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Now, is a Fraternal FE policy real Whole Life?
Asked the dead guy if he cares... as long as the bill is paid.
really poor IMO (Americo)
- Thread starter mudhound
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Asked the dead guy if he cares... as long as the bill is paid.
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- 26,179
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You bite quick... wish the fish were as quick.
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A fraternal is a certificate. We all know that.
- 6,134
I will probably butcher this because I am half typing and half wresting with my son and baby girl...
Insurance carriers are backed by the state guarantee fund, so premiums are set in stone. Fraternals CAN put an assessment on the policy if funds are needed. Then the insured would have to pay the company X amount or have it removed from their policy value. Now this is not something that happens (not even sure if it has happened in the last 100 years) but it COULD happen. So some agents replace fraternals by scaring the client out of them even though most fraternals are more financially sound than they company they are using to replace with.
Also fraternals are not allowed to offer policies, they offer certificates. It just keeps getting brought up on here because JD would always say that a fraternal could NOT lower the policy, when in fact that is what it is doing. He would just spin the words around to make it sound like he was right.
Hope that helps.
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Go K-State
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Disclosure: I can not remember ever replacing a Fraternal using the Guarantee Fund. And pretty sure I have not used the Fraternal's ability to lien the cash values and death benefit to replace a policy. Hell, I bet I have not replaced a total of a half dozen policies in two or three years.
That said I do educate my clients on the guarantees. I explain why I pick this company over that company. Many times I take out and show them the FEXQuotes spread sheet. I see the ability to lien the death benefit the same as the ability of a non level term policy being able to increase the premiums if the company chooses to. There are a crap load of UL clients out there that are not only having to deal with the low interest rates but with the increase of the internal cost the companies choose to increase, because they could.
I have been doing this a long time. I have seen companies do chit that has never been done before, because they could. If it is not guaranteed, it isn't.
All of that said do I write Fraternals occasionally? Yes. Doing a PHI for a Fraternal FE plan tomorrow.
Many ways to do what we do.
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That said I do educate my clients on the guarantees. I explain why I pick this company over that company. Many times I take out and show them the FEXQuotes spread sheet. I see the ability to lien the death benefit the same as the ability of a non level term policy being able to increase the premiums if the company chooses to. There are a crap load of UL clients out there that are not only having to deal with the low interest rates but with the increase of the internal cost the companies choose to increase, because they could.
I have been doing this a long time. I have seen companies do chit that has never been done before, because they could. If it is not guaranteed, it isn't.
All of that said do I write Fraternals occasionally? Yes. Doing a PHI for a Fraternal FE plan tomorrow.
Many ways to do what we do.
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