Senior Life Unannounced Rate Increase-Normal/Abnormal?

[theinsuranceman]

Let me make sure I understand you fully:

$5 x 12 months x 90% x 75% advance = $40.50 extra per app written.

compared to other carriers...

$5 x 12 months x 120% x 75% advance = $54 extra per app written.

At 200 apps per year, that's $10,800 more just on the front end! This could mean the difference between funding your own defined contribution retirement benefit plan or not having one at all.

...and what is the selling point again?

No selling point. I'm just reminding everyone up here that everyone will make more $$$ as the carriers raise their premiums.

 

[theinsuranceman]

Let me make sure I understand you fully:

$5 x 12 months x 90% x 75% advance = $40.50 extra per app written.

compared to other carriers...

$5 x 12 months x 120% x 75% advance = $54 extra per app written.

At 200 apps per year, that's $10,800 more just on the front end! This could mean the difference between funding your own defined contribution retirement benefit plan or not having one at all.

...and what is the selling point again?

As the carriers raise their prices this year all agents will be making more $$$. Which agent up here will complain about that?

We have a winner! Or maybe I misunderstood your post?

 

[titeye]

As the carriers raise their prices this year all agents will be making more $$$. Which agent up here will complain about that?

We have a winner! Or maybe I misunderstood your post?

Apparently, I misunderstood where you were going with your post. It should be obvious that higher premium translates to higher commission, all other things equal.

 

[theinsuranceman]

Apparently, I misunderstood where you were going with your post. It should be obvious that higher premium translates to higher commission, all other things equal.

It is obvious, but not everyone will see the obvious things. Anyway I was just spreading the positive side of higher premiums, as I know some agents will think it's negative as they feel like they can't sell a policy unless they have real cheap rates.

Rouse....see what your clever insight has caused...lol?

 

[Agentguy5]

Due to the covid related deaths last year, reserve rates went up so.... I'm betting most carriers (if not all) will have rate increases over the next 12-18 months.

 

[theinsuranceman]

Due to the covid related deaths last year, reserve rates went up so.... I'm betting most carriers (if not all) will have rate increases over the next 12-18 months.

That's the word on the street.

 

[Thedude]

How sweet it is! Check out this example: Assume the premium is raised by $5 per month. If an agent were on the smallest contract (90%) their increase in commissions would be...
$5 x 12 months x 90% x 75% advance = $40.50 extra per app written!

OR if on 60% advance with chargebacks on the backend....

$5 x 12 months x 90% 60& advance = $32.40 extra per app written!

And then the unadvanced part of the commission is bigger. Then the lifetime renewals will be bigger.

As the carriers raise their prices this year all agents will be making more $$$. Which agent up here will complain about that?

Just one day, one post, be a normal human being and not a marketer

 

[theinsuranceman]

Just one day, one post, be a normal human being and not a marketer

I've shared a lot of good info up here.

 

[BibH]

I know a lot of people on here write Am-Am. They have a very broad COVID questionnaire that can really allow them to contest many claims . In the last 12 months have you been quarantined,treated for,examined for,tested positive for ,diagnosed with . 2 out of every 10 Americans if truthful would say yes to that over the past yr . I've had no one answer yes.Nobody i use goes back 12 months but them . Almost all 30 days. Several carriers don't even ask.

 

[theinsuranceman]

I know a lot of people on here write Am-Am. They have a very broad COVID questionnaire that can really allow them to contest many claims . In the last 12 months have you been quarantined,treated for,examined for,tested positive for ,diagnosed with . 2 out of every 10 Americans if truthful would say yes to that over the past yr . I've had no one answer yes.Nobody i use goes back 12 months but them . Almost all 30 days. Several carriers don't even ask.

Sr Life is one that doesn't ask about covid. I don't understand AM-AM's logic on the covid question. How does "examined for" increase exposure to liability for the carrier?

Also, if the proposed insured had covid 90 days or more ago it seems like their probability of catching covid would now be less than someone who has not had covid, since antibodies would now be generated.

We'll probably start seeing the question "have you been vaccinated for the covid virus" in the future to help determine qualifying for immediate coverage.