I am wondering how they are going to sustain those rates since they are using an agency force to sell it. They are most certainly going to suffer from adverse selection. It won't be like MoO mail order business where some healthy people apply. Vantis is only going to get the business that agents cannot put elsewhere for better commissions and charge back polices..
Colonial Penn
- Thread starter Hockeynut
- Start date
I am wondering how they are going to sustain those rates since they are using an agency force to sell it. They are most certainly going to suffer from adverse selection. It won't be like MoO mail order business where some healthy people apply. Vantis is only going to get the business that agents cannot put elsewhere for better commissions and charge back polices..
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Other bad thing it's in bands.. 5,7,10 etc from what I hear
Much rather go Presidential as earned... My guranteed apps are such a small % of my overall sales it's not even worth saving a client 8 bucks in premiums when theres a pretty good chance you're gonna have to pay it all back anyway
I tell them straight out... heres your position.. this is what I can do for you and heres the price.. they start haggling and I'm on to my next appt
I hate chargebacks, especially ones that occur in the 1st 9 months.. I become a violent individual when that happens...
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Other bad thing it's in bands.. 5,7,10 etc from what I hear
Much rather go Presidential as earned... My guranteed apps are such a small % of my overall sales it's not even worth saving a client 8 bucks in premiums when theres a pretty good chance you're gonna have to pay it all back anyway
I tell them straight out... heres your position.. this is what I can do for you and heres the price.. they start haggling and I'm on to my next appt
I hate chargebacks, especially ones that occur in the 1st 9 months.. I become a violent individual when that happens...
Presidential is also full chargeback for deaths in the first 12 months. Maybe even for deaths in the first 24 months?
I haven't looked at one of their contracts in years. Way too overpriced anyway.
But isn't the Vantis charge back if the policy terminates for any reason.. Not just death?
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May be? I don't know for sure. Seems I've read that here. I'm not contracted with Vantis.
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Are you sure that Vantis isn't overcharging for the product, and the other companies are really, really over charging for their products?
I doubt that life companies knowingly build products in order to lose money. In the heat of price competition they may cut it too thin, and have to adjust upward, but we are talking 5% to 10% kind of moves. Vantis, in some cases, is half the price of others. Can they be that wrong, or are the others just too high?
After almost 33 years in the life insurance industry, it has been my experience that life companies will charge too much, and I really mean way too much, if they can get away with it.
Vantis chargebacks are prorated for death in the initial 24 months. If the policy falls off the books for any other reason then it is 100% for the first 12 months and 50% in months 13-24.
This policy is not just sold by independent agents, in actuality a VERY small portion of sales come from independent agents.
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What agent wants that kind of chargeback exposure? Charge backs should be prorated according to length of time they stay on the books.
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Ones that want to sell a life insurance policy with zero health questions at rates that are better than Presidential?
It beats what most of us were doing which was sending clients to MOO. Is it a perfect scenario, no, but it sure beats the alternative. On a side note the persistency has been fantastic, so that also helps. Not near as much falls off in the GI market when no one can replace it with something better.
