Graded/GI options

[Rirwin]

I didn't know UHL took
Chf as modified and full comp. is there any other companies that is recommended for CHF outside of GI?

 

[HoosierLife]

I didn't know UHL took
Chf as modified and full comp. is there any other companies that is recommended for CHF outside of GI?

For CHF? Baltimore Life will do 25/50% graded. Aetna will do 40/85% graded. Both at full comp.

Great Western will take it level after 2 years with no change in medication. But they will push it modified for hypertension. So somebody would have to ONLY have CHF to qualify.

 

[mudhound]

Loves me some Settlers Life in these cases. Bronze
However, They are picky about writing too much of it.
Yep, I have a close friend who lost his contract over it. Dang! I hate that!

 

[Jon Dough]

Once the thread goes on this far, its very hard to tell which carrier is referred to

So there really is NOT a carrier that is great at both Graded and GI Correct?

AIG and UHL are good choices for Graded correct?

And for GI just try to get a better contract correct?

 

[Todd King]

Once the thread goes on this far, its very hard to tell which carrier is referred to

So there really is NOT a carrier that is great at both Graded and GI Correct?

AIG and UHL are good choices for Graded correct?

And for GI just try to get a better contract correct?

Just so you understand about Gerber. The highest you will ever find when writing your own business is 60%. I like AIG better and it pays 80% with less chargeback rules.

 

[FinalExpenseDojo.com]

Once the thread goes on this far, its very hard to tell which carrier is referred to

So there really is NOT a carrier that is great at both Graded and GI Correct?

AIG and UHL are good choices for Graded correct?

And for GI just try to get a better contract correct?

AIG is GI. You can get a street contract anywhere at 80% & 6-month advance.
UHL only has 1 or 2 easy questions so it's basically GI. Problem with this product is they won't like for you to only sell it & not their other Level SIWL plan & there are a lot better products out there.

 

[HoosierLife]

Once the thread goes on this far, its very hard to tell which carrier is referred to

So there really is NOT a carrier that is great at both Graded and GI Correct?

AIG and UHL are good choices for Graded correct?

And for GI just try to get a better contract correct?

I think there may still be confusion. Mostly because of carriers calling their modified policies graded.

So here goes nothing.

All Guarantee Issue policies are modified. This means that the beneficiary would only receive a death benefit equal to what they've paid in plus interest. Usually ROP + 10%. Usually this ROP period lasts for 2 years. These are the policies with the 2 year waiting period.

All GI policies have 0 health questions. Or should to be considered guarantee issue. GI policies also come with an extra stipulation toward the agent, such as if the client dies in Year 1 the agent gets charged back 100% of their commission, Year 2 50%. Which is why many agents prefer to write non-GI modified policies.

Non-GI Modified policies ask limited health questions and do not come with the chargeback exposure for death.. UHL has one where it pays ROP +12/24% years 1 and 2. Lincoln Heritage has one ROP 10/20%. Foresters, Aetna, LBL and many others have modified policies that usually pay out ROP +10%.

Then you have carriers like SNL and MoO who offer modified policies, but CALL them Graded. They are not truly graded.

Real Graded policies do not pay out the premiums paid in + %, but a % of the face amount. Take RNA, Foresters or Prosperity; they all pay 30/70/100% in years 1, 2 and 3. So if a client had a $10,000 policy it would pay out $3000 Year 1, $7000 Year 2 and then after 24 months the full face amount.

That's a real Graded policy. Now many Graded and Modified policies pay out full comp or near full comp, like UHL, Baltimore, Aetna, Foresters, SNL etc. Some pay full comp on graded, but reduce it for modified. Some are so liberal in the modified/graded UW, that we call them Near-GI.

If an agent can place a prospect with a Near-GI that is graded, then everyone wins. Agent gets higher comp, client gets more coverage and the insurance carrier has built in enough premium to cover claims.

Any questions?

 

[goillini52]

I think there may still be confusion. Mostly because of carriers calling their modified policies graded.

So here goes nothing.

All Guarantee Issue policies are modified. This means that the beneficiary would only receive a death benefit equal to what they've paid in plus interest. Usually ROP + 10%. Usually this ROP period lasts for 2 years. These are the policies with the 2 year waiting period.

All GI policies have 0 health questions. Or should to be considered guarantee issue. GI policies also come with an extra stipulation toward the agent, such as if the client dies in Year 1 the agent gets charged back 100% of their commission, Year 2 50%. Which is why many agents prefer to write non-GI modified policies.

Non-GI Modified policies ask limited health questions and do not come with the chargeback exposure for death.. UHL has one where it pays ROP +12/24% years 1 and 2. Lincoln Heritage has one ROP 10/20%. Foresters, Aetna, LBL and many others have modified policies that usually pay out ROP +10%.

Then you have carriers like SNL and MoO who offer modified policies, but CALL them Graded. They are not truly graded.

Real Graded policies do not pay out the premiums paid in + %, but a % of the face amount. Take RNA, Foresters or Prosperity; they all pay 30/70/100% in years 1, 2 and 3. So if a client had a $10,000 policy it would pay out $3000 Year 1, $7000 Year 2 and then after 24 months the full face amount.

