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Fraternal Benefits are never guaranteed. They are like dividends. They are expected to be there but if the going gets rough, they would be cut.
Lincoln Heritage
- Thread starter mswebb06
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Fraternal Benefits are never guaranteed. They are like dividends. They are expected to be there but if the going gets rough, they would be cut.
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Death benefits not being protected by the Guaranty Association is the main reason I sell policies over certificates. This just adds another reason.
Back to beating on LH. I rarely run into them and I live in the middle of Golden Memorial country. I replace more RNA and Foresters policies than LH.
I appreciate the response. I assume you recruit to RNA. Your honesty is refreshing. Thanks
Exactly, another word is called REBATING and it is illegal in almost every State.
If it is not a separate cost, it is then a rebated plan to be returned to the customer as an enticement to buy and that is defined as REBATING, plain and simple.
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Actually it is called an inducement which is illegal in almost every state .. possibly even those that allow rebating.
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I will buy!!!! 
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Lee,
Haven't heard of anyone replacing RNA on a regular basis until now. What do you replace these policies with?
Andy
When replacing certificates with policies how do you represent/mention the State Guarantee Fund as a benefit w/o actually selling it as a benefit or inducement...? Mentioning the Fund as a benefit is a violation, isn't it...?
Actually, there is little difference other than when the gifting is made. An inducement is the giving of something of value in order to encourage a person to buy. A rebate is the giving of something of value after the purchase in order to reward then for having bought.
This article gives a good example of the difference. It applies to Mass but the terminology is the same throughout the states even though there are a couple of states that allow rebating as long as it is not done on a selective basis.
http://www.massagent.com/info/maaugust302012.pdf
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I do not regularly replace RNA. I replace them more than LH because I run into them more than LH. I just do not run into LH as much as you guys do. May be the income levels leads are generated from. I think LH sells the lower end of income. Most times I come out with more face and premium than they had before.
When I go in I am normally invited in. They have asked me to review their policies off of a referral from a family member or friend that is a client of mine. So I come in more as an advisor than a guy calling off of a lead. So the trust level is much higher.
I explain that they have a certificate that is much more like a group or association plan than policy issued by an admitted Life Insurance company. Sometimes we call the Fraternal and ask them the questions. I prefer to hang people with their own rope. None of this is much different than how people replace LH, Primerica or AARP.
A bigger part of it is I believe a policy is superior to a certificate. Part of this came from an old post by, I think, Newby RE Oxford being a policy vs a fraternal. Same as some agents believe an A- rated company is superior to a B++ rated company. Most of what I have learned about SIWL I got from this forum. My FE market is just a little different than the lead card fillers.
Having grown up, in the business, through the UL imploding days. Guarantees are a big deal to me. I normally compare guarantees.
We hear of agents replacing policies over $3-5 a month, that is not me. But I will replace over guarantees though.
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