Final Expense Question

[HoosierDaddy]

Well it is silly to compare "Final Expense" to "Pre-Need."

So lets just talk about FE because that is what LE does. I replaced two LE policies last week. And a couple of weeks ago I replaced a LE policy when the great "Senior-Advisor" was hanging out with me. In that instance a lady had 8K face with LE, and she was able to get a 12K face with Royal Neighbors of America and still save .21 cents a month...

I would be hard pressed to come up with another company that I have come across with higher rates then LE... I also can not remember not replacing a LE policy if the applicant still was able to qualify with health.

I am not saying nothing bad about LE or how they treat their agents. But for me I don't care how fast a company pays if the business does not stay on the books...

Most companies pay commissions daily...

 

[HoosierDaddy]

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.

The mail order M of O has a two year wait? I don't know how much FE you do. But I can see the FE agents all over the country reading this board and picking their families up and moving to your area... The Gold Rush is on...

 

[jdeasy]

The mail order M of O has a two year wait? I don't know how much FE you do. But I can see the FE agents all over the country reading this board and picking their families up and moving to your area... The Gold Rush is on...

I don't know whether someone would consider the final expense I do to be a huge amount or insignificant. I average about $1500 in annual premium a week. For the year and a half that I've had LH, I had a low month of $4000 ap and a high of $8500.

I'm in western Ky, so, come on down. I'm getting contracted with some other FE companies. RN is one I'm looking at.

Since I posted here earlier today, I have had a conversation with another LH agent who tells me that Penn Life is kicking his ass. I can only speak to my experience and I haven't been getting beat on price with other companies. I have Shenandoah's Golden Promise, but, I've never written one. LH will cover folks that Golden Promise won't.

 

[jdeasy]

Well it is silly to compare "Final Expense" to "Pre-Need."

So lets just talk about FE because that is what LE does. I replaced two LE policies last week. And a couple of weeks ago I replaced a LE policy when the great "Senior-Advisor" was hanging our with me. In that instance a lady had 8K face with LE, and she was able to get a 12K face with Royal Neighbors of America and still save .21 cents a month...

I would be hard pressed to come up with another company that I have come across with higher rates then LE... I also can not remember not replacing a LE policy if the applicant still was able to qualify with health.

I am not saying nothing bad about LE or how they treat their agents. But for me I don't care how fast a company pays if the business does not stay on the books...

Most companies pay commissions daily...

I have other companies that pay daily, too. But, they don't pay upon receipt of the app. They pay on issue. LH pays the agent when they receive the app.

"If the applicant still was able to qualify with health" is quite accurate. If the applicant is in great health, I usually don't put them with LH. I look for the best rate that a person can qualify for because i agree with you that the business has to stay on the books. My 13 month persistancy with LH is 88%. A little higher with my Shenandoah term and higher still with OM.

You guys may be right, there may be many companies that offer better value for the client than LH. If you are right, I will try to get appointed with those companies.

 

[senior-advisor-indiana]

Yes, Mr. Tubbs did replace a LH policy when I was riding along with him. THey are pretty high priced around here.
It also sounds like RNA and LH pay in about the same amount of time, but you do not have to overniight to RNA and they ISSUE it within 24hours(usually). I would much rather be paid on issue than reciept.

 

[HoosierDaddy]

I will be the first one to admit that I don't always place FE clients with the lowest premium. there are other benefits that I do take into account when recommending a FE product. Not to mention this is how I make my living. As an agent you have to also take into account what your competition is like. Here in Indiana this place is flooded with agents peddling senior products… (For example look at the number of Indiana agents on this board) So I am always slamming home the benefits and competitive premium to my folks. Here where I am it seems when I am leaving an appointment out the back door a new agent is walking in the front door. So I try and do a good job solidifying my business at the time of sale. If your not loosing your LE business and you like working stay with LE I would not change a thing.

As far as commissions, if I fax an application to RNA today with the initial draft not until Aug 27th I will have money in my bank the day after it is issued, and they speed issue within 48 hours of receiving the faxed app. Not as good as LE pay upon receiving the app, but pretty good.

 

[jdeasy]

Yes, Mr. Tubbs did replace a LH policy when I was riding along with him. THey are pretty high priced around here.
It also sounds like RNA and LH pay in about the same amount of time, but you do not have to overniight to RNA and they ISSUE it within 24hours(usually). I would much rather be paid on issue than reciept.

You don't have to overnight to LH, it's just available if you want your money faster. I don't usually use overnight. I mail all my work for the week on Fri. And, I mail it regular mail in the postage paid envelopes that LH provides me. Normally, it gets to them on Mon. and I'm paid on Tues. I just got an email about my deposit for tomorrow.

I work the southern In. quite a bit as Evansville is the closest good sized town to me. I do more MA busines there, not so much FE because, as you say, it's satuated with agents. The ones I've had replaced were in the Evansville area.

I'm not trying to be a cheerleader for LH even though it looks that way. If a ton of my business was being replaced because of cost, I will certainly look elsewhere. I made an inquiry to RN just because of reading this board.

I got contracted with another company because of reading this board. LH made some huge changes this year with their preffered whole life for healthier clients.. If you are seeing LH clients that have older policies, they lower priced stuff was probably not available when they were written.

I was doing one last week and had quoted the lady the preffered rate based on our phone conversation. When I was doing the app., she was taking some meds that she had not disclosed. She no longer qualified for the better rate, but she could still get the final expense with immediate coverage. It was $10/mo higher. She gladly paid it as she wanted the coverage. Now, had I just put on that one in the first place without a medical reason, somebody would most certainly come along and replace it.

Since LH made those changes, I'm not running into a price problem. Maybe I need to look around some more and I will now that we have had this conversation.

 

[jdeasy]

The mail order M of O has a two year wait? I don't know how much FE you do. But I can see the FE agents all over the country reading this board and picking their families up and moving to your area... The Gold Rush is on...

Well, let's just compare pricing. I posted this in the LH thread, but, I'll do the same here.

Today, I wrote two LH $10,000 whole life policies. One was on a 40 year old male non smoker. The other was on a 50 year old female smoker.

The male's was $20/mo. The female's $29.40/mo.

How much did they overpay compared to the other companies out there. No real health issues with either, so, they would most be approved with anyone. I know they will be with LH.

If you, or anyone can beat those rates, how much can you beat them by and with what company?

 

[senior-advisor-indiana]

What kind of funeral is a 40yr old going to get with a $10k policy if they die at age 80? Price is means nothing if the benefit is nothing.

 

[senior-advisor-indiana]

UHL has 40yr male $10k, @$17.94 per month, $25k which is what I would have sold him would be $37.87. THat might not be my cheapest either, just the 1st one I looked at.