Find your policy dot com

Submitted by Insurance Expert on Thu, 04/23/2009 - 16:39


I really thought that this conversation deserved it's own thread. Conceptually, I think that it's a great idea. I do see lots of issues with this. I'm going to beat up on you a little bit. I'm not doing it to be a jerk. Rather, I sell hundreds of policies a year, and I'd like to give you the chance to convince me that I should be referring my clients to your site. For the most part, I'll just comment on your comments.

1.Our service, if we were around 30 years ago and he signed up would be of great help to him. Now he could just go on our website and plug in his last four digits of his social security number and his birth date and find out what life insurance company has his life insurance. Also he told me that it was a policy that was paid up so he did not get any notices. He continued to inform me that when he moved he lost it. So the new address was never listed on the policy so any notices were going to the wrong address.(this happens very often to people and this is one major reason people loose track)

This doesn't quite pass the smell test with me. If his policy was paid up, he would still be getting annual notices about. I would guess that this policy actually lapsed at some point and he doesn't remember. That said, this is certainly possible. It is still a very rare occasion in which a policy owner can't find the information on their own policy. In fact, in 20 years in the business, it's never happened to one of my clients. It happens often with beneficiaries, but not with policy owners.

2.This question has be posted to me before. Do you think Google thinks of the future when they start a company. Of course they do. Our company has board members that are attorneys and all our records are kept for years to come. When I pass it will mean nothing to the structure of our company. It will continue to move forward.

I think that you are closer to your daughter's lemonade stand than Google. On your website, there is absolutely nothing mentioned about any board of directors. In fact, there isn't even any mention of your firm being incorporated. Is the firm incorporated? What is the corporate structure? If you aren't incorporated, there is no requirement that you have a board. If you die, there is no company. Let's assume that the company is incorporated. If you die, and the company isn't profitable enough, the company will still die. If you live and the company isn't profitable, the company will still die. There's no reason for anyone to believe that the company will survive if it isn't profitable

3.When a member passes away, their information will be on our service for free viewing up to one year. After that they must call the 888 number and we will assist them for a fee. This will prevent any individual from signing up, registering for one year and cancelling.

You need to explain this further. Based upon my understanding, this seems terrible. Maybe my understanding is incorrect. I pay you $25/year to register. The purpose is so that after I die, people can find out if I had life insurance. If I'm on the site, they can then call the insurance company to see if a policy was in force with them as the beneficiary. Once I die, I won't be able to pay my $25. Therefore, my membership will expire.

Won't it work as follows?: One day, a couple of years after I die, my grandson will wonder if grandpa has any life insurance. He goes on the website to find me. He won't find me because I'm no longer a member since I didn't pay my annual fee while I was dead. Why would he even think of calling you? If you were going to charge him a fee, wouldn't it seem like a scam? After all, if grandpa was on the site, according to the site, beneficiaries can get the information for free.

4. You Quoted "Aren't there better solutions than paying $25/year? For instance, how about leaving a note in one's will that says, "I have life insurance with the following companies..." or every year when the premium is paid, send a note to the beneficiaries letting them know that they are the beneficiaries, or leaving a note with one's important papers, or...."

This is a loaded question...

I understand your point. It just seems to me that the people who would register with your firm are the exact same ones who would make sure that there beneficiaries would be aware of their situation. For instance, instead of paying you $25/year wouldn't I accomplish the same thing by sending an annual e-mail to my beneficiaries that says, "I have life insurance with the following companies"?

2) "Your service costs $25 a year. What are the chances that if I die 40 years from now, your company will still exist? Heck, what are the chances that you'll exist 5 years from now? "

If this question was asked to some large life insurance companies a while back they would have said they have an A+ rating but think about it. Are they around now? No one can predict the future however, we are prepared for it.
Also, the $25 dollars a year is for that year. We are insurance on insurance. Just like the insurance company if it were to close, you were protected for those years that you paid your premiums. That is what the $25 dollars is for. Admin costs and keeping your beneficiaries informed with our Financial Focus e newletter on regular basis.

First you were comparing your company to Google and now to large life insurance companies. How many death claims have not been paid because of large (or small) life insurance companies going out of business? The answer is zero.

