Mutual of Omaha Accidental Death

[tlmarketing]

Has anyone had experience selling "Guaranteed Advantage Accidental Death Insurance" by Mutual of Omaha or any other company?

One of my agents approached me about generating leads for this type of market but I haven't worked with this type of product before

Let me know your thoughts. thanks

 

[pbbaseball]

i've got a buddy that sells quite a few to daycare workers. uses them when they can't pass underwriting, and since most are younger workers, are more worried about accidental death

 

[Newby]

i've got a buddy that sells quite a few to daycare workers. uses them when they can't pass underwriting, and since most are younger workers, are more worried about accidental death

What kind off accident is common to daycare workers? Are they babysitting Chuckie?

 

[SportsNut]

What kind off accident is common to daycare workers?

The accident occurs early and often in the daycare setting... # 2.

They have some gal named 'Pamper' that works in the claims dept.

 

[scagnt83]

Most of those daycare workers probably have no DI or regular LI... an Accidental Death policy is about the last thing they need.

Most daycare workers are under age 35.
That means they can get a $200k 20y term at Standard Rates for under $20/month for a 35yo woman.

Plus, even though young people worry about an accident and getting hurt. They are much more likely become disabled because of sickness. 75% of disabilities are due to sickness, especially in younger workers.


Accidental Death should usually only be bought after LI/DI/HI. Even then, if your LI is high enough an accidental death is pointless. A cancer policy or CI would probably be much more valuable to the average daycare worker.

 

[SportsNut]

Most of those daycare workers probably have no DI or regular LI... an Accidental Death policy is about the last thing they need.

Most daycare workers are under age 35.
That means they can get a $200k 20y term at Standard Rates for under $20/month for a 35yo woman.

Plus, even though young people worry about an accident and getting hurt. They are much more likely become disabled because of sickness. 75% of disabilities are due to sickness, especially in younger workers.


Accidental Death should usually only be bought after LI/DI/HI. Even then, if your LI is high enough an accidental death is pointless. A cancer policy or CI would probably be much more valuable to the average daycare worker.

All fundamentally sound financial planning advice. The only problem here is that the client base being discussed (daycare workers) are $ 8 - 10 per hr employees, and as such are not the most suseptible to implementing any of your recommendations, either out of $$$ or mentality. Best to find another class of employees for potential clients if you desire to sell something more than AD&D.

 

[scagnt83]

All fundamentally sound financial planning advice. The only problem here is that the client base being discussed (daycare workers) are $ 8 - 10 per hr employees, and as such are not the most suseptible to implementing any of your recommendations, either out of $$$ or mentality. Best to find another class of employees for potential clients if you desire to sell something more than AD&D.

I understand your point. And Im certainly not suggesting going after daycare workers as a demographic.

But how much does an AD&D cost? $10/month on average?

For $5 more per month you could get a much more comprehensive policy. Even at $10/hour that should be a no brainer.


Now the DI & HI is another story.

 

[tlmarketing]

What about for uninsurable clients as alternative to small face overpriced guaranteed issue? The clients pass on taking a guaranteed issue life policy due to high price/low face...he is thinking this might be alternative as it at least gives them something.

 

[scagnt83]

What about for uninsurable clients as alternative to small face overpriced guaranteed issue? The clients pass on taking a guaranteed issue life policy due to high price/low face...he is thinking this might be alternative as it at least gives them something.

If they have exhausted all other options then it might be of value.

But to say that a GI policy is "overpriced" for someone who is UNINSURABLE is not something I would consider accurate.


But the older they get the less value it will be for them statistically.
Once someone is in their 40s statistically disease has a greater chance of getting them. And that chance increases every year they get older (meaning the value of the ad&d decreases with every year).


Also, for someone who is uninsurable, the chances of dying of disease are much higher than the average person... so imo an ad&d policy is not nearly as valuable as most uninformed prospects are led to believe... especially uninsurable ones.

There is a reason ad&d is so cheap; there is also a reason those people were declined for a traditional policy... and its not because they are likely to die in an accident....


I cant tell you how many people I have run into that think their ad&d policy is a regular life policy... or a suitable replacement...
There are agents out there that push it because its a cheap, easy, & fast sell.

 

[VolAgent]

What about for uninsurable clients as alternative to small face overpriced guaranteed issue? The clients pass on taking a guaranteed issue life policy due to high price/low face...he is thinking this might be alternative as it at least gives them something.

You have someone in such poor health, that no one will insure them except for GI...

Why in the world would you think that accidental death has any value to this person???

I understand wanting to sell something to every prospect, but you shouldn't actually put the person in a worse spot than when you met them.

People whose health is seriously impaired don't die in accidents. Instead their health problems eventually catch up with them.
- - - - - - - - - - - - - - - - - -

Also, considering that most daycare workers are young; the % that are truly uninsurable is very very small.

And if they are really uninsurable, you can be sure it won't be an accident that kills them.