Paying for a release?

[WinoBlues]

On a FB group someone says they are being charged to get a release from an IMO or wait out the six months. Says they have no debt. I believe this is Life Insurance.

I have never heard of this. Is it a thing now?

 

[rmhaire]

On a FB group someone says they are being charged to get a release from an IMO or wait out the six months. Says they have no debt. I believe this is Life Insurance.

I have never heard of this. Is it a thing now?

I've never heard of it.

Sounds like somebody didn't do their homework.

 

[adjusterjack]

Did "somebody" bother to read and understand their contract before they signed it?

 

[WinoBlues]

The agent didn't say if it was contractual or not. Also whether or not Traditional or FE agency.

I'm guessing FE as in Traditional you can many times just get another number.

What surprised me was the number of recruiters saying they should do it as well.

 

[rousemark]

Did "somebody" bother to read and understand their contract before they signed it?

Contract would have nothing to do with unless the contract states they'll give a release. If they make no promises as to given a release then there is nothing to prevent them from negotiating the terms of the release.

 

[Newby]

Seems like a bad trend for agents. But the other side is that all of us that do releases have been burned by it many times. The receiving IMO is always happy to accept debt responsibility when you are releasing but when debts actually come up they tend to ghost. (Hello Symetry!)

It would be nice if the industry had some sort of system where the receiving IMO would put a few grand in a holding account for 6-months and got it back it the agent rolled no debts up to the releasing IMO.

The whole reason for the release system is about agents bouncing around and leaving messes behind. There needs to be a system that is fair to all sides.

 

[WinoBlues]

Seems like a bad trend for agents. But the other side is that all of us that do releases have been burned by it many times. The receiving IMO is always happy to accept debt responsibility when you are releasing but when debts actually come up they tend to ghost. (Hello Symetry!)

It would be nice if the industry had some sort of system where the receiving IMO would put a few grand in a holding account for 6-months and got it back it the agent rolled no debts up to the releasing IMO.

The whole reason for the release system is about agents bouncing around and leaving messes behind. There needs to be a system that is fair to all sides.

Is it more a FE thing or both? I've never heard of it.

Seems there was a company that had some kind of reserve account for lapses. LBL?