How are you prepared for the future? It's one thing to say it, but it is certainly another to give concrete ways in which you are prepared. If for one reason or another if you aren't profitable enough, why would you do anything other than close your business?

What sort of liability coverage does your firm carry? For example, if I start telling all of my clients, "Register with findyourpolicy. Don't worry about leaving policy details. Just make sure that your lawyer or someone else knows to check with findyourpolicy after you die." What happens if they do this and there is some glitch and the name doesn't show up? They have to sell the house, move the family, etc. because they can't get their hands on the policy information because of a glitch with your firm. If they sue you for several million is the money there to pay them? Something will go wrong at some point. How is your company going to handle this?

Anyway, this is a good start. If your idea is going to work, you need to get agents like me to think that it makes sense.

Otherwise, what you are going to have is a little side business in which you make a few thousand dollars in revenue.

If you could convince someone like me that this truly made sense, you have a business that could really have $25 million dolllar + of annual revenue. Well, not really, since there are no barriers to entry to this, someone could always do this for less money.

Posted: 23 Apr 2009 05:49 Post Subject:

I had some questions about his (thier) service also. I really do think its a good idea, but nonetheless:

In his 3rd response, i was thinking that mabye when he stated: "This will prevent any individual from signing up, registering for one year and cancelling" he was refering to the people who were doing the searching. I didn't know that these people would have to register also.

What do you think? That was were i got a little confused.

Posted: 24 Apr 2009 03:02 Post Subject:

Hello Gentlemen,

Thank you for posting the questions. I am on vacation until end of next week and I will at that time answer your great questions.


Posted: 26 Apr 2009 12:02 Post Subject:

Michael, You have a start up company that needs to convince people that you will be here for the long run. Yet, questions can't get answered for longer than a week because of vacation. That does not lead to much confidence in the company.

Posted: 06 May 2009 10:15 Post Subject:

I'm thinking he's not on burst his bubble and now he needs to take the time to figure out how to answer your questions!

A business startup needs critics...and hopefully he can use the feedback productively!

Posted: 10 May 2009 05:22 Post Subject:

I do hope that he can use it productively because I think that the idea has merit.

Posted: 11 May 2009 06:44 Post Subject:

I do hope that he can use it productively because I think that the idea has merit.

Sure, Michael's idea has merit.

The need of a cenrtralised database on life insurance information is largely felt. Even, we keep on receiving 'where to search for the policies of my father?' type of query in every second day, don't we guys? Not sure why he has deserted us :(

Posted: 11 May 2009 09:46 Post Subject:

Well, not really, since there are no barriers to entry to this, someone could always do this for less money.

The policy locator service is also known to charge nominal fees. So, people would only pay you if your service has a better success rate.

Posted: 11 May 2009 10:09 Post Subject:

The policy locator service is also known to charge nominal fees. So, people would only pay you if your service has a better success rate.

The success rate with any service like this should be 100%. The service is telling the beneficiaries, "Joe is registered with us. Look for the information when he dies."

There is also nothing nominal about $25/year when it's easy to let beneficiaries know for free.

Posted: 12 May 2009 05:51 Post Subject:

Here's a business need to justify the $25 a year by adding value. You can store their medical records as well and update them constantly. You could store all their important information, but I doubt you could operate on $25 a year per client if you have to keep everything up to date. You could list everything they have and list all of the important people...oh wait...that's what a will is for. GOOD LUCK!

Posted: 13 May 2009 07:01 Post Subject:

Hello All,

I would like to thank you for all your questions and the Insurance Expert for designating a special thread for our company. Due to my travelling schedule and increased activity I have been unable to follow all blogs. We do not have a department that answers these types of questions; this is a task that I have taken on myself. I encourage all of you to visit our website and if our FAQ’s section does not answer your questions, please feel free to email us through the website.

Thank you Michael

Posted: 14 May 2009 12:26 Post Subject:

Michael, I have all of these questions/concerns precisely because I looked at your FAQ.

This should be quite logical. If you can get insurance agents like myself to believe that your service has value, it will do very well. If insurance agents like myself can't get our questions/concerns addressed like I'm trying to do here, it's pretty obvious that the only one who will benefit from this is you.

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