I realize it may have only been yesterday since I went off on one of the mega agencies, but really, what part of customer service do they not get?
Today I had a client who had applied for a term life insurance policy through Selectquote. He is a perfectly healthy specimen and the Selectquote agent he talked to correctly quoted him the best rate available, a preferred best rate through Genworth. Well, actually they misquoted him. They told him it would be $650 a year when in fact the correct rate should have been $610 a year. He signed a temporary insurance agreement (I think Selectquote requires that so they have money up front) and they told him that he needed to pay at least two months premium, even though after approval he intended to pay annually, along with the temporary insurance agreement.
That was fine with him so he signed a credit card authorization for the two months premium and signed the application and took an exam. A few weeks later he saw that they had incorrectly charged an annual premium to his credit card so he called and asked why. He was told that Genworth must have charged the annual premium because he was going to pay annually. But wait! It says right on the temporary insurance agreement receipt what is to be paid. The company can’t change that. The client didn’t want that. Made him wonder how it happened.
A few days later they told him that the policy was approved and they were sending it out. But, unfortunately because his cholesterol ratio was 4.7 it was going to cost $735 a year. They said they needed the balance of $85 on delivery of the policy.
It was at this point that he called me and asked if $735 was really the best rate given his cholesterol of 212 and ratio of 4.7. It turned out that according to the underwriting guidelines he could get preferred plus with two companies with those numbers at about $630 a year. I took his information and got an application on the way to him. He called Selectquote to arrange for a refund of the $650 and told them he had found a better rate with those same cholesterol numbers. They started scrambling then knowing that they were about to lose the business and quoted him the same company I had just sent an application out for.
So Selectquote, why would you not tell this customer that those labs could get him a better rate than what he got approved for? Why would you try to place a policy that cost $105 more a year knowing that he qualified for a better rate and that you could write it for him? Why would you not tell him right up front when Genworth approved at their second best rate and the reason was the 4.7 ratio, that you would get him a new application on the way because you could do better than that for your customer? Why would you wait until you were called on it to fess up and agree that there were better rates?
I will pass on their answers if they come, but let me tell you what the answer is. It eats into profits if you have to do something twice. It eats into mine and it eats into Selectquotes. So you have to weigh profit against honesty and integrity and putting your customer first. If a client of mine doesn’t get the price he or she applied for I immediately find out why and find out if I can get him or her back to where we wanted them.
So, is there really a difference between Selectquote doing what they wanted to do and what they should have done for their bottom line? If Selectquote doesn’t get 110% of the first year premium from Genworth I would be shocked. It’s probably much higher. That would make their net commission on the Genworth preferred policy that they tried to place somewhere around $743 after the policy fee is removed. On the other hand, the company that I wrote his new application with pays 75% to me and they pay 75% to Selectquote. After removing the policy fee the net commission to me or to Selectquote is $397.50.
Bottom line. I don’t fault Selectquote for trying to make a profit but I do believe they are lacking in integrity and I think putting profit before honesty and customer service is wrong. I may not make it to the billionaire status of Selectquote’s owner, but I also won’t attempt to screw customers in an attempt to. Who should profit in a life insurance purchase? The customer, always. If you have have been mistreated by one of the mega agencies and want an honest second opinion call or email me directly. Let’s talk.