The Perfect Final Expense Insurance Product...

[FETalk]

If you could design the perfect final expense life insurance product, but were limited to only 7 features, what would it look like?

Here's what mine would look like:

1) The option to submit new business via a paper app, telephonic app or e-app.
2) Instant underwriting decisions.
3) Preferred/ standard/ graded/ and guaranteed-issue plan options on the same app.
4) Issue ages between 0-90 years old.
5) Advances paid daily upon issue.
6) A Maximum charge-back rate of only 20%-30% of negative balance per pay period.
7) Lifetime renewals

 

[HoosierLife]

Dude! You gotta have SS billing in there or it will never come close.

I do like the idea of a 4 tiered product, but I’ve seen it pitched to carriers and not many like the idea.

I think a Preferred, Standard and Near GI, like Settlers Bronze would be good.

No height weight chart.

Standard would take copd and diabetic neuropathy and 1 year look back on heart and circulatory issues.

 

[rousemark]

Dude! You gotta have SS billing in there or it will never come close.

I do like the idea of a 4 tiered product, but I’ve seen it pitched to carriers and not many like the idea.

I think a Preferred, Standard and Near GI, like Settlers Bronze would be good.

No height weight chart.

Standard would take copd and diabetic neuropathy and 1 year look back on heart and circulatory issues.

You pretty well described the new Accendo product..

 

[HoosierLife]

You pretty well described the new Accendo product..

For sure. If they get that dual purpose Rx situation resolved, they could be the premier FE product.

 

[damadcrapper]

I agree with all of the prior comments with a few caveats; Lifetime renewals is tough since most of the IMOs are pushing for heaped year one commissions to cover acquisition costs. The P/S/G/GI has been tried but for the carriers it funnels them the worst cases - a successful GI product needs some healthy people too (Gerber). Last point - most of the business under age 50 is unprofitable since the only people buying FE at those ages are truly unhealthy and prone to high lapse rates.

 

[rousemark]

If you could design the perfect final expense life insurance product, but were limited to only 7 features, what would it look like?

Here's what mine would look like:


6) A Maximum charge-back rate of only 20%-30% of negative balance per pay period.

This could be a disaster for the upline.. It would allow a shady agent to build a considerable debit balance before hitting the road..

 

[tikibarrister]

Guaranteed issue, day one coverage, 150% commission, lifetime renewals.

Well, that’s what happens when agents design policies instead of underwriters

 

[Life Hawk]

Dude! You gotta have SS billing in there or it will never come close.

I do like the idea of a 4 tiered product, but I’ve seen it pitched to carriers and not many like the idea.

I think a Preferred, Standard and Near GI, like Settlers Bronze would be good.

No height weight chart.

Standard would take copd and diabetic neuropathy and 1 year look back on heart and circulatory issues.

The carrier of which you speak is Transamerica... or should I say was.

 

[FETalk]

This could be a disaster for the upline.. It would allow a shady agent to build a considerable debit balance before hitting the road..

Keep in mind, that the 20-30% would be deducted from every commission payment the agent received until the charge back balance was paid off. So as long as new business was being written on a fairly consistent basis, there shouldn't be a problem.

The only exception of course, would be if an agent was writing 100% bad business; but even if that were the case; he or she would probably have been terminated by then, due to egregiously poor persistency.

Also, if IMO's/FMO's were truly concerned about something like that happening, a solution could be to limit that charge-back option to "proven" agents only.

 

[FETalk]

I agree with all of the prior comments with a few caveats; Lifetime renewals is tough since most of the IMOs are pushing for heaped year one commissions to cover acquisition costs. The P/S/G/GI has been tried but for the carriers it funnels them the worst cases - a successful GI product needs some healthy people too (Gerber). Last point - most of the business under age 50 is unprofitable since the only people buying FE at those ages are truly unhealthy and prone to high lapse rates.

Not necessarily, you have a lot of parents/grandparents that take out policies on their children and grandchildren.

You also have individuals that take out policies on their siblings, not mentioned all the low income "healthy" adults in their 40's that are simply interested in nothing more than a small 10K-15K burial policy.