Senior Life Unannounced Rate Increase-Normal/Abnormal?

[noah]

Legacy Safeguard doesn't even come close to providing the savings that Legacy Assurance provides. I suggest you google "legacy safeguards" so you familiarize yourself with them. They seem to be like these free memorial guides that carriers give to their policy holders along with a membership card that seems not really have a purpose.

As far as "if the carriers wanted to come up with something like this they would have." LOL. Here's an example of why you're wrong: Sr Life started perfecting FE tele-sales in 2004. Yet carriers are dipping their toe in the water with FE tele-sales around what...2019? These carriers are slow moving dinosaurs. They're slow to react to a changing market, They're mostly run by lawyers and accounts and other people who have never sold even one FE policy, much less been in one of these FE homes, or even been in the hood. They have too many committees and layers of mgmt. to go thru before they can make a decision. They can't relate to what agents go thru on a daily basis. Thank goodness Sr Life's CEO, President, Executive Vice-President and other home office staff are licensed and have run leads for many years before Sr Life was created.

As far as carriers raising rates someone else up here, that's "in the know", explained why carriers would be raising rates this year. Looks like you missed it. I thought with the pull you have that you would have a close enough relationship with your carriers to be privy to this info. No worries though. There's a lot of things I don't know either.

Maybe other carriers have other streams of revenue,different actual products that provide a value,they have no need to sell imaginary products with like you're small Final Expense company in South Georgia ?

Quite a coincidence that SL and LH are the 2 FE companies pushing these imaginary services that rip off seniors ?

 

[PA Bill]

Maybe other carriers have other streams of revenue,different actual products that provide a value,they have no need to sell imaginary products with like you're small Final Expense company in South Georgia ?

Quite a coincidence that SL and LH are the 2 FE companies pushing these imaginary services that rip off seniors ?

Imaginary? Most life insurance is imaginary as few policies make it to claim. Want to sell something real?
Go sell windows!

 

[Newby]

Yea loyalty is not the greatest. That's where Legacy helps us. The 13 month persistency averages approx. 9% higher., at least that's what the figures were about 3 years ago when they studied it a little closer.

That's why I can almost guarantee you'll see other carriers come up with their own "Legacy type" program. Some of them will need that improved persistency to stay afloat, especially with the super low interest rates they are getting on their reserves.

When something good comes along there will be copy cats later. Look at FE tele-sales for example. Sr Life started FE tele-sales back in 2004 , over a decade before the other carriers started. Same thing will happen with carriers developing their own Legacy programs over the next few years.

After that what will be the next new thing that a carrier can do to differentiate itself from the competition? Probably start buying or building funeral chains. Don't laugh. I can easily see that as an extension of their profit streams.

It's already happened. The Browns Burial policies were popular back in the 1960's. They had a program where they included the casket and vault and headstone and guaranteed the price forever.

20 years later when Funeral homes quit accepting their policies because they would lose money on those old price guarantees due to inflation you Browns open their own funeral homes to service their life insurance burial policies. They all went broke a few years after that.

There have been a number of insurance companies do that through the years. If the merchandise isn't guaranteed with a policy that has an increasing death benefit they always fail out over time and just become an insurance policy and the merchandise guarantee goes poof.

You can't guarantee against inflation unless your invest the money to keep up with inflation. Look at the AmVets Celestial Burial Case plan they sold. The Browns Burial Plan. The Huff-Cook Burial Plans, etc. It's been done many times before. The key is to not have the insurance company guaranteeing that the merchandise can be provided. As long as you can keep those things separate it will be fine when the merchandise can no longer be purchased at the original price.

Greg it's a good sales tool. But you are over selling it's value and forgetting that it's not a new idea.

 

[theinsuranceman]

It's already happened. The Browns Burial policies were popular back in the 1960's. They had a program where they included the casket and vault and headstone and guaranteed the price forever.

20 years later when Funeral homes quit accepting their policies because they would lose money on those old price guarantees due to inflation you Browns open their own funeral homes to service their life insurance burial policies. They all went broke a few years after that.

There have been a number of insurance companies do that through the years. If the merchandise isn't guaranteed with a policy that has an increasing death benefit they always fail out over time and just become an insurance policy and the merchandise guarantee goes poof.

You can't guarantee against inflation unless your invest the money to keep up with inflation. Look at the AmVets Celestial Burial Case plan they sold. The Browns Burial Plan. The Huff-Cook Burial Plans, etc. It's been done many times before. The key is to not have the insurance company guaranteeing that the merchandise can be provided. As long as you can keep those things separate it will be fine when the merchandise can no longer be purchased at the original price.

Greg it's a good sales tool. But you are over selling it's value and forgetting that it's not a new idea.

