Primerica

Re: Duane Morrow CMO of Primerica Harassing Me

I used the quotes on yourlifesolution.com, as that was the subject of the thread initially...

I think the guaranteed rates on our 30 and 35 year term products are an interesting point. It all comes down to the reserving requirements in the U.S.

Our renewal rates are hands-down, the lowest in the industry. I don't believe you can find a carrier that has lower renewal rates than us.

However, we don't offer a conversion to a permanent product, and therefore need to run products past 30 years on a scheduled, as opposed to guaranteed basis.

For proof, look at Primerica Life of Canada. Exact same initial and renewal rates, but fully guaranteed regardless of term length... The only difference? The regulatory environment the companies operate in.

I wish our term was fully guaranteed, but then we couldn't offer the renewal rates that we do...

Unfortunately for you, there are many other carriers offering term life insurance than those found on yourlifesolution.com. Additionally, the quotes I provided were for 20-year term since that was the term you were quoting in the post I referenced. It was not for 30-year term.

As for your renewal rates, is that really a selling point for you? Again, using the same scenarios (40-year old male pns, 20-year term), below are your guaranteed renewal rates:

Age 60 - $3,730
Age 65 - $5,552.50
Age 70 - $7,150
Age 71 - $7,825 and increases every year thereafter. By the time that person hits age 80 his guaranteed premium is $17,925.

I get it, you're a Primerica guy and you only have one arrow in your quiver so you've got to come up with some reason to convince folks that your way is better even if you are asking people to pay more for a commodity like term life insurance.

I'll ask the question again since you avoided it in your last reply, if your (meaning Primerica) mantra is "buy term and invest the difference", wouldn't it make sense to get the lowest cost term so you'd have more to invest?
 
Re: Duane Morrow CMO of Primerica Harassing Me

I am a happy camper when I see a prospect has Primerica, and the prospect will be as well.
 
Re: Duane Morrow CMO of Primerica Harassing Me

I'm not sure what face amount you were calculating those renewal rates on, but I couldn't find one that matches up, they would be lower...

In any event, yes, of course I agree that the lowest cost term makes available the highest dollar amount to invest the difference, but we're not talking about massive differences in most cases. We're either the lowest cost option, or within a range of $5-15 per month.

An insignificant number when more or less, we're on the same side. I take it you also believe in BTID, and our enemy is not each other, but the State Farms and such of the world IMO...

Back to my original question tho, how many carriers have significantly (for the worse) altered their product lineup in the last six months, by exiting lines, raising rates, cutting comp, or some combination of all of the above?

I truly believe the bigger story is not what the term world looks like today, but 5 years down the road. If you look at the financials of most carriers vs. PFS, its pretty unbelievable!

Obviously I'm biased, as are most of this board, but for as much as you all like to look at facts, I think it warrants a little looking into!
 
Re: Duane Morrow CMO of Primerica Harassing Me

Who cares, guys.

We need the overpriced carriers out there for many of us to do business.

Nothing like selling a believer with better value.
 
Re: Duane Morrow CMO of Primerica Harassing Me

I'm not sure what face amount you were calculating those renewal rates on, but I couldn't find one that matches up, they would be lower...

In any event, yes, of course I agree that the lowest cost term makes available the highest dollar amount to invest the difference, but we're not talking about massive differences in most cases. We're either the lowest cost option, or within a range of $5-15 per month.

An insignificant number when more or less, we're on the same side. I take it you also believe in BTID, and our enemy is not each other, but the State Farms and such of the world IMO...

Back to my original question tho, how many carriers have significantly (for the worse) altered their product lineup in the last six months, by exiting lines, raising rates, cutting comp, or some combination of all of the above?

I truly believe the bigger story is not what the term world looks like today, but 5 years down the road. If you look at the financials of most carriers vs. PFS, its pretty unbelievable!

Obviously I'm biased, as are most of this board, but for as much as you all like to look at facts, I think it warrants a little looking into!

Those were the GUARANTEED renewal rates, not the current. I have a friend who subscribes to Compulife send me a quote over with Primerica's guaranteed renewal rates. If you think those are wrong, take it up with Compulife.

