Do You FE Pros Go Back And Re-Sell Lapsed Clients?

[Rearden]

Having crossed the year boundary, I'm discovering situations and perspectives I wouldn't imagine experiencing when I first started.

I've covered hand-delivering policies, annual reviews, and the miracle of life insurance.

But what I'm finding to be a pretty good prospect source is our "Prodigal Sons" -- ie, our lapsed clients.

Specifically, I am having a pretty good success rate going back and re-writing coverage on clients, who, for whatever reason, didn't take their policy after being issued, or only paid on the first month or two.

I did have one lapse that I re-wrote, but sometimes you can't save everybody, right?

Figured I'd ask you guys who've been in the biz for several years how much re-written business you get on lapsed clients? What's your success rate been like?

 

[digfesales105]

Yes. We are handing out the last 6 month lapse's and cancellations to rewrite. Quick sales. Typically we find it was the agent who couldn't save or never attempted to save or set draft date up for the 4th or 5th when they get their check on the 3rd?

Nothing wrong with it. I'd say this is a great time to do it since folks are having a hard time with lead drops?

 

[Rearden]

Yes. We are handing out the last 6 month lapse's and cancellations to rewrite. Quick sales. Typically we find it was the agent who couldn't save or never attempted to save or set draft date up for the 4th or 5th when they get their check on the 3rd?

Nothing wrong with it. I'd say this is a great time to do it since folks are having a hard time with lead drops?

Ya -- that's where I'm finding my groove -- 6 months plus.

Thanks for the confirmation.

 

[digfesales105]

Ya -- that's where I'm finding my groove -- 6 months plus.

Thanks for the confirmation.

You might even be able to get that info if you know someone at the carrier(s) so you know exactly what they had, when, type of plan etc.. Or you're upline can or should be able to pull it?

I can pull and print ours all off and divie them out to the agents as free leads.

 

[Rearden]

You might even be able to get that info if you know someone at the carrier(s) so you know exactly what they had, when, type of plan etc.. Or you're upline can or should be able to pull it?

I can pull and print ours all off and divie them out to the agents as free leads.

Thanks. This is all people who fired me as their agent by not paying their premium.

I admit to NOT following up with most of them that lapse the first month, or end up not taking.

My gut response has been, "You can't fix stupid." I've decided to challenge that bias this December and see if it's entirely true, or completely false.

 

[digfesales105]

Thanks. This is all people who fired me as their agent by not paying their premium.

I admit to NOT following up with most of them that lapse the first month, or end up not taking.

My gut response has been, "You can't fix stupid." I've decided to challenge that bias this December and see if it's entirely true, or completely false.

Man...I really think that is exactly why agents believe or see so many "chargebacks". 1. they don't sell it and set it up properly and 2. no "maintenance".

I realized quickly that a simple phone call would save it. Do you know that I saw that most policy's fell behind because the 1st, 3rd or their billing date fell on a weekend or holiday? Be prepared for when that happens. Then, since no one really likes to work on Friday's, we would make that our "maintenance" day. We would call those folks and most of them would say "what??? How can that be? You take it right out of bank account?" LOL Little did they know YOU HAVE TO LEAVE THE MONEY IN THERE!!! LOL So we would run out and collect or set up time to collect or if we had to, rewrite.

Last suggestion, we developed different letters to send out. Simple, one page letters. One for cancels, one for NTO's, one for lapse's. It took time but my wife and sister n law would type out the clients name, print them off and send them out once a month. I can dig up some sample's if you want them. Just pm or email me tomorrow. They did work!

Since we are a call center now my next division to start up next year will be a conservation dept. Do it next month. Report back. It will greatly help new agents see that if you make maintenance part of you selling habits, after awhile, it's simply second nature.

 

[VolAgent]

Thanks. This is all people who fired me as their agent by not paying their premium.

I admit to NOT following up with most of them that lapse the first month, or end up not taking.

My gut response has been, "You can't fix stupid." I've decided to challenge that bias this December and see if it's entirely true, or completely false.

Just my personal experience and not FE specific...

If they NSF the first month, fix it. Probably a miscommunication or some type of mistake. If they do it later on, odds are they will do it again and again. It just depends on how much time you want to spend hand holding the client to keep the policy in force.

 

[jdeasy]

Just my personal experience and not FE specific...

If they NSF the first month, fix it. Probably a miscommunication or some type of mistake. If they do it later on, odds are they will do it again and again. It just depends on how much time you want to spend hand holding the client to keep the policy in force.

That is my experience as well. An NSF or not taken in the first month is usually a screw up somewhere and easily fixed. An NSF in the 3rd month and up is a whole different ballgame and not so easily fixed.

Companies that are notorious for not drafting on the same day each month also lead to many unsalvagable problems.

 

[edward67]

That is my experience as well. An NSF or not taken in the first month is usually a screw up somewhere and easily fixed. An NSF in the 3rd month and up is a whole different ballgame and not so easily fixed.

Companies that are notorious for not drafting on the same day each month also lead to many unsalvagable problems.

What companies are you talking about that dont draft on the same day each month?

 

[jdeasy]

What companies are you talking about that dont draft on the same day each month?

RNA is terrible about it for one. 5 Star is another one that's not on the ball. AmCon has had some of those issues since they were bought by Aetna. They will be close on the draft date and never early but a draft scheduled for the 15th for example may not get drafted until the 17th.

I'm not talking weekends or holidays where everyone's draft is off. Just not drafting on the same day every month. That's a bigger issue for the FE market because if their draft is the 3rd they are very likely to to take all monies out on the 4th thinking that the draft has already gone through.