount.

There is a difference between graded and GI or ROP policies. Most companies do charge back 100% on the GI or ROP policies. LH is one that does not. Even on their ROP policies they only charge back the unearned commissions.

But, you are going to be charged back your unearned commissions for death on all policies with all companies.

 

[rousemark]

it's normal for some of the non agent friendly companies. RNA, Foresters, AmCon or LH do not charge back except for the unearned commissions.

I'm sure there are more that do not, but those I know for sure do not.

Settlers doesn't charge back if you are in a state where they offered their bronze plan (two gate keeper health questions) but they do charge back if you have to sell their Bronze II which has no gatekeepers.