If you can guarantee the current rates, then by all means go for it. As for there only being a $5-$15 difference in rate, maybe in a some circumstances, but not all. Especially on women. Sure you can pull out the 10-year smoker rate for a 52 year old, but that isn't what my book of business looks like.

But let's say for argument sake it averages $15 each for a husband and wife. That's $30 per month. Assuming an 8% rate of return over a 20 year period, that's $17,180. Next time you sit down with a client tell them over a 20 year period your term insurance will cost them $17,000 more than the lowest cost plan over 20 years and see which option they'd choose.

Lastly, as for carriers changing products, the biggest change is to the GUL products. I'm not seeing it on term products. We had the same argument when Triple X rolled around back in 1999. Looks like carriers did just fine.
 
Re: CMO of Primerica Harassing Me

If your selling on renewal rates then a perm plan should be a consideration especially if looking at beyond 30 years. If a person gets to end of term guarantee period and is looking at a renewal usually there's a health issue at later ages and that side fund can get eaten up.. Then what?
 
Re: Duane Morrow CMO of Primerica Harassing Me

Why are renewal rates important? I sell as much or more term as any Primerica agent I have met. I rarely compare renewal rates. Why are they important?



I'm not sure what face amount you were calculating those renewal rates on, but I couldn't find one that matches up, they would be lower...

In any event, yes, of course I agree that the lowest cost term makes available the highest dollar amount to invest the difference, but we're not talking about massive differences in most cases. We're either the lowest cost option, or within a range of $5-15 per month.

An insignificant number when more or less, we're on the same side. I take it you also believe in BTID, and our enemy is not each other, but the State Farms and such of the world IMO...

Back to my original question tho, how many carriers have significantly (for the worse) altered their product lineup in the last six months, by exiting lines, raising rates, cutting comp, or some combination of all of the above?

I truly believe the bigger story is not what the term world looks like today, but 5 years down the road. If you look at the financials of most carriers vs. PFS, its pretty unbelievable!

Obviously I'm biased, as are most of this board, but for as much as you all like to look at facts, I think it warrants a little looking into!
 
Re: CMO of Primerica Harassing Me

To me the renewal selling point is just promoting a back end. As for looking at the industry five years from now, who knows but it's not like carriers will stand still and not adjust products and yes compensation to compete. The thing is some agents are not tied to one carrier so there are options.

Then again how many people carry their policy to end of term especially on the long durations? So should renewals be used as a selling point? To really make renewal a consideration if a policy is say a term to age 95 calculate the full premium cost of the policy to age 95..
 
Re: CMO of Primerica Harassing Me

Don't get the wrong impression, the old tobacco using guy isn't the only competitive scenario by an means...

Here's a case I did last week:

42 year old, male, standard, $150k, 20 year term
44 year old, female, tobacco, $100k, 20 year term

Primerica's premium is $58.62

The next closest carrier is would be:

Ohio National on the husband and TIAA-CREF on wife, for a total of for $74.08

We could bicker all day about certain scenarios and cases, but the bottom line is Primerica's sweet spot is families with a face amount between 150-500k, situations where one smokes, where one is rated (because family banding allows them to buy a small policy at a higher band), and people 50-62.

When you run those cases, we come out on top very frequently, and cases outside of that we're competitive. We're not so much competitive in single female cases.

Even though AG38 has impacted GUL, a lot of GUL writers are big cheap term writers... As one itty bitty example, look at ING stopping the sale of 25 and 30 year term.

If you go back to the voicemail/email from the beginning of this thread, there are some truly ground-breaking developments being designed right now, and I don't see them being available to your typical independent agent out there... I can't comment past that for now, but I think the life insurance world is gonna be flipped upside down just like when Art Williams did it back in the 70's and 80's!
 
Re: CMO of Primerica Harassing Me

If you are BTID, then what do you care what renewal rates are? You'll be rich, right?

If renewal rates are important, why didn't you just by a permanent plan or a convertible term and convert before then?
 
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