Lincoln Heritage Sells Block to NGL

[Newby]

I just read where Lincoln Heritage Life sold their entire block of Preneed Funeral Insurance to NGL. They said they are exiting the preneed funeral insurance entirely.

The marketing arm called Lincoln Heritage Funeral Planning is changing it's name to Precoa (Preneed Company of America.) Precoa has already began transitioning over to selling NGL policies. Jack Londen sold his ownership in Lincoln Heritage Funeral Planning to two other partners.

NGL has been considered the 2nd largest preneed insurance company (behind Homesteaders Life) and this move may have placed them in the #1 position.

 

[theinsuranceman]

I started to ask why, but then I realized it must not have been as profitable as they would like...or something like that.

 

[Newby]

I started to ask why, but then I realized it must not have been as profitable as they would like...or something like that.

Preneed is not profitable for companies that aren't fully focused on it. Monumental, Assurant, and now Lincoln Heritage have all dropped out completely in recent years. ForeThought has pulled way back.

NGL and Homesteaders seem to be the main companies that are agressively growing their marketshare.

 

[SKQuinn]

Preneed is not profitable for companies that aren't fully focused on it. Monumental, Assurant, and now Lincoln Heritage have all dropped out completely in recent years. ForeThought has pulled way back.

NGL and Homesteaders seem to be the main companies that are agressively growing their marketshare.

What LH sold to NGL has nothing to do with the independent agent selling FE. That is a whole different animal. These agents work for the funeral home, locking in funeral pricing. You'll be hard pressed to rewrite them because it's so tied into the funeral home pricing and actually guaranteeing them that those prices won't increase over time.

Stick to selling to people that don't have any protection at all, there are millions!

Happy selling!
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...just to add, Fortis is now Assurant, and Assurant preneed is underwritten by American Memorial, and all are in partnership with SCI.

 

[Newby]

What LH sold to NGL has nothing to do with the independent agent selling FE. That is a whole different animal. These agents work for the funeral home, locking in funeral pricing. You'll be hard pressed to rewrite them because it's so tied into the funeral home pricing and actually guaranteeing them that those prices won't increase over time.

Stick to selling to people that don't have any protection at all, there are millions!

Happy selling!
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...just to add, Fortis is now Assurant, and Assurant preneed is underwritten by American Memorial, and all are in partnership with SCI.

Yep! The point is, Lincoln Heritage sold their Preneed division off. And that has been a huge part of their business in the past. Not a great sign if the company's financials are strong.

Assurant Preneed was actually separate from American Memorial Preneed. Assurant had it's own Preneed product which is quite different than the American Memorial version that SCI funeral homes sell. But Assurant pulled out of that market quite a few years ago. They have since sold all those existing contracts to ForeThought.

They bought the entire American Memorial Company separately from SCI when SCI's stock tanked back in the early 2,000s.