Add On Coverage Letters
- Thread starter scott9178
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- 30,592
JD...Boom? We're waiting.
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I actually do use add on letters. Something I learned at a debit company. We were required to get so many signed and turned in weekly. So I continued it when I went independent.
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It certainly makes sense to stay in contact. I assume you also ask about other family members and friends. What percentage return do you receive on these letters?
Also, since most carriers don't allow increasing the face amount on an existing policy after the first 30 days, do you submit a new application for a second policy or do you do an internal/external replacement of the existing policy?
- 15,041
Unless it was issued graded or modified or very, very recent, an internal replacement is generally not in their best interest. Age may have changed, rates may have changed, and you are restarting the contestable period for the original coverage.
While it shouldn't matter as long as everything is answered honestly, why make the family wait months for it to go through the process versus a much faster pay out once it is no longer contestable?
The quasi-captive company that I started out with did a very good job with this. Sent out mailers twice a year reminding policyholders that due to the rising cost of funerals that they may be eligible for additional coverage. Very direct and to the point. The agent just had to cover the mailing cost, which amounted to about $12ea if I remember correctly.
Our IMO helped Americo pilot a similar program last year, but it wasn't done the way we suggested and in turn did not get great results. Most companies however are scared to death of you going back to see even your own clients, not to mention putting you in front of any of their orphans.
If you would just go door knock your existing policyholders your u would be amazed at how many of them are wanting to get additional coverage, but won't pull the trigger on their own, and usually won't respond if you call them up because they fear that it will be a hassle. If you aren't writing them additional coverage, then they will just get it from the next guy that shows up at their door.
Most often just an additional policy, unless they were substandard health with the initial coverage but can now qualify for level at a better rate.
Our IMO helped Americo pilot a similar program last year, but it wasn't done the way we suggested and in turn did not get great results. Most companies however are scared to death of you going back to see even your own clients, not to mention putting you in front of any of their orphans.
If you would just go door knock your existing policyholders your u would be amazed at how many of them are wanting to get additional coverage, but won't pull the trigger on their own, and usually won't respond if you call them up because they fear that it will be a hassle. If you aren't writing them additional coverage, then they will just get it from the next guy that shows up at their door.
Most often just an additional policy, unless they were substandard health with the initial coverage but can now qualify for level at a better rate.
- 26,179
Again - ""If you would just go door knock your existing policyholders your u would be amazed at how many of them are wanting to get additional coverage, but won't pull the trigger on their own, and usually won't respond if you call them up because they fear that it will be a hassle. If you aren't writing them additional coverage, then they will just get it from the next guy that shows up at their door.""
If the old agent has not had contact with them in years they are an orphan to me.
- 19,673
I don't know what an add on coverage letter is so I can't be of any help.
I just got in from adding $4000 for a guy I wrote 6 years ago. But he called me.
At all of my presentations I plant that seed. I tell people to start with what they can afford and add to it later rather than biting off too much now. I also tell them my clients do that all the time. Because they do.
Then I water that seed by staying touch. Taking care of any bene changes or moves or bank changes, etc.
When they think about adding coverage there's one guy they think of.
That's how I handle it.
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