Brad Howard
Expert
- 53
I’m soliciting some feedback and thoughts on a product I’ve been approached with from a very reputable associate. The product would be guaranteed issued. No underwriting at all, no health questions. The only feature designed to mitigate abuse/loss would be a 12-month pre-ex. No conditions existing 12 mths prior to issue would be covered in the follow 12 mths. So if death occurred from a condition that was in treatment or had been consulted on in the 12 months prior to effective date, no death benefit would be paid. Beyond that all is ok.
It also has a DI component that is issued with no health questions as well. It requires a 4 mth vesting, meaning no benefit will be paid on ANY claim made within those first 4 months. It also has a 12-month pre-existing clause. Outside of vesting you have coverage and even with pre-existing, you have it fully after 12 mths.
It has an unemployment component too that operates much like the DI in restrictions. It has the same vesting period and they WILL ck with employer if they see you knew you were to be laid off. Otherwise, outside of the short vesting period you are covered with a 30-day elimination.
It has an accidental benefit as well.
As a package the individual could buy one part or combinations of each. In general this is a product designed to cover your mortgage or monthly obligations for up to 6 months due to loss of employment or disability. And then it has the life insurance component I spoke of at the beginning, of course.
The life amounts range from $5000 to $20,000 max and the monthly benefits for either loss of employment or disability range from $500 to $2000 of monthly benefit. It will be marketed as a mortgage safety plan but has obvious fits in the impaired market place due to the ease of issue. It’s designed for someone with limited budget or with impairments to get basic coverage to protect the family’s ability to make the mortgage payment due to loss of income or death.
Given all it offers, the comp is low but reasonable. It can work either as consumer only transaction at a web site or one where the agent closes “down” to this for impaired situations or low budget requirements. It’s fully electronically done, very simple to transact—no paper, all online.
A 50 yr old requesting 10k of life coverage and $1000 per month of DI and Unemployment coverage for up to 6 mos would pay $67.70. It issues ages 18 – 70 with all coverage ceasing at age 71. (so it’s not a final expense solution)
My question is where do you see this best fitting in? Is it just the niche I mentioned or others? If you are a direct marketer, do you see this product as an easy close “down”? I’m curious your take on this. It seems to me it’s a no brainer for those cases where you just can’t help or they can’t afford the rate up on coverage?
It also has a DI component that is issued with no health questions as well. It requires a 4 mth vesting, meaning no benefit will be paid on ANY claim made within those first 4 months. It also has a 12-month pre-existing clause. Outside of vesting you have coverage and even with pre-existing, you have it fully after 12 mths.
It has an unemployment component too that operates much like the DI in restrictions. It has the same vesting period and they WILL ck with employer if they see you knew you were to be laid off. Otherwise, outside of the short vesting period you are covered with a 30-day elimination.
It has an accidental benefit as well.
As a package the individual could buy one part or combinations of each. In general this is a product designed to cover your mortgage or monthly obligations for up to 6 months due to loss of employment or disability. And then it has the life insurance component I spoke of at the beginning, of course.
The life amounts range from $5000 to $20,000 max and the monthly benefits for either loss of employment or disability range from $500 to $2000 of monthly benefit. It will be marketed as a mortgage safety plan but has obvious fits in the impaired market place due to the ease of issue. It’s designed for someone with limited budget or with impairments to get basic coverage to protect the family’s ability to make the mortgage payment due to loss of income or death.
Given all it offers, the comp is low but reasonable. It can work either as consumer only transaction at a web site or one where the agent closes “down” to this for impaired situations or low budget requirements. It’s fully electronically done, very simple to transact—no paper, all online.
A 50 yr old requesting 10k of life coverage and $1000 per month of DI and Unemployment coverage for up to 6 mos would pay $67.70. It issues ages 18 – 70 with all coverage ceasing at age 71. (so it’s not a final expense solution)
My question is where do you see this best fitting in? Is it just the niche I mentioned or others? If you are a direct marketer, do you see this product as an easy close “down”? I’m curious your take on this. It seems to me it’s a no brainer for those cases where you just can’t help or they can’t afford the rate up on coverage?
