Legacy from Senior Life. An alternative idea

[Newby]

Don't understand your question. She's a nonsmoker in this example. Of course if she is a smoker the rate would be higher.

You joined Sr Life a few weeks ago. You would have all the info you need to answer your question, right?

My point is a LOT of FE people smoke. That is my biggest hurdle with the Senior Life product. It is a very well rounded product with that one huge issue. The smoker rates are really really high. And that's the reason we didn't make it a main player like I thought we would.
I picked up the product based on the rates on FexQuotes. I had never had issues with them having incorrect rates before. But they were WAY off on the rates for Senior Life for smokers. I don't know if Adam fixed it or not I haven't checked it recently.
I like a lot of things about the product. And I like the people I've met there. It all looked pretty usable. But I don't understand how you can get over the smoker rate hurdle. You go from being in the ballgame on rates and in some cases even being low to really, really uncompetitive just based on smoking status. It might be more of an issue for me because I live 5-miles from Kentucky. There are no non-smokers in Kentucky. I think it's illegal there.
I understand there might be some adjustments to the product in the future. Possibly this is something that would be addressed. With the way your product is sold by presenting the value added stuff early in the presentation, it's hard to cut bait and change if you find out they smoke. And my mind is not wired to just plow through and sell them something they are not the right fit for.
I just checked. Adam (FexQuotes) still has the wrong rates for Senior Life Smokers. I pulled up a male age 67 smoker for $15,000 and FexQuotes shows $106.34 but the real rate would be $150.96. That's too large of a penalty in my mind for smoking. How do you get around that?

 

[theinsuranceman]

My point is a LOT of FE people smoke. That is my biggest hurdle with the Senior Life product. It is a very well rounded product with that one huge issue. The smoker rates are really really high. And that's the reason we didn't make it a main player like I thought we would.
I picked up the product based on the rates on FexQuotes. I had never had issues with them having incorrect rates before. But they were WAY off on the rates for Senior Life for smokers. I don't know if Adam fixed it or not I haven't checked it recently.
I like a lot of things about the product. And I like the people I've met there. It all looked pretty usable. But I don't understand how you can get over the smoker rate hurdle. You go from being in the ballgame on rates and in some cases even being low to really, really uncompetitive just based on smoking status. It might be more of an issue for me because I live 5-miles from Kentucky. There are no non-smokers in Kentucky. I think it's illegal there.
I understand there might be some adjustments to the product in the future. Possibly this is something that would be addressed. With the way your product is sold by presenting the value added stuff early in the presentation, it's hard to cut bait and change if you find out they smoke. And my mind is not wired to just plow through and sell them something they are not the right fit for.
I just checked. Adam (FexQuotes) still has the wrong rates for Senior Life Smokers. I pulled up a male age 67 smoker for $15,000 and FexQuotes shows $106.34 but the real rate would be $150.96. That's too large of a penalty in my mind for smoking. How do you get around that?

Thanks for a thorough answer. Seems like you could write the tobacco users with your other carriers and use super-preferred or GI for certain niches, like the other carriers are used for certain niches?

Just qualify with health questions/meds/tobacco before you share Legacy with them.

 

[theinsuranceman]

Remember, if co. A is $50 per month cheaper than SL:

_And the client dies on day one of policy being issued Co. A only saved Ms. Jones $50. On the other hand SL bundled with Legacy saved Ms. Jones approx. $4000-$5000 (that's the discount on the casket, vault, and monument)!

_If Ms. Jones passes away 1 year later Co. A saves Ms. Jones $600 ($50 x 12 months). On the other hand SL bundled with Legacy saved Ms. Jones approx. $4000-$5000 (plus whatever inflation over 12 months added) (discounts on the casket, vault, and monument)

_If Ms. Jones passes away 5 years later Co. A saves Ms. Jones $3000 ($50 x 12 months x 5 years). On the other hand SL bundled with Legacy saves Ms. Jones approx. $4000-$5000 PLUS another $800-$1000 due to inflation...using 3 % inflation rate with the rule of 72!

We're also not counting discounts on diabetic socks, diabetic shoes, hearing aids, free annual hearing exam, and Legacy negotiating the price of the burial or cremation with the funeral home on behalf of the family.

And we're not even counting that she can have up to 4 other family members added to her membership, completely free, so they can also get the exact same discounts themselves.

So value to Ms. Jones is not just cheaper premium.

