Did you just lose your favorite fraternal?

[Heretolearn]

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.

If that study is correct then this makes sense why FEX specifically was termed. But I've heard conflicting stories to this. Some say tony himself was just recently singing high praise for FEX and their persistency specifically. So if that's true then there are other reasons that someone doesnt want to be honest about. For that matter ksjk could have said that was the reason just to put one out there and it was really something else. At this point you can trust nothing from them. But I can't disagree that fex would have the best chance at that lower persistency. But how low is too low for FE? You say 90. I don't think so. I think 85 is way more fair. With this demographic there it too large of a percentage that it doesn't matter how good of a job you do. You can only speak crack head to a certain point.

 

[rousemark]

The persistency with traditional prospecting will tend to be better than business produced by running leads. I

 

[Heretolearn]

So, you are saying it is the agent?

Or an upline that taught a certain script that would result in this.

 

[Heretolearn]

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.

Sounds about right

 

[Heretolearn]

The persistency with traditional prospecting will tend to be better than business produced by running leads. I

That combined with other factors could create the perfect recipie.

 

[Heretolearn]

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 .

This all depends on the agents process. How they decide to play the numbers game. My FE persistency was over 90%. Where others was much lower. But we didn't do things the same way. It's just a different process. Not to say one is superior over the other (unless you get termed by a company for it of course) but just a different way of playing the numbers. But it definitely doesn't mean it has to be that low in FE. It's all in the presentation.

 

[BuckeyeOrDie]

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.

So true. And the $30 sales are usually the hardest ones to close. I often ask myself on $30 appointments "Is the juice worth the squeeze?" Usually not.

 

[WinoBlues]

So true. And the $30 sales are usually the hardest ones to close. I often ask myself on $30 appointments "Is the juice worth the squeeze?" Usually not.

And the most service work over the years.

 

[Heretolearn]

I think the key to persistency is whatever is the comfort range of the client. Not how much you can get out of them. As shown here by an entire organization being termed. But this could just be another method. And the numbers game of throw enough on the wall as high as possible and be grateful for what sticks, this should still produce high numbers overall. I think an organization should take that into account and be more lenient on persistency because of it. But maybe from admin costs they just finally realized that doesn't work for them.

 

[Jccwell]

I think the key to persistency is whatever is the comfort range of the client. Not how much you can get out of them. As shown here by an entire organization being termed. But this could just be another method. And the numbers game of throw enough on the wall as high as possible and be grateful for what sticks, this should still produce high numbers overall. I think an organization should take that into account and be more lenient on persistency because of it. But maybe from admin costs they just finally realized that doesn't work for them.

Please clarify. Are you suggesting that FEX pressures clients into spending more?