Advanced Commissions

[MedicareMillionair]

Good chance they'll keep it for at least nine months though, which means it is likely worth the effort to write it. For many of those folks you are replacing, the policy you are replacing may very well have been their first. Responsible life insurance coverage has to start somewhere. I have written quite a few who had no insurance, and most of it seems to be sticking. I did recently have one lady who started in May cancel by calling the company directly and another who called me to tell me he might have to cancel also. In both cases, each has just had a significant reduction in earnings. I'm trying to convince him to reduce the face and keep something. But she made it through 7 months of the nine month advance, and he actually would be paying me my 10th month if he keeps it in force. Time will tell.

I definitely wouldn't argue with you on this point. I only write one or two FE policies per week, so it's not my specialty. Also, there are companies that don't want a high volume of replacement business, so my view is not necessarily a popular one.

 

[KRobby]

If they are 65 or older and they have no insurance, they probably won't keep it if they buy it.

If that were true, you wouldn't find any certified actuaries that would allow their carriers to sell new policies to folks over 65.

 

[MedicareMillionair]

If that were true, you wouldn't find any certified actuaries that would allow their carriers to sell new policies to folks over 65.

Good point. Of course some of the business is going to stick. I should have been more detailed in my statement. However, I'm sure the lapse rate is much higher for this business.

 

[goillini52]

None of my ideas were ever "get rich quick" concepts.

I'm actually excited. With the CFG and Americo Eagle apps we can show a blind monkey or gecko how to sell Final Expense.

Still love ya BoBo - Spring is coming soon - go fishing and at least - catch a buzz.

I can just see you and Ben out on the boat fishing and smokin' pot.

 

[myinsurebiz]

I can just see you and Ben out on the boat fishing and smokin' pot.

Then going to the Boom Boom Room! Can't wait . . .

Imagine what *ick would say

 

[GarryC]

In regard to advanced commissions vs "as earned", it appears that there are cases for both sides. It seems that an "advance" should still be considered a loan and whether you are charged a fee for this the money you have received should be considered "leveraged" and you should be prepared to pay it back if you do not have a steady inflow of new business to cover the advances.

 

[KRobby]

In regard to advanced commissions vs "as earned", it appears that there are cases for both sides. It seems that an "advance" should still be considered a loan and whether you are charged a fee for this the money you have received should be considered "leveraged" and you should be prepared to pay it back if you do not have a steady inflow of new business to cover the advances.

Receivables, Earned Income, bad debt, and loans, are all different terms.

 

[theinsuranceman]

A business man/woman who refuses an interest free loan (advance) is a weak business person in my opinion. You always accept the interest free loan even if you don't need it. If you don't need it you can even invest it in a savings account earning 1% interest....which is far better than as earned.
You can even invest the advances in leads which will easily yield you 3-5 times your investment back in 2 weeks or less. Where else can you invest $600-$1200 and get back 3-5 times your $$$ back in 2 weeks or less?

 

[SPUR CITY]

How smart you are with your money during your working years is a reason some people will HAVE to continue to work into their later years and others won't.