A little over a week ago I wrote a post about my email conversation with West Coast Life concerning their decision to do away with fully guaranteed conversion products.
I was a bit put off when I got an out of the office email from the marketing vice president explaining that he was out of the country for a company convention. Hmmm! Can’t afford to guarantee products for your current policy holders but you can afford to use their premium dollars to have overseas conventions. You really have to love the priorities of these companies.
Anyway, I actually got a return call today now that he is back and recovered from his policy owner paid jaunt abroad. In a nutshell he blamed the pull back to practically worth less non guaranteed products on the reinsurance companies. He claims that reinsurance carries all of the paper on conversion policies and that the cost of reserves is too high to make it profitable to carry fully guaranteed policies. He didn’t have an answer as to why the company doesn’t just step in a carry part of the insurance burden on those policies.
He also couldn’t adequately explain why they would dump this whole load on loyal paying customers when it could be spread over insured and those to be insured. He did say that they are working on it (which doesn’t help the customer I showed conversion options to last week) and that they hope to once again be able to offer a fully guaranteed conversion option in the future. He couldn’t explain why they didn’t keep the good options in place while they worked on it.
Bottom line. We are currently taking a close look at our book of West Coast business to see who is still young and healthy enough to change to a company that isn’t turning their backs on those paying the bills.
My 20 years of experience give me the knowledge and leverage to find reasonably-priced life insurance for people who have been declined or are paying more than they need to.
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