Direct Billing Question

[Baseball7]

Now that I think about it, I did have a charge back with Gerber several years ago when a guy died in the first two years, which is why I don’t sell GI anymore.

Change your whole business for one death? Sounds silly.

 

[jerryrut]

Well, I am kinda silly but most of my health cases I’ve been able to place in better plans.

 

[Todd King]

I really don't understand you guys who won't write a GI policy on someone. Even if they die within the first 2 years and you get a full chargeback, you're still not out anything but a few minutes of your time.

There is no way to lose, but you all talk like you are losing something. You can only lose by NOT writing....just as in the example above where all the polices lapsed or cancelled all because he wouldn't write grandma.

It just doesn't make good business sense.

 

[VolAgent]

I've made quite a bit of money from GI over the years.

After I explain exactly how it works, going into great detail about the limited benefit period and return of money and they still want it, I'll sell it. I find most of the really bad ones change their mind once you completely remove any doubt of full coverage right away.

 

[Life Hawk]

I’m rethinking my position on GI. My position has always been that I will write a GI policy, but only if I think there’s a pretty good chance the person will live long enough to get the full benefit.

But a while back I had a young client ask me about insurance for her grandmother. On questioning her, I concluded that the lady was not long for this world, so I declined to write her, and instead recommended the family make arrangements with a funeral home.

Yesterday we got surrender notices on her whole family. They found an agent that would write grandma and at the same time found a “better deal” on theirs (questionable - I think he wrote non-smoker rates on this couple I know for a fact are both smokers!). In retrospect, I wish I had written grandma and just held the commission back for the inevitable chargeback. Then maybe I wouldn’t be getting replaced on the rest!

(On the other hand, when grandma leaves us and the family only gets a couple premiums back, they can get mad at the “new” agent instead of me!)

I understand the pain. I placed 2 policies GI in the last 2 years that have passed with in the first 2 years... my goal is always the follow-up sales to friends and family.

And I loath another agent taking my business...... that is what I do to them...

 

[jerryrut]

It’s just a matter of choice as is most everything in this biz.

 

[Life Hawk]

I've made quite a bit of money from GI over the years.

After I explain exactly how it works, going into great detail about the limited benefit period and return of money and they still want it, I'll sell it. I find most of the really bad ones change their mind once you completely remove any doubt of full coverage right away.

Heartily agree... simply put, "you can't loose your money"... plus 10%... most folks when educated tend to understand.

 

[Life Hawk]

It’s just a matter of choice as is most everything in this biz.

Just keep in mind that your choices either keep you in this business... or they will run you out of it faster than you can say, "what just happened."

 

[VolAgent]

Just keep in mind that your choices either keep you in this business... or they will run you out of it faster than you can say, "what just happened."

In general, we do not get paid to say no.

As long as it is ethical, legal and moral, our job is to find a reason to write a policy, not to chase it off.

 

[jerryrut]

No doubt there are some things I should be doing and some that I shouldn’t. Some folks write dental, I don’t and won’t, some folks write LTC, I don’t and won’t, the list goes on. If I run across any of that, I’ll be glad to pass it along to you guys.