 

[rousemark]

Remember, if co. A is $50 per month cheaper than SL:

_And the client dies on day one of policy being issued Co. A only saved Ms. Jones $50. On the other hand SL bundled with Legacy saved Ms. Jones approx. $4000-$5000 (that's the discount on the casket, vault, and monument)!

_If Ms. Jones passes away 1 year later Co. A saves Ms. Jones $600 ($50 x 12 months). On the other hand SL bundled with Legacy saved Ms. Jones approx. $4000-$5000 (plus whatever inflation over 12 months added) (discounts on the casket, vault, and monument)

_If Ms. Jones passes away 5 years later Co. A saves Ms. Jones $3000 ($50 x 12 months x 5 years). On the other hand SL bundled with Legacy saves Ms. Jones approx. $4000-$5000 PLUS another $800-$1000 due to inflation...using 3 % inflation rate with the rule of 72!

We're also not counting discounts on diabetic socks, diabetic shoes, hearing aids, free annual hearing exam, and Legacy negotiating the price of the burial or cremation with the funeral home on behalf of the family.

And we're not even counting that she can have up to 4 other family members added to her membership, completely free, so they can also get the exact same discounts themselves.

So value to Ms. Jones is not just cheaper premium.

Preferred Rate for $15,000 on a 65 year old female smoker?

 

[theinsuranceman]

Preferred Rate for $15,000 on a 65 year old female smoker?

Smokers don't get preferred rates, they get standard rates. Preferred is sorta like a non tobacco rate.

 

[rousemark]

Smokers don't get preferred rates, they get standard rates. Preferred is sorta like a non tobacco rate.

OK. FEXquotes shows 80.64 for smokers preferred, and $99.96 for Standard. In fact, just checked again and they are showing the same rates for tobacco user and non tobacco on the Ultimate Preferred, the Super Preferred, the preferred and the Standard. he Modified and GI also show the same rates for both tobacco and nontobacco.

 

[theinsuranceman]

OK. FEXquotes shows 80.64 for smokers preferred, and $99.96 for Standard. In fact, just checked again and they are showing the same rates for tobacco user and non tobacco on the Ultimate Preferred, the Super Preferred, the preferred and the Standard. he Modified and GI also show the same rates for both tobacco and nontobacco.

Newby found an error on FEXquotes. You just found several more errors on FEXquotes.

 

[rousemark]

Newby found an error on FEXquotes. You just found several more errors on FEXquotes.

That is just one age.. I would assume it runs true at all ages..

 

[myinsurebiz]

Remember, if co. A is $50 per month cheaper than SL:

_And the client dies on day one of policy being issued Co. A only saved Ms. Jones $50. On the other hand SL bundled with Legacy saved Ms. Jones approx. $4000-$5000 (that's the discount on the casket, vault, and monument)!

_If Ms. Jones passes away 1 year later Co. A saves Ms. Jones $600 ($50 x 12 months). On the other hand SL bundled with Legacy saved Ms. Jones approx. $4000-$5000 (plus whatever inflation over 12 months added) (discounts on the casket, vault, and monument)

_If Ms. Jones passes away 5 years later Co. A saves Ms. Jones $3000 ($50 x 12 months x 5 years). On the other hand SL bundled with Legacy saves Ms. Jones approx. $4000-$5000 PLUS another $800-$1000 due to inflation...using 3 % inflation rate with the rule of 72!

We're also not counting discounts on diabetic socks, diabetic shoes, hearing aids, free annual hearing exam, and Legacy negotiating the price of the burial or cremation with the funeral home on behalf of the family.

And we're not even counting that she can have up to 4 other family members added to her membership, completely free, so they can also get the exact same discounts themselves.

So value to Ms. Jones is not just cheaper premium.

$50 monthly is huge.

The problem I have with Legacy is that there is no guarantee of service.

10 years from now they could be bankrupt or insolvent . . .

 

[theinsuranceman]

$50 monthly is huge.

The problem I have with Legacy is that there is no guarantee of service.

10 years from now they could be bankrupt or insolvent . . .

Think of it as you would a term life insurance policy. As long as you're paying that $4 monthly Legacy membership fee you get all the savings mentioned above in post #53 and you also have 4 family members enjoying these savings completely free.

When you purchase a term life policy you also have no guarantee you'll use it either. But as long as you're paying that monthly premium you're covered.