Replacement Business

[inreverse]

About what percentage of your business is replacing other companies?
I don't hear of many agents using Oxfords Christian Fidelity, which is low premium and low commission.

There seems to be a double standard with rates and commissions,
Lincoln Heritage, Senior Life, Old American are all characterized as dirty dogs for high premiums, but it seems that the same people slinging the mud don't sell the cheapest plan themselves.

Where is the line between too high and not high enough?

Is it really what is best for the consumer or fear of being replaced?
Would you offer\sell the same companies if you new you would not be replaced?
How important are fast claim service, customer service and maybe lead financing?

I do not sell LH, SL or OA. There are a lot of FE companies, but other than the top 8-10, the rates are all over the place, but they seem to get their share of business.

For example Securus has their own private labeled product which is far from the top group, they don't seem to be taking any heat for it?

Just thinking, could be dangerous!

 

[jdeasy]

About what percentage of your business is replacing other companies?
I don't hear of many agents using Oxfords Christian Fidelity, which is low premium and low commission.

There seems to be a double standard with rates and commissions,
Lincoln Heritage, Senior Life, Old American are all characterized as dirty dogs for high premiums, but it seems that the same people slinging the mud don't sell the cheapest plan themselves.

Where is the line between too high and not high enough?

Is it really what is best for the consumer or fear of being replaced?
Would you offersell the same companies if you new you would not be replaced?
How important are fast claim service, customer service and maybe lead financing?

I do not sell LH, SL or OA. There are a lot of FE companies, but other than the top 8-10, the rates are all over the place, but they seem to get their share of business.

For example Securus has their own private labeled product which is far from the top group, they don't seem to be taking any heat for it?

Just thinking, could be dangerous!

At least 25% of my business is replacement. Might be more, I don't count them. I write over 300 apps every year so about 75 of those would be replacements.

Christian Fidelity is not that low priced, they are not in all states and most importantly, to me anyway, they are not an A rated company. Same reason I don't write Oxford.

I don't write any company for life that is not A rated. And I tell m y clients and prospects that. I get them the best value available to them on a whole life plan with an A rated company based on their health, age, tobacco usage and gender. Many times the husband and wife will go with the same company even though they could save money by being with different companies. That's their choice but they were given the option. So that couple may not be paying the least they could but it was offered to them.

It's fine if they want to go with a company that's not rated A. They can just do it with another agent.

 

[inreverse]

Thanks JD,
Case in point, Americo is the the top dog for EFES, not anyway near the most competitive product on the market for non smokers.
So it seems in actuality what is "best" for the consumer plays second fiddle to other considerations for a majority of the agents (not including yourself)
I prefer to have a company that pays claims fast, pays me fast, and I can write a majority of my people. When I ask if they want to pay a few dollars more and their family usually gets the money within the week, they most often pick the faster claim payment, especially if they have had to deal with a death claim in the past.
I have to say I recently placed my first RNA policy and they were a pleasure to deal with for me the agent, and that plays a part in who I offer to my people. Maybe that is the point, our customers usually only know what we show them, so we bear some responsibility for that choice. Quoting Hockeynut, "the best plan is the one in force", no beneficiaries complain about the premiums. It seems many on the forum play the consumer advocate card when in reality they are more concerned about retention, and when push come to shove, the higher commission product wins, and for agents like myself I prefer fast claim payment and fast and efficient commission payment.

 

[jdeasy]

Thanks JD,
Case in point, Americo is the the top dog for EFES, not anyway near the most competitive product on the market for non smokers.
So it seems in actuality what is "best" for the consumer plays second fiddle to other considerations for a majority of the agents (not including yourself)
I prefer to have a company that pays claims fast, pays me fast, and I can write a majority of my people. When I ask if they want to pay a few dollars more and their family usually gets the money within the week, they most often pick the faster claim payment, especially if they have had to deal with a death claim in the past.
I have to say I recently placed my first RNA policy and they were a pleasure to deal with for me the agent, and that plays a part in who I offer to my people. Maybe that is the point, our customers usually only know what we show them, so we bear some responsibility for that choice. Quoting Hockeynut, "the best plan is the one in force", no beneficiaries complain about the premiums. It seems many on the forum play the consumer advocate card when in reality they are more concerned about retention, and when push come to shove, the higher commission product wins, and for agents like myself I prefer fast claim payment and fast and efficient commission payment.

Fast claim payment is normally code for over priced. I write what's best for the client. I wrote one yesterday that I make 30 points less on that what I could have written. And that was only a $2/mo difference to the client.

The only FE companies that pay fast are the ones that came from pre need and 5 Star. But, those only pay fast if it's out of contestability. And if a plan is out of contestability then every funeral home out there has the ability to assign the insurance and get paid on the spot.

One of the LH guys compared his product to toilet paper this week. he probably wishes he hadn't done that but he was trying to say that higher price is fine if it includes higher quality. I agree with that.

But only if talking real value and quality. Whole life over term. There is a tangible difference to account for the higher price. Whole life from one A rated company vs whole life from another A rated company? You better have some real strong reasons to charge more. And it's not smoke and mirror claim of fast claims pay or a hokey funeral society that that can be purchased by anyone.

