Gerber Life Medicare Supplement

[Chazm]

You might want to read the contract before you call someone a dolt. Most advance finance agreement say something like "1% of the account balance PER MONTH"...

Come on... someone got a contract to read to this guy?


Never mind. Found this a few pages back on post #80.

Dear Producer,
This notice is to inform you of a new process concerning advanced commissions for Gerber Life Insurance Company Medicare Supplement and Medicare Select business. On the last day of the pay cycle for each month, there will be a one percent summary of interest charge added to any unearned advanced commissions.
[FONT=Arial,Helvetica,sans-serif]All previously signed Advance Commission on Issue Amendments are now terminated. The enclosed and newly revised Advance Commission on Issue Amendment must be signed and submitted or declined by you, the producer. The enclosed amendment must be signed and received by Gerber Life before you will receive advancing on any submitted Gerber Life applications for Medicare Supplement and Medicare Select business. If the enclosed amendment is not signed and received, you will receive regular, modal commission for any submitted Gerber Life applications[/FONT]


What does that mean? 1% per month... 12% per year. The only hair to be split here is that it is 1% of the current balance so while you are building that debt by selling tons of policies that don't look too bad. But... what about 11-12 months down road... Say you're a hog dog agent selling five per week at an average premium of $125/mo and make 22% commissions. By the end of the year if you did that for 48 weeks you're $76k in debt at 1% per month or losing $760/month. So by the end of the year you're losing the whole year's commissions for two out of five sales to that debt.

Something to think about.
- - - - - - - - - - - - - - - - - -


Don't be a sheep. Think for yourself. Speak your own mind.

Ha! I do think for myself. I'm just a newb and thought it was 1% APR. Damn, I get paid monthly on some things but I might have to rethink my med supps.

Annuities aren't avanced right? because you get the $ up front

 

[G.Gordon]

Never "think"... KNOW!
- - - - - - - - - - - - - - - - - -

Ha! I do think for myself. I'm just a newb and thought it was 1% APR. Damn, I get paid monthly on some things but I might have to rethink my med supps.

Annuities aren't avanced right? because you get the $ up front

That will get you in a bunch of trouble in this industry. Never "think"... KNOW!!

Saying "I thought... " is never an excuse. Never. You're dealing with others money, security, and peace of mind. You don't have the right to "think". We have to know. Excercise the same due diligence with YOUR own account that you will with clients.

 

[HarryRenard]

I can read and do understand 1 x 12. But that doesnt change what I think about him and his posts. But the fact of the matter is that as he reffered to it as a credit card company charging 12% is not accurate. And that is my point and since you NEVER take advances you dont have to wrry about it so just move on.

 

[G.Gordon]

I can read and do understand 1 x 12. But that doesnt change what I think about him and his posts. But the fact of the matter is that as he reffered to it as a credit card company charging 12% is not accurate. And that is my point and since you NEVER take advances you dont have to wrry about it so just move on.

While he may not have been "spot on" with his post he was way closer than you saying it was 1%. So you call someone a dolt when they are more correct than you, you get called out and corrected, and you stand your ground.

Jeez... I love agents like you.

 

[Cenla Agent]

The only way I could see a mass exodus out of Med Supps causing chargeback hell would be if our morons in Congress limits the max out of pocket for Medicare. Obama has stated he is opposed to high out of pocket maximiums and the only "carrier" that has no limit is Medicare.

Limit the OOP for Medicare to $3,000 and the entire supplement industry is history.

Can this happen? This country is so f*cked right now, anything is possible.

Rick

How many more federal reserve notes would they have to print to make that happen? Or how much more would they have to cut provider reimbursement?

Limit the OOP to 3k (or even 5-6k, maybe even more) and there's very little or no need for MA either.

 

[Focus LTC]

You might want to read the contract before you call someone a dolt. Most advance finance agreement say something like "1% of the account balance PER MONTH"...

Come on... someone got a contract to read to this guy?


Never mind. Found this a few pages back on post #80.

Dear Producer,
This notice is to inform you of a new process concerning advanced commissions for Gerber Life Insurance Company Medicare Supplement and Medicare Select business. On the last day of the pay cycle for each month, there will be a one percent summary of interest charge added to any unearned advanced commissions.
[FONT=Arial,Helvetica,sans-serif]All previously signed Advance Commission on Issue Amendments are now terminated. The enclosed and newly revised Advance Commission on Issue Amendment must be signed and submitted or declined by you, the producer. The enclosed amendment must be signed and received by Gerber Life before you will receive advancing on any submitted Gerber Life applications for Medicare Supplement and Medicare Select business. If the enclosed amendment is not signed and received, you will receive regular, modal commission for any submitted Gerber Life applications[/FONT]


What does that mean? 1% per month... 12% per year. The only hair to be split here is that it is 1% of the current balance so while you are building that debt by selling tons of policies that don't look too bad. But... what about 11-12 months down road... Say you're a hog dog agent selling five per week at an average premium of $125/mo and make 22% commissions. By the end of the year if you did that for 48 weeks you're $76k in debt at 1% per month or losing $760/month. So by the end of the year you're losing the whole year's commissions for two out of five sales to that debt.

