Madison National


1000 Post Club
Decatur, Ga.
I have been approached by a company by the name of Madison National, to present their payroll deduction product to Federal Employees. Specifically, Postal Employees. It's basically a very mediocre whole life product with an annuity.

I've done research on the company, and they seem very strong, financially, and have had no claims, that I could find, against them, touting any misconduct and treatment.

It interests me, because not everyone can get in to see Fed/State Employees, and this is one way to gain entrance. The other is it's payroll deduction, and the persistency in the payroll deduct market is rather high.

Any feedback would be welcome.
Are these products in addition to existing benefits, or are they a replacement of their benefits?
It is very easy to replace FEGLI policies, which shrink as they get older, with something else. You don't need a specific product to do payroll deductions, you can do them with any company, and just use Tower or someone to run the deduvtions.
Last time I looked at this market there were around 30 carriers on the approved list for PRD. Converting FEGLI as Sam said, is easy as long as the person is over 45, a non-smoker and in good health. At the younger ages FEGLI is such a good buy you will be mostly wasting your time.

Another good pitch is pension max. The survivor options under their retirement system are rather expensive making pension max a relatively easy sale.

DI is a big market as well among USPS employees.

It helps if you have access to software that shows how the FEGLI rates increase even after age 65 when the rates go up while the coverage declines.
Whether it is FEGLI, SGLI, VGLI, they all take a tremendous hit between 65 and 69. SSB and TSP are easy sales too.
I own that policy!

Years ago there was a co by the name of First National from Ala. They were selling this kind of combo policy and back then the annuity side was crediting 13%.

They called it the money saver, great approach to small business, or anyone who wanted to save for the long term. Well, thru the years of course the rate dropped, but what was a kicker was that this FNL co, and about 9 others, had funds embezzled by some slick guy ( forget his name) and almost went down. (That hit international news, because they found him in Germany and extradited him back to the states) That was the guy who had lots of expensive cars, and hid in a mansion with his girlfriend, until he left for Europe.

That is when the assets were sold off to various companies, and Madison bought this block that i'm in. Would like to hear how it's working out for you, if you start. It built up some funds for me without stress, unlike stocks.