Bankers Fidelity New Final Expense

[rousemark]

Received an email announcing Bankers Fidelity's new Final Expense plan. Premium rates at age 65 NTU are mid-range about the same as Columbian's Elite and SNL Preferred.. The underwriting is strict with a 3 & 5 year look back on most things..

Then I received the Brokerage General Agent commission level in the mail. If I had any interest, this sure killed it. 20% years 1-6 and 1.75% there after. Graded is 10% years 1-6 and 1.75% thereafter. They may write tons of it but I don't see how they will get enough to recoup thier actuarial and filing costs.

 

[goillini52]

Received an email announcing Bankers Fidelity's new Final Expense plan. Premium rates at age 65 NTU are mid-range about the same as Columbian's Elite and SNL Preferred.. The underwriting is strict with a 3 & 5 year look back on most things..

Then I received the Brokerage General Agent commission level in the mail. If I had any interest, this sure killed it. 20% years 1-6 and 1.75% there after. Graded is 10% years 1-6 and 1.75% thereafter. They may write tons of it but I don't see how they will get enough to recoup thier actuarial and filing costs.

Louis, they changed their FE. They did away with their Graded. Now they're calling their ROP "Graded".

Those commissions are for Med Supps. You can do better. I have Bankers Fidelity @21% and Bankers Assurance @22%.

 

[rousemark]

No, the commission schedule says, "Final Expense WL 21901 and Graded Death 2 yr return of Premium.. The schedule came in today's mail. I have better commissions on the Med Sup.

 

[goillini52]

No, the commission schedule says, "Final Expense WL 21901 and Graded Death 2 yr return of Premium.. The schedule came in today's mail. I have better commissions on the Med Sup.

Something's wrong, they must've made a mistake. Years 1-6 @20% sounds like Med Supp. Who would sell their FE @ 20% commission?

I got the e-mail about the new FE. I didn't get a commission schedule. I'm assuming that I'll still be at 110%.

 

[rousemark]

Something's wrong, they must've made a mistake. Years 1-6 @20% sounds like Med Supp. Who would sell their FE @ 20% commission?

I got the e-mail about the new FE. I didn't get a commission schedule. I'm assuming that I'll still be at 110%.

You know what happens when you assume..... I just called the agency department. They said it was no mistake and talked like it was a good thing not to pay it "all out" in the first year.

 

[somarco]

talked like it was a good thing not to pay it "all out" in the first year.

Good for whom . . . .?

 

[goillini52]

You know what happens when you assume..... I just called the agency department. They said it was no mistake and talked like it was a good thing not to pay it "all out" in the first year.

I hadn't gotten a new schedule because when I moved my contract, my new FMO didn't set me up for life. Good thing I never wrote any of the FE.

You're right about the way they pay...it's different. I'll bet they'll have better persistency with it paying like a Med Supp. If anybody sells it.

 

[shonceman]

You know what happens when you assume..... I just called the agency department. They said it was no mistake and talked like it was a good thing not to pay it "all out" in the first year.

 

[shonceman]

I hadn't gotten a new schedule because when I moved my contract, my new FMO didn't set me up for life. Good thing I never wrote any of the FE.

You're right about the way they pay...it's different. I'll bet they'll have better persistency with it paying like a Med Supp. If anybody sells it.

Ok, I get spreading the commissions out to build up a steady income stream, but that total income over the 6 years is pretty inferior compared to other more popular carriers. And if they lapse in the second or third year? (But in those cases, you’re probably right that agents might try a little harder to keep them on the books if they feel like they’re losing substantial commission dollars.)

 

[rousemark]

Ok, I get spreading the commissions out to build up a steady income stream, but that total income over the 6 years is pretty inferior compared to other more popular carriers. And if they lapse in the second or third year? (But in those cases, you’re probably right that agents might try a little harder to keep them on the books if they feel like they’re losing substantial commission dollars.)

I have other companies that "spread" the commissions like UNL but theirs is 80/48/7 . With a spread you should make more over a 10 year period but Bankers is only paying out 127 over 10 years, less than some company's first year.