Transamerica Final Expense?

[Ami]

Should I care if company A charges 24% interest going from Annual payment to monthly and company B charges only 10.53% going from annual to monthly if the client will not pay annually and company A even with the higher APR is still providing the same coverage for a lower monthly amount?

The topic of this thread was a specific product, from the SAME company, not similar products from "company A" and from "company B".

 

[Norwayguy]

The topic of this thread was a specific product, from the SAME company, not similar products from "company A" and from "company B".

Maybe I'm not being a professional here, but I have to wonder why I would care that the company which has expenses and smaller policies paid monthly are more costly charges a higher as you put it conversion ratio...If I'm working with a client that needs to get a final expense/simplified product due to health concerns I am finding him the best value based on his needs and health conditions and in this case I define as a need whether or not they are paying annually or monthly...I mention to my clients that the carriers might rank differently based on annual payments and ask them If they want me to quote those as well...Guess what many people can't afford the annual so choose monthly based on their budget what is the best value in their situation.

I guess what ruffles my feathers is I know you have a product you are selling that calculates APR and you are working it into the conversation whenever you can...nothing in the previous posts asked about the APR on paying monthly on the FE product the poster wanted to know about the difference between Transamerica Family Markets (the old Life Investors) and Trans Occidental & to tell you the truth I had previously had the same confusion as this poster had.

 

[arnguy]

Why would that be relevant?

Possibly irrelevant depending upon your focus, but as I clearly stated I was just curious because you tend to mathematically analyze the minutiae of the financial aspects contin some of these posts. My query was not intended to be offensive.

BTW I subsequently looked at you biographical sketch and noticed that in the list of your interests mathematics is first.

You list your locations as Toronto and Florida. Is that Toronto in the winter and Florida in the summer or vice versa?

Peace, Shalom, whatever, Brother (or Sister)!

 

[Ami]

Maybe I'm not being a professional here, but I have to wonder why I would care that the company which has expenses and smaller policies paid monthly are more costly charges a higher as you put it conversion ratio...If I'm working with a client that needs to get a final expense/simplified product due to health concerns I am finding him the best value based on his needs and health conditions and in this case I define as a need whether or not they are paying annually or monthly...I mention to my clients that the carriers might rank differently based on annual payments and ask them If they want me to quote those as well...Guess what many people can't afford the annual so choose monthly based on their budget what is the best value in their situation.

In general, I'd agree with you on the above; however, the consumer does deserve disclosure. That's all I'm getting at, period.

I guess what ruffles my feathers is I know you have a product you are selling... .

FALSE. The calculator is free, and that was clearly stated. What part of the word "free" are you unable to understand?

Sir, I hope that you are more careful about your assertions when you deal with your clients!

 

[SportsNut]

Hmmmm... the conversion to "monthly" for annual premiums under $1,000 works out to a whopper of a financing cost rate, over 21%, but for for annual premiums > $1,000, and PAC, the financing rate is just half that, at 10.53%.

You should make your case to the Commissioner of Ins of each state that this product is approved for sale. If they ban it, and all other such products, then I guess that would fix the problem; (speaking of the problem that you see, not saying that most others do). This would force this and other companies to offer more competitively priced products on a monthly basis.

What it really comes down to is most folks, especially those that are seeking final exp insurance, aren't in a position to pay an annual premium. Most are lucky enough if they can afford one monthly. So as an agent I try to compare what is available for sale, based upon fair competition, and select the best options for the client of the available market.

Instead of pointing out the APR based on monthly pymts, why don't you find a good FE and other life products who do NOT charge a usuarous rate, and report back to us. Be sure to take into account underwriting standards too, because it will do us no good to offer a product to a client who cannot qualify medically; (even if the APR is sweet).

We'll be watching for your results Ami... We are pulling for you.

 

[R. Paul Aguirre]

There is Transamerica Life (Family Mkts) and Transamerica Occidental Life. They are both part of the AEGON Grp...TA Occ Life offers the Final Exp product. You need to be contracted with TA Occ Life, then you can selll the product.

Contract Form #1-109 11-188 issued by Transamerica Occidental Life Insurance Company. Issue age 0 to 80... one class, (n/s and smoker are the same rate), so that favors smokers, but higher rates for n/s. Also issues up to 50,000 face amount. Rates aren't any higher than the avg of any other final expense companies... Higher than some, lower than others... about avg; better than avg for smokers.

The product has its niche, so I would disregard the naysayer comments. Obviously you aren't going to sell this product if someone can qualify for fully u/w life plans, but many can't and are happy to get this type of plan issued.

Since the merger of TOLIC and TLIC all the products should be available right?

 

[moonlightandmargaritas]

So question is, does TA have some sort of "secret" division for final expense for captive agents only?

Man, are they are going to be pissed that you have blown their cover.

This "deep background" project was so secret that not even the HO (as you discovered) was aware.

I myself only learned of it recently, in a side conversation at the regular "Medicare Advantage Breakfast Roundtable" that I attend weekly, with the head of CMS and all the top company CEOs.

If I were you, I would forget anything I ever heard or learned about it - lest the FBI come knocking on your door.

Please let a word to the wise be sufficient.

 

[Guest]

If I were you, I would forget anything I ever heard or learned about it - lest the FBI come knocking on your door.

Please let a word to the wise be sufficient.

Unless he knows the double secret handshake he should be OK.

 

[Norwayguy]

Since the merger of TOLIC and TLIC all the products should be available right?

Yes and No. They are still two seperate companies requiring 2 seperate appointments...Transamerica Occident and Transamerica Family Markets....it can be confusing

 

[dsharp]

I have a question, I am new to final expense, Is there an insurance carrier that will accept a recording to answer the health questions and payment information?
I heard that so companies do. Any info is appreciated.
I want to work some nights and weekends to get started

Thanks