- 3,165
Good thing he doesn't wanna be your latex salesman!
TDF
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Forethought Replacement
- Thread starter thomasm
- Start date
Good thing he doesn't wanna be your latex salesman!
TDF
Sent via my Verizon Samsung G4
- Thread starter
- #12
- 2,960
Good thing he doesn't wanna be your latex salesman!
Ha! ... Watched a good one last night. Yadda yadda yadda.
- 20,002
Maybe? Maybe not? What about doing a RPU with the Forethought and then adding coverage?
Might be in their best interest to stand pat. Might not. Why did they have you in the home? There had to be a reason that they wanted to talk to someone about it. What was that reason?
- Thread starter
- #15
Not sure what RPU is. Enlighten me?
Honestly I don't know what I'm looking at sometimes when I review someones policy, and my up-line's no help. That's why I need you guys and this forum!
She let me in to see if I could save her money.
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- 20,002
Reduced Paid Up. This is a casr that you should leave alone or refer to a more experienced agent to see what the need/want was.
What you don't know on this case could hurt the client.
The funeral home has a right to demand a replacement form? Or anything else of the agent?
What state are you in? You do know that replacement regulations vary from state to state? For example in TN, you get a form stating the possible consequences signed but you do not have to give a reason for replacement. Without knowing the OP's state, how can you give "advice" as to what is required when it comes to replacement.
As for E&O, this type of situation very seldom would involve an E&O claim and even if it did, there is only a slight possibility it would be successful as long as he agent complied with the replacement regulations and there is no reason to believe the insured is not competent to make their own decisions.
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- Thread starter
- #18
Your Right JD! Reduced Paid Up...I should've known that one!
I don't mind letting the prospect know I'm going to do a little more research on this policy first and get back with them, once I seek expert consultation! (That's you guys!) I don't think that's hurting the client. I call it field training!
Yes, i'm going to recommend what Newby mentioned earlier about checking her conversion options to a paid up policy to see if it's a bigger savings over the paying the full 10 years.
- 246
I've had a similar experience. It was a woman who had a 10 pay just as your client. She had 6 more years on it and she was about to lapse due to not enough funds. She was paying for policy with a db of 8000. I explained all the advantages and disadvantages of her policy and gave her a few choices. I said first you could keep this policy as long as you can pay for it. She shook her head 
saying she couldn't afford it. So i said the second option was a paid up we look at the amount she would have paid up. "not enough she said. And the third is I could take your cash value and put it into a single premium where you would not pay on it any longer after the 1 time payment and you would receive a death benefit higher than what you put in.
Long story short she picked the single premium that got her a death benefit of 11,000 She also wanted a $4,000 life pay to make the benefit 15,000 even.
She was happy that she could afford the small $4,000 and her huge monthly payments were gone. I was happy because I could assist and make the sale(s).
Anyway ask her what her cv is and see if something like this may be an option.
saying she couldn't afford it. So i said the second option was a paid up we look at the amount she would have paid up. "not enough she said. And the third is I could take your cash value and put it into a single premium where you would not pay on it any longer after the 1 time payment and you would receive a death benefit higher than what you put in.Long story short she picked the single premium that got her a death benefit of 11,000 She also wanted a $4,000 life pay to make the benefit 15,000 even.
She was happy that she could afford the small $4,000 and her huge monthly payments were gone. I was happy because I could assist and make the sale(s).
Anyway ask her what her cv is and see if something like this may be an option.
- 15,041
Exactly.
The funeral home can demand whatever they want, the insurance company is going to tell them to get lost. They won't know who did the replacement unless the call the woman and she tells them. All they will know is the company. I believe in most states Forethought will receive a comparative statement from the replacing company, but I don't believe they send that to the agent being replaced.
The reality is, the funeral home will probably let it go without much fuss. They got their commission and if they press, it could easily turn into, "Those crooks at the funeral home sold me an insurance policy I couldn't afford!"
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