Mass Mutual's The Latest To Join The T.V. GI Crowd

[gymguy]

From an adverse selection point of view, I can easily see how a GI direct to consumer (no agent) would be highly profitable. You would indeed have a portion of the policy base who are healthy. If an agent were to speak to these healthy people, they would not place them with the GI product (rightfully so). Not having to pay FYC, and acquiring healthy clients mixing with the real GI people, it shouldn't be hard at all for them to make good money doing it that way. Hell I would even go further and say that GI people probably stay on the books for less time than healthy FE people, so they wont even be paying a claim on those who lapse. Seems like an utra win win for the carrier doing it this way.

 

[scagnt83]

GUL has guarantees just like WL as long as you pay the premium. The only difference is no cash value. It is a good product for someone just interested in death benefit. How do you explain that to be inferior? I would sell it all day long if a company offered the product in small face amounts.

Mutual of Omaha has a SI GUL that goes down to $25k.

 

[pcbinsurance]

MM says they won't be using agents but they should have said "independent agents" as those in Call Centers have to be licensed as agents.

 

[scagnt83]

He bought an inferior product to what you sold him. Surely you can go back and explain that?

BS. I would bet that ML has much better financial ratings than the FE carrier that was sold. And GUL is every bit as guaranteed as a WL is. Higher quality carrier and lower premiums... yeah that guy got screwed...

 

[sirherbie]

I was about to say a Gul puts Fe whole life to shame. I Run rough shot with sagicors Gul on healthy people that can pay sometimes giving twice the face for the same premium. There's that jd negativity I spoke of

 

[scagnt83]

MM says they won't be using agents but they should have said "independent agents" as those in Call Centers have to be licensed as agents.

Dont forget the career agents that they are skipping over as well.

The way they set these things up is that the people selling the policy over the phone are employees who are hired as staff under an internal agency that the carrier sets up. Those staff do not have to be licensed as long as they are paid a salary or hourly, receive no commissions, and are under the supervision of a licensed agent. So they can have 1 licensed agent who is managing a team of 10 or 15 telesales people. The product is likely built with zero commissions paid... or those supervising agents receive a very small commission as a performance bonus on top of their normal salary.

 

[GreenSky]

He bought an inferior product to what you sold him. Surely you can go back and explain that?

I don't have a life insurance background but assuming the premiums are paid, why is a GUL inferior to a WL? FE isn't sold as a savings account, is it?

Rick

 

[Gooner]

I don't have a life insurance background but assuming the premiums are paid, why is a GUL inferior to a WL? FE expense isn't sold as a savings account, is it? Rick

That's a big ole ASSume...I wonder how many of these mail card responders never miss a payment???

 

[Jack B]

That's a big ole ASSume...I wonder how many of these mail card responders never miss a payment???

Even if they miss payment, if they pay back what they missed, they are still guaranteed.

 

[GreenSky]

That's a big ole ASSume...I wonder how many of these mail card responders never miss a payment???

I haven't a clue since I've written about 4 FE policies in my life. But why is the PRODUCT inferior? Couldn't it be structured at a slightly higher payment to build a bit of cash to allow for a missed payment?

Rick