- Thread starter
- #11
tribetime32
Guru
- 377
For the record this product is in Ohio, Indiana, Texas, New Mexico, California and there are a handful of southern states that are in the works but no official word yet. I've had a few folks reach out.
Lost my AIG contract and I’m not even mad about it...
- Thread starter tribetime32
- Start date
marc82much
Super Genius
- 240
If you are sued as a result of a "pre-need" transaction, will your E&O respond?
- 16,905
It depends on if your suit has to do with the life insurance portion of the pre-need or the funeral contract portion. Your e&o covers the life insurance.
The only time I’ve seen agents get sued over pre-needs is when they got way to aggressive with Medicaid planning. The NGL version of this product allowed up to $50,000 without actually selecting any funeral merchandise on their Estate Planning Trust. I’ve seen that blow up a couple of times.
The product he is describing in this thread sounds like one where they have several funeral packages that they choose from and are only allowed to choose one of those amounts. The policy is only written to match those funeral amounts. There has to be one funeral home provider that’s signs off on these in each state. That’s why they are slow to add additional states. The funeral home has to agree to service them all over the state. It’s cumbersome for the provider but they do it with independent embalmers and delivery services and hold the funeral at churches and VA centers rather than funeral homes.
Like all PreNeed policies the client can transfer the insurance coverage to the funeral home of their choice BUT if they do that they lose the price guarantee IF the policy is written on low prices and the growth is too low. At that point they just bought a WAY overpriced GI life insurance policy.
These are an alternative to AIG GI and the commission % is of course huge. But I don’t see them as a main GI product for FE agents. I’m not sure why agents who lose their AIG don’t just sell Gerber.
- 5,795
Gerber appears to be sub-par on commissions... wondering if you have another reason you lean that direction?
- 16,905
Ease of working with them. Name recognition. Premiums way lower than the other options brokers are able to sell.
- 5,795
I understand the above, but it just doesn't make sense for a 20% hit at the moment.
- 3,994
American general has horrible persistency, terrible customer service, clueless agent support, and when I was using them their application crashed more times than I did as a teenager driving.
by terrible persistency I mean they just didn’t even draft some payments you can’t blame the client for that.
by terrible persistency I mean they just didn’t even draft some payments you can’t blame the client for that.
- Thread starter
- #20
tribetime32
Guru
- 377
I'd much rather use this product than any GI product for sure.
