Final Expense Question

[Newby]

If you think the rates are good for Americo, you should look around a little more... I replaced two Americo Final Expense policies last week. Their rates are not competitive here in Indiana. However, they do pay high commission's if you can keep it on the books.

I find Americo to be in the game on a lot of ages but high on others. The worst thing about them is they won't take anyone under age 55 on their lower priced product. I keep running into 54 year olds.

I just keep a spreadsheet of all the companies I have rates on. For instance on a 70-year old Male non smoker $10,000 lifetime pay:

Americo:$71.34
Shenandoah $70.58
Citizens: $76.56
Motorists: $66.74
Lafyette: $63.44
Oxford: $64.65
Columbian: 73.54
Chesapeke: $69.25
Forethought: $71.71
AARP New York Life: $84.84
Mutual of Omaha: $75.29
Baltamore Life: $75.60

 

[GreenSky]

Newby:

Thanks for the comparison. I knew Oxford was low but did not know about Motorists or Lafayette. In fact, I've never even heard of them but I never profess to be a FE expert.

I have a contract with Oxford but find that any of the companies that require a point of sale phone call to be a PITA.

Rick

 

[Newby]

Newby:

Thanks for the comparison. I knew Oxford was low but did not know about Motorists or Lafayette. In fact, I've never even heard of them but I never profess to be a FE expert.

I have a contract with Oxford but find that any of the companies that require a point of sale phone call to be a PITA.

Rick

LaFayette has a real crazy (an bad) commission schedual if you go direct with them. It's basically set up to reward volume. You can get them through a broker and have the normal 105% commissions.

Motorists actually told me last week they are not signing on new agents at this time. However you can get pretty good contracts through brokers with them also.

I had a broker from Indy call me this week offering 120% contracts with Monumental. But I asked my Monumental rep (I already deal direct with them on pre-need) and he said no way in hell unless you have 20 or more agents under you.

I'm still trying to figure out which companies I want to focus on with final expense but so far I write mostly Americo because they re so convenient.

 

[senior-advisor-indiana]

Motorists just came out with a PAR policy. Rates seem to be a little lower. I didn't realize how close they were with oxford.

 

[arnguy]

Newby, did you check out Lincoln Heritage FE?

 

[GreenSky]

Newby, did you check out Lincoln Heritage FE?

It's almost impossible to find another company that charges more.

Rick

 

[Newby]

Newby, did you check out Lincoln Heritage FE?

I'm a little biased against Lincoln Heritage just because I had a guy in my town for several years who had his whole family of Gypsys out selling it and they were slimeballs. I can't even hear the name Lincoln Heritage without thinking of these guys. The main one is now deceased.

I know they are kind of overpriced but that is because they do a lot of advertising. They also have kind of a weird funeral online program where people can buy real cheap chinese caskets and stuff but in reality these programs are usually very poorly run and just there to sell the overpriced insurance policy.

 

[sunshine]

Recently I asked my MGA to send me an update on the Americo commissions. As you may know, they just changed all the products, elimiating The Eage Series. Now it's Ultra Protector I, II, & III. On the III, which is Graded Benefit, I could not believe the commision. Previously, my MGA was offering over 100% on everything. Now, the UP III commission is only about 40%. He said they did not want to do it at all, and it was better than nothing. Are you all having the same info ?

 

[Newby]

Recently I asked my MGA to send me an update on the Americo commissions. As you may know, they just changed all the products, elimiating The Eage Series. Now it's Ultra Protector I, II, & III. On the III, which is Graded Benefit, I could not believe the commision. Previously, my MGA was offering over 100% on everything. Now, the UP III commission is only about 40%. He said they did not want to do it at all, and it was better than nothing. Are you all having the same info ?

If you aren't already appointed with Forethought, send me an IM with your e-mail address and I'll send you their info. They will have their new FE with a 4th tier that will be Guaranteed issue available in about 2-months. They tell me it will pay 110% just like the others. The first tier (healthy people) will have rates that are comparable with the lowest priced companies anywhere (we all know who those are.) Should be a one-stop shop.

Forethought has a LOT of experience with guaranteed issue products. Their pre-need insurance has been guaranteed issue since 1986. Up until 1999 it even had 50% coverage on day one on a guaranteed issue basis. They finally had to drop that back to 6-months of ROP first.

I reccomend you get appointed with them, through me or through someone. They are going to be hard to beat when they roll that out. They CLAIM it will only be available at first to agents who are already appointed with them (I'm not sure I believe that) but there is no cost ot quotas to getting set up with them so why not?

 

[jdeasy]

I'm a little biased against Lincoln Heritage just because I had a guy in my town for several years who had his whole family of Gypsys out selling it and they were slimeballs. I can't even hear the name Lincoln Heritage without thinking of these guys. The main one is now deceased.

I know they are kind of overpriced but that is because they do a lot of advertising. They also have kind of a weird funeral online program where people can buy real cheap chinese caskets and stuff but in reality these programs are usually very poorly run and just there to sell the overpriced insurance policy.

I don't find them to be overpriced at all. I sell a lot of LH and they are my number one company to deal with as far a agent services. Case in point on the pricing, the lady that I spoke with you about on the Forethought, a LH policy was going to cost her $31/mo. The Forethought, $29/mo.

I also spoke with a lady last week that you had just sold a $10,000 pre plan for her brother. Now, I know we are comparing apples to oranges here, but, what you sold them a $10,000 preplan for, I could sell them a $10,000 LH whole life policy for $85/mo less, {your's $125/mo, LH-$40/mo}. She was happy with what you sold her and understood the value, {I even put in a good word for you and your product}. But, if we are talking price only, that's a whopping difference. Don't worry, she wasn't shopping. They are already clients and I had written a policy on the brother a couple of years ago when I didn't have LH and it was declined. I've been meaning to go back to them since I got LH and fell asleep at the wheel. You got in there while I wasn't minding to business.

They do not have a "weird online funeral program". They have the Funeral Consumer Guardian Society that they pay the membership into for all policy holders. Anyone can join and pay dues. LH pays the dues for their folks.

It is very well run and adds a great deal of value to the members. They are not "chinese" caskets. They are the very same caskets that every funeral home in the country sells. In fact, they prefer that the members family buy from the funeral home of choice, they just insure that they are not paying too much for it. They will overnight the very same casket to the funeral home, {which, by law, they have to accept and cannot charge a handling fee}, if the funeral home will not cooperate and stop price gouging. They will sell that casket to member's family at wholesale if it comes to that. That doesn't happen very often as the funeral homes in over 95% of the cases reduce the price. The FCGS will allow the funeral home a 100% markup on the casket. Same goes for all the other items.

The only company I find out there in the field beating LH on a consistant basis and by a pretty good % is the mail order Mutual of Omaha. I've only had two of my LH policies replaced on price and both times it was MO.

I represent about 40 life insurance companies. LH is head and shoulders above the rest for agent services and problem solving and timely payment. I can write a LH today, send it overnight to LH where they get it tomorrow and I will have the payment in my bank account on wed. morning. If there is another company out there that will do that, I'm unaware of them.