For those of You Who've Warned Me/spoken Disparagingly About LH,

[Agentguy5]

My first agency contract was with the Rosenthals (and its a contract I still have), who recommended MSPM. I havent used them, or anyone else, since I went with LH.

I became licensed in SC in January 2010, got appointed with LH in June 2010.

Ahh, so the 1.6% return rate was from almost 3 years ago!!!

TY

 

[RonRoberts]

I have never said I have a negative view of LH. I just knew the two companies operate very similar since SL marketing was primarily based on the LH model. I have no personal knowledge of wither company so I really don't have an opion on either of them other than what has been based on what others have psoted on the forum and very limited exposure to them in the field.

Valid point here Rouse. I have to wonder this myself.

Its a valid question.

The proverbial light bulb came on for me 3 weeks ago in an agency meeting. I knew, of course, beforehand that the LH product is more expensive than most, but rationalized (accurately, I still think) that LH will insure over many conditions others won't and that they are solvent, with ample reserves and 50+ years (under various nameplates) worth of track record.....they are able to pay claims and are around for the long haul while many others have long since departed.

However,

in this meeting and on the subject of persistency (mine has always been above required company levels) the presenter actually stated "if you measure our pricing and products we just dont stack up against the competition, you have to push Funeral Consumer Guardian Society"....he actually said that openly and immediately a thousand bells and whistles went off. in my head. Looking to the future and thinking about someday in the not-distant future building a team, it has always bothered me about one day potentially recruiting agents to an entity I have never been COMPLETELY been "sold out" to..........this open proclamation by the presenter completely quashed any thoughts I might have had about doing so with LH. A product so inferior that an ancillary attachment must be introduced to complete the sale is distasteful. How can I recruit an team if I dont believe in the product?

Secondly, the lead cost, which has always been above what others are paying yet still manageable, just went up across the board as of today by 10%. From my perspective, that's an unsustainable, lop-sided arrangement/model that, while still very doable at 85%, is unpalatable. Expenses keep going up, an already pricey product just got hit with even more prices increases (policy rates just increased also) and its weighted just much too heavily in the company's favor.......I am not a novice anymore---85% in view of those increases is improperly, unfairly weighted, in my opinion.

So, for those reasons and others not germane to product or price,
I feel compelled to explore.

Maybe I'll stay, I dont know........I'm in good standing, my reputation agency and company-wise is good (so far as I know), but there are issues that for the moment I cant get past.

Thanks for your question.

You mentioned two points in your above post:

1. Persistency
2. Lead Costs

With LH's change in persistency policy I believe they will see a lot of agents exiting their model due to circumstances beyond the agent's control. These agents will then move over to the indy status, increasing in the FE market and the majority of seniors buying the FE type product the FCGS will no longer keep LH "competitive."

As far as lead costs and commission, the agency that I am associated with within LH pays a commission of 90% after 20 written policies and has a lead costs of approximately $30. Unless you are on the EFES lead program or someone else's lead program you will not get a better deal than this. The area that I work provides an average .7% return which gives me a $65 lead cost. I need to be a really good closer to make this work in my favor.

Lastly, I am an indy that can write LH if I choose, which I have not for the last several months due to my over seeing the care of a sickly parent. I am not tooting the LH horn or drinking their kool-aid. Actually, I am disappointed in them and their policy changing mindset since I became contracted with them. I actually like selling UL's and annuities much more than FE, of which I will be doing more in the new year.

 

[theinsuranceman]

What is "LH's change in persistency policy" that you mention above?

 

[Mattschmidt]

What is "LH's change in persistency policy" that you mention above?

I believe they are along the lines of the changes SL is making shortly

 

[theinsuranceman]

I believe they are along the lines of the changes SL is making shortly

Well......please share with us old wise one.

 

[Mattschmidt]

Well......please share with us old wise one.

How could you not know the changes in terms of minimum persistency rates for your sole carrier?

 

[theinsuranceman]

How could you not know the changes in terms of minimum persistency rates for your sole carrier?

I don't know....looks like you also don't know.

 

[RonRoberts]

What is "LH's change in persistency policy" that you mention above?

They have lowered their minimum persistency (can't remember the exact %). The only issue that I have is that unless vested, they will keep your pay thru, renewals, and include your advances in the debt in which you "must" pay back. I am so glad that I "always" keep these numbers to a minimum no matter who I am writing through.

 

[Dragline]

They have lowered their minimum persistency (can't remember the exact %). The only issue that I have is that unless vested, they will keep your pay thru, renewals, and include your advances in the debt in which you "must" pay back. I am so glad that I "always" keep these numbers to a minimum no matter who I am writing through.

How can you be disappointed with LH over persist percent changes, predict a mass exodus, and be specifically critical of paybacks, yet not know what their persist changes are?

 

[nfl72]

Hey Dragline, you sound like a pretty intelligent guy and I am sure what ever you decide will turn out great but you might taylor your dissatisfaction a little more especially if you choose to stay with LH. I got to beleive the management at LH is reading everything being said