Checking Account/ EFT

[jdeasy]

Well 2 people have told me that some companies took some money from their account without their knowledge.

I have no idea why they said that.....

That's just an excuse. Today everyone has an account. If they don't have a checking or savings then they have the DE card. If you are getting that objection a lot then they are just not sold. Solve that problem and there will be another objection.

I have one client that claims something happened years ago like that and he wouldn't let anyone take auto drafts again. I told him 5 Star was the key then as long as he was willing to write a check today. he was and he has 5 Star and pays every month.

There was obviously some truth to his story. I had a guy recently that claimed he wouldn't do bank drafts. I told him that was no problem. "When you change your mind I will come back and write it up for you". Once he realized I wasn't going to write it he decided that bank drafts weren't so bad afterall. he still has the policy. But, he wanted the insurance. If he didn't want it he would have let me leave.

 

[TwiLight]

Exactly, If they object to the EFT they are not sold.

I solve 90% of the objection right out of the gate in my presentation. I simply ask questions when qualifying the prospect for a company. One of the questions is: "to qualify for your maximum discounts, you need to have a checking or savings account, do you have either one?" Simple Y/N question.

Later if I get the objection during the APP that they do not want to do EFT, I simply say, "you do want to maximize your discounts don't you?" Well Yes the client says. Then I explain the simplicity of the process and they almost always agree that it is silly to loose a discount for insurance.

 

[djs]

I personally HATE eft payments and have stopped allowing them, regardless of how convenient they claim to be.

All it took was a couple of companies to mess up (severely) on eft payments and I'm done with them. When they take a $1000 instead of $25 and then don't want to return it? I'm done. And yes, one of the 3 times this has happened it was an insurance company who promised there was no way this could ever happen.

Tell the carrier that its in their best interest to allow the client to make automatic payments from their bank. Of course, the carrier won't listen, but it makes as much sense.

Or....

Tell the client to setup a separate account just for the few companies that insist on EFT payments. Fund that account so eft errors can't occur, i.e., put enough in there to cover all the payments, a few extra $$$, just in case, and then if they try to do an excessive withdrawal, they can't.

Or....

Have the client pay annually. Okay, that probably isn't going to happen either :(

 

[jdeasy]

I used to do that too about mentioning the bank draft early even beofe we got into offing plans, coverages and pricing.

I stopped doing that early this year once everyone has to have an account or they get the DE.

No reason for me to go into it anymore. They have accounts and I have companies that will take any account they have.

If they won't do the auto payment now then there is another reason. You will have the occasional exception but you can't build your business on the exceptions.

Exactly, If they object to the EFT they are not sold.

I solve 90% of the objection right out of the gate in my presentation. I simply ask questions when qualifying the prospect for a company. One of the questions is: "to qualify for your maximum discounts, you need to have a checking or savings account, do you have either one?" Simple Y/N question.

Later if I get the objection during the APP that they do not want to do EFT, I simply say, "you do want to maximize your discounts don't you?" Well Yes the client says. Then I explain the simplicity of the process and they almost always agree that it is silly to loose a discount for insurance.

 

[Funguy]

Exactly, If they object to the EFT they are not sold.

I solve 90% of the objection right out of the gate in my presentation. I simply ask questions when qualifying the prospect for a company. One of the questions is: "to qualify for your maximum discounts, you need to have a checking or savings account, do you have either one?" Simple Y/N question.

Later if I get the objection during the APP that they do not want to do EFT, I simply say, "you do want to maximize your discounts don't you?" Well Yes the client says. Then I explain the simplicity of the process and they almost always agree that it is silly to loose a discount for insurance.

Hey Twilight,

Thanks for a detailed response. Can you give some examples of "qualifying questions"

Funguy

 

[Jack B]

I tell them, almost all my clients have EFT, no one ever had a problem,

I tell them, you know what, start it with direct deposit & if you ever have any issues, you can always change to direct bill.

 

[WinoBlues]

There is no extra charge for direct billing with 5 Star. Nor with AmAm. UHL does charge extra as does LH.

There are some other FE companies that will do monthly billing at the client's request once the policy is issed and in force for one month.

None of them charge extra, but most of them give nice discounts for EFT.

 

[jdeasy]

None of them charge extra, but most of them give nice discounts for EFT.

No, some of them charge extra. LH charges $2/mo extra for monthly billing. UHL uses a different modal factor for monthly billing.

It's not proper to say that one gets "discounts" when they don't.

 

[Norwayguy]

No, some of them charge extra. LH charges $2/mo extra for monthly billing. UHL uses a different modal factor for monthly billing.

It's not proper to say that one gets "discounts" when they don't.

Okay it costs extra to go direct bill.

 

[jdeasy]

Okay it costs extra to go direct bill.

With a few companies it does. With most it doesn't.