That was annuities . I replied with a post yesterday that was erased . I was in insurance long before you Scott . 1980's I had clients with Kentucky central life and New Jersey life . Both went taken over by state . Sure it's hassle but claims were paid . We sell tiny face policys . Have you ever heard of a death claim not being paid in the United States ? Case closed
Security National (SNL) New Rates
- Thread starter rousemark
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That was annuities . I replied with a post yesterday that was erased . I was in insurance long before you Scott . 1980's I had clients with Kentucky central life and New Jersey life . Both went taken over by state . Sure it's hassle but claims were paid . We sell tiny face policys . Have you ever heard of a death claim not being paid in the United States ? Case closed
- 19,579
I was using Shenandoah as my goto back in my termite days.
So I had a lot of clients with them.
It took them 5 years or so to go thru receivership. They paid claims and commissions throughout the process.
I only sold term and disability with them. From what I recall the cash value policies and annuities were a mess.
Correct if you need money out of the policy that's tough as they are Bk. But fortunately most CO's policyholders are acquired quickly . It's like the small bank fallout lately . If you don't guarantee all deposits the system will collapse as people will pull their money out of all banks . There's a silent guarantee on death claims . The integrity of the system at stake .
- 26,088
I have been at this a bit also.
My experience on guarantees.
If it isn't, it isn't.
The non guarantee column should be named 'promise to try'
Im not talking about the non guaranteed cash values . For instance I mentioned Kentucky central life and New Jersey life . In the 1980's and 1990's UL was rage . Rates were 10-13% with current cost of ins . Guarantees were 4% with maximum cost . If your seized by state the aquiring company is giving you the guarantees . That's terrible and your looking at a policy that can run out in 5-10 yrs max . Now with while life it's different . The cash values could be effected but the premium won't go up and death benefit won't fall.
I'm about to find out about projected rates and benefits . In the 80's there was a company called Jefferson National out of Indiana . They had a decreasing term policy to age 65 and dividends bought 1 yr term to keep the policy death benefit level .It's paid up at age 65 . I sold to my sister in 1988 . She just turned 65 . The decreasing term is now zero but the dividends buy $300k of ins . It costs $43 a month . The dividend sch has stayed exactly on target for 35 yrs now . Honestly even if the dividend provides $200 k of ins 10 yrs from now it was a dirt cheap policy. Even if it explodes to almost nothing it was dirt cheap for the yrs of coverage .
- 26,088
Yeah, I am pretty familiar with the 80s and 90s UL, VUL, Variable WL and Whole Life illustrated to have vanishing premiums.
Even some Whole Life policies, not talking Fraternals, have or have had variations. Graded Whole Life, indexed Whole Life, and even a decreasing WL and a bunch of 'creative' variations using dividends to offset increasing premiums or decreasing death benefits.
Then you have 'level' Term with its variations. Like ALW early 20 year level term guaranteed for 3 years. And policies you mentioned.
If it is not guaranteed, it's not.
- 5,010
Good luck telling the client or beneficiary that. Most companies that go under, sell off part of policies or stop issuing new life policies have horrible customer service via a couple people in a basement that bid the 3rd party vendor servicing contract the lowest.
- 5,010
Yes, they get paid....... eventually. But if needed for funeral for assignment, how long will they wait. It wont be nearly as smooth in most cases from a failed carrier policy