That's a real Graded policy. Now many Graded and Modified policies pay out full comp or near full comp, like UHL, Baltimore, Aetna, Foresters, SNL etc. Some pay full comp on graded, but reduce it for modified. Some are so liberal in the modified/graded UW, that we call them Near-GI.

If an agent can place a prospect with a Near-GI that is graded, then everyone wins. Agent gets higher comp, client gets more coverage and the insurance carrier has built in enough premium to cover claims.

Any questions?

Yes, but I forgot what they were.

Good explanation.

 

[Rirwin]

I think there may still be confusion. Mostly because of carriers calling their modified policies graded.

So here goes nothing.

All Guarantee Issue policies are modified. This means that the beneficiary would only receive a death benefit equal to what they've paid in plus interest. Usually ROP + 10%. Usually this ROP period lasts for 2 years. These are the policies with the 2 year waiting period.

All GI policies have 0 health questions. Or should to be considered guarantee issue. GI policies also come with an extra stipulation toward the agent, such as if the client dies in Year 1 the agent gets charged back 100% of their commission, Year 2 50%. Which is why many agents prefer to write non-GI modified policies.

Non-GI Modified policies ask limited health questions and do not come with the chargeback exposure for death.. UHL has one where it pays ROP +12/24% years 1 and 2. Lincoln Heritage has one ROP 10/20%. Foresters, Aetna, LBL and many others have modified policies that usually pay out ROP +10%.

Then you have carriers like SNL and MoO who offer modified policies, but CALL them Graded. They are not truly graded.

Real Graded policies do not pay out the premiums paid in + %, but a % of the face amount. Take RNA, Foresters or Prosperity; they all pay 30/70/100% in years 1, 2 and 3. So if a client had a $10,000 policy it would pay out $3000 Year 1, $7000 Year 2 and then after 24 months the full face amount.

That's a real Graded policy. Now many Graded and Modified policies pay out full comp or near full comp, like UHL, Baltimore, Aetna, Foresters, SNL etc. Some pay full comp on graded, but reduce it for modified. Some are so liberal in the modified/graded UW, that we call them Near-GI.

If an agent can place a prospect with a Near-GI that is graded, then everyone wins. Agent gets higher comp, client gets more coverage and the insurance carrier has built in enough premium to cover claims.

Any questions?

Well said. For new agents this really can get confusing. I don't know your thoughts on this, but I've always thought a new agent should find 3 carriers and work with them initially. Even though it may not be what's best for the customer in every situation, it'll help you in the big picture.

Seems like to many new agents look to pick up a new carrier for every customer and it causes confusion and chaos for them but even worse they lose sales by over analyzing!

 

[Jon Dough]

I think there may still be confusion. Mostly because of carriers calling their modified policies graded.

So here goes nothing.

All Guarantee Issue policies are modified. This means that the beneficiary would only receive a death benefit equal to what they've paid in plus interest. Usually ROP + 10%. Usually this ROP period lasts for 2 years. These are the policies with the 2 year waiting period.

All GI policies have 0 health questions. Or should to be considered guarantee issue. GI policies also come with an extra stipulation toward the agent, such as if the client dies in Year 1 the agent gets charged back 100% of their commission, Year 2 50%. Which is why many agents prefer to write non-GI modified policies.

Non-GI Modified policies ask limited health questions and do not come with the chargeback exposure for death.. UHL has one where it pays ROP +12/24% years 1 and 2. Lincoln Heritage has one ROP 10/20%. Foresters, Aetna, LBL and many others have modified policies that usually pay out ROP +10%.

Then you have carriers like SNL and MoO who offer modified policies, but CALL them Graded. They are not truly graded.

Real Graded policies do not pay out the premiums paid in + %, but a % of the face amount. Take RNA, Foresters or Prosperity; they all pay 30/70/100% in years 1, 2 and 3. So if a client had a $10,000 policy it would pay out $3000 Year 1, $7000 Year 2 and then after 24 months the full face amount.

That's a real Graded policy. Now many Graded and Modified policies pay out full comp or near full comp, like UHL, Baltimore, Aetna, Foresters, SNL etc. Some pay full comp on graded, but reduce it for modified. Some are so liberal in the modified/graded UW, that we call them Near-GI.

If an agent can place a prospect with a Near-GI that is graded, then everyone wins. Agent gets higher comp, client gets more coverage and the insurance carrier has built in enough premium to cover claims.

Any questions?

Yes

So I should have a general line, vanilla carrier---good rates, easy app (good for the client AND the agent) good commission rates, I have that

And a GI carrier--I have that--with Gerber.

What I am hearing (I think) is its good to have a third in the mix for those hard to underwrite but dont have to go all the way to GI. I USED to use Transamerica, but I got sick to death of the 178 page application--way too many ways to make a mistake and it ticked off the clients. (HOW LONG can this TAKE?)

So to sum the feedback I am getting is--replace Gerber with AIG? Correct?

And for the middle one for Graded/Modified (yes I did not realize there was a difference but I do now)--whats a good bet? Or is there one that does Graded/Mod AND GI?