Lincoln Heritage

[Newby]

So those benefits are not guaranteed?

I do not really sell either certificate and do not feel the benefits are much. But seems that some agents have referred to them as a reason to buy from one of these Fraternals.

Thanks,

Lee

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.

 

[WinoBlues]

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.

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

 

[TwiLight]

Right but the point is, the FCGS cost $350 if the they buy it. Lincoln Heritage throws it in for free but ONLY if they purchase insurance from LH.

How is that any different from any other enticement? It gets them to focus on the free gift and not be as aware of the cost of the insurance.

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.
.

 

[rousemark]

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.
.

Actually it is called an inducement which is illegal in almost every state .. possibly even those that allow rebating.

 

[Todd King]

I think rebating would have to involve actual cash or something that could readily be turned into cash.

 

[paige23]

I will buy!!!!

 

[seeknulfind]

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

Lee,

Haven't heard of anyone replacing RNA on a regular basis until now. What do you replace these policies with?

Andy

 

[SportsNut]

Death benefits not being protected by the Guaranty Association is the main reason I sell policies over certificates.

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...?

 

[rousemark]

I think rebating would have to involve actual cash or something that could readily be turned into cash.

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

 

[WinoBlues]

lee,

haven't heard of anyone replacing rna on a regular basis until now. What do you replace these policies with?

Andy

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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...?

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.