The Perfect Final Expense Insurance Product...

[FETalk]

Dude! You gotta have SS billing in there or it will never come close.

I do like the idea of a 4 tiered product, but I’ve seen it pitched to carriers and not many like the idea.

I think a Preferred, Standard and Near GI, like Settlers Bronze would be good.

No height weight chart.

Standard would take copd and diabetic neuropathy and 1 year look back on heart and circulatory issues.

Yeah, "No height/weight chart" is definitely a must - I completely forgot about that one!

I guess if I had to choose what to scratch off my list to include your suggestion, It would have be the "Issue ages between 0-90 years old" feature.

 

[WinoBlues]

Not necessarily, you have a lot of parents/grandparents that take out policies on their children and grandchildren.

You also have individuals that take out policies on their siblings, not mentioned all the low income "healthy" adults in their 40's that are simply interested in nothing more than a small 10K-15K burial policy.

It is not uncommon for me to run into FE policies written on standard qualifying people 60, 50, 40 or younger.

 

[tribetime32]

If you could design the perfect final expense life insurance product, but were limited to only 7 features, what would it look like?

Here's what mine would look like:

1) The option to submit new business via a paper app, telephonic app or e-app.
2) Instant underwriting decisions.
3) Preferred/ standard/ graded/ and guaranteed-issue plan options on the same app.
4) Issue ages between 0-90 years old.
5) Advances paid daily upon issue.
6) A Maximum charge-back rate of only 20%-30% of negative balance per pay period.
7) Lifetime renewals

This product sounds fun, but it would implode in a year or two. Need to have social security billing for sure. Also, the 20-30% chargeback thing is nice, but you will have the bad agents flocking to that product because they'll know they can write bad biz and still get paid...

My 7 would be...
1) True Social Security Billing
2) EApp w/ Instant decision (if declined they tell you why also i.e. prosperity)
3) Willing to be creative with nitro and COPD medications... for instance if someone has been prescribed nitro but never taken it
4) I like the issue ages from 0-90
5) Max face up to 100k non-med
6) Husband and wife on same app (if EApp) and do a package deal
7) Does not take direct express

 

[WinoBlues]

This product sounds fun, but it would implode in a year or two. Need to have social security billing for sure. Also, the 20-30% chargeback thing is nice, but you will have the bad agents flocking to that product because they'll know they can write bad biz and still get paid...

My 7 would be...
1) True Social Security Billing
2) EApp w/ Instant decision (if declined they tell you why also i.e. prosperity)
3) Willing to be creative with nitro and COPD medications... for instance if someone has been prescribed nitro but never taken it
4) I like the issue ages from 0-90
5) Max face up to 100k non-med
6) Husband and wife on same app (if EApp) and do a package deal
7) Does not take direct express

my added - 8) OK for remote selling.


#5) I agree. Even if the standard was just raised to $50,000 for the FE industry. $35,000 is OK, but $25,000 as the max is crazy. Maybe that was OK 30 years ago but we were selling $5,000 burial plans back then. Especially if you are selling SIWL (T4+) to 40 and 50-year-olds.

 

[FETalk]

This product sounds fun, but it would implode in a year or two. Need to have social security billing for sure. Also, the 20-30% chargeback thing is nice, but you will have the bad agents flocking to that product because they'll know they can write bad biz and still get paid...

My 7 would be...
1) True Social Security Billing
2) EApp w/ Instant decision (if declined they tell you why also i.e. prosperity)
3) Willing to be creative with nitro and COPD medications... for instance if someone has been prescribed nitro but never taken it
4) I like the issue ages from 0-90
5) Max face up to 100k non-med
6) Husband and wife on same app (if EApp) and do a package deal
7) Does not take direct express

You might have misinterpreted what I meant regarding the "chargebacks". The full charge-back would still have to be paid, it just wouldn't be charged-back all a once. Instead, it would be deducted from every commission payment the agent received until the balance was paid in full.

As, far as the "True" social security billing, that's definitely a good feature to have, but I don't know if I think it's absolutely 100% necessary. Especially, if you're not getting hit with a full charge-back all at once.

Unfortunately the caveat of the "perfect FE insurance product" is that you can only choose 7 features.

And, the only thing on my list that I would be willing to swap out for something else is #4 "issue ages between" 0-90.

So, if I had to choose between the two, although it would be close, I'd probably go with "HoosierLife's" feature suggestion of no "height/weight chart" over "True Social Security billing".

 

[FETalk]

my added - 8) OK for remote selling.


#5) I agree. Even if the standard was just raised to $50,000 for the FE industry. $35,000 is OK, but $25,000 as the max is crazy. Maybe that was OK 30 years ago but we were selling $5,000 burial plans back then. Especially if you are selling SIWL (T4+) to 40 and 50-year-olds.

I know it sucks, but unfortunately in this hypothetical scenario, you can only have 7 features.

Also, I believe with most e-app's you're able sell remotely, so you probably wouldn't need to add that as an additional feature.

 

[WinoBlues]

I know it sucks, but unfortunately in this hypothetical scenario, you can only have 7 features.

Also, I believe with most e-app's you're able sell remotely, so you probably wouldn't need to add that as an additional feature.

What a buzz kill

 

[myinsurebiz]

Have a H&W chart - just make it issue on STD if no other major issues.

SS billing and instant decision = most def

Eapp fo sho

100% 1st year with 50% years 2 and 3. Max 6 month advance.

Max $50k on Pref and $25k else.

 

[Rob300L]

Have a H&W chart - just make it issue on STD if no other major issues.

SS billing and instant decision = most def

Eapp fo sho

100% 1st year with 50% years 2 and 3. Max 6 month advance.

Max $50k on Pref and $25k else.

The three-year commission is a bit too aggressive for the real world. That said, I think a 50-50-50 commission, as earned, would bring in a very solid book of business for a company. Perhaps a 5% lifetime renewal. Both the company and the agent would do well with it. Agents would be discouraged from selling bad business (be it bad health, or people who aren't responsible to pay their bills), as the money would be in selling healthy customers. Agent would build a very solid and stable income. Also, the company would have positive premium cash flow from the first day, rather than paying a 100%+ first-year commission; so, if the customer drops the coverage -- or just plain drops dead -- the company would have at least kept a few dollars in premium to cover the overhead.

 

[Allen Trent]

perfect final expense product will require carriers to be able to find someplace to invest money. The way things are headed, most products will require major overall soon that will impact pricing, commissions & performance if things dont get turned around.

our lists as agents & consumers wont matter a whole lot

So, for me, I would say #1 feature is that the carrier can get decent returns & interest rates. without that, none of our wish lists is possible.