Americo non smoker clause

[nfl72]

I ran across a new one yesterday. I was running a Direct mail lead and the lady stated she had an existing policy. I asked her to go find it which she did. It was an Americo policy, Modified Whole LIfe. All the questions on her application were answered no but it was still graded. There was a separate letter mailed to her which stated the following.

5K at $41 per month. It stated that the coverage was 5K for the first three years and then in year 4 if she hadn't quit smoking yet it would drop to $2,937.00. If she had quit smoking for a year the face would remain the same.

I replaced her with a 5K $42 per month tobacco

 

[billyb]

Agents in my area sell that a lot knowing the person will not quit smoking in 3 years. Most don't explain the terms. I assume they think this will not come back to haunt them down the road.

 

[nfl72]

yea, this lady had no clue about the reduction in face amount if she did not quit smoking. This is a dirty business with far too many agents willing to say or do anything to make some money. Too many ex used car salesmen or mortgage guys have moved to this industry. Let the buyer beware!

 

[suranceman]

yea, this lady had no clue about the reduction in face amount if she did not quit smoking. This is a dirty business with far too many agents willing to say or do anything to make some money. Too many ex used car salesmen or mortgage guys have moved to this industry. Let the buyer beware!

Americo Eagle GI has no smoker/non smoker rating. It's pure GI.

 

[goillini52]

Americo Eagle GI has no smoker/non smoker rating. It's pure GI.

How could anybody sell that? It's 2-3 times more than many. The only one more expensive is Senior Life.

 

[nfl72]

This was not a GI it was an Eagle Premier, no waiting period. Just a reduction of face value in three years if she continued to smoke.

It was not expensive She wrote it last year at $41 per month. The new KSKJ was $42 tier one. It was comparable to KSKJ. And the non smoker clause was well hidden!

 

[PA Bill]

They shouldn't be allowed to sell that garbage. Reminds me of those funny mortgages they were slinging leading up to the Great Recession.

 

[suranceman]

This was not a GI it was an Eagle Premier, no waiting period. Just a reduction of face value in three years if she continued to smoke.

It was not expensive She wrote it last year at $41 per month. The new KSKJ was $42 tier one. It was comparable to KSKJ. And the non smoker clause was well hidden!

Then why did you say it was a modified whole life?

 

[Baseball7]

I think they have to call it modified since the Fa can change. Great idea for the 1% thats just quit smoking but just a few months short of 12mo.

 

[nfl72]

It was called a" Modified Whole LIfe" on the policy heading.