Fraternals Vs Traditional Insurers

[Klutch]

A lot of people have reservations about fraternal benefit societies/insurance 'certificates' rather than traditional policies. Based on a few reasons:

1. If needed, the fraternal is able to assess your certificate and charge you extra premiums to keep the company afloat

2. If the fraternal goes insolvent, all the certificates are cancelled, whereas traditional insurers are protected by the Guaranty Association/State board of Insurance

More info: Fraternal Benefit Societies - Producer Services : Bureau of Insurance

Also see this thread http://www.insurance-forums.net/for...societies-v-s-insurance-companies-t13566.html


QUESTION, Do you/would you sell for a fraternal, or no, if not, why?

 

[jdeasy]

A lot of people have reservations about fraternal benefit societies/insurance 'certificates' rather than traditional policies. Based on a few reasons:

1. If needed, the fraternal is able to assess your certificate and charge you extra premiums to keep the company afloat

2. If the fraternal goes insolvent, all the certificates are cancelled, whereas traditional insurers are protected by the Guaranty Association/State board of Insurance

More info: Fraternal Benefit Societies - Producer Services : Bureau of Insurance

Also see this thread http://www.insurance-forums.net/for...societies-v-s-insurance-companies-t13566.html


QUESTION, Do you/would you sell for a fraternal, or no, if not, why?

This has been beat to death here and people find reason to justify whatever they sell. Fraternal or not. Just how it is.

As for fraternals, I sell them all the time. RNA is my favorite but I'm not selling so much of them anymore. Not because of the fraternal thing but because of their rate increases in 2013.

This is the first time in 5 years that I didn't qualify for their reward trip.

Now they have implemented a business prevention application process so I'm doing even less with them. That has nothing to do with being fraternal.

But, all things being equal I would rather sell a policy than a certificate. All things are not equal so we have to sort through all that. That's our job.

 

[argar5]

I used Csa for two years then the new (AKA) upper big shots dummies dumped their FE. Agents should explain the difference between the both when presenting their product to a client. Some do not. Either their ignorance leads them to only thinking about the comm. their going to make or they just don't know the difference or just don't want to.