- 1,118
If you're advanced for any significant length of time, you're going to get hit with a chargeback. It's just the nature of the beast. It's not necessarily bad business, but stuff happens.
Consistent Income
- Thread starter ComeCorrect
- Start date
If you're advanced for any significant length of time, you're going to get hit with a chargeback. It's just the nature of the beast. It's not necessarily bad business, but stuff happens.
i agree with this
How much reserve do you put aside for the charge back in general for the FE market?
- 235
it dosn't......some need to pay closer attention to the details before they get in bed
- 4,823
Of course charge backs happen. I've been on advance comm. just over 10 yrs. now writing FE for only one co. I would never go as earned when advances are available. If nothing else advances are an interest free loan.
- 4,823
My upline does not advance me..it's the Co. that advances me. Still can't understand how as earned is better than advances. Of course...with Lincoln Heritage and with Sr. Life...charge backs never come out of next advance comm. check. Maybe that is where the difference in our opinion lies...if you receive full charge backs out of your next advance check.
- 7,066
I believe whether or not an agent takes advances is a matter of personal preference. I am as earned with all companies and have been forever. Personally I like the steady income. I have also heard that some companies charge interest on the advances.
If I decide not to sell insurance this month it really isn't going to effect my income. I have sold very little the last two months because of my involvement in other things. (I'm beginning to question the wisdom of offering training. haha)
Charge backs are going to happen, as Bob said, regardless of what one does. However, I have found that they happen a lot less when selling FE if the agent doesn't do too good a job of selling it.
If an agent is extremely good I think it is too easy to get the prospect excited about taking a policy with a high benefit amount without also helping them select a premium amount that is in their comfort zone and affordable on an on going basis.
What I learned is not to sell the benefit amount, instead sell the premium. I would always give the prospect a choice of premium amounts as opposed to benefit amounts. I always encouraged them to select the amount that would comfortably fit in their budget.
This worked extremely well by pointing out to them the amount they had saved on their Med Supp policy. Selling the premium amount and using the Med Supp savings all but eliminated charge backs for me when selling a FE policy.
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I have found that there are two things that will help and encourage a GA "to stay focused". (Is that a "nice" way of saying it? haha)
An agent should make sure the he/she is getting the commission amount he/she is entitled to and insisting the agent be the AOR (Agent of Record). This means that the commission checks come from the insurance company, not the GA.
If the GA wants to charge the agent for office space, use of the phone, "leads", etc and the agent is comfortable with that (I can't imagine why) then the agent should work out a monthly fee to be paid to the GA. Never accept a reduction in percent of commission to cover those things.
The best solution I have found if a GA wants commissions assigned to him is to tell him to go pound sand. I would NEVER, EVER work under those conditions. That would be too much like having a real job again. haha
Yes, once again, I am holding way, way back on this one.
If I decide not to sell insurance this month it really isn't going to effect my income. I have sold very little the last two months because of my involvement in other things. (I'm beginning to question the wisdom of offering training. haha)
Charge backs are going to happen, as Bob said, regardless of what one does. However, I have found that they happen a lot less when selling FE if the agent doesn't do too good a job of selling it.
If an agent is extremely good I think it is too easy to get the prospect excited about taking a policy with a high benefit amount without also helping them select a premium amount that is in their comfort zone and affordable on an on going basis.
What I learned is not to sell the benefit amount, instead sell the premium. I would always give the prospect a choice of premium amounts as opposed to benefit amounts. I always encouraged them to select the amount that would comfortably fit in their budget.
This worked extremely well by pointing out to them the amount they had saved on their Med Supp policy. Selling the premium amount and using the Med Supp savings all but eliminated charge backs for me when selling a FE policy.
- - - - - - - - - - - - - - - - - -
I have found that there are two things that will help and encourage a GA "to stay focused". (Is that a "nice" way of saying it? haha)
An agent should make sure the he/she is getting the commission amount he/she is entitled to and insisting the agent be the AOR (Agent of Record). This means that the commission checks come from the insurance company, not the GA.
If the GA wants to charge the agent for office space, use of the phone, "leads", etc and the agent is comfortable with that (I can't imagine why) then the agent should work out a monthly fee to be paid to the GA. Never accept a reduction in percent of commission to cover those things.
The best solution I have found if a GA wants commissions assigned to him is to tell him to go pound sand. I would NEVER, EVER work under those conditions. That would be too much like having a real job again. haha
Yes, once again, I am holding way, way back on this one.
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