Ohio National WL product release

[DHK]

I seriously wonder if they realize where their bread is buttered? Granted, they mismanaged their variable annuity portfolio in terms of guarantees and unable to get re-insurance for that (not to mention the huge PR issue with not paying trail commissions to brokers).

Did they not see or comprehend that their current field force won't sell for a company that doesn't align with their beliefs? There is such a huge chasm of understanding between the C-level ivory tower... and everyone else (home office employees and field force alike).

We'll see what happens over the next couple of years. It's not like career agents are limited in only selling for the primary company. As long as they do some production, they keep their contract, but many are disillusioned by now.

 

[scagnt83]

I seriously wonder if they realize where their bread is buttered? Granted, they mismanaged their variable annuity portfolio in terms of guarantees and unable to get re-insurance for that (not to mention the huge PR issue with not paying trail commissions to brokers).

Did they not see or comprehend that their current field force won't sell for a company that doesn't align with their beliefs? There is such a huge chasm of understanding between the C-level ivory tower... and everyone else (home office employees and field force alike).

We'll see what happens over the next couple of years. It's not like career agents are limited in only selling for the primary company. As long as they do some production, they keep their contract, but many are disillusioned by now.

Imo, it will come down to their main line of business as an agent. If they were hitting minimums mainly from CV WL sales, they will move to Mass or Guardian or Penn, etc. If they were selling WL for protection, they might like their position even more now.

But I dont think ON is concerned with retaining agents that sell for CV purposes. They have a much higher profit margin on protection based sales. They seem to be transitioning to that model... which means they WANT the turnover in agents.

Protection focused WL is something that the major mutuals lack. So it might be good positioning on their part. Penn is competitive with their GUL, and Ameritas is competitive with 2 of their WL policies; but there are not really any other products from the major mutuals that is super competitive for protection needs. Guardian has a L121, which does have a lower premium vs. the L100, but it not cheap by any means.

So imo, the market has room for anther protection based WL from a strong mutual carrier.

 

[DHK]

ONL always had their Prestige Value policy which was a WL to 121 but minimal available riders and stuff like that. I haven't done any comparisons, but I always believed that would be a good competitor for GUL with similar premiums?

 

[scagnt83]

ONL always had their Prestige Value policy which was a WL to 121 but minimal available riders and stuff like that. I haven't done any comparisons, but I always believed that would be a good competitor for GUL with similar premiums?

I forgot they had that product. I couldn't tell you how competitive it is or isnt. Id bet its cheaper than Guardians though! LOL. They will probably move focus to it more than the others.

 

[Tahoe Ray]

ONL always had their Prestige Value policy which was a WL to 121 but minimal available riders and stuff like that. I haven't done any comparisons, but I always believed that would be a good competitor for GUL with similar premiums?

It isn't. SBLI, Cincy life, and a few other carriers have similar designs and the premiums are still normally more than double.

Without the DB aggressively growing (b/c of the low level of funding), it only works out with someone really young.

 

[Lloyds of Lubbock]

"I saw something from Guardian saying they plan to "enhance" their Index Rider on the WL"
Guardian has no plans on IPF rider changes at this time

 

[ATM]

Regarding ON and the demutualization. Is the dividend paid to holder of record as of the date of the sale, announcement or some other date yet to be determined?

actually working wit a client now who wants out of ON policy but shouldn't miss the dividend if it makes sense to wait.

 

[Allen Trent]

"I saw something from Guardian saying they plan to "enhance" their Index Rider on the WL"
Guardian has no plans on IPF rider changes at this time

Do you know if they found a way to enhance the 7702 premium room to fit more max funding similar to what is being seen with UL/IUL/VUL because those products can assume a much lower interest rate in the guarantees.

 

[Lloyds of Lubbock]

Allen
As you know 7702 is a tax code that is interpreted by the carrier which is why you see slight differences.
On a (Guardia)male 35 million dollar face amount the base premium is 14.9k if you max fund it for ten years you can add an additional 37k. I would imagine all the mutual's are similar.
Very few policyholders actually do this.
With the costs involved in bringing out new products, adjusting administration systems and illustration systems along with bringing these products to the field, I dont see any company making any changes to its 7702 whole life products ....my opinion.
I do think you will see NY Life and Penn create a new 2% product for their ten pays....just my opinion.

 

[shooter]

Which would you sale?
Mutual Trust of Ohio National?

Mutual Trust owned by Pan American I believe, but still has dividends
or Ohio National.
Does Ohio National still have dividends?
They about the same Comdex number.

It seems out of the norm for a company to be owned by someone else
yet, still have dividends.
But the world is changing.
Shooter