Free second to die for agents

[bluemarlin08]

Had a broker run this by me the other day. Genworth's second to die, pay target premium for one year and no further premiums, policy projected to stay in force for 10 years. Agent receives all the premium back in commission, only cost is tax on commission.

 

[Ami]

Had a broker run this by me the other day. Genworth's second to die, pay target premium for one year and no further premiums, policy projected to stay in force for 10 years. Agent receives all the premium back in commission, only cost is tax on commission.

That sounds just too good to be true.

Let's say that the target premium for that one year is $10,000. Under that scenario, the insurance company receives the $10K, pays for the underwriting, admin, marketing and other costs, and also forks over the entire 10K to the writing agent. The company is in a deficit position from the get-go - and also has to set aside reserves for claims. This just doesn't seem sound.

Can you elaborate further, perhaps with an example?

 

[bluemarlin08]

Call David Cranfield at CIGI Direct.

 

[Thatguy]

what's the number? This sounds too good to be true! Possible another Zero Premium Life, but it sounds like it is definitely worth the investigation! Please PM me if you don't want to give the number out publicly. Thank you