Final Expense: LH Versus EFES

[theinsuranceman]

Yes your right going to be some charge backs but if it is limited to 25% of the business a agent writes that should take care of many of the issues. Most agents do need advancing though and they will see this and the big commission and have to have it. Your in a unique spot to be able to not need income. This I think is going be a big hit into the channel for the above reasons from all the feedback we have got. For sure it is going to be interesting.

Jim Sowder
Family 1st Insurance Brokerage
304-640-8914
fax: 206-337-3753
[EMAIL="[email protected]"][email protected][/EMAIL]

This "fake" GI is not good for the agent and not good for the mgr. Those FULL charge backs (and the charge back ratio will be MUCH higher than the immediate cov. biz) will pull agents and mgr.'s below the surface of the water and drown them.

If the charge backs were pro-rated (like LH or SL for ex.) then maybe ok. FULL charge backs 1st yr. and 50% charge back 2nd yr. on very unhealthy people is not pretty.

 

[Newby]

Jim, why don't you just recruit for Settlers instead.
Their bronze product is similar to what you are describing but with less premium, only Aids, hospice and nursing home restrictions, only 2 year waiting period, and only one year chargeback.
It seems like a better product all the way around.
Commission is lessened to around 65% but only 1 year chargeback.
Plus their Gold and Silver products are some of the best in the industry.
I don't know why you don't just add them to your offerings?

 

[fetam]

Sorry for the dumb questions...but what is "heat issue people"?

 

[VolAgent]

Well Jim, if you are doing enough business to overwhelm a 6 MM carrier, why not spend some of that dough on a spiffy new website?

 

[WinoBlues]

Sorry for the dumb questions...but what is "heat issue people"?

They do not like to write Hot Chicks.

 

[GreenSky]

Well Jim, if you are doing enough business to overwhelm a 6 MM carrier, why not spend some of that dough on a spiffy new website?

Isn't it obvious. He has no money and no agents.

Rick

 

[Newby]

you obviously haven't looked at them lately. They are now a 4 tier product and fixed their diabetis and COPD problems.

I don't write them much anymore because they don't allow replacement in KY but I still say they are the strongest single product available for most states.

Settlers is a small player now only around six million a year is where they are going. They would not be able to deal with the volume we would add to them for various reasons. Also I do not think they have very strong offerings in many of the lines. They kill diabetics they hammer copd and heat issue people.

Jim Sowder
Family 1st Insurance Brokerage
304-640-8914
fax: 206-337-3753
[email protected]

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NGL definitely has brought out their true GI multi pay product to agents now.
Everyone accepted with NO exceptions. 1 year ROP+3%, 2nd year is 70% covered and full coverage after 24 months.
Policy only grows at 2% simple which is very weak.
1 year same as cash payoff option (not great but better than nothing)
this is the same product that NGL sells in funeral homes except with less policy growth and no price guarantees.

 

[VolAgent]

Isn't it obvious. He has no money and no agents.

Rick

Yes, I just love how he avoids the subject.

 

[VolAgent]

You are right. So I take it you are going to change your behavior finally? Or are you oblivious to how annoying your constant recruiting is?

 

[ActingBoss]

LOL, you are somewhat mis-informed.

LH does not mail to TV leads to cut out the agents. I've worked plenty of TV leads. I have my highest closing ratios with TV leads. They may mass mail to the public to sell policies thru the mail...kinda like Globe Life and others.

About your comment on pre-need...I've never been involved in that, all I do is sell FE and teach agents to sell FE.. But it is the Area Mgr. you are referring to who is slimy, not the Co. LH. There's probably some slime balls in every group, but that's the group...not the Co.

I don't know what you mean by 15%. Never seen that figure in relationship to comm. The Co. advances (or the upline may dictate your advance%) is usually 65%. The other 35% is divided by 12 and starts paying out on month #2. This 35% covers your charge backs so your advance comm. doesn't cover charge backs. When advance comm. covers charge backs then agents skip to another Co. How many FE Co.'s mgr.'s ADVANCE 100%? Advance...not comm. Any mgr. who allows 100% advance (not comm., but advance) will be eaten alive with charge back debt, and out of the biz very soon. If FE pers. was 100% then maybe the advance could be 100%. But FE 13th month pers. is NOT 100%.

If an agent doesn't like the $250 threshold on renewals they shouldn't sign the contract. Everything is all spelled out. By the way, your renewals are not rolled up to the Co., they rolled up to whoever recruited you. Your recruiter/mgr. won't tell you that but he'll blame the Co. just to keep you in the dark.

Someone on this forum said, a few months ago, that LH had way more FE production than any other FE Co. I'm not sure how to verify that stmt.

He is indeed misguided.

On so many things its pointless to pursue correction.