Best company for ROP Term?

[rogermask]

Can somebody point to a good company for ROP Term please...Thank you

 

[Sam]

There really isn't a "best company" out there, it really depends on the price and underwriting specs. Personally, I like AIG.

 

[cod8825]

Melmunch3

Do you or anyone else every consider the times to pay out a claim when choosing a carrier. I mean in an instance that I heard of. A dear old ladies husband passed away and they had a term policy with Globe life and it took them ten months to send her the check for the claim.

I mean when somebody passes away you need your money pretty darn quick.

Matt

 

[Sam]

I haven't been selling life for long enough to have a big "claims history" although I have had a couple pay out.
You need to distinguish between normal circumstances and others. If the death is a natural death, and there are no questions, then my understanding is that most companies will pay within 2 months. (Sometimes a lot quicker)

However, if there are issues or conflict, then every company will stall.

I'd be curious what other have to say from experience.

 

[theman700]

I didn't realize that it takes a possible 2 months to pay a death benefit. Is that normal? How do most families afford to bury the deceased in the meantime? Thanks for your reply.

 

[TXINSURANCE]

Beg, borrow, charge it until the life claim comes...

AIG sticks out as a leader in ROP

 

[senior-advisor-indiana]

What about the conversion features that some have talked about? How many people actually convert thier term policy to whole life and what companies can you do that with?

 

[Newby]

I didn't realize that it takes a possible 2 months to pay a death benefit. Is that normal? How do most families afford to bury the deceased in the meantime? Thanks for your reply.

I've worked closely with funeral homes for 12-years. I personally file the death claims for families at least two or three time a week.

The first delay is getting death certificates. In Indiana we can get them in one day. In Kentucky it takes 3-weeks if you're lucky and often 6-weeks.

After you get death certificates insurance companies take from 3 weeks to 4-months to pay the claim. The worst payers in my experience are Colonial Penn/AARP. Takes forever and no one speaks english. Many of the final expense companies are horrible at customer service though.

Funeral homes used to give 30-days credit and then start charging interest. Now few give credit. The funeral home I work with requires full payment before service. Families can pay by check or credit card. Many have preplan insurance (which pays immedietely upon death.) As a last resort if somone only has life insurance to pay with, they can advance it to settlement companies and take an advance on it (at about 60% APR)

It's a different world these days and funeral homes that provide service before payment get stuck with a LOT of unpaid funeral bills.
There isn't very many people who die with term-life insurance in force.

 

[James]

Some companies as Colonial will send a limited payment at proof of death, I don't think a Death Certificate is needed but a letter or call from the Doctor. I'm not sure about the specifics, I'll have to look that up to make sure but I know Colonial does send a check for up to a certain amount within 3-5 days of death, at least according to their brochures and contracts.

 

[James]

I remember reading, can't remember if its AIG or not, but some carriers are starting to end there ROP offerings, simply not enough interest in them. In other words they are not selling enough to make it worth their time to offer ROP.

I'm searching my archives to see if I can find the materials about my above statement, yet while googling I did find this, an interesting read about Term Vs No Lapse UL, also touches on ROP.

Term life vs. no-lapse UL: sales of both product lines are growing, but universal life with a guaranteed death benefit threatens to cut into term sales. - Free Online Library