Senior Life Unannounced Rate Increase-Normal/Abnormal?

[titeye]

Senior Life's Super Preferred rates used to be the lowest in the industry, for those with minor to no health issues. No longer is this the case, though still a fair product.
Rate increases are not uncommon. Considering the many COVID-related death claims, rates may increase across the board. For the time being, however, SL now lags behind quite a few carriers, including FBL, Lafayette, Oxford, SNL, MoO, Trans, LBL, and Foresters. My guess is, the list is longer. Sources tell me that the recent rate changes have not been publicized to their agents. Is this uncommon? I seem to recall getting notified by all of my carriers whenever there is a rate change; or, am I thinking of my annuity business?

 

[rousemark]

How do you know there has been a rate increase? FEXQuotes does not seem to indicate there has been one.

 

[Baseball7]

They pushed several updates to slice recently. I'd assume if they are upping the top number to 150% it required rate changes.

As a carrier rep one said "I could design a product that paid you 200%, but you would never sell it because of the rates"

 

[theinsuranceman]

Senior Life's Super Preferred rates used to be the lowest in the industry, for those with minor to no health issues. No longer is this the case, though still a fair product.
Rate increases are not uncommon. Considering the many COVID-related death claims, rates may increase across the board. For the time being, however, SL now lags behind quite a few carriers, including FBL, Lafayette, Oxford, SNL, MoO, Trans, LBL, and Foresters. My guess is, the list is longer. Sources tell me that the recent rate changes have not been publicized to their agents. Is this uncommon? I seem to recall getting notified by all of my carriers whenever there is a rate change; or, am I thinking of my annuity business?

Yes, their rates went up Jan. 1. We heard that state's dept. of insurance were requiring higher reserves due to the covid climate. There are no covid questions on any app. Last rate increase was over 12 years ago.

I would also assume to make more profit. One of the basic laws of capitalism is to charge whatever the market will bear. If LH can have high rates and still sell more FE than anyone else......then why not duplicate the top producing carrier's system.....like an agent would duplicate a top producing agent's system? If high rates made a difference to their profitability, market share, etc. then LH would have lowered their rates over 20 years ago.

 

[Baseball7]

Yes, their rates went up Jan. 1

Enough said.

 

[BibH]

Greg your correct rates aren't real important when selling . But I assure you when a sharp agent comes behind you it matters .That's why 40-50% of my business is replacement . I assure you 13 month persistency at LH or SL in the 70-75% range . I get excited when I run into SL or LH.

 

[damadcrapper]

I am surprised SL changed their rates so early in the year. ALL CARRIERS will need to look at repricing before the end of 2021 - most increasing prices on permanent products. Higher reserve factors are mandated for new business on traditional life products by 1/1/2021. Interest rates have fallen and the valuation interest rate for life insurance contracts is changing from 3.5% to 3% effective 1/1/2021. Simple Google (Standard Nonforfeiture Law Changes)

 

[Baseball7]

It's simple they raised comp they need to raise rates.

 

[Todd King]

It's simple they raised comp they need to raise rates.

Well, how else are they going to afford to pay out that 150%!

 

[titeye]

One of my collegues over there ran a few SP quotes for me. I then compared those rates on FEXQuotes.