Settlers claims record

shonceman

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IMG_0315.PNG I was just on the Settlers agent site. They had a blurb in the corner touting 99.19% of claims paid in 2017. Seems pretty strong! I haven't seen other companies post their claims record. Does anybody know how this compares with other FE companies? With the advent of POS screening calls and Rx check, it seems like all companies should be paying out a higher percentage than in past years.
 
Not all Rx show up on the Rx check and some are filled post insurance purchase. Example you go to the doctor he says you have cancer, you call get insurance, then start taking medication after. This will come out in the records if death occurs in the contestable period and the claim would not be paid. I know Settlers boasts of a high claim payout but I think there is some strategic math to list 99.19%.
 
Yeah that has to be for incontestable claims.

So the real question is why didn’t they pay out on the 0.81% of claims that weren’t contestable???
 
I’m pretty sure they’re advertising all claims not just non-contestable

Here is the answer. They are talking about all claims, not just contestable claims.

Think about if, if you have been writing business for any length of time, most of your claims are outside of two years. Settlers has been doing this for how long? The vast majority of their claims should be on policies that are more than 2 years old. So what they rescind is the minority because most claims are on policies 5, 10, 20 or even 30 years old.
 
Well I know this much. Sometimes people bring up contestability because some funeral director or other told them that no life insurance is any good for the first two years. Then I explain contestability, and tell them, "I don't even have to take off my shoes and socks to count how many claims I've had denied!" In nearly 30 years and thousands of policies, just 4 rescissions that I can remember, although I've certainly had more that were contestable. Ironically, 2 of the rescissions were from Settlers, but that was many years ago.
 
"I close 100% of my clients who buy a final expense policy from me, therefore my closing ratio is 100%."

This is funny math. What matters more is what percent of contestable claims were paid, or what percentage of non-contestable claims were paid.
But I agree with you David, now that you point it out. Percentage of contestable claims paid would be more impressive to me. But you've got to admit, the 99+% number on a sales presentation slide would impress the average FE prospect.
 
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