Is FE worth it?

[Travis Price]

Medicare is just like p@c . You got t have it . But I really understand why Somarco doesn't sell mapd or pdp . It's 10 times the work of selling a medigap over time . But I assure you medigap will be under assault middle class down at a minimum. I was looking at United's mapd in Fla for 2022 . A ton of $2900 moop and 0/0 at the dr . That's huge competition for a $200 med sup plan

I wouldn't compare most states to FL, where they historically have really great MAPD plans.

Here in MI, we have a 4k+ MOoP. Primary doctor is 0, but specialists never are. Furthermore, you're still no solving the underlying issues:

Managed care
Networks

When you explain what Managed Care is and that they're favorite doctor can leave their plan OR the specialist they really want may not accept it, their tune changes.

I offer MAPD. I tell people up front I get paid more with MAPD vs MS, but if they care about freedom of choice when it comes to their care or doctors, MAPD isn't always the best choice.

Finally, HDG is always an option at 50$. I only get 144$ a year for three years, but what really matters is what the client wants.

 

[DonP]

I come back to every single American citizen was under a managed care model for most of their life .I've gotten 3-4 calls already for people in Med supps that want mapds during aep as they can't afford it any longer .

 

[Todd King]

I come back to every single American citizen was under a managed care model for most of their life .I've gotten 3-4 calls already for people in Med supps that want mapds during aep as they can't afford it any longer .

As many seniors have a tendency to say.

 

[Tahoe Ray]

Makes sense.

But the math on those are atrocious. It really would be better to invest the difference.

But who does that…

If the money is going into a bank account, it's still a good deal. 2-3% on ROP is not terrible if it's left as a bank/cash allocation.

 

[WinoBlues]

If the money is going into a bank account, it's still a good deal. 2-3% on ROP is not terrible if it's left as a bank/cash allocation.

The ROP is not taxed as it is a return of premuim.

Compulife used to have a calculator for ROP return.

*Caveat > These ROPs I am showing are older versions and the cost was lower. Far fewer options today and the cost is higher. I think this term was a lot sticker than anticipated.

 

[Allen Trent]

I think this term was a lot sticker than anticipated.

Nope. It is because the carrier could invest & make higher returns when those old policies were priced. Today, low interest rate is killing everything insurance related. But still a great tax free equivalent yield on ROP compared to bank money

 

[WinoBlues]

Nope. It is because the carrier could invest & make higher returns when those old policies were priced. Today, low interest rate is killing everything insurance related. But still a great tax free equivalent yield on ROP compared to bank money

There was a time that 30 ROP cost less than a 20 year ROP. I asked a couple of company reps why that was. I got pretty much the same answer. <I get that they were Co Reps> They said it is because there was more time and opportunity for the person to lapse. That the companies expected a certain percentage of lapse. They then get more premium, as the ROP cost more than straight term. True? Hell I don't know. But I used that When I was comparing ROP.

 

[DayTimer]

I think this term was a lot sticker than anticipated.

The companies thought folks would stop paying the premium, the company would convert the cash value to reduced paid up TERM, and eventually, they'd have again as much money from the term sales as they did with vanilla term.

But then folks showed they would pay for a term insurace that hhad value beyond protection. And then the companies did everything they could to make it almost unattractive.

Almost.

It is still an easy sale with the right type of prospect.

 

[WinoBlues]

I understand Bob a lot of people will say that they'll just put the money in the bank. I get it, I fully understand. I've got a plan that will give you all of your money back if you don't use it will also pay you a substantial amount of money if you wind up with mostly dead and if you unfortunately do die within the 30 year. It will give Susan enough money to be able to survive long enough for her to figure out what she needs to do whether it's keep the house, sell the house, keep the kids in their school or not. She'll have options.

Taking the risk from Susan and the kids and transferring it to the insurance company.

Live, die or something in between.