Points well taken. However, here's what you may be missing. The Legacy members joining in 2021 will have their casket, vault, and monument guaranteed for $2950. The Legacy members joining in 2025 may have their casket, vault, and monument guaranteed for say $3150 (what ever the rate of inflation dictates). Then, let's say in 2030, the Legacy members joining may have their casket, vault, and monument guaranteed for say $3400 (whatever the rate of inflation dictates) and so on. This way everything is keeping up with inflation and members' families can still collect 20, 30, 40+ years down the road.

As long as the "guarantee price" rises with the rate of inflation there should be no repercussions. Managing Legacy this way, the only holes I see would be if the cost of raw materials went out of control between the time the membership started and the member's death.

20 years later when Funeral homes quit accepting their policies because they would lose money on those old price guarantees due to inflation sounds as if the funeral homes were supplying the casket, vault, and monument at the price the Brown's Burial Plans dictated. With the SL and Legacy it's Legacy, not the funeral home, supplying the casket, vault, and monument. There is zero risk to the funeral home with this method as they're not supplying the casket, vault, and monument at Legacy's discounted prices.

Legacy and SL are 2 separate business entities.

Even if Legacy did not guarantee any prices with the casket, vault, and monument, it would still provide:
_discounts on hearing aids
_free annual hearing exam
_discounts on diabetic socks
_discounts on diabetic shoes
_telemedicine 24 hours/day
all for just a $4 monthly membership. And Ms. Jones can add up to 4 family members to her Legacy membership at zero costs. So the $4 monthly membership covers 5 people. Pretty good deal if you ask me.

 

[Newby]

Points well taken. However, here's what you may be missing. The Legacy members joining in 2021 will have their casket, vault, and monument guaranteed for $2950. The Legacy members joining in 2025 may have their casket, vault, and monument guaranteed for say $3150 (what ever the rate of inflation dictates). Then, let's say in 2030, the Legacy members joining may have their casket, vault, and monument guaranteed for say $3400 (whatever the rate of inflation dictates) and so on. This way everything is keeping up with inflation and members' families can still collect 20, 30, 40+ years down the road.

As long as the "guarantee price" rises with the rate of inflation there should be no repercussions. Managing Legacy this way, the only holes I see would be if the cost of raw materials went out of control between the time the membership started and the member's death.

20 years later when Funeral homes quit accepting their policies because they would lose money on those old price guarantees due to inflation sounds as if the funeral homes were supplying the casket, vault, and monument at the price the Brown's Burial Plans dictated. With the SL and Legacy it's Legacy, not the funeral home, supplying the casket, vault, and monument. There is zero risk to the funeral home with this method as they're not supplying the casket, vault, and monument at Legacy's discounted prices.

Legacy and SL are 2 separate business entities.

Even if Legacy did not guarantee any prices with the casket, vault, and monument, it would still provide:
_discounts on hearing aids
_free annual hearing exam
_discounts on diabetic socks
_discounts on diabetic shoes
_telemedicine 24 hours/day
all for just a $4 monthly membership. And Ms. Jones can add up to 4 family members to her Legacy membership at zero costs. So the $4 monthly membership covers 5 people. Pretty good deal if you ask me.

I understand that they will charge higher in the future. But not only the cost of materials increases. Minimum wage goes up. 45 years ago when I was a dishwasher I made around $1 per hour. I think Nancy Pelosi is thinking about increasing that now ( or who ever is running the show these days). When that happens all wages increase. Truck drivers. Warehouse workers. Welders, office workers, accountants. Etc. my opinion is that inflation protection has to be built into any future price guarantee if there is any expectation of carrying out the promise. But I could be wrong. I'm no math genius.

 

[Todd King]

There's a lot of things I don't know either.

We have been aware of this for a long time. Outside of SL, you don't know what you think you know about other companies. But like I said, we've known this for quite a while now. This is why I try to tell others that argue with you that they are wasting their time arguing with someone who is so entrenched and enamored with one company. The Kool-Aide is strong in you!

 

[noah]

One way is the improved persistency that Legacy-Assurance provides.

Legacy Assurance LLC | Complaints | Better Business Bureau® Profile

It's already happened. The Browns Burial policies were popular back in the 1960's. They had a program where they included the casket and vault and headstone and guaranteed the price forever.

20 years later when Funeral homes quit accepting their policies because they would lose money on those old price guarantees due to inflation you Browns open their own funeral homes to service their life insurance burial policies. They all went broke a few years after that.

There have been a number of insurance companies do that through the years. If the merchandise isn't guaranteed with a policy that has an increasing death benefit they always fail out over time and just become an insurance policy and the merchandise guarantee goes poof.

You can't guarantee against inflation unless your invest the money to keep up with inflation. Look at the AmVets Celestial Burial Case plan they sold. The Browns Burial Plan. The Huff-Cook Burial Plans, etc. It's been done many times before. The key is to not have the insurance company guaranteeing that the merchandise can be provided. As long as you can keep those things separate it will be fine when the merchandise can no longer be purchased at the original price.

