Best FE Companies That Allow...

[jdeasy]

For whole life and GUL, I use Sagicor's e-app. For ages 18-65 it's simplified issue (up to $250,000 DB). There is a POS interview, but you don't have to physically be in front of the candidate. But then again, that's only for up to age 65.

Over that age, the same product does not require anything of the sort, as it is all done from home office and at the underwriter's discretion. In fact, for ages over 65, no paramed unless the underwriter specifically feels the need to order one.

Long story short, if the client is in good health (Standard or better), it's an excellent alternative to a fully underwritten whole life or GUL product, not to mention one that can be done by phone with an e-app.

And for those who push FE, a GUL gets much more bang for the buck (assuming they are in fair or better health). Maybe not something to use as your first option, but definitely a must have for all FE agents, as it sometimes helps make a deal that otherwise wouldn't happen.

UL is not the FE market. Eve GUL is not for the FE market. It's certainly not a "must" as it should not be used.

 

[JustinSane]

UL is not the FE market. Eve GUL is not for the FE market. It's certainly not a "must" as it should not be used.

You're entitled to your opinion.

I have replaced multiple final expense policies purchased by healthy seniors, with GUL carriers such as Genworth, North American and Sagicor.

Example: Perfectly healthy 66/m/non-smk had a $25,000 final expense policy. He was paying $135/month. He said he had retired and wanted to see if a lower rate was available. We ran North American's GUL, and for $25,000 (after getting the Preferred rating), he now pays $59.51/month....less than HALF!!

Before you get your underoos in a wad, I did advise him that the FE policy accrued cash value, while the GUL only guaranteed a $25,000 death benefit. He clearly understood, and said he was past the age of being concerned with cash value, yet at an age where he was more concerned about getting more death benefit for a lower price.

So, in this situation, the client was fitted with a policy much more in tune with what he was looking for.

If that were you, and you had $60/month in your budget, would you go with a $25,000 policy, or one for about $10,000 or so?

 

[Rearden]

Good job helping the client out.

JD's point is that his perspective of the FE market is that the majority of them buy smaller $5k to $10k policies and have health issue histories.

After a year of FE selling, I am probably going to sell my first GUL next week. But looking back, there were probably less than 5 cases a GUL would fit but I didn't know how they worked and couldn't offer them.

You're entitled to your opinion.

I have replaced multiple final expense policies purchased by healthy seniors, with GUL carriers such as Genworth, North American and Sagicor.

Example: Perfectly healthy 66/m/non-smk had a $25,000 final expense policy. He was paying $135/month. He said he had retired and wanted to see if a lower rate was available. We ran North American's GUL, and for $25,000 (after getting the Preferred rating), he now pays $59.51/month....less than HALF!!

Before you get your underoos in a wad, I did advise him that the FE policy accrued cash value, while the GUL only guaranteed a $25,000 death benefit. He clearly understood, and said he was past the age of being concerned with cash value, yet at an age where he was more concerned about getting more death benefit for a lower price.

So, in this situation, the client was fitted with a policy much more in tune with what he was looking for.

If that were you, and you had $60/month in your budget, would you go with a $25,000 policy, or one for about $10,000 or so?

 

[jdeasy]

You're entitled to your opinion.

I have replaced multiple final expense policies purchased by healthy seniors, with GUL carriers such as Genworth, North American and Sagicor.

Example: Perfectly healthy 66/m/non-smk had a $25,000 final expense policy. He was paying $135/month. He said he had retired and wanted to see if a lower rate was available. We ran North American's GUL, and for $25,000 (after getting the Preferred rating), he now pays $59.51/month....less than HALF!!

Before you get your underoos in a wad, I did advise him that the FE policy accrued cash value, while the GUL only guaranteed a $25,000 death benefit. He clearly understood, and said he was past the age of being concerned with cash value, yet at an age where he was more concerned about getting more death benefit for a lower price.

So, in this situation, the client was fitted with a policy much more in tune with what he was looking for.

If that were you, and you had $60/month in your budget, would you go with a $25,000 policy, or one for about $10,000 or so?

I would have sold that perfectly healthy 66 year old a fully underwritten whole life. I will NEVER sell UL for FE.

Not because of the cash values of WL. It's because of the guarantees of whole life and the protections.

 

[JustinSane]

I would have sold that perfectly healthy 66 year old a fully underwritten whole life. I will NEVER sell UL for FE.

Not because of the cash values of WL. It's because of the guarantees of whole life and the protections.

"guarantees of whole life and the protections"???

What guarantee and protection does whole life offer, which GUL does not??

