Looking to Buy Your FE Plans - Prevent Chargebacks to Agent

[hfa8802]

As the Agent you would want to try and save the policy so you keep it in your portfolio. If the client still does not want the policy and wants to stop paying and let it lapse then give them an option to sell the policy with the possibility of getting some cash for it.

 

[rousemark]

As the Agent you would want to try and save the policy so you keep it in your portfolio. If the client still does not want the policy and wants to stop paying and let it lapse then give them an option to sell the policy with the possibility of getting some cash for it.

Plus, the agent still receives commissions in the future.

 

[tikibarrister]

Plus, the agent still receives commissions in the future.

I read above the agent still gets commission if the policy is bought.

If so, wouldn't it be in the agent's best interest for the policy to be bought? Guaranteed renewals.

 

[rousemark]

I read above the agent still gets commission if the policy is bought.

If so, wouldn't it be in the agent's best interest for the policy to be bought? Guaranteed renewals.

True.. the policy stays in force with a new owner and payor..

 

[WinoBlues]

I read above the agent still gets commission if the policy is bought.

$2-4. mo

 

[rousemark]

$2-4. mo

During the first year would be more than that.. I was struggling to understand how they come out buying contestable polices other than the fact the great majority of deaths do not occur during the first two years.. Then, it dawned on me,if contested and rescinded they do get all the premiums back , including the amount paid by the insured. Therefore, their exposure on contestable policies would not be all that great..

 

[WinoBlues]

During the first year would be more than that.. I was struggling to understand how they come out buying contestable polices other than the fact the great majority of deaths do not occur during the first two years.. Then, it dawned on me,if contested and rescinded they do get all the premiums back , including the amount paid by the insured. Therefore, their exposure on contestable policies would not be all that great..

OK, so Elmer, age 66, is going to lapse six months in, $140mo premium. He sells this policy to them. 20 months into the policy he walks in and finds Bertha Mae bumping boots with their brother Jed. He gets so mad he has an aneurism and dies. The company finds out that he really was doggone athiest and resind his policy.

So, the Settlement company gets 20 months of tax-free premium back. The agent gets a chargeback. Which he was going to get anyway.

Ok, Ok, So lets say I sell Elmer this $140mo policy. The second premium comes due. He sells it to the Settlement company and gets his $500. I sell him a smaller policy and get both commissions. Oh, and I buy their brother Jed a sheep.

Sassy Attitude GIF by Baby Ariel - Find & Share on GIPHY

 

[rousemark]

OK, so Elmer, age 66, is going to lapse six months in, $140mo premium. He sells this policy to them. 20 months into the policy he walks in and finds Bertha Mae bumping boots with their brother Jed. He gets so mad he has an aneurism and dies. The company finds out that he really was doggone athiest and resind his policy.

So, the Settlement company gets 20 months of tax-free premium back. The agent gets a chargeback. Which he was going to get anyway.

Ok, Ok, So lets say I sell Elmer this $140mo policy. The second premium comes due. He sells it to the Settlement company and gets his $500. I sell him a smaller policy and get both commissions. Oh, and I buy their brother Jed a sheep.

Sassy Attitude GIF by Baby Ariel - Find & Share on GIPHY

Doubt, they are going to offer $500 for a one month old plan.. more like $50.. If you stay away from the KKKSJs you don't have to worry about the first scenario.

 

[goillini52]

OK, so Elmer, age 66, is going to lapse six months in, $140mo premium. He sells this policy to them. 20 months into the policy he walks in and finds Bertha Mae bumping boots with their brother Jed. He gets so mad he has an aneurism and dies. The company finds out that he really was doggone athiest and resind his policy.

So, the Settlement company gets 20 months of tax-free premium back. The agent gets a chargeback. Which he was going to get anyway.

Ok, Ok, So lets say I sell Elmer this $140mo policy. The second premium comes due. He sells it to the Settlement company and gets his $500. I sell him a smaller policy and get both commissions. Oh, and I buy their brother Jed a sheep.

Sassy Attitude GIF by Baby Ariel - Find & Share on GIPHY

Is Jed Elmer's brother...or Bertha Mae's brother?

 

[goillini52]

If you stay away from the KKK's you don't have to worry about the first scenario.

You just had to bring race into the discussion.