Americo's NEW Nonsmoker Rates For Smokers

[Mattschmidt]

I give Americo credit for thinking outside the box, but just think product will get abused, and possibly hurt certain clients/families in the future

 

[suranceman]

All I know is that Americo used to be the worst FE carrier for smokers & now they are probably the best.

I'd rather get my client non smoker rates for 3 years then smoker rates from day 1. If they don't quit & end up with smoker rates anyways then it's just another way for us to be able to separate ourselves from the competition!

You gotta explain that bro. What are you saying?

 

[WinoBlues]

I give Americo credit for thinking outside the box, but just think product will get abused, and possibly hurt certain clients/families in the future

Many FE people are not going to change 55 year old habits at age 70. Unless their health turns so bad they can not hold the cigarette.

So for many, what they could barely afford will become unaffordable. Now they lose that policy. Then buy much less for more. If they can qualify. New contestible period. Which means no coverage for the first two years since FE companies do not pay contestible claim. (read it on the internet).

Now, I can see a use for this, maybe, depending on the client. California may be a little different than other parts of the country. 'Don't start'. I have not looked it up, but would guess we have fewer senior smokers than some other states.

As someone else mentioned the rates are going to be a big part of it. Also is there a urine test? Who pays for it? If a person dies after claiming they quit smoking is a APS ordered during claim?

 

[ExProgrammer]

Document, Document, Document.

CNA Valley Forge had something similar. I think it was a Five Year. Year Six rolls up and they have to pee in a cup and Swear they do not smoke. Seems like there was some kind of contestability clause after. Do not really remember. I do remember the pissed of clients that had not stopped smoking.

Did you mean pissed off or piss of? If it's piss of I guess you were the one testing the urine. It's a shame you actually remember it, though.

 

[FinalExpenseDojo.com]

You gotta explain that bro. What are you saying?

Sorry if I was not completely clear.

My comment was mainly to those talking about clients that may not quit smoking after the 3 years. If that happens then the client isn't losing anything. They end up with the smoker rate after 3 years that they should have had in the first place.

They get extra death benefit for the first 3 years for free. Sounds like a decent deal to me. One of my agents clients died within the first 3 months & Americo paid the claim. I wonder how many smokers will die within the first 3 years with the higher death benefit. It would be interesting to see if that would affect Americo's financial rating!

 

[FinalExpenseDojo.com]

Maybe we should all offer all of our smoker prospects 2 options.

1. Americo's "Quit Smoking Advantage".

2. Another carriers smoker rates.

I am willing to bet that 99% of the time clients will choose #1. I guess time will tell if this program is successful or not?

 

[Mattschmidt]

Maybe we should all offer all of our smoker prospects 2 options.

1. Americo's "Quit Smoking Advantage".

2. Another carriers smoker rates.

I am willing to bet that 99% of the time clients will choose #1. I guess time will tell if this program is successful or not?

A good insurance agent helps his clients make the best choice. Not the one that may backfire in their families faces in years to come

 

[rousemark]

That,and how many agents are ACTUALLY going to tell client about the 3 years to quit issue. That's a red flag to me

Actually they only have two years to quit. At end of year three they have to prove they have been quit for at least 12consecutive months.

 

[Mattschmidt]

Actually they only have two years to quit. At end of year three they have to prove they have been quit for at least 12consecutive months.

My Mistake! This over sight leads me to believe that for people age 50 or over, maybe less then 3% will have actually stopped smoking in 2 years, after policy starts.

 

[Life Hawk]

I've been reading up a bit on Americo after seeing this thread... and the wording they use is "all Nicotine products (including..."

If someone hasn't smoked for the last 13 months and are chewing the gum... they are still considered smoking...

This smells too much like a "bait and switch"...

I'll take the known over the "could be" and keep the client happy. FE clients aren't going to stop smoking to get an insurance policy... if they won't stop to keep from getting cancer.

...they would rather pay more.