RNA? Final Expense Makeover?

[nfl72]

I saw the same thing in the car business a few times. One time the New Car Manager won a trip to Hawaii for 2 weeks, all expense paid for him and his wife.

The day he came back when he showed up for work, they took his demo and fired him. On the Friday before he left Hawaii to come back he made some very major art purchases. If only they had told him before the trip!

 

[houcoogster]

Losing money is never fun, take off the rose colored glasses.

I will be filling out new paperwork Monday.

This is how the FE biz goes. I've seen it before I look for EFES to hit the skids any day.

 

[Jerard]

Okay, let's assume the worse and perhaps change the discussion to RNA alternatives?

 

[houcoogster]

I agree, in the FE biz you're constantly having to jump on another horse ride it for awhile and jump on another. Right about the time you get comfortable and learn the ropes it's time to switch. The FE beast is a beast like no other.

 

[Newby]

Okay, let's assume the worse and perhaps change the discussion to RNA alternatives?

That's easy.

There is 5-Star, Monumental, ForeThought, Americo, Oxford, ING, Assurity, American Continental, Settlers, American Memorial, Standard Life, Colorado Bankers, and more comming every day.

 

[GoCubsGo]

It's the cycle of life...insurance. haha

I think what happens is they sell too many policies which requires more money be put in reserves. The cash flow can't support it and it's too expensive to borrow it so they raise rates to slow down the cycle. That's my wild guess with not really knowing how it all works so it could be stupid. ha

Anyone know why we see this cycle of insurance companies purposely slowing down the the issuing a new policies?

 

[jdeasy]

OK, back and settled in for a bit. A lot of misinformation here about RNA's changes but I have a lot of conflicting info as well.

There will be commission cuts. How much apparently depends on your IMO. Some of the smaller IMO's said they were cutting com missions by 10 points. EFES said the cut will be 5%.

Also a cut in renewals but the answer I got on that was "to be determined". One small IMO told me his renewal cut was 3 points from 12 to now (. He also said he got a 10 point first year cut.

Apparently they are also going to stop paying on the policy fee for SIWL. They already don't pay that on the Essential Life. I say "apparently" because 2 IMO's told me that was the case and a couple of others said they had not been told that.

RNA did not address the commissions with us at all because that's between IMO's and agents.

As far as underwriting changes, that's something I have not heard anywhere except here at the forums. It wasn't discussed in Costa Rica and I haven't heard that from any IMO.

Rate increase? Yes, that is definite and soon. June 10th seem to be the date but I don't know if that's in concrete. Keep in mind we got a very brief sugar coated version.

It's not across the board increases. It seems to be staggered like Foresters and Mon did it. Again these are best guess because the ones that know are not telling and the ones telling are speculating as I am.

Ages 50 to 60 is gonna get hit pretty hard. Ages 60 to 75 not so much. Smokers taking a bigger hit, {but RNA wasn't smoker friendly anyway}. Ages 75 to 85 a really big hit and especially over 80. The over 80 to the point that one IMO told me it would be "unsellable".

I have not seen a new rate chart so this is just what I can put together by being nosy and asking the questions that others did not want to ask.

As bad as I take the news now I think the news will be worse when we get it officially. As I sad, we got the sugarcoated version and the spin. RNA has over 9000 contracted agents. Less than 40 of that 9000 made the trip to Costa Rica. I can understand that they did want to turn that trip into a weeklong bitch session so they just mentioned enough to bring some order to the rumors. The shat will hit the fan next week.

I am thankful to be an independent agent and not captive to RNA. I'm also glad that I'm already qualified for RNA's trip next year since I don't know how much more I will add to it.

The 5 point commission cut is not a deal beaker for me. But if their rates put them middle of the road then I will look elsewhere than a fraternal.
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Losing money is never fun, take off the rose colored glasses.

I will be filling out new paperwork Monday.

This is how the FE biz goes. I've seen it before I look for EFES to hit the skids any day.

While this won't be good for EFES I can't see how it will have huge impact on their business. If this males more EFES agents write Americo it will be great for EFES. They would prefer that agents write Americo.

EFES agents will just write other companies if RNA is not a viable option going forward.

EFES is in business because of and about the leads, not because of their companies.

As long as agents need leads then a lead IMO like EFES will survive and thrive.

 

[Newby]

As far as underwriting changes, that's something I have not heard anywhere except here at the forums. It wasn't discussed in Costa Rica and I haven't heard that from any IMO.
.

I think the underwriting change came from my comment on another thread and it was incorrect. Scratch that one.

I agree that this won't affect EQuita. Change creates more opportunity when you sell as huge of numbers as those guys. Every company that they don't currently offer will be beating on their door and see this as their golden opportunity.

 

[axeman462]

Are the changes only to the F/E product, or all their products?

 

[houcoogster]

Well y'all need to tell them (the new carrier) straight up, if you can't handle the kind of numbers you guys can produce don't BS us now just to have some shennanimgs pulled on us a year or so from now.

If all you (new carrier) can handle is 100 apps a week we can work with that just let a few regions offer it. They need to be honest and not let their mouth/eyes overload their pocketbook.

Y'all probably sent more business to RNA than they ever saw since inception.