When a Lead is Wheelchair Bound

[NSRH]

I love how you think Gerber will cut us off. They have people buying and lapsing Grow Up plans, and/or keeping them so long and making a profit to cover the GI's short fall.

We shall see.

I have never seen a GI company make it with brokers, because brokers will only send the sick and uninsurable there. Its always a great deal for the customer and for the agent, but the carrier loses and eventually discontinues the product.

 

[Baseball7]

What is the average lifespan of a final expense product before it undergoes some type of major change?

 

[BoJax]

We shall see.

I have never seen a GI company make it with brokers, because brokers will only send the sick and uninsurable there. Its always a great deal for the customer and for the agent, but the carrier loses and eventually discontinues the product.

That makes sense. Colonial Penn works well for them because they place people who'd qualify immediate somewhere else in the GI program. I can't see why Gerber would be any different.

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That's a good point. That's why many of us pick a go to company that will take a wide variety of health conditions. But these companies spend hundreds of thousands of dollars designing these applications to accept the health conditions their actuaries have decided are acceptable for their product.

But I would imagine you are correct, if every FE agent out there only used each carrier for their worst health niche, adverse selection would catch up. That's why you see companies with liberal UW eventually raise rates.

But to be realistic, I would venture that 90% of agents are not underwriting as effectively as possible for clients.

I consider myself pretty knowledgeable when it comes to carrier UW, but EFES has only gotten better since Ben came on board. He has the best cheat sheet that I have seen or used, hands down. He's always updating it too when a new carrier comes up or a new niche is discovered.

Plus our group chat has a few walking/talking pharmacies. Shout out to Tommy. That guy knows more than most doctors on health conditions and prescriptions. Efes has the best group chat I've been a part of!

That's awesome man! It's also rare in this business!

 

[nfl72]

I know my thought process goes against what most people think is right to do, but when I consider the loyalty in this business and the fact that 15% will probably not pay for a year and fall of the books anyway. I just don't see the logic in spending valuable time getting set up with a new lender because Fex quotes stated they were the best price, especially for one deal.

Now if somebody is consistently coming out on top, that's a different story. I prefer to have 2 or 3 go to companies and do the best I can and let the chips fall where they may.

 

[BibH]

Nsrh you've obviously not been in the business long. Gerber's been selling the same Gi using brokers since the 1980's and they've never raised the price of it. I'd say 30 yrs is a good track record. For me i know the 2 yr charge back makes me think twice before writing somebody very sick. I put them with Great Western and a 9 month chargeback.

 

[BoJax]

Nsrh you've obviously not been in the business long. Gerber's been selling the same Gi using brokers since the 1980's and they've never raised the price of it. I'd say 30 yrs is a good track record. For me i know the 2 yr charge back makes me think twice before writing somebody very sick. I put them with Great Western and a 9 month chargeback.

It wouldnt necessarily matter how long they have had a product, but how much business is being written with it. When I originally got my license 5 years ago (didn't sell then) Gerber was never brought up. In this past year, it seems to be the GI go to company.

 

[VolAgent]

Nsrh you've obviously not been in the business long. Gerber's been selling the same Gi using brokers since the 1980's and they've never raised the price of it. I'd say 30 yrs is a good track record. For me i know the 2 yr charge back makes me think twice before writing somebody very sick. I put them with Great Western and a 9 month chargeback.

I don't believe the GI product has been available to brokers that long. I only remember it becoming available just a few years ago. It definitely has taken off in the past few years. I do question just how long it will be available to brokers.

Just look at Vantis. While their pricing was even lower, so were the commissions and they had tough chargeback rules on lapses. It lasted just a few years once it was available.

 

[bboman23]

I don't believe the GI product has been available to brokers that long. I only remember it becoming available just a few years ago. It definitely has taken off in the past few years. I do question just how long it will be available to brokers.

Just look at Vantis. While their pricing was even lower, so were the commissions and they had tough chargeback rules on lapses. It lasted just a few years once it was available.

But did Vantis do direct to consumer? I think that is one advantage of Gerber. The block they get from field agents is mostly going to be sick clients, but they also get healthy people directly. Also I have replaced policies before that were done face to face and they were perfectly healthy, but the agent wrote them Gerber. This agent worked for Alfa and used Gerber for the Life Insurance side....so hopefully the mixture will keep them in the game longer...who knows?

 

[HoosierLife]

I don't believe the GI product has been available to brokers that long. I only remember it becoming available just a few years ago. It definitely has taken off in the past few years. I do question just how long it will be available to brokers.

Just look at Vantis. While their pricing was even lower, so were the commissions and they had tough chargeback rules on lapses. It lasted just a few years once it was available.

I run into a lot of Gerber's written by P&C or MA guys. I have a feeling it's one of their only carriers. That might be averaging out the adverse selection too.

 

[VolAgent]

But did Vantis do direct to consumer? I think that is one advantage of Gerber. The block they get from field agents is mostly going to be sick clients, but they also get healthy people directly. Also I have replaced policies before that were done face to face and they were perfectly healthy, but the agent wrote them Gerber. This agent worked for Alfa and used Gerber for the Life Insurance side....so hopefully the mixture will keep them in the game longer...who knows?

Previously Vantis was primarily sold by bankers. Someone wanted a small amount of insurance and the banker didn't want to deal with underwriting? Vantis was the answer. It got a very healthy mix of business because if it, perhaps extremely healthy.

That will be the only saving grace for Gerber, its direct to consumer channel. That and some idiots who just sell everyone a GI policy. It is probably the reason it has lasted as long as it has, and it may be what keeps it available to brokers. Unless Gerber does a deep dive on its book and decides that brokers don't bring enough premium to justify the cost.

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I run into a lot of Gerber's written by P&C or MA guys. I have a feeling it's one of their only carriers. That might be averaging out the adverse selection too.

It definitely doesn't hurt.