There was a carrier (Cariten) in TN that was priced 15% under market and had terrible service and horrible claims paying. We would present them then sell against them since our competition would also have the quotes to use against us. People bought regardless of our recommending against them and we ultimately lost several clients. Some clients were happy with Cariten. I suspect that they didn't have many claims and it was a case of "I haven't ever had a problem with them". That too is a common refrain when buying cheap - think HMO or even Med Advantage.
A carrier with piss poor service rarely improves. I haven't had a "next time" since that experience but would either decline to sell that carrier or have the client sign that I was only helping them implement because of (reasons 1,2,3,4) and that I'd help them when it came time to move. I'd do it in a joking matter with reference that I wanted to maintain our friendship regardless of how good or bad the carrier turned out to be.
I use the same strategy with loans. I decline if anyone asks for a loan that is more than I'm willing to give them because loans between friends damage friendships. If the amount is something I'm willing to give, I will with the caveat that this is a gift and repayment is not expected or allowed and, don't ever ask me for a loan again because I don't make loans. I will give them a place to sleep or food but people don't generally want a bed or food so that isn't a problem.
Bottom line, don't sell crappy carriers or plans without fully explaining why it isn't worth buying.
Selling STM with the expectation of writing multiple plans is asking for trouble. STM is specifically set up to pay very low total claims and renewing is only an option if you are not sick. You could pay me 1/2 of the premium and be money ahead. I won't pay any claims either but won't pretend that I will. At least with term life there is a conversion option in the event it's needed (don't bring up that not all term bla, bla, bla). The point is that there is no such bail out with STM.
A carrier with piss poor service rarely improves. I haven't had a "next time" since that experience but would either decline to sell that carrier or have the client sign that I was only helping them implement because of (reasons 1,2,3,4) and that I'd help them when it came time to move. I'd do it in a joking matter with reference that I wanted to maintain our friendship regardless of how good or bad the carrier turned out to be.
I use the same strategy with loans. I decline if anyone asks for a loan that is more than I'm willing to give them because loans between friends damage friendships. If the amount is something I'm willing to give, I will with the caveat that this is a gift and repayment is not expected or allowed and, don't ever ask me for a loan again because I don't make loans. I will give them a place to sleep or food but people don't generally want a bed or food so that isn't a problem.
Bottom line, don't sell crappy carriers or plans without fully explaining why it isn't worth buying.
Selling STM with the expectation of writing multiple plans is asking for trouble. STM is specifically set up to pay very low total claims and renewing is only an option if you are not sick. You could pay me 1/2 of the premium and be money ahead. I won't pay any claims either but won't pretend that I will. At least with term life there is a conversion option in the event it's needed (don't bring up that not all term bla, bla, bla). The point is that there is no such bail out with STM.
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Soooo true that
