American National

[HomeService]

Wouldn't it be hard to keep adding people to the books if you have to personally collect from each one? At some point aren't you doing nothing but collecting every day?

Yes, this is why the big debit companies usually "split books". If a book gets to be 20,000 monthly, they split it into two ten thousand dollar books of business. For example.

However, some people mail pay, or mail in. And, some people lapse, so an agent is out there replacing lapse.

One of the problems in the debit world is this: if you are handed a $20,000 book of business, you are expected to have growth, or increase. So next month your book should be , say, $20, 250.

But a certain amount becomes death lapse or paid up or cashed in or not paid at all, and it lapses off, this is charged against you as an agent, if you wrote it or not, might have been written in the 1970's.
Because you were handed a book, it's your baby. Might be charged on new commissions as well as growth, against the agent.

So yes, renewals are better, because the company is paying the agent to collect. New business commissions, and/or advances, may be less. And, the premiums are sometimes a little higher, to cover the expense. The money paid to the agent is spread out over time instead of paid up front. It is very similar to much of the P&C policies, paid as earned, for the most part.

 

[Jerard]

I worked debit 20 years ago and liked it. HS is right, you really get to know your customers and after a time they can become close. Some I never saw. The ones that the premium hung on a nail on the front porch every month. You marked the book, took the cash and that was it. Those were the days....you could sell extra coverage by bringing a "special" letter from the "home office": "Just sign here, you feeling OK today (for the health questions), Mrs. Smith?"

OK...ok.... *I* always really read the questions.

The trick for eating good was to leave all your best cooks to collect around 5pm. At least one would tell you to "grab a plate...".

My older brother worked for the old Independent Life, which was a weekly collection (later bought out by AGLA along with Gulf Life). Those guys only worked M, Tu, and Wed... did some paperwork on Thurs and had a short meeting on Fridays.

Dang...now I have a headache from using my memory.

 

[HomeService]

I worked debit 20 years ago and liked it. HS is right, you really get to know your customers and after a time they can become close. Some I never saw. The ones that the premium hung on a nail on the front porch every month. You marked the book, took the cash and that was it. Those were the days....you could sell extra coverage by bringing a "special" letter from the "home office": "Just sign here, you feeling OK today (for the health questions), Mrs. Smith?"

OK...ok.... *I* always really read the questions.

The trick for eating good was to leave all your best cooks to collect around 5pm. At least one would tell you to "grab a plate...".

My older brother worked for the old Independent Life, which was a weekly collection (later bought out by AGLA along with Gulf Life). Those guys only worked M, Tu, and Wed... did some paperwork on Thurs and had a short meeting on Fridays.

Dang...now I have a headache from using my memory.

I used to get homemade tortillas in the middle of the afternoon sometimes, with butter on them.

 

[Norwayguy]

I love to hear the stories of debit agents as my grandfather worked a debit book for Pru, before I was born. I know some companies still do this in the south but it seems like it no longer exists in the North East.

 

[HomeService]

I love to hear the stories of debit agents as my grandfather worked a debit book for Pru, before I was born. I know some companies still do this in the south but it seems like it no longer exists in the North East.

I was from the midwest originally and I don't think it happens much up there. I lived in NY and that was the 1980's and John Hancock I think maybe still did debit in the 1980's, and Combined did it for a while.

It is kind of a lost art, and it is big in the south. Maybe Chicago or St Louis or Kansas City might have debits as well, for the midwest. But it still is done in TX and the Southeast.

 

[rousemark]

I love to hear the stories of debit agents as my grandfather worked a debit book for Pru, before I was born. I know some companies still do this in the south but it seems like it no longer exists in the North East.

A lot of people don't realize that such giants as Prudential and Metropolitan were debit (home service) companies. Metropolitan still had debits in my area when I started in the business.

 

[Norwayguy]

A lot of people don't realize that such giants as Prudential and Metropolitan were debit (home service) companies. Metropolitan still had debits in my area when I started in the business.

They made thier money with industrial policies, those debits, now they sell thier agents on the idea of financial planning and the average age of a person for the first policy purchase has risen from what 18 to close to 40.

 

[shonceman]

Wouldn't it be hard to keep adding people to the books if you have to personally collect from each one? At some point aren't you doing nothing but collecting every day?

When a debit book reaches critical mass, the people you add are mostly family or friends of your policyholders. Over time you have less & less need to prospect, because most of your sales are coming from your book, as you go about your service duties. A well trained home service agent who builds his book to that point, and then manages it well won't have trouble making sales.

 

[WinoBlues]

When a debit book reaches critical mass, the people you add are mostly family or friends of your policyholders. Over time you have less & less need to prospect, because most of your sales are coming from your book, as you go about your service duties. A well trained home service agent who builds his book to that point, and then manages it well won't have trouble making sales.

Same is true of traditional life insurance on bank draft. Most agents have little idea have to service their book. Not necessarily a bad thing.

 

[shonceman]

Same is true of traditional life insurance on bank draft. Most agents have little idea have to service their book. Not necessarily a bad thing.

True that! I've seen many a high producing "racehorse" agent burn themselves out after a few short years because they didn't understand the value of service!