Standard Vs. Graded Vs. ROP/Modified Vs. GI

[donamese]

I am curious as to what percent you all write of each. I would my business would be about 70% standard issue, 15% graded and 15% ROP/modified. I don't prefer GI, so I just let those people find another agent who wants to write it.

 

[RichMcK]

donamese, just a question, what's the difference between ROP/modified and GI?
Thanks.

 

[Todd King]

donamese, just a question, what's the difference between ROP/modified and GI?
Thanks.

I'm thinking that the ROP/Modified that he's talking about still has some questions on it. May make it a bit cheaper vs. a true GI. Otherwise, they are about the same.

 

[donamese]

I'm thinking that the ROP/Modified that he's talking about still has some questions on it. May make it a bit cheaper vs. a true GI. Otherwise, they are about the same.

Correct...usually the ROP/Modified ask just a few questions like end stage renal, full blown AIDS and such where GI I can sign as you are pulling the plug on me.

 

[John Galt]

Correct...usually the ROP/Modified ask just a few questions like end stage renal, full blown AIDS and such where GI I can sign as you are pulling the plug on me.

And some carriers Graded is actually a ROP policy, you have to read carefully to see what you got.

 

[TwiLight]

Most Carrier Graded/ROP/Modified plans have higher comp than GI plans.

I have found though that GI plans with Kemper, Gerber, etc often have lower rates than FE Carrier Graded plans along with higher face amount options.

 

[donamese]

Lets assume:

Standard = Full coverage right from the start
Graded = 30/70/100 or whatever split is offered
ROP/Modified = Return of premium for X yrs then full death benefit.
Graded = Sign and die

 

[TwiLight]

Lets assume:

Standard = Full coverage right from the start
Graded = 30/70/100 or whatever split is offered
ROP/Modified = Return of premium for X yrs then full death benefit.
Graded = Sign and die

I would add Fully Underwritten Standard first.

You will find the big producers will write quite alot of this...JD, Newby, even ME.

 

[Jerard]

I am curious as to what percent you all write of each. I would my business would be about 70% standard issue, 15% graded and 15% ROP/modified. I don't prefer GI, so I just let those people find another agent who wants to write it.

To answer the question you asked regarding what percentage of GI type apps we write, I don't know about others but for me it's pretty low...maybe 10 percent. I find out as much about the health of the prospect as I can so most of the time I can find a company that will take them standard. If you don't want to write alot of these type of policies then one option would be to give them the number to MoO.

...what's the difference between ROP/modified and GI?

"GI" is Guaranteed Issue and has to do with the requirements the company has for the issue of the policy.

"ROP" has to do with the method the company pays the death benefit. It means Return of Premium in which if death occurs (example, within 2 years) then the bene gets the return of all premiums paid in plus 10% (or so).

"Graded Benefit" is a little better deal than a ROP so that when death occurs the bene gets, for example, 30% of the full benefit the first year and 70% the second year. If death occurs after the 3rd year starts the bene gets the full benefit.

"FAM" means that if they can "fog a mirror" and little else then you may want to consider not writing them. Some companies will hit your hard on chargebacks if they croak too soon.

 

[jdeasy]

For me it's 95% or higher immediate benefit.

5% or less graded.

0% ROP or GI.