Replacements
- Thread starter bwayne
- Start date
In many cases, possibly the majority, the answer is no. I have a real problem with agents that justify replacement with claims of saving the client money but then they sell the clients that do not have other insurance plans with companies that charge a higher premium than their "low cost" replacement plan. Sometimes, they even use the same company for those clients that they replace in other situations.
- 17,207
If the person cleanly fits the underwriting and is not suicidal then it just comes down to is the savings enough to make the change.
I have replaced THOUSANDS of policies over a 25 year period. I have had no problems or complaints. I have saved thousands of people money on their insurance.
The key is to know when to walk away. Don't put anyone in a worse position. Make very certain the underwriting is clean as a pin on replacements. No I do not believe that Mildred should be doomed to paying higher premiums just because someone else got to her before I did.
- 3,247
At the end of the day, it's always up to the client!
- 26,793
No me.
I have seen agents argue that replacing an old policy for $3.00 dollars difference is worth it. Or give the example of ' Well Miss Mary looky here I can save you $3.23mo and get you $122. back just before Christmas. Bet those grandbabies will love you a little more this year. You want this, right? <smile and shake your head yes>'. Some agents will say that FE companies do not pay contestible claims. Or that their FE prospects are not the most knowledgable or prudent planners.
- 4,371
It seems like a fair amount of rationalizing enters these replacement debates. If we're being honest, a lot of things can be justified when it means a bigger paycheck. As a captive agent, if I replaced a policy (which I sometimes did if it would help the client, such as rewriting to clear a large loan debt, etc.), I only got paid on the premium increase. If that were the rule for non-captives, I promise a lot less replacing would go on.
But if you replaced another company's product you received full commission.
It seems the agents that say a company will do everything possible not to pay a claim during the contestable period are the biggest replacement artists
- 4,371
Well, I suppose that's true. But I still didn't do it without a compelling reason that was bigger than saving them a nickel, or making an extra nickel myself.
- 17,207
I would say that every company is going to VERIFY that the applicant was clean before they pay a contestable claim. In my experience they have always payed them unless there was an obvious reason not to.
