I always advise clients of the day the initial draft will come out and when to expect it and even on the day of their request. I have one that comes out on the 1st of every month. The first one came out and paid ok, but then November came back as insufficient funds. I wrote this with Monumental and they attempted 2 drafts until rejecting it and going to direct bill quarterly. The client now has 2 NSF fees from the bank which Monumental will not pay and the client wants me personally to pay?? Ha! That was funny, but do other carries do a double hit as well. Even though I know it is the persons responsibility to keep funds in their account, how can a carrier be allowed to go in twice? Even the bank should catch that one I would imagine. Has anyone else experienced this. I would imagine so. This is the final expense market.
Client and Their NSF Issues
- Thread starter eddie
- Start date
- 5,305
Re: Client and Their NSF Issues.
There are a lot of utter, completely stupid people that can't manage money worth a damn that you sell FE to.
Think about it. They've made it to their 60s and 70s. These people have absolutely NO savings. Live paycheck to paycheck. And most have ZERO life insurance.
Do you really think they're capable of an on-going, lifetime responsibility like paying for an intangible like life insurance, when there are more pressing investments like beer, cigs, and Direct TV to pay for?
The reality is that 20% to 25% of your market will fall into the aforementioned description. They just suck at life. They always have before you showed up. Are you really going to make a difference?
Although I will say I've been wholly surprised at those who pay in a timely fashion versus those who don't. Too bad you can't have perfect knowledge. That's why you have to sell them all, close as many as you can, so that you realize, hopefully, the average persistency level (maybe 80% if you're dropping FE leads).
Best to move on after a courtesy call, I say.
There are a lot of utter, completely stupid people that can't manage money worth a damn that you sell FE to.
Think about it. They've made it to their 60s and 70s. These people have absolutely NO savings. Live paycheck to paycheck. And most have ZERO life insurance.
Do you really think they're capable of an on-going, lifetime responsibility like paying for an intangible like life insurance, when there are more pressing investments like beer, cigs, and Direct TV to pay for?
The reality is that 20% to 25% of your market will fall into the aforementioned description. They just suck at life. They always have before you showed up. Are you really going to make a difference?
Although I will say I've been wholly surprised at those who pay in a timely fashion versus those who don't. Too bad you can't have perfect knowledge. That's why you have to sell them all, close as many as you can, so that you realize, hopefully, the average persistency level (maybe 80% if you're dropping FE leads).
Best to move on after a courtesy call, I say.
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- 2,452
Re: Client and Their NSF Issues.
Why would it be monumental responsibility to pay their bank fees for not having the funds in the account? some companies actually charge an NSF fee if they don't have the funds in there. I know BCBS of TN does.
Why would it be monumental responsibility to pay their bank fees for not having the funds in the account? some companies actually charge an NSF fee if they don't have the funds in there. I know BCBS of TN does.
- 19,648
Re: Client and Their NSF Issues.
If a company drafts on the wrong day then I think they should pay the overdraft fees and I have always gotten them to pay them when that happens. Many companies do draft a second time after the first one is returned. I know that AmCon and Americo attempt a redraft about a week after the first one.
If it was NSF on the day the client asked for the draft then it is no one's responsibility other than the client's.
That is just part of the FE world. I may personally help someone in a situation such as this but it all depends on the circumstances. Most times the circumstances are that they are beyond help.
If a company drafts on the wrong day then I think they should pay the overdraft fees and I have always gotten them to pay them when that happens. Many companies do draft a second time after the first one is returned. I know that AmCon and Americo attempt a redraft about a week after the first one.
If it was NSF on the day the client asked for the draft then it is no one's responsibility other than the client's.
That is just part of the FE world. I may personally help someone in a situation such as this but it all depends on the circumstances. Most times the circumstances are that they are beyond help.
- Thread starter
- #5
- 8,707
eddie said:
Tell him to feel lucky many companies will attempt 2 redrafts causing 3 overdrafts additionally $35 per overdraft is on the low end these days I have seen banks charging $50 per overdraft. I suggest promoting this customer to your competitors client.
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