Don't know. I was speaking industry wide. As for TA, I am not contracted with them so I can't pass judgement on how they operate.
TransAmerica-Sets Aside $for Future PayOut?
- Thread starter Prtzl
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Don't know. I was speaking industry wide. As for TA, I am not contracted with them so I can't pass judgement on how they operate.
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I had a $200K contestible claim paid just last month. It is the only death claim I've had with Trans. Claim was filed in November.
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Sounds proof enough for me.
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Now I'm confused - forgive the ignorance..
How is the "burial benefit" useful if it doesn't pay immediately? I was under the impression the entire motivation for a buyer is so they can get the $ immediately to be "buried"...??
My client had a 20YR Super Trendsetter for 200K. In the 21st month, she died of pneumonia. I tickled Trans several times during the claim process.
Every insurance policy is contestable the first 2 yrs wether its $1k or $1 mil.I just had a contestable $8k policy take 9 months to pay.All funeral homes are different on how they handle contestable policy's. One thing i am sure is very few fe clients fully understand that if they die in the first 2 yrs their policy won't pay the funeral home for months many times.I think if we all told the client "If you die in the first 2 yrs it could take 9 months to pay" we'd all sell a lot fewer policy's.The biggest claim i've ever been involved in was a $1.9 million NY Life policy i wrote 9 yrs ago. It paid in 3 days.
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I had a vice president of one of the companies that specializes in FE tell me that the FE industry average is 40%. Meaning only 40% are paid.
I tend to believe that figure. If anything it's exaggerated. I had a claims person at Americo tell me about 8 or 9 years ago that they call it the "50/50 gamble" in the claims dept.
I was told that CL told their agents at their last convention that they paid 48% of contestable claims.
The guy that told me the industry average was 40% said he wasn't sure of their percentage when I asked. So he knows the industry average but not his own??
There's a reason companies won't tell the percentage they pay. And it's not because they are proud of it.
Settlers even gives diverted numbers so you won't know. They say they pay 98% of all death claims. Which is probably true. But they are including the non contestable claims in that number. They will not tell you the numbers on only the contestable claims.
There should be a way for us to find out. But I don't know what it is.
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When I deliver a policy, and sometimes during the sale, I'll tell them that "for every policy at every company in every state if you die during the first two years the company has a right to check with your doctor to make sure the application was truthful". I've never had anyone back away from the sale or not understand how that works.
