Replacing Final Expense Polixies

[WinoBlues]

I lost a policy I had placed with Settlers awhile back and even though it had only been in force for 4 months, it had a cash value that was equal to about 75% of a month's premium. Had never seen a policy that built cash value that quickly, overpriced or not..

"Overpriced" is in the eye of the beholder. Many "FE" policies are overpriced crap when held up against "Life Insurance". I run into FE policies issued on 40-50 year olds that would have been Std with just about any regular carrier. Unless the client has significant health issues, I can replace them and do what the first agent should have done.

On the other hand, Hard to do a Ben Franklin when non policy issues influence the sale. There are some people that just can not make it though standard underwriting.
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Had a client let Foresters lapse. Client can't afford to catch up on premium to renew policy. How long after lapse does the agent have to wait to sign her to same policy with Foresters and get commission ? Is it full commission?

Call Foresters. Many companies are 6 month, some are a year. There are other options out there. Write them somewhere else.

 

[rousemark]

What I meant by "overpriced" was that even when the plans have an exceptionally high premium per thousand, they seldom have 1st year cash value.

 

[jdeasy]

Had a client let Foresters lapse. Client can't afford to catch up on premium to renew policy. How long after lapse does the agent have to wait to sign her to same policy with Foresters and get commission ? Is it full commission?

I believe with Foresters it's two years before they will pay full commission. Better call and ask though. That policy is all over the place with companies. Americo, for example, is 4 years while RNA will pay with no time restrictions.

 

[jacobtn]

I believe with Foresters it's two years before they will pay full commission. Better call and ask though. That policy is all over the place with companies. Americo, for example, is 4 years while RNA will pay with no time restrictions.

it's 13 months. trust me I got burned by them on it. Really stupid part was client had coverage for only 3 months and let lapse. Then they want to pay me renewal rate when I rewrite? When I only got 3 months comp on the original cert? Nah I replaced it with another carrier when I found out. Ridiculous.

 

[jdeasy]

it's 13 months. trust me I got burned by them on it. Really stupid part was client had coverage for only 3 months and let lapse. Then they want to pay me renewal rate when I rewrite? When I only got 3 months comp on the original cert? Nah I replaced it with another carrier when I found out. Ridiculous.

We usually find out by doing. That's how I found out about Americo's 4 year rule. In that case I got paid nothing on the rewrite. he had a policy for about 8 months. let it lapse and then wanted it back but a lower face amount. Since what he paid for the 8 months was about the same as one year at the new level I was just out the work.

He was a cigar smoker and getting non tobacco rates with them or I would have just him elsewhere.

That's what companies force us to do with those kind of idiotic policies.

 

[rousemark]

I sell a lot of max funded plans and having 75% of what the client put into the policy in accumulated value at the end of year 1 is the norm not the exception. But I know this isn't a FE type sale.

Yeah.. We are talking about old fashioned, fixed premium whole life policies.

 

[Norwayguy]

Yeah.. We are talking about old fashioned, fixed premium whole life policies.

Yeah but you can out side of FE policies take a whole life policy and do the same thing but I know its not the thing for your client base.

 

[rousemark]

Yeah but you can out side of FE policies take a whole life policy and do the same thing but I know its not the thing for your client base.

You fund a conventional non par WL at different levels of premium? .

 

[Norwayguy]

You fund a conventional non par WL at different levels of premium? .

You can add a PUA rider to a WL policy and create cash value in year 1. But I have a different market, the last time I had a client who wanted a burial policy I didn't use a traditional FE product I used a mutual product which was non-med at the death benefit amount she was looking for.

 

[rousemark]

You can add a PUA rider to a WL policy and create cash value in year 1. But I have a different market, the last time I had a client who wanted a burial policy I didn't use a traditional FE product I used a mutual product which was non-med at the death benefit amount she was looking for.

OK.. You are talking about a Par product.. Didn't know of a non par product, FE or otherwise that would allow over funding within the policy other than paying premiums in advance. But, then I thought I might have missed out on some product innovation.

I would love to have a decent Par simplified issue plan so you could use paid up additions as an inflation rider. But even the mutual companies that offer a SI FE type plan only offer them as a non par product.