Simplified Vs Fully Underwritten Rates

Discussion in 'Life Insurance Forum' started by tomr15, Jul 28, 2017.

  1. tomr15
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    tomr15 New Member

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    Quick question here: regardless of your opinion on them, we all know about IMOs such as NAA. My question is this - why do these IMOs not have access to, for example, Mutual of Omaha's fully underwritten product, the one they quote on their website? Why do agents of these IMOs only have access to AIG's guaranteed life policies and not any of their other products? Are the agents of these IMOs not full representatives of these companies they are contracted with? It does not make much sense to me, as most people are relatively healthy, and the rate for a fully underwritten product would kill the rate for any simplified issue product in most cases, so giving agents access to these products would be a huge selling edge, and it allows the client to get a better rate. Thank you for reading.
     
  2. Newby
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    Newby Well-Known Member

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    With a lot of products such as AIG's guaranteed issue product it's not really the main company bring the product to market. You have a marketing group that develop that product and they're the ones administering everything. It has nothing to do with the workings of the real AIG company.

    Happens with MedSup's all the time. That's why Gerber's MedSup is not really tied into Gerber's life insurance products. KSKJ J had a MedSup a few years ago which isn't really tied into the other KSKJ products.

    Settlers has told me they get approached often about letting companies bring out a Med Sup under the Settlers brand. So far they've turned them down. It's just extra money for the company but when the rates on the MedSup go crazy which they usually do it kind of puts a bad stain on the company whose name is on it.

    Mutual Omaha has many products they don't let the broker agent sell. They have a captive agent force that has access to some different products than we do.

    It's no biggie just sell the better products that you do you have access to. If you want to good participating fully underwritten whole life that independent agents can sell look at Lafayette life, guardian life, Ohio National Life or the products under the fraternals like Royal Neighbors or KSKJ.
     
  3. tomr15
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    tomr15 New Member

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    Got it, thank you. I do have access to fully underwritten products with Foresters and GPM, I was just wondering why the system works the way it does. Makes sense.
     
  4. Deadlily
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    Deadlily Well-Known Member

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    My undrestanding is that the reason MLM IMOs, such as NAA, Symmetry, Equis, etc. want their agents to sell SI products is because the IMO's commissions are higher on SI. These IMOs are focussed on their bottom line, not on what may be in the client's (or agent's) best interests.
     
  5. Broker4Ever
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    Broker4Ever Well-Known Member

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    Some agencies run a churn & burn on purpose. Simplified Issue is best for that so they can go back & replace the failed agents business easier after the first year. They'll even have an agent 100% dedicated to going around replacing biz.

    Ever wonder why the managers are always on the top of the leaderboards? They'll be at like $40,000 AP for the month. "Just work the system!!"
     
    Last edited: Aug 12, 2017
  6. Baseball7
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    Baseball7 Well-Known Member

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    Cause some clients won't follow through with a FU process?
     
  7. TampaHound
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    TampaHound Well-Known Member

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    I'm having this issue right now actually. 300K MOO Policy.
     
  8. Baseball7
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    Baseball7 Well-Known Member

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    What are the best non-med SI/MP carriers?
     
  9. Broker4Ever
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    Broker4Ever Well-Known Member

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    Over the past year or so several carriers have come out with non-med products that have fully underwritten prices. They're instant decision e-apps too.

    Lincoln Financial Group & Royal Neighbors would be at the top of my list.
     
  10. aclaro
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    aclaro Well-Known Member

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    royal neighbors? My experience with Lincoln program has been okay at best. I prefer SBLI, up to 500k. Then John Hancock and Principal up to 1m.
     
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