Keep in mind, a GUL guarantees the death benefit will ALWAYS be there for when they need it (like a whole life).

I think you are confusing this with a UL that does not have the no lapse guarantee provision. I agree that a UL without such provision would not be a good move in this case. BUT.... remember that this is a GUL. No risk of them waking up one day and it be worthless.

So where's the risk???

 

[jdeasy]

"guarantees of whole life and the protections"???

What guarantee and protection does whole life offer, which GUL does not??

Keep in mind, a GUL guarantees the death benefit will ALWAYS be there for when they need it (like a whole life).

I think you are confusing this with a UL that does not have the no lapse guarantee provision. I agree that a UL without such provision would not be a good move in this case. BUT.... remember that this is a GUL. No risk of them waking up one day and it be worthless.

So where's the risk???

I'm not confusing anything. Those guarantees of the UL go out the window when payments are missed and FE clients do miss payments. GUL has it's place. That place is not the FE market.

 

[JustinSane]

And the guarantee of a whole life policy that has NOT started accruing cash value is the same....you miss a payment, it will lapse. Takes about 3 years to start accruing cash value.....so what protection is there with whole life for those first 3 years?

With automatic bank drafts, the chances are reduced noticeably. The chances are always going to be there. If a person is going to miss a payment, chances are it won't take 3 years before the first one is missed.

Also, if they are paying twice as much, they are more likely to have a payment come back NSF....it's really simple arithmetic.

Just conduct due diligence, and don't assume your client is an ***. Give them the CHOICE of both plans.

I know you don't make as much commission with GUL....but it's not about YOU, it's about getting the client the HIGHEST benefit for the LOWEST price. If they miss a payment, there's a GRACE period....and if you are doing your job as an agent, you will check your carrier reports and have plenty of time to contact your client, advising them that a payment did not process (after which they generally have a 30 day grace period to PREVENT the policy from being terminated as a result of such).

There's more to being an agent than just "wham bam thank you ma'am.....next?" Sometimes you have to work for your commissions.

 

[Newby]

It all comes down to how much face amount they want, the health of the person, the difference in premiums, their willingness to hang in there through underwriting, etc.

I've had FE leads where the GUL was the best option. These are not REAL FE type cases though. It's where they are really looking to replace a term or a crashing UL policy. For people looking to get $5,000 to $15,000 of coverage and AREN'T in perfect health (the typical FE case) a true FE policy is the only way to go.

When the GUL price is not hugely less than the WL which is often the case with Royal Neighbors underwritten compared to any GUL at a $25,000 amount at certain ages, I explain the choice and often they want the whole life. The fact that they can go RPU at some point in the future and have a paid up $10,000 or so IF they need to drop the policy is a much better choice than, if you ever quit paying you lose it all.

All types of insurance have their place.

 

[JustinSane]

Well said Newby. All types have their place. There is no such thing as a one-size-fits-all when you are talking about the 50+ age group. My initial point, however, was that in situations when the individual is in decent (not necessarily perfect) health, Sagicor has a simplified issue GUL for up to age 65, with an electronic application, and a POS interview similar to the "know before you go" interview associated with many FE products. It's the best of both worlds, when the product fits the prospect (which as my good friend jdeasy pointed out, isn't always the case with GUL/Whole Life/FE).

Good discussion guys.... always a good thing when professionals can discuss the various products out there. Even those of us with several years of experience can learn something new, provided we keep our minds and ears open.

 

[jdeasy]

Well said Newby. All types have their place. There is no such thing as a one-size-fits-all when you are talking about the 50+ age group. My initial point, however, was that in situations when the individual is in decent (not necessarily perfect) health, Sagicor has a simplified issue GUL for up to age 65, with an electronic application, and a POS interview similar to the "know before you go" interview associated with many FE products. It's the best of both worlds, when the product fits the prospect (which as my good friend jdeasy pointed out, isn't always the case with GUL/Whole Life/FE).

Good discussion guys.... always a good thing when professionals can discuss the various products out there. Even those of us with several years of experience can learn something new, provided we keep our minds and ears open.

If a whole policy payment is missed it will lapse in 30 days but once/if reinstated the guarantees are still there. If a GUL lapses and gets reinstated the guarantees are not there.

I would seel a GUL and even term to the proper market. I will not sell term or UL for FE. I'm glad other agents do because those are easily replaced by me. I'm seeing a lady next week that called me yesterday from a refferal. She has an AG UL that she thought the premiums and face were guaranteed and now finds out that it's not. What was a $25000 policy is now a $15000 policy. She even told me, "if you plan on selling me crap like this don't even bother to come to the house!".