What is the Average "life" of a FE Policy?

[rousemark]

Don't know the average age of FE policies but I paid a claim on one that would sure increase that average. It was a National Life and Accident industrial policy with a face amount of $250.00. The man's mother bought it on him when he was 6 months old. He was 82 when he died.

 

[VolAgent]

Don't know the average age of FE policies but I paid a claim on one that would sure increase that average. It was a National Life and Accident industrial policy with a face amount of $250.00. The man's mother bought it on him when he was 6 months old. He was 82 when he died.

What was the premium on that bad boy, 10 cents a month?

 

[rousemark]

What was the premium on that bad boy, 10 cents a month?

Been so long I don't remember but I think it was 12 cents per week.. I do know that there was much more paid into it than was paid out.

 

[sellinmachine]

It doesn't work quite like that. I once had an agent ask for a release from Settlers because he was offered a 110% and I had him at a 105%. His new contract had him at 5% on years 2-10 and mine had him at 11% 2-10 and 3.5% 11-forever.

Yes, I released him. He was too stupid to keep.

LMAO, let's see, based upon my age and life expectancy, maybe I should seek 204% FY with no renewals? Or is there age discrimination posssible here? Just in a good mood this morning and having fun!!

 

[rousemark]

I am trying to figure out how a company plans on keeping their business on the books when they pay all the commission up front and no renewal. There is no incentive for the agent to save the business.. In fact, just the opposite.. The incentive is for the agent to get 125%, first eyar and then roll it to another company for another 125% the next. That was what brought about levelized commissions in the Med Sup area. Agents were constantly churning the business for the 70% 1st year comisssion.

 

[carol369]

It doesn't work quite like that. I once had an agent ask for a release from Settlers because he was offered a 110% and I had him at a 105%. His new contract had him at 5% on years 2-10 and mine had him at 11% 2-10 and 3.5% 11-forever.

Yes, I released him. He was too stupid to keep.

Where do these agents come from?!

 

[rousemark]

Where do these agents come from?!

The public school system?

 

[donamese]

I am trying to figure out how a company plans on keeping their business on the books when they pay all the commission up front and no renewal. There is no incentive for the agent to save the business.. In fact, just the opposite.. The incentive is for the agent to get 125%, first eyar and then roll it to another company for another 125% the next. That was what brought about levelized commissions in the Med Sup area. Agents were constantly churning the business for the 70% 1st year comisssion.

Remember that insurance agents are SUPPOSED to be ethical. We know that isn't true for all but it's a great theory. With Medicare Supplement there are increases as a block ages which gives better reason for changing companies on occaision to reduce premiums. For life insurance, you throw the client into a new contestible period and put them at a potential risk for rescission. It is true it can be abused, but companies will notice your lapse rate increase then term you...eventually you run out of companies to replace with.

 

[InsuranceMGA]

I have FE sales that are still on the books since 2005 some over eight years!!

 

[rousemark]

I have FE sales that are still on the books since 2005 some over eight years!!

Not a fair comparison since I am older than dirt, but I have a couple that have been on the books since 1994. Have a few cancer plans that have been on the books since the early 1980s... They still pay a 25% renewal.. (those were the good ol' days)