State Farm Life Insurance

[Newby]

What is deceptive about their life? If there is anything I feel State Farm is a good company for, it's life insurance.

In my limited experience with it, the agents don't seem to know what they are selling. I have run across several UL policies and to hear them describe it they are selling no lapse GUL. But in reality they are not.

I've had several of the agency-owners present the product to me and not one got it even close to correct.

I don't know if this is a company-wide thing or not. My experience was only with a testing of 3 random agents but two of the 3 were CLU designated and should have known better.

 

[Chevarian113]

In my limited experience with it, the agents don't seem to know what they are selling. I have run across several UL policies and to hear them describe it they are selling no lapse GUL. But in reality they are not.

I've had several of the agency-owners present the product to me and not one got it even close to correct.

I don't know if this is a company-wide thing or not. My experience was only with a testing of 3 random agents but two of the 3 were CLU designated and should have known better.

I will be the first to admit, there are many agents that don't know their head from a hole in the ground. Many are simply relationship managers, and office managers, that take little pride in the actual job they are paid for. That being said, SF Has good product training available, but like many other companies, an agent must keep up with their personal training.

I see many ULs minimally funded and ULIs done simply for app count, which gets them their scorecard bonus and travel credits, sadly. Again, not many care about the actual client's benefit, but I think that's an easy thing to say in many advisor-based careers. Doesn't make the product and the many other agents that do it right deceptive. I certainly see your point, though.

 

[danawheels]

I will be the first to admit, there are many agents that don't know their head from a hole in the ground. Many are simply relationship managers, and office managers, that take little pride in the actual job they are paid for. That being said, SF Has good product training available, but like many other companies, an agent must keep up with their personal training.

I see many ULs minimally funded and ULIs done simply for app count, which gets them their scorecard bonus and travel credits, sadly. Again, not many care about the actual client's benefit, but I think that's an easy thing to say in many advisor-based careers. Doesn't make the product and the many other agents that do it right deceptive. I certainly see your point, though.

Thanks for sharing this information.

 

[fredbull337]

To touch on the app count thing with State Farm basically to qualify for a bonus, travel, Select agent, etc the agent has to have a minimum number or apps. SF agents are not as much concerned with premium although they do need a min amount of premium to qualify also. Basically if the agent has a policyholder with a UL each year they can call that client (and they do) and offer them to increase their coverage by $25,000 for only $5 more a month. Boom, instead of having to produce a new app on a new customer they just got a new app from an existing customer. What the customer doesn't know is that they are now under funding the policy and it typically will lapse by the time they are in their mid 60s. Even the sales leaders send out emails with ideas to get apps and this is part of the email ( the sales leaders are very careful to make sure they include the whole "run a proposal and see how long the policy will last and how much they need to fund it blah blah blah"

 

[Newby]

To touch on the app count thing with State Farm basically to qualify for a bonus, travel, Select agent, etc the agent has to have a minimum number or apps. SF agents are not as much concerned with premium although they do need a min amount of premium to qualify also. Basically if the agent has a policyholder with a UL each year they can call that client (and they do) and offer them to increase their coverage by $25,000 for only $5 more a month. Boom, instead of having to produce a new app on a new customer they just got a new app from an existing customer. What the customer doesn't know is that they are now under funding the policy and it typically will lapse by the time they are in their mid 60s. Even the sales leaders send out emails with ideas to get apps and this is part of the email ( the sales leaders are very careful to make sure they include the whole "run a proposal and see how long the policy will last and how much they need to fund it blah blah blah"

I called a State Farm office with a client to cancel his UL policy that he just bought from them which replaced my WL policy (of course they did not do a replacement form.)

They kept insisting that the State Farm policy was WL. It clearly was not. The illustration guaranteed it to age 65. His WL policy was guaranteed to be PAID UP at age 65. Huge difference.

I don't know how they keep anything on the books. Every time I have a case like this they usually are ready to cancel their auto and homeowners insurance from State Farm also.

 

[Gooner]

I called a State Farm office with a client to cancel his UL policy that he just bought from them which replaced my WL policy (of course they did not do a replacement form.)

They kept insisting that the State Farm policy was WL. It clearly was not. The illustration guaranteed it to age 65. His WL policy was guaranteed to be PAID UP at age 65. Huge difference.

I don't know how they keep anything on the books. Every time I have a case like this they usually are ready to cancel their auto and homeowners insurance from State Farm also.

I ran into 1 last week where the SF agent sold a 50 year lady 5 year renewable term..50k for 28/month. I thought I'd died and gone to heaven.

After I showed them that, I wrote the while house

 

[fredbull337]

I ran into 1 last week where the SF agent sold a 50 year lady 5 year renewable term..50k for 28/month. I thought I'd died and gone to heaven.

After I showed them that, I wrote the while house

That is typical. Once they get a raw new auto they want to pivot to something else. Typically a life policy. Since the average consumer doesn't know better they tell them they are getting a 5% discount for adding the policy which will knock down their premium, they assume they are getting a deal! Like fish in a barrel! If they can get them into a UL policy its even better because then you have someone to call next year for that $25k increase and another app count. Im not sure how they sleep at night.

 

[Gooner]

That is typical. Once they get a raw new auto they want to pivot to something else. Typically a life policy. Since the average consumer doesn't know better they tell them they are getting a 5% discount for adding the policy which will knock down their premium, they assume they are getting a deal! Like fish in a barrel! If they can get them into a UL policy its even better because then you have someone to call next year for that $25k increase and another app count. Im not sure how they sleep at night.

I should add, I called a friend at Liberty Mutual and now he has their home and auto