Abrasax
Guru
- 401
Speaking of replacements, @theinsuranceman do you ever replace cheaper policies with SL selling them on the LA benefits?
Senior Life Insurance Company-worth adding??
- Thread starter finalexpenseguy33
- Start date
- 4,307
That right there.
- 4,875
Never! I always encourage Ms. Jones to keep what she already has. What I do is show her how funerals cost more now than they did just 5 years ago. I show her how it's a good idea to add a little bit more because of inflation.
I also remind Ms. Jones that everyone thinks about the funeral because it's the most expensive. But everyone seems to forget about her final phone bill, utility bill, property taxes maybe, etc. and the children always get stuck with those smaller expenses. I remind her it's not fair for her children to be stuck with those expenses.
Then I use Legacy Assurance to save her family a lot of of $$$ because the casket, vault, and monument is locked in at $3500....for the rest of her life; and, she picks the casket she wants and that way no one is arguing which casket to get momma. PLUS, up to 4 other family members can enjoy the same savings on their casket, vault, and monument even though they're not getting a SL policy (even if family member is over 85)! I have all the caskets in a file on my ipad in full living color and show these to Ms. Jones. Tangible always beats intangible when selling.
It's my understanding no funeral home in America has as large a selection of caskets as Legacy Assurance. Legacy Assurance, when explained slowly, methodically, and carefully, will prevent almost any replacements. When I show Ms. Jones the numbers of how Legacy's savings is better for her even if another co. is $20 per month cheaper.....that seals the deal.
For the numbers....search previous posts I've made about Legacy Assurance.
And Legacy Assurance will help a SL agent make an extra sale here and there that agents with other carriers will miss. Some people who already have plenty of insurance will still buy a small SL policy just so they can enjoy the savings from Legacy Assurance! Just 1-2 extra sales per week ($300-$700 EXTRA) is the usually the difference between an agent staying versus leaving.
If anyone wants to chat about this feel free to call me 8 am est till 8 pm est Mon thru Sat. It's always good to exchange ideas.
- 17,077
When I was in the field I did a lot of replacements. What I looked for on these was:
1. Price- the most obvious one. If you can substantially beat the price.
2. Type of policy- the majority of replacement bait was mail order term with increasing rates and expiration age. Or GI with a two year waiting period.
3. Universal Life- most people that were sold ULs back in the late 1980"s and 1990's had them WAY underfunded and 100% of them thought they had whole-life. I just LOVED making their own company answer the questions about what they had on speaker phone. OK so if f they want to GUARANTEE this policy stays in force to age 100, how much premium do they need to start paying TODAY to make that happen? The answer was never pretty.
4. Clean Sheeted- I HATE clean sheeting agents. I ruined a LOT of their days. Always look to see if the person really qualified for what they had. Let's call the company together Mrs. Smith and make sure they will still pay the claim on this policy if you die tonight since the agent mistakenly checked "no" to Parkinson's even though you told him you have it.
There is a TON of replacement business that FE agents run into out there that actually help people. They are scumbags if they are doing things that they would not want done to their own mother. When agents ask me how to determine when a replacement makes sense I tell them to judge by two things: it's up to the customer once they understand the choices. Make sure they understand the advantage and disadvantage (contestibility in the event of fraud or suicide) and #2 if you ever have to stand before the state department of insurance and explain this replacement are you going to look fine or like a greedy scumbag?
In 22 years of selling nsurance and some months replacements hit 50% I've never had a single complaint. I've had very few deaths during the 1st two years (with 1st day coverage policies) and all but two of those paid the claim.
And another thing that really blows me up is agents who replace and don't fill out replacement forms. That's a scumbag move. If you aren't filling out replacement forms, you are doing dirty replacements.
1. Price- the most obvious one. If you can substantially beat the price.
2. Type of policy- the majority of replacement bait was mail order term with increasing rates and expiration age. Or GI with a two year waiting period.
3. Universal Life- most people that were sold ULs back in the late 1980"s and 1990's had them WAY underfunded and 100% of them thought they had whole-life. I just LOVED making their own company answer the questions about what they had on speaker phone. OK so if f they want to GUARANTEE this policy stays in force to age 100, how much premium do they need to start paying TODAY to make that happen? The answer was never pretty.
4. Clean Sheeted- I HATE clean sheeting agents. I ruined a LOT of their days. Always look to see if the person really qualified for what they had. Let's call the company together Mrs. Smith and make sure they will still pay the claim on this policy if you die tonight since the agent mistakenly checked "no" to Parkinson's even though you told him you have it.
There is a TON of replacement business that FE agents run into out there that actually help people. They are scumbags if they are doing things that they would not want done to their own mother. When agents ask me how to determine when a replacement makes sense I tell them to judge by two things: it's up to the customer once they understand the choices. Make sure they understand the advantage and disadvantage (contestibility in the event of fraud or suicide) and #2 if you ever have to stand before the state department of insurance and explain this replacement are you going to look fine or like a greedy scumbag?
In 22 years of selling nsurance and some months replacements hit 50% I've never had a single complaint. I've had very few deaths during the 1st two years (with 1st day coverage policies) and all but two of those paid the claim.
And another thing that really blows me up is agents who replace and don't fill out replacement forms. That's a scumbag move. If you aren't filling out replacement forms, you are doing dirty replacements.
- 4,307
That's pretty much my replacement philosophy except that I may be more cautious about replacing on price if they're out of or close to being out of contestability. But I agree - no mercy on cleansheeting!
- 4,307
If a policy is out of contestability, I'll probably leave it alone, unless there's some other compelling reason to replace it. Sometimes even when I point out the obvious fraud and tell them about contestability, the client will tell me, "Yeah, the agent told me about that, but he said as long as I live 2 years it won't matter." My response to that is, "Your agent was willing to lie to the company that writes his paycheck. Do you think he'll have any trouble lying to you?" If they insist on sticking with it, or if they've chosen a GI over a standard policy (with full understanding) as you mentioned, at least they've made a conscious choice for themself. Doesn't stop me from trying to unhook a dishonest agent's business, though.
- 4,130
It has to be something about the way you're doing things because I've almost never had this issue.
- 4,130
Well Assurant would address that male/trans/standard copd issue your claiming. I've also had 23rd month Gerber claims so I'd be damned to let that happen to someone who could get first day coversge.
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