As earned vs advance

[Frank Stastny]

A sample of a Thank You letter I send:

"Thank you for selecting (name of insurance co.) and me for your insurance needs. Both (name of insurance co.) and I pledge to work very hard to always provide you with quality insurance and excellent service.

Your application has been submitted to the home office. It typically takes about three weeks for an application to be processed and issued. I will contact you as soon as it has been issued and arrange a date for me to deliver the policy to you.

Your policy will go into effect on (enter date). The check you gave me will pay your premium for the month of (enter month). After that your bank will begin automatically sending your premium of $000.00 on or about the first of each month.

Any time you have any questions, or a problem that I can help you with, please pick up the phone and give me a call. I'm always glad to hear from you and to help in any way I can. My toll free number is 555.898.4613. If I'm out of the office please leave your name and the best time to return your call.

If you know any one else who I can help with their insurance I would appreciate it if you would give them my phone number.

Thanks again for your business.

Warmest Regards,"

 

[Crabcake Johnny]

Reasons for cancellations:

1) You're selling crap policies
2) You're selling to people who are broke (clue: when they ask you to make sure the draft doesn't hit their account until "X" day.)
3) You're targeting non-business owners and they cancel as they get new jobs
4) You're not explaining the plans details
5) You're forgetting to make sure their providers are in network
6) You're excluding their pre-ex conditions and after a few months of them paying out of pocket for meds/doc visits they say "what the hell am I paying my premium for?" and cancel.
7) You're not sending a thank you card
8) You don't stay in touch with them.

 

[SME]

Oh, if only all clients where like that. Lets be realistic not all people have tons of money, not all people are business owners. Most clients are average people who are just trying to get by. If you work with them even those clients who can only have the draft hit on X day can be good clients, and grateful that you took the time to help them. I always try to remember 2 things: Never assume anything, and never sell out of your own pocket. You never know a persons motivation, or priorities.

 

[Crabcake Johnny]

If you target business owners you get business owners. If you buy leads you get "Becky, age 26."

 

[J.R.]

never sell out of your own pocket.

What do you mean by that?

 

[angwagner1974]

DO the deadlines come into play if you are on direct deposit or is that only if you have a check mailed to you.

deadlines set up for commission (earned or advance) payout matter the same whether you are getting a paper check or direct deposit.

 

[Crabcake Johnny]

True. Just a little more bitter when you're only getting a monthly check and it's as-earned. Then you miss the cut-off and it's 7 more weeks until you see it. Not a problem when you're established. Problem when you're starting out. Can't see why some carriers only pay monthly. Do they only pay their employees once a month?

 

[senior-advisor-indiana]

It is funny how insurance carriers don't care how fast you get your money. I have learned never to depend on getting it when i think I am, unless it is my monthly renewal check.

 

[SME]

What I mean by selling out of your own pocket is that I try not to assume how much someone can afford. To me a $10,000 deductible is a HUGE amount of money to have to pay. But for others it isn't as big of a deal. You can never assume that just because you wouldn't pay a $1,000 a month for health insurance that someone else won't. I had a hard time with this when I started selling.

 

[J.R.]

Does anyone have a spreadsheet showing the accumulation of as-earned advances over a given timeframe (1-3 years). I;m hoping to save myself some time from putting together one.

Thanks...

-J.R.