Do You Add ADB

[VolAgent]

All is fair in love and war and sales. I'm with JD that I would rather offer more real insurance, but if they are giving them something of more value for more money, there is no problem with that. If they can sell it

So if they are really hung up on the accidental, I will show them another carrier that has the accidental for a better price or do with JD says with the Gerber or Mutual standalone accidental.

I don't fault anybody for using that method. We must create value for the prospect to buy. So whether you use member benefits, the lowest rates, accidental, yourself being their agent or any combination thereof, do what it takes!

While I personally see little value in ADB for the FE market, that isn't my issue.

My issue are the agents who try to inflate the amount of coverage using ADB. The standard LH tactic, where suddenly the coverage doubled, but in reality half is just ADB.

 

[BoJax]

I add it to all of my policies I sell. Is it smoke and mirrors, maybe? But it sounds more valuble to say you have 10k if you die from natural causes or 20k if die in a car accident then to give them 11k no matter what. Also when i bought my own life insurance policy, i added thr adb in myself...again doubling my wl policy if i die in am accident is more valuable to me than adding an extra 1k of coverage.

 

[jdeasy]

I add it to all of my policies I sell. Is it smoke and mirrors, maybe? But it sounds more valuble to say you have 10k if you die from natural causes or 20k if die in a car accident then to give them 11k no matter what. Also when i bought my own life insurance policy, i added thr adb in myself...again doubling my wl policy if i die in am accident is more valuable to me than adding an extra 1k of coverage.

It sounds more valuable to you. It doesn't to me. Everyone will die. Most will not die by accident.

 

[VolAgent]

Death and Death Rates, by Age and Leading Cause statistics - USA Census numbers

The odds of dying due to an accident get rather low once you hit 45, and extremely low once you hit 65. And this is an average across everyone in those age ranges. Factor in health problems and it would only get worse.

Only for those under age 25 are the odds fairly high. Already less than 5% of those over age 45 die due to an accident. By age 65 it drops to under 2%. And these are numbers from 1995. It may have changes some since then, but I doubt drastically.

An extra thousand in insurance that pays regardless of the cause of death is vastly more valuable.

 

[TampaHound]

I have mixed emotions about it. While I agree it can add to the value of the policy, I also know that there is only about a 1/10 chance that someone will die in an accident.

Or it's a sucker's bet.

However certain clients can certainly use it more than others (truckers for example) and I do try to sell it to some of the older clients I have as well (slip and fall). The odds are a little better for those people and I try to take that into consideration.

I try to sell on value, not price....and then watch them take the lower price time and time again.

 

[VolAgent]

I have mixed emotions about it. While I agree it can add to the value of the policy, I also know that there is only about a 1/10 chance that someone will die in an accident.

Or it's a sucker's bet.

However certain clients can certainly use it more than others (truckers for example) and I do try to sell it to some of the older clients I have as well (slip and fall). The odds are a little better for those people and I try to take that into consideration.

I try to sell on value, not price....and then watch them take the lower price time and time again.

But is it real value?

By the statistics, it is even less than 10%. Also, for those older clients, you should read the exact definition of an accident in the policy. If an illness caused the slip and fall, then it probably won't pay out.

 

[jdeasy]

AD is really cheap. Why is it so cheap? My bank gives $1000 AD&D free.

Are companies losing money on it because it's so cheap?

No, it's cheap because it's almost never used.

But being cheap, if it makes someone feel better to have it then they aren't paying much for that peace of mind.

 

[suranceman]

I have mixed emotions about it. While I agree it can add to the value of the policy, I also know that there is only about a 1/10 chance that someone will die in an accident.

Or it's a sucker's bet.

However certain clients can certainly use it more than others (truckers for example) and I do try to sell it to some of the older clients I have as well (slip and fall). The odds are a little better for those people and I try to take that into consideration.

I try to sell on value, not price....and then watch them take the lower price time and time again.

It's not 1/10. It's far far lower than that.

Dying from an accident, especially for older folks, is all but impossible. That's how rare it is.

Unless a client specifically asks for AD coverage, it shouldn't be given to them without fully explaining how utterly impossible it will be for them to collect on it. Sure it's only 3-7 extra but that's real money that will never bring them any value.

 

[WinoBlues]

Question - are we talking about needs and logic or are we talking about wants and feelings?
Second question - what is the demographic of the Fe Market?

 

[Baseball7]

When I mention ADR I've nearly never had someone say..."Oh, I wouldn't want/need that."