Fraternal Benefit Society

[Agentguy5]

I have heard that having insurance with a company like Foresters is not as SAFE/Guaranteed as it is with a normal insurer like Monumental or any other NON Fraternal Benefit Society...

What are the CONS of being insured with Foresters or owning THEIR policy/certificate???

What other insurers are Fraternal Benefit Societies?

 

[Mattschmidt]

It's been discussed quite a bit but I think some agents don't recommend these certificates due to them not being protected with the state guaranty fund.

 

[TwiLight]

It's been discussed quite a bit but I think some agents don't recommend these certificates due to them not being protected with the state guaranty fund.

That rap is mis-leading..... No Fraternal Benefit Society has ever gone Bankrupt.

Most States make it Unethical to say to a prospect that the Fraternal is not safe because of the Guarantee Association.

I believe that many agents dislike them because they have a hard time competing with them with pricing and benefits.

Leading Fraternals off the top of my head:

1. Royal Neighbors (RNA)
2. Foresters
3. Gleaners
4. Slovene National
5. CSA
6. Modern Woodmen
7. Woodmen of the World
8. Thrivent for Lutherans (Lutheran Brotherhood)
9. .....and a slew of other ethnic and religious ones.

 

[rousemark]

That rap is mis-leading..... No Fraternal Benefit Society has ever gone Bankrupt.

Has happened but it was almost 100 years ago.. I can't find the article now but I remember posting it here on the forum in the past..

 

[VolAgent]

That rap is mis-leading..... No Fraternal Benefit Society has ever gone Bankrupt.

I seem to recall a small fraternal in PA running into serious financial trouble. Maybe not bankruptcy, but certainly financial trouble.

Oh, and ask Peter about what the Maine DOI says. Apparently you can't use mentioning lack of state guaranty fund when selling against a fraternal, but you are supposed to mention it when selling a fraternal. Rather bi-polar.

 

[Newby]

I have heard that having insurance with a company like Foresters is not as SAFE/Guaranteed as it is with a normal insurer like Monumental or any other NON Fraternal Benefit Society...

What are the CONS of being insured with Foresters or owning THEIR policy/certificate???

What other insurers are Fraternal Benefit Societies?

The main disadvantage of fraternals has nothing to do with State Guarantees. It's that they don't issue policies. They issue certificates. They reserve the right to use the cash in the certificates as their backup guarantee.

Most fraternals are very solid. But it's still an unattractive feature to the consumer and in some states you are required to explain the difference between policies and certificates.

And yes some fraternals have failed. I'm a member of a small one that is struggling to survive right now. It probably won't make it. It's one where you pay a membership every year and one of my clients strong arms me is the only reason I'm a member. The benefits are smoke and mirrors.

 

[WinoBlues]

Maybe a bigger question is why quote them? Unless it is for a specific medical issue that they are the lowest my a large margin I can see no reason to quote a certificate over a policy.

Even if the Fraternal was a few dollars lower, BFD.

 

[Mattschmidt]

Maybe a bigger question is why quote them? Unless it is for a specific medical issue that they are the lowest my a large margin I can see no reason to quote a certificate over a policy.

Even if the Fraternal was a few dollars lower, BFD.

I think alot of agents like to use the fraternals because of the extra benefits, and because they may get paid a higher commission with them. Personally I don't sell them..but to each their own....

 

[GoCubsGo]

Yea, seniors like the Orphan and Scholarship benefits from that Canadian Fraternal for their little kids! After they get their certificate they hang the Canadian Flag out front. ha

 

[TwiLight]

Yea, seniors like the Orphan and Scholarship benefits from that Canadian Fraternal for their little kids! After they get their certificate they hang the Canadian Flag out front. ha

Do you Fraternal "Canada" Haters say the say the same thing about Labatts Blue. I still like the beer....and it is Canadian.....HMMMM