How to start State Farm insurance agency and State Farm life policies are competitive?

[Allen Trent]

it's either a 1st to die or a 2nd to die policy).

really going out on a limb with that nugget as those 2 situations cover 99.99999% of all possible claim triggers. The other .00001% being the denied contested claim with refunded premiums & a "doesn't matter who died" variation

Maybe I don't know about new products of 1/2 to die or 3rd to die......LOL

 

[DHK]

really going out on a limb with that nugget as those 2 situations cover 99.99999% of all possible claim triggers. The other .00001% being the denied contested claim with refunded premiums & a "doesn't matter who died" variation

Maybe I don't know about new products of 1/2 to die or 3rd to die......LOL

LOL! Fair enough, but I know that Van was referencing a specific policy and I didn't mark that in my notes, so I can't remember the specific joint life policy he was referring to.

 

[scagnt83]

The life insurance is not competitive, but clients will buy it because they like and trust SF.

Old SF WL policies actually have very strong performance, Im not sure how the new ones look.

I have a SF guy that sends me GUL cases sometimes, he knows their products are are not competitive and wants his better clients in something competitive.

Honestly, the Life Insurance should be the last thing on your mind if you are looking to start a SF agency. The new contract is nothing like the old contracts. Much harder to make it these days and they expect a lot more from you, both time and money.

 

[Allen Trent]

LOL! Fair enough, but I know that Van was referencing a specific policy and I didn't mark that in my notes, so I can't remember the specific joint life policy he was referring to.

Pretty sure it is a 1st to die Joint UL & surviving spouse/business partner has a conversion right to buy their own permanent policy after 1st death of the survivor is under age 70 or 80. I believe it is still for sale, but not sure how competitive it is or if it has any no lapse guarantees etc.

Likely a lot less competitive than 2nd to die & more restrictive for UW because of the risk of paying on 1st death of less insurable.

Seems mostly a buy sell play or maybe a pension max play

 

[Newby]

I have never found State Farm life insurance policies to be competitive. I have personally sold Life Insurance to three different state farm agency owners but that was about 15 years ago and they were all up in their years and said State Farm had nothing competitive for them.
And one small town in Kentucky every time I ran up against the State Farm life insurance policy it was a smoker written as a non-smoker. They had an agency owner who had found a niche since nearly everyone in Kentucky smokes and State Farm was putting quarters on him to force him to sell more life insurance he just wrote smokers as non-smokers to try to compete on price.
Most of the other policies I ever run into we’re not whole life at all but they were UL policies. Those were very easy to replace because they were priced very close to what the people could buy a whole life policies for.