Paying a Death Claim

[Biggin]

I have recently had 2 death claims with Foresters plan right level and neither one were paid. Has anyone else expierienced this with them dang foreigners? I'm just wondering if it's a pattern with them. They wouldn't give me any info. as to why they wouldn't pay the claim but the two that died looked to be in great health. I don't know the circumstances around their death either.

 

[jdeasy]

I have recently had 2 death claims with Foresters plan right level and neither one were paid. Has anyone else expierienced this with them dang foreigners? I'm just wondering if it's a pattern with them. They wouldn't give me any info. as to why they wouldn't pay the claim but the two that died looked to be in great health. I don't know the circumstances around their death either.

Fortunately I've never had a Foresters client to pass on. But, by their reputation on this it seems that it is rare for them to pay for deaths in the contestability period.

I saw something on this a while back. I don't remember where it came from, but it was stats on how the FE companies paid off during contestabilty.

I don't remember the details or how many companies were included or who even compilied the info. I do remember that Foresters, Americo, LH, AmAm, UHL, CL and AARP's NYL were at the low end percentagewise.

I don't remember which ones were higher up, but it seems that Settlers Life was near the top or was the top.

 

[WinoBlues]

That is scary stuff. I have had many claims. Working 4 currently. A number in the contesiblity period. One before the app left my desk. I have only had two not paid. One was fraud. Gypsie family with a couple dozen policies on grandma. The other was a billing mistake on the companies side, Sentinal.

This is another reason I am moving a way from the non PHI companies. I understand the desire to not do one if you are running and gunning. But that is not my model. The PHI moves me further out of the cross hairs.

 

[rousemark]

Fortunately I've never had a Foresters client to pass on. But, by their reputation on this it seems that it is rare for them to pay for deaths in the contestability period.

I saw something on this a while back. I don't remember where it came from, but it was stats on how the FE companies paid off during contestabilty.

I don't remember the details or how many companies were included or who even compilied the info. I do remember that Foresters, Americo, LH, AmAm, UHL, CL and AARP's NYL were at the low end percentagewise.

I don't remember which ones were higher up, but it seems that Settlers Life was near the top or was the top.

Settlers is the only company I know of that publishes this information every year. From their claims payment letter:

Backing up our words with deeds, I'm pleased to report to you that in 2010 Settlers Life paid 7,844 death benefit claims and rescinded only 84, a claim payment percentage of 98.94%.

I'm also pleased to report that those 7,844 paid claims represented a total of $23,786,986 in death benefits. Since 2000, Settlers Life has paid more than $216,000,000 in death benefits to thousands and thousands of beneficiaries.
- - - - - - - - - - - - - - - - - -

This is another reason I am moving a way from the non PHI companies. I understand the desire to not do one if you are running and gunning. But that is not my model. The PHI moves me further out of the cross hairs.

Good point. I was thinking of contracting with a company simply because they don't require a PHI. Think I have changed my mind.

 

[WinoBlues]

Settlers is the only company I know of that publishes this information every year. From their claims payment letter:

Backing up our words with deeds, I'm pleased to report to you that in 2010 Settlers Life paid 7,844 death benefit claims and rescinded only 84, a claim payment percentage of 98.94%.

I'm also pleased to report that those 7,844 paid claims represented a total of $23,786,986 in death benefits. Since 2000, Settlers Life has paid more than $216,000,000 in death benefits to thousands and thousands of beneficiaries.
- - - - - - - - - - - - - - - - - -


Good point. I was thinking of contracting with a company simply because they don't require a PHI. Think I have changed my mind.

Oh, I have them. Americo being one. There is always a need for different methods.

Lee

 

[BenS]

Hmm... Monumental doesn't have a PHI and I love writing with them because of it. Anybody have any info on them paying out?

I remember when I was a kid my grandfathers insurance company didn't want to pay a health insurance claim for cancer treatment. They were very poor and I'm assuming the insurance company figured they could just get away with denying the claim. Luckily my Mom got out of their small town and became a lawyer. Needless to say the company regretted it.

It makes you wonder though about denied claims. The FE market is probably the most vulnerable to this type of shady behavior. Any other experiences with claims would be great to hear about since it isn't covered much on the forum. Have any of you had to fight for a claim to go through? If so how did it go?

 

[rousemark]

. The FE market is probably the most vulnerable to this type of shady behavior.

Shady behavior on whose part? The client that doesn't reveal information asked on the application?

Or the agent who clean apps a case when the client tells them they have have health history? I have heard agents say they don't need a graded (ROP) death policy They have one that can be issued at standard rates. . They simply answer all the questions "no" and if he client dies the first two years, the company will refund the premium... It is hard to get away with that when a PHI is involved unless the agent can get the client to go along with it.

All in all, over the last 40 years, I have seen far more individuals try to take advantage of insurance companies than the other way around.

 

[BenS]

Shady behavior on whose part? The client that doesn't reveal information asked on the application?

All in all, over the last 40 years, I have seen far more individuals try to take advantage of insurance companies than the other way around.

I'm sure you're right about more try to work the system than the ones that get taken advantage of. I was just thinking that if an insurance company was going to try to screw somebody out of money, a poor less educated family would probably be the easiest prey. An educated wealthy family with a large policy is probably in a better position to deal with a rogue insurance company.

Again, I have first hand experience of this, that's why I bring it up. Just looking for some real life experiences on this topic and how it was dealt with. Thanks...

 

[Newby]

I have recently had 2 death claims with Foresters plan right level and neither one were paid. Has anyone else expierienced this with them dang foreigners? I'm just wondering if it's a pattern with them. They wouldn't give me any info. as to why they wouldn't pay the claim but the two that died looked to be in great health. I don't know the circumstances around their death either.

Do they charge back your commissions when that happens?

Believe it or not I have never had an FE death claim that didn't get paid. I've only had one Preneed one in 16 years.

I have a Foresters death claim right now so my record could be ruined soon. Foresters claims they can't get his info out of the VA clinic so it's taken 5 months so far. I believe it to be a very clean app.

 

[jdeasy]

That is scary stuff. I have had many claims. Working 4 currently. A number in the contesiblity period. One before the app left my desk. I have only had two not paid. One was fraud. Gypsie family with a couple dozen policies on grandma. The other was a billing mistake on the companies side, Sentinal.

This is another reason I am moving a way from the non PHI companies. I understand the desire to not do one if you are running and gunning. But that is not my model. The PHI moves me further out of the cross hairs.

All the PHI does is get the agent some breathing room if there is a claim. It's not just the agents word. Companies that use the PHI do not pay any more claims in the contestability period than ones that don't.

I have had 5 or 6 NA clients dies in the contestability period. They have paid all but one. These were all before they started using the POS interview. i've had two that died in the contestability period with companies that did use the PHI and both claims were not paid.