 

[inreverse]

why do you think Americo outsells RNA for EFES?

 

[Newby]

Thanks JD,
Case in point, Americo is the the top dog for EFES, not anyway near the most competitive product on the market for non smokers.
So it seems in actuality what is "best" for the consumer plays second fiddle to other considerations for a majority of the agents (not including yourself)
I prefer to have a company that pays claims fast, pays me fast, and I can write a majority of my people. When I ask if they want to pay a few dollars more and their family usually gets the money within the week, they most often pick the faster claim payment, especially if they have had to deal with a death claim in the past.
I have to say I recently placed my first RNA policy and they were a pleasure to deal with for me the agent, and that plays a part in who I offer to my people. Maybe that is the point, our customers usually only know what we show them, so we bear some responsibility for that choice. Quoting Hockeynut, "the best plan is the one in force", no beneficiaries complain about the premiums. It seems many on the forum play the consumer advocate card when in reality they are more concerned about retention, and when push come to shove, the higher commission product wins, and for agents like myself I prefer fast claim payment and fast and efficient commission payment.

You bring me ANY claim from ANY company for a policy that has been in force for over 24- months and I can have the check to the Benny within 48- hours at worst and usually 24- hours.

How much quicker than that do you need? I don't need death certificates. I just need to verify the insured is dead. Any funeral director with half a brain can do this.

ForeThought is hands down the quickest payout of any life insurance company in business. But their underwriting decisions are unacceptable for many FE applicants so I don't use them for everyone. If you make that your sole focus, have at it.

The key is that you don't put everyone in a product that isn't even close on rates just because you want to put everyone with one company. It would be easy to put everyone with Settlers, Monumental, Lincoln Heritage, etc. but they all have health situations that you would be giving your client a real bad deal. In LH's case you are giving MOST of the applicants a real bad deal compared to their other companies they would qualify for.

Everyone has to do what they are comfortable with. I can't imagine that any agent would sell his mother $15,000 when she could get $20,000 for the same premium. And paying claims quicker is simply ignorance of how it actually works.

 

[gordon112]

I don't see any better way to explain it then what Newby just posted, so I will not waist up post time.

Thanks for putting it in prospective Newby.

 

[jdeasy]

why do you think Americo outsells RNA for EFES?

They are in more states than RNA and they pay more 1st year commission than RNA. Most FE agents do not give a crap about lowered renewals.

Then you have the fact that Americo does not do the POS interviews. I like that about them too.

I don't know whay an agent would chose to use Americo over RNA but many do.

There wasa time when AmAm was the EFES darling. I never liked them and never understood the facination with them. That's pretty much over now.

 

[inreverse]

Thanks for your responses, as I said earlier I don't sell LH OA SL, I am trying to make some sense of the final expense market. Outside of assigning to a funeral home there are some like Foresters who notorious for claims paying and customer service and up until the premium changes they were on the final expense kings row. As for my mother, I would sell her the best I could find, however if my neighbor can afford to pay 3.00 a month more and it pays me an extra 10%, he will be offered the one for 3.00 more. I pay my bills, he doesn't, and if he needs to pay a little more to get the same coverage, so be it. He just smoked up more than that with a pack of cigarettes. I like JD's thought process of limiting his offerings to A rated companies, Scott I believe you are not a proponent of fraternals. I guess we all have to believe in our own process.

 

[GMDM100k]

You bring me ANY claim from ANY company for a policy that has been in force for over 24- months and I can have the check to the Benny within 48- hours at worst and usually 24- hours.

How much quicker than that do you need? I don't need death certificates. I just need to verify the insured is dead. Any funeral director with half a brain can do this.

ForeThought is hands down the quickest payout of any life insurance company in business. But their underwriting decisions are unacceptable for many FE applicants so I don't use them for everyone. If you make that your sole focus, have at it.

The key is that you don't put everyone in a product that isn't even close on rates just because you want to put everyone with one company. It would be easy to put everyone with Settlers, Monumental, Lincoln Heritage, etc. but they all have health situations that you would be giving your client a real bad deal. In LH's case you are giving MOST of the applicants a real bad deal compared to their other companies they would qualify for.

Everyone has to do what they are comfortable with. I can't imagine that any agent would sell his mother $15,000 when she could get $20,000 for the same premium. And paying claims quicker is simply ignorance of how it actually works.

It not easy with all companies to get a claim. Especially for new agents. I have been helping a friend file a claim with globe life right now. It has been in force for six years and four months after death I still haven't got it paid. I call every day and I'm very experienced in filling claims.

And not all funeral directors are the same. If you let a funeral home take an assignment on a 20k policy how much do you think that they are going to use for the funeral!! 20k I'm sure. The family might not have wanted to spend 20k. Not to mention most funeral homes charge to take an assignment. I've seen charges for assignments exceeding $500.

You guys have to understand that you are very experienced and there are a ton of new agents that sell this stuff and have no idea about how the funeral process works.

They can potentially cost a client thousands of dollars by overspending at a funeral home..