Your opinions on this product?

Feb 7, 2008

Tags:
  1. Brad Howard
    Offline

    Brad Howard Expert

    Posts:
    53
    Likes Received:
    0
    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?
     
  2. Delta76
    Offline

    Delta76 Guru

    Posts:
    596
    Likes Received:
    4
    It all comes down to definition of disability for DI. Life insurance is easy, your dead or your not. Good concept, but it depends on the contract.
     
    Delta76, Feb 7, 2008
    #2
  3. Winter_123
    Offline

    Winter_123 Guru

    Posts:
    2,908
    Likes Received:
    15

    "Life amounts range from $5000 to $20,000" yet the product is to be marketed primarily as a mortgage protection product. What's the goal there- just to be able to make some payments while you sell the house?

    Winter
     
  4. CHUMPS FROM OXFORD
    Offline

    CHUMPS FROM OXFORD Guru

    Posts:
    10,261
    Likes Received:
    49
    State:
    Ohio
    I think I remember seeing this somewhere else.
     
  5. CHUMPS FROM OXFORD
    Offline

    CHUMPS FROM OXFORD Guru

    Posts:
    10,261
    Likes Received:
    49
    State:
    Ohio
    Oh...that's right. The other forum. I think you posted the same question last night. By the way...what is the name of the company that will underwrite this?
     
  6. Ahnuld
    Offline

    Ahnuld Super Genius

    Posts:
    159
    Likes Received:
    0
    Now that you mention it, it's not deja vu. I did see it somewhere else. I forget where and when.

    CHUMPS FROM OXFORD, Thanks for memory.
     
    Ahnuld, Feb 7, 2008
    #6
  7. Brad Howard
    Offline

    Brad Howard Expert

    Posts:
    53
    Likes Received:
    0
    GREAT question, this is what I was after. It is NOT own occ, must be unable to perform the material and substantial duties of any occupation for which you are reasonably fitted by education, training or experience. That's a biggie for sure, but given the market this is going after we are not chasing attorneys and dentists.
     
  8. Brad Howard
    Offline

    Brad Howard Expert

    Posts:
    53
    Likes Received:
    0
    That is correct in my opinion. I think they feel this is a significant enough niche to be able to offer such a product that covers the loss of the bread winner due to death, disability or loss of employment. When you look at the statistics they have placed themselves square in the averages for folks in this range of lost income. This is where homes are lost and they think this is a sweet spot if you can offer something with no underwriting.

    I agree about the limitations of face and length of coverage, but I have to agree with them about placing themselves in the middle of the biggest target market. Doesn't mean it will sell gang busters, but it "got my attention." Love the discourse here, great stuff and thanks for helping me think this through.........

    Oh, and they "get it", this is NOT something you'd try to offer face to face, it's for the high volume direct market where you have so many folks that want ANYthing but can't afford much or have poor health.........
     
  9. Brad Howard
    Offline

    Brad Howard Expert

    Posts:
    53
    Likes Received:
    0
    I asked premission to put it before you folks under the understanding that I'd not yet divulge the carrier. Seems the states are not yet done approving. I understand that 41 have in some way, but since there are so many components it's still in process.

    I did not "know" the carrier before I was told of them if that helps. Would figure this is not an A++ offer. Does that help? I want to give what I can here for good exchange without "outing" my associate and carrier.

    If that's critical given what I've indicated here I'll ask to release more? I was more after the value of this offer in our opinion based on your activities in the market place.
     
  10. CHUMPS FROM OXFORD
    Offline

    CHUMPS FROM OXFORD Guru

    Posts:
    10,261
    Likes Received:
    49
    State:
    Ohio
    This sounds strikingly similar to the longest thread in the history of this Forum. I assume, however, that this product is a bit more legit.
     
Loading...