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- #31
- 569
Florida, and Im using United Home Life for this case. SNL was my first option but they only go up to 25K, she was wanting 50K
40 Yr Old W/ NO Checking Account Needs FE Policy
- Thread starter summerof18
- Start date
- 2,103
Will they go direct monthly?
- 15,041
Unless you are going to collect, direct monthly is a waste of time. It will lapse after only a month or two.
I have quite a few monthly directs still on the books after 10 yrs
- 15,041
And how many have lapsed in the past 10 years? Also, that was ten years ago. Things have changed and the people who want monthly direct usually aren't good at paying bills.
I would say including death lapses about 10% of all the direct bills I have written have lapsed. There haven't been a whole lot written but I have never turned them down
- 2,103
Being experienced with debit stuff like I am, I would say even the stuff you are supposed to be collecting can have a high chance of lapse. Not every piece of business, but some. The people might not be home when you are there trying to collect, or they don't have the money at that time. Bank draft is way more stable.
But yet, some folks just do not like bank draft, period. They want to go direct monthly. When I worked for a big captive ordinary company, a mutual.... we just let these folks go and moved on, did not waste our time with them. The debit companies want the direct payors. There has to be a happy medium between those who want direct monthly yet don't pay regularly, and those who pay real well and on time as though it were a scheduled draft. Working towards this end- is the challenge of every debit agent.
But yet, some folks just do not like bank draft, period. They want to go direct monthly. When I worked for a big captive ordinary company, a mutual.... we just let these folks go and moved on, did not waste our time with them. The debit companies want the direct payors. There has to be a happy medium between those who want direct monthly yet don't pay regularly, and those who pay real well and on time as though it were a scheduled draft. Working towards this end- is the challenge of every debit agent.
An agent once told me that as long as a comapny would pay him 105%+ first year commission, he would guarantee 100% 12 month persistency on all modes of payment.
- 15,041
An agent once told me that as long as a comapny would pay him 105%+ first year commission, he would guarantee 100% 12 month persistency on all modes of payment.
I'd need at least 110% to make that guarantee. 120% or even 130% would be better.
Alas, cash is no longer an acceptable form of payment.
Companies will take money orders.. Actually they even have to take cash after a policy has been issued.. It is legal tender for all debts and there is no provision in the insurance contract for them to refuse to accept payment.
They can refuse to accept cash or money orders with an application because there is no contract in force..
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