FE Question From New Agent

[WinoBlues]

No absolutes here. Just some food for thought for JGold.

Also, I use to think SI was all about the agent. But really, IMO it came about due to consumer demand. They don't want to spend 6 weeks getting insurance and they are willing to pay for convenience.

If you don't believe it, just look at all the restaurants we have, car washes, heck even pre-mixed drinks. Consumers are saying time and time again, they will pay more if you make it easier for them.

Size up your prospect and use your best judgement. Will they stick with you long enough for the fully underwritten route, or do they need a non-med or SI product?

My point also. FWIW, I have written more SI and non med than med this month. So it is always about what fits.

Lee

 

[jdeasy]

I understand what you are saying. However, ifs and maybes go both ways. If he is in std health, if he does get issued. The same ifs hold true for a 40 or 60 year old as well. Now, is it easier? Yup. And on $10,000 maybe the right thing. However, that is not an absolute. Maybe his family will be better off with more money when he dies. Maybe a fully underwritten WL or even a short pay GUL would be the right thing. I have written SI on teenagers and even babies due to health. I have been in many homes where an agent wrote the whole family SI. From granny down to the babies and they were all healthy.

As an agent, I get it. If I was running leads, running from house to house, SI is the fastest way to get issued paid. Same with no PHI. But as jgold mentioned a non med Wl would have been almost as fast. And maybe a much better policy for the family.

just my two cents.

The reason I won't sell UL, even GUL, or term to the FE has nothing to do with fast issue or being easier for me. First, I will not sell temporary insurance to cover a permanent problem.

I do sell a fair amount of term when I find that the person sent in the reply card for something other than to cover their funeral expenses. Also I seel a bit of term to referrals where the referral wasn't looking for a burial plan either. I don't sell UL's at all anymore. Haven't in about 5 years. GUL's? Yes, occasionally. Not to the FE market though. I do sell a pretty good amount of fully underwritten whole life. I do my level best to get the client the best value out there. I would sell quite a bit more fully underwritten whole life if RNA hadn't made it a $25,000 minimum early this year.

Your brother is most likely not the kind of person that falls into the FE market category, so he would probably be a good candidate for a GUL. Although since the op was talking about a $3000 to $5000 policy for for cremation costs I, personally, would not do anything but whole life for that face and would certainly offer a limited pay whole life at that.

The FE market is different than any other market. That's why I post FE type answers in the FE forum.

 

[nfl72]

posted by Jcarvel

"Thanks. It does make sense and I understand they have the protection and can't pick what day they die. I have just been going over scenarios on paper. I was talking to a 54 year old that just wanted enough coverage for cremation and small face amount. Then when I did the math, he would be paying above the face amount in less than 10 years."


Am I might be missing something here?

54year old Male non Tobacco @ Foresters is $17 per month on a 5K policy. He will meet his break even point of 5K at 294 months or 25 years which makes him almost 80?

For the record I never write under $25 per month premiums

 

[WinoBlues]

The reason I won't sell UL, even GUL, or term to the FE has nothing to do with fast issue or being easier for me. First, I will not sell temporary insurance to cover a permanent problem.

I do sell a fair amount of term when I find that the person sent in the reply card for something other than to cover their funeral expenses. Also I seel a bit of term to referrals where the referral wasn't looking for a burial plan either. I don't sell UL's at all anymore. Haven't in about 5 years. GUL's? Yes, occasionally. Not to the FE market though. I do sell a pretty good amount of fully underwritten whole life. I do my level best to get the client the best value out there. I would sell quite a bit more fully underwritten whole life if RNA hadn't made it a $25,000 minimum early this year.

Your brother is most likely not the kind of person that falls into the FE market category, so he would probably be a good candidate for a GUL. Although since the op was talking about a $3000 to $5000 policy for for cremation costs I, personally, would not do anything but whole life for that face and would certainly offer a limited pay whole life at that.

The FE market is different than any other market. That's why I post FE type answers in the FE forum.

It sounds like we agree much more than not. On the FE v underwritten, yeah, we kinda got going down a different path with the Total Premium v Death Benefit. The competitive side of me takes over at times. I have a few local agents that have a contract out on me. I can not play basketball, but one on one in a policy review, I am a beast.

 

[Biggin]

I've met with some "Financial Advisooooors" (said in the voice of Thurston Howell III) that just yammer on and on about how aweful it is that you would sell that overpriced FE insurance. They just simply do not understand the market. My question is....what is more expensive, $42/month for $10,000 that you can afford or $89/month for $25k that will lapse in 2 months because you can't afford it? It has NOTHING to do with fast commission turn around to me. In this example, I would make nearly twice as much money selling the GUL product, so it's not that either. I wouldn't have a problem selling a GUL product to an FE prospect but they would have to be someone that has enough $ to handle the higher premium and that wants to use the money for more than just the funeral. I guess that wouldn't be an FE prospect then, would it? So why would I sell a GUL prospect an FE product?