Something to think about.

Your example is whack. Your math is 4th grade.

"what about 11-12 months down road"
well I'll tell you, 11-12 months down the road you are paying 1% on 1-2 months of a descending advance balance of your commish. Using your example at $125/mo premium at 22% commish thats $27.50 per month. 1% of that is $0.27
Total advance is $330.00

Month 1 12 X $.27 = $3.24
Month 2 11 X $.27 = $2.97
Month 3 10 X $.27 = $2.70
Month 4 9 X $.27 = $2.43
Month 5 8 X $.27 = $2.16
Month 6 7 X $.27 = $1.89
Month 7 6 X $.27 = $1.62
Month 8 5 X $.27 = $1.35
Month 9 4 X $.27 = $1.08
Month 10 3 X $.27 = $0.81
Month 11 2 X $.27 = $0.54
Month 12 1 X $.27 = $0.27

Total finance charges for the advance are:
$21.06

21.06/330 = .06381 or in laymans terms 6.381% the APR is 6.381%
about half of your 12% claim so yeah, I agree that you are a dolt. You opened your mouth too soon without thinking it through. There are too many 'slick' guys like this in our field and not enough nerds that actually do math. I hope for the public's sake you do not sell annuities. I'd like to sit in on that preso. Hack.

Look at the situation from the agent's standpoint. How many Commish points are you giving up if you take advances.

Let's see.
$330 advance - $21.06 finance charge = $308.94 net FYC

$125/mo premium X 12months = $1,500 AP

308.94/1500 = .20596 or in laymans terms 20.6%

So then...
22% (original commish) - 20.6% (net commish w/ adv) = 1.4%

The agent is giving up 1.4% of his (first year ONLY) commish by taking an advance.

So when you say "So by the end of the year you're losing the whole year's commissions for two out of five sales to that debt." You do now realize that that statement is a fraud? How could you believe that?

I really really want to see you sell an annuity with a bonus.

 

[G.Gordon]

I'll give you the fact that I didn't account for the decending balance of "each" policy and used the whole advanced commission in later months.

Good example.

 

[HarryRenard]

I must say that 1.4% is a lot closer to 1% (which i said) than it is 12%. So yes not only is yoda a DOLT but you are to my friend.

 

[Yoda]

FOCUS LTC SAID- " Your example is whack. Your math is 4th grade.

"what about 11-12 months down road"
well I'll tell you, 11-12 months down the road you are paying 1% on 1-2 months of a descending advance balance of your commish. Using your example at $125/mo premium at 22% commish thats $27.50 per month. 1% of that is $0.27
Total advance is $330.00

Month 1 12 X $.27 = $3.24
Month 2 11 X $.27 = $2.97
Month 3 10 X $.27 = $2.70
Month 4 9 X $.27 = $2.43
Month 5 8 X $.27 = $2.16
Month 6 7 X $.27 = $1.89
Month 7 6 X $.27 = $1.62
Month 8 5 X $.27 = $1.35
Month 9 4 X $.27 = $1.08
Month 10 3 X $.27 = $0.81
Month 11 2 X $.27 = $0.54
Month 12 1 X $.27 = $0.27

Total finance charges for the advance are:
$21.06
_____________________________________________

You do know that I'm going to take your "proposal' er I mean your bogus figures you have there and chew them up and spit them out dont ya?........Its agents like you that have made a lot of insurance companies frown on agents using "proposals" these days. Agents like yourself will take those "proposals" and fill them up with a bunch of numbers and false assumptions and twist the numbers around so much it looks like people will be able to buy their own nuclear powered aircraft carrier when they cash out. Your figures are so messed up I dont know where to start. We will get back to you on this!.

 

[retread]

FOCUS LTC SAID- " Your example is whack. Your math is 4th grade.

"what about 11-12 months down road"
well I'll tell you, 11-12 months down the road you are paying 1% on 1-2 months of a descending advance balance of your commish. Using your example at $125/mo premium at 22% commish thats $27.50 per month. 1% of that is $0.27
Total advance is $330.00

Month 1 12 X $.27 = $3.24
Month 2 11 X $.27 = $2.97
Month 3 10 X $.27 = $2.70
Month 4 9 X $.27 = $2.43
Month 5 8 X $.27 = $2.16
Month 6 7 X $.27 = $1.89
Month 7 6 X $.27 = $1.62
Month 8 5 X $.27 = $1.35
Month 9 4 X $.27 = $1.08
Month 10 3 X $.27 = $0.81
Month 11 2 X $.27 = $0.54
Month 12 1 X $.27 = $0.27

Total finance charges for the advance are:
$21.06
_____________________________________________

You do know that I'm going to take your "proposal' er I mean your bogus figures you have there and chew them up and spit them out dont ya?........Its agents like you that have made a lot of insurance companies frown on agents using "proposals" these days. Agents like yourself will take those "proposals" and fill them up with a bunch of numbers and false assumptions and twist the numbers around so much it looks like people will be able to buy their own nuclear powered aircraft carrier when they cash out. Your figures are so messed up I dont know where to start. We will get back to you on this!.

What's the holdup? Gotta take off your shoes to count?