Did you just lose your favorite fraternal?

[Heretolearn]

This post is just all over the place. KSKJ was solid for 8 years. Why shouldn't agents take advantage of good products while they last? Are you suggesting agents don't write PFA just in case they end up fizzling out?

Why not tell them to write Lincoln Heritage or Senior Life, since these are "steady eddys" with true SSB?

Because when companies are unethical like ksjk you have to worry about them paying the clients claims. You know the reason you do the gig not just commissions. You as the agent put them in the vulnerable situation with untrustworthy people like ksjk.

 

[me112233]

Didn't find the state map for PF but did read the KSKJ letter to National Underwriting Services. It appears the contract was due to poor persistency. How could this be? I thought if you were the cheapest on the block you could not be replaced and if you could not be replaced then your persistency shoild be above average.

Poor persistency can be a result of over-selling the customer and/or making a high-pressure sale. Not all lapses are a result of replacement by another policy.

 

[WinoBlues]

Poor persistency can be a result of over-selling the customer and/or making a high-pressure sale. Not all lapses are a result of replacement by another policy.

So, you are saying it is the agent?

 

[me112233]

So, you are saying it is the agent?

Any one lapse certainly can't automatically be laid at the feet of the agent. However, if an agent has a 13-month persistency rate under 90%, the agent is not doing a good job of qualifying the sale. When a customer is cash-strapped, a $100/month premium is likely to be lapsed inside a year. I remember reading a market study a few years back that indicated that final expense premiums in excess of $65/month were substantially most likely to lapse than those under $65/month. Sure enough, the vast majority of my sales that have lapsed over the years were paying over $65/month (though rarely did a policy lapse before the 13-month point); they get in a bit of a bind, and that $100 life insurance premium gets the axe. Obviously, a lapse isn't good for the agent; yet, it isn't good for the insurance company or the client, either. I get it, agents tend to want to sell a lot of policies, yet sometimes the judgement can get clouded and people are oversold. I literally ask people who are signing up for a big premium if they are sure they will be able to make the premium payments if times get tough(er); sometimes it results in them choosing a $15,000 policy instead of a $25,000 policy.

 

[DonP]

Any one lapse certainly can't automatically be laid at the feet of the agent. However, if an agent has a 13-month persistency rate under 90%, the agent is not doing a good job of qualifying the sale. When a customer is cash-strapped, a $100/month premium is likely to be lapsed inside a year. I remember reading a market study a few years back that indicated that final expense premiums in excess of $65/month were substantially most likely to lapse than those under $65/month. Sure enough, the vast majority of my sales that have lapsed over the years were paying over $65/month (though rarely did a policy lapse before the 13-month point); they get in a bit of a bind, and that $100 life insurance premium gets the axe. Obviously, a lapse isn't good for the agent; yet, it isn't good for the insurance company or the client, either. I get it, agents tend to want to sell a lot of policies, yet sometimes the judgement can get clouded and people are oversold. I literally ask people who are signing up for a big premium if they are sure they will be able to make the premium payments if times get tough(er); sometimes it results in them choosing a $15,000 policy instead of a $25,000 policy.

I disagree with if an fe agent doesn't have 90% persistency the agents doing a bad job of qualifying the sale . I bet you the avg fe company has 75-80% persistency . If any agent overall has 80-85% overall persistency in the fe mkt that's considered respectable . 90% overall is extremely good . Agents in fe work leads and many people are dead broke . It's just the mkt .

 

[rousemark]

Any one lapse certainly can't automatically be laid at the feet of the agent. However, if an agent has a 13-month persistency rate under 90%, the agent is not doing a good job of qualifying the sale. When a customer is cash-strapped, a $100/month premium is likely to be lapsed inside a year. I remember reading a market study a few years back that indicated that final expense premiums in excess of $65/month were substantially most likely to lapse than those under $65/month. Sure enough, the vast majority of my sales that have lapsed over the years were paying over $65/month (though rarely did a policy lapse before the 13-month point); they get in a bit of a bind, and that $100 life insurance premium gets the axe. Obviously, a lapse isn't good for the agent; yet, it isn't good for the insurance company or the client, either. I get it, agents tend to want to sell a lot of policies, yet sometimes the judgement can get clouded and people are oversold. I literally ask people who are signing up for a big premium if they are sure they will be able to make the premium payments if times get tough(er); sometimes it results in them choosing a $15,000 policy instead of a $25,000 policy.

Do you work the FE market running leads?

 

[WinoBlues]

I bet you the avg fe company has 75-80% persistency . If any agent overall has 80-85% overall persistency in the fe mkt that's considered respectable .

Not an FE only guy.

How does that math out for a just average or starting out guy?

Let's use $5,000 AP a month. (I know everyone does that a week). 80% persistency.

I can get to the the first level.
$5,000 gross - 20% = $4,000AP. $4,000 x 110% = $4,400
For a just average or new F2F FE agent how much in leads and travel and meal expenses? To get to the rent money?

A couple years ago one of my sons asked me to look at an offer his SIL got from PHP. She thought she was going to be rich. Some of these really sell the dream.

 

[Jccwell]

Any one lapse certainly can't automatically be laid at the feet of the agent. However, if an agent has a 13-month persistency rate under 90%, the agent is not doing a good job of qualifying the sale. When a customer is cash-strapped, a $100/month premium is likely to be lapsed inside a year. I remember reading a market study a few years back that indicated that final expense premiums in excess of $65/month were substantially most likely to lapse than those under $65/month. Sure enough, the vast majority of my sales that have lapsed over the years were paying over $65/month (though rarely did a policy lapse before the 13-month point); they get in a bit of a bind, and that $100 life insurance premium gets the axe. Obviously, a lapse isn't good for the agent; yet, it isn't good for the insurance company or the client, either. I get it, agents tend to want to sell a lot of policies, yet sometimes the judgement can get clouded and people are oversold. I literally ask people who are signing up for a big premium if they are sure they will be able to make the premium payments if times get tough(er); sometimes it results in them choosing a $15,000 policy instead of a $25,000 policy.

Most of the policies that cancel for me are under $65. It's the folks paying $20-35 per month who cancel more than anyone. Those clients are also the most difficult to deal with post-sale in my opinion.

The folks paying $100/month or more are very sticky, once they make their first payment.

 

[rousemark]

Most of the policies that cancel for me are under $65. It's the folks paying $20-35 per month who cancel more than anyone. Those clients are also the most difficult to deal with post-sale in my opinion.

The folks paying $100/month or more are very sticky, once they make their first paymentWhen I 0worked the ddebitif I had an "insured that was difficult to collect my DM would tell me to write them more. His theory, "They don't have enough to be proud of what they have."

 

[WinoBlues]

Most of the policies that cancel for me are under $65. It's the folks paying $20-35 per month who cancel more than anyone. Those clients are also the most difficult to deal with post-sale in my opinion.

The folks paying $100/month or more are very sticky, once they make their first payment.

True in traditional life as well.