Greg it's a good sales tool. But you are over selling it's value and forgetting that it's not a new idea.

So let me ask you something. You are a state licensed funeral director. Let's say you have just received a body in your funeral home. The decedent has a Senior Life final expense policy that was in force for 22 months with a $10,000 face amount.

They Legacy Assurance.

The beneficiary of the Senior Life policy comes into your business office with your professional staff to plan a burial that needs to take place in the next seven days from the time you receive the body.

After going over the plan,the beneficiary has chosen a casket you showed them for $3000. While in your office the beneficiary calls Legacy to shop caskets. They direct the beneficiary to their website. The beneficiary opens up their website on their tablet and sees a casket that appears identical to your casket chosen at your place of business or $1500 and wants to buy the casket through Legacy.

You already have the assignment signed in your place of business.

Now,we need to gather the family,do the burial within 7 days.

When do you need the casket at the funeral home ?

What if the casket is flawed ?

Can it be returned ?


Does Legacy ship it to you COD ?

How do you process the transaction?

Who pays for it ?

This is a contestable claim.

What if it's out of contestability ?

How does this actually work IRL ?

Thanks

 

[theinsuranceman]

We have been aware of this for a long time. Outside of SL, you don't know what you think you know about other companies. But like I said, we've known this for quite a while now. This is why I try to tell others that argue with you that they are wasting their time arguing with someone who is so entrenched and enamored with one company. The Kool-Aide is strong in you!

Todd...lol. You're always trying to throw a jab my way aren't you? Why don't you try to add something positive, useful, and constructive to our conversation. Instead, you come out of left field trying to start an argument. Why do you do that Todd? That's what children and immature adults do.

 

[theinsuranceman]

Legacy Assurance LLC | Complaints | Better Business Bureau® Profile This looks like a case of either the agent doing a poor job of "salting the business down" before they left the house or hung the phone up. Or maybe a case of "selective amnesia" by the client? Nevertheless, Legacy took care of all customer concerns about as well as could be expected.

So let me ask you something. You are a state licensed funeral director. Let's say you have just received a body in your funeral home. The decedent has a Senior Life final expense policy that was in force for 22 months with a $10,000 face amount.

They Legacy Assurance. ??????

The beneficiary of the Senior Life policy comes into your business office with your professional staff to plan a burial that needs to take place in the next seven days from the time you receive the body.

After going over the plan,the beneficiary has chosen a casket you showed them for $3000. While in your office the beneficiary calls Legacy to shop caskets. They direct the beneficiary to their website. The beneficiary opens up their website on their tablet and sees a casket that appears identical to your casket chosen at your place of business or $1500 and wants to buy the casket through Legacy.

You already have the assignment signed in your place of business.

Now,we need to gather the family,do the burial within 7 days.

When do you need the casket at the funeral home ? They say the casket usually arrives in 24 hours, 48 hours in HI and AL.

What if the casket is flawed ? I don't know. Flawed is a broad term. Small dent?

Can it be returned ? yes


Does Legacy ship it to you COD ? Shipping is free with Legacy.

How do you process the transaction? Insurance policy provides the funds for Legacy products that are selected. if policy has lapsed months earlier and Legacy's membership is still in force, then the family can still get the same discounts on the merchandise. In this case they would buy the discounted merchandise via c. card for ex. rather than the policy (since it lapsed months earlier).

Who pays for it ? The insurance policy. If the policy has lapsed many months earlier the Legacy membership may still be in force and be able to still provide the discounts.

This is a contestable claim. Legacy's discounts are still completely available. Legacy's discounts start on day one even if the policy is a guarantee issue.

What if it's out of contestability ? Legacy's discounts are available.

How does this actually work IRL ? Sr Life and Legacy are 2 different business entities with different tax IDs.

Thanks You're welcome.

 

[theinsuranceman]

I understand that they will charge higher in the future. But not only the cost of materials increases. Minimum wage goes up. 45 years ago when I was a dishwasher I made around $1 per hour. I think Nancy Pelosi is thinking about increasing that now ( or who ever is running the show these days). When that happens all wages increase. Truck drivers. Warehouse workers. Welders, office workers, accountants. Etc. my opinion is that inflation protection has to be built into any future price guarantee if there is any expectation of carrying out the promise. But I could be wrong. I'm no math genius.

Simple, just use the rule of 72. Use the rule of 72 for:
_costs of raw materials
_labor costs
_taxes
_manufacturing costs
_shipping costs

Then add another $500 for an extra buffer (in case the rate of inflation increases much higher than anticipated, the unexpected surprises). Do that and problem solved. And the casket, vault, and monument are still thousands less than the funeral home's prices.