Lafayette Simplified Issue Product Changes

[Rearden]

Effective tomorrow:

Changes to the Protector Series
We have modified our non-dividend-paying Protector Series for Simplified Issue and Graded Death Benefits. Please check the Protector 15 Agent Guide on the Agent Website for updated rates, product information, and a new commission schedule. The current Protector portfolio will remain available for sale in California until state approval is obtained.

A quick review of the changes:

1) No more paid-up plans being offered for the non-med simplified issue product; they were the most competitively-priced for a while and it's a shame to see them get rid of it.

2) Pricing has increased roughly 25% across the board - no way to write them as a price-buster any more.

3) No change in prescription hit list - still very restrictive.

Thought I'd give the few of you guys a head's up the write the occasional Lafayette Life plan, as they have been a favored price-buster for me, in addition to using them for the paid-up plans.

...To the dustbin of FE history!

 

[Mattschmidt]

what a shame. They had a great product for the healthy

 

[Newby]

what a shame. They had a great product for the healthy

Still have the Heritage. Rates on it aren't going up. Actually going down. On larger cases anyway. If they are really healthy.

Not exactly FE material but it does go all the way down to $5,000 policy size unless that changes.

 

[The Admiral]

Lafayette's consumer website no longer has any information about the Protector Series Whole Life products. Anyone know why?

How about posting the rates?

 

[Rearden]

Lafayette Protector pricing is close to Aetna Level pricing.

As previously stated, rather pointless now to write.

 

[Newby]

Lafayette's consumer website no longer has any information about the Protector Series Whole Life products. Anyone know why? How about posting the rates?

The revamped product will be on there tomorrow. Like Dave is saying, Protector won't be priced low anymore. If agents use Lafayette they will likely use the Heritage product which is fully underwritten not FE.

 

[Rearden]

The revamped product will be on there tomorrow. Like Dave is saying, Protector won't be priced low anymore. If agents use Lafayette they will likely use the Heritage product which is fully underwritten not FE.

Scott, I know you've wrote for Lafayette for a while; why did they pull out of Final Expense?

My persistency is fantastic with them; just wondering why they'd pull out so quick.

 

[GoPokes]

Well that sucks. Was supposed to meet with a guy later this week to write him on the protector, solely because of the price, I was able to beat his aarp conversion price they offered him

 

[Rearden]

Well that sucks. Was supposed to meet with a guy later this week to write him on the protector, solely because of the price, I was able to beat his aarp conversion price they offered him

Take a look at:

1) Standard Life and Casualty, or,
2) Oxford Life's cousin company Christian Fidelity.

Both are price-busters.

 

[Newby]

Scott, I know you've wrote for Lafayette for a while; why did they pull out of Final Expense? My persistency is fantastic with them; just wondering why they'd pull out so quick.

I've been using them for over 10 years and will definitely miss the low rates on the Protector plan.

Only they know the reason for the rate increase for sure. Could be bad claims experience. But I suspect that they have quite a bit of culture shock interacting with many FE agents and probably many FE policy holders too. They have been hinting that it was coming for a long time. It's not a knee jerk reaction.

The price leaders all eventually raise prices. Settlers was very low at one time. Oxfords rates were once the same as Christian Fidelity's are today. RNA was much lower. 5-Star just recently increased. ForeThought was priced low and eventually dropped out of the biz. Foresters raised premiums, tightened underwriting plus dropped fraternal benefits a couple of years ago. If I remember right, didn't even LH increase their premiums within the past few years? Not that LH was ever a price leader.

You just have to work with what is available currently and hope all your customers appreciate the low rates they got to lock in for life that aren't available anymore. Change always brings new opportunity.

Anyone want to place bets on what month Standard Life either tightens underwriting or raises rates? I'm just guessing but they have to be the next one.