Why Do FE Producers Ask for Rates So Often?

[Arookaria]

Then other things come into play. If the price is pretty close between a couple of companies but I know from experience that one of them has a terrible reputation on paying claims then I will steer to the other company even if it's :

Which FE companies have the worst reputation in the industry for not paying claims ? I'm surprised that any insurance company can just NOT pay a claim; a guy is dead or he isn't. He paid his premiums and was covered or he wasn't. Is this common in FE for clients to die before incontestability period is over? Please educate me I know I need it

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[jdeasy]

Which FE companies have the worst reputation in the industry for not paying claims ? I'm surprised that any insurance company can just NOT pay a claim; a guy is dead or he isn't. He paid his premiums and was covered or he wasn't. Is this common in FE for clients to die before incontestability period is over? Please educate me I know I need it

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All life insurance has a contestable period. SI is more likely to be successfully contested than fully underwritten but I had one company tell me they only pay about 50% of contested claims, SI or fully underwritten.

But, yes, the FE clients are probably more likely to die in the contestable period that others simply they are older. I write 2 79 year olds today. That's already past the average life expectancy.

The only company I know of that will go on the record about paying contestable claims is Settlers Life. The rest will not tell you no matter how many time you ask.

The ones locally with really bad reputations for not paying, {also from what I gather here and at other websites}, are Foresters, AmAm, LH, Americo, Shenandoah, {although no longer an issue since they haven't issued any policies in over 2 years}. That's just from being told by funeral directors and other agents plus personal experience.

Personally my best experience is with RNA. They have paid every contestable claim that I've had except for one claim.

This is all anecdotal evidence, except for Settlers. I wish all companies would share the experience. Then we wouldn't have to just go on word of mouth.

 

[WinoBlues]

Which FE companies have the worst reputation in the industry for not paying claims ? I'm surprised that any insurance company can just NOT pay a claim; a guy is dead or he isn't. He paid his premiums and was covered or he wasn't. Is this common in FE for clients to die before incontestability period is over? Please educate me I know I need it

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I would not say it is common in any Life Insurance, probably more common in FE vs Traditional due to the nature of the underwriting and who it is marketed to.

As to not paying claims, in my experience it is very rare. I personally have never had a claim denied. And I have had claims very early into the first two years. One was less than 24 hours. The app and check were still on my desk.

Insurance companies pay claims. There are hundreds of years history to prove that.

 

[Arookaria]

I never thought about asking local funeral directors about carriers reputation for paying claims, will do that now. Also if I decide to go independent will def look into getting appointed with RNA; I want to be in business with insurers that are in the business of paying claims and NOT denying them.
Thank you JD and Wino for your fast responses! This site is gold.

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[smokin goose]

I would not say it is common in any Life Insurance, probably more common in FE vs Traditional due to the nature of the underwriting and who it is marketed to.

As to not paying claims, in my experience it is very rare. I personally have never had a claim denied. And I have had claims very early into the first two years. One was less than 24 hours. The app and check were still on my desk.

Insurance companies pay claims. There are hundreds of years history to prove that.

24 hours?!? Wow. That's messed up.

 

[WinoBlues]

24 hours?!? Wow. That's messed up.

Yeah, It was a 16 day old baby. SIDS.

 

[smokin goose]

Yeah, It was a 16 day old baby. SIDS.

I wish I hadn't asked now.

 

[WinoBlues]

I wish I hadn't asked now.

Yeah what we do may not really ease the pain. However it can lift some of the burden.

 

[smokin goose]

Yeah what we do may not really ease the pain. However it can lift some of the burden.

Yep .................

 

[rousemark]

Sounds as if there are going to be a whole lot of child claims in Oklahoma..