Do You Know if There Are Any FE Carriers

[taterpeeler]

Reworded for what you really mean.

a. you didn't "earn" the money by placing a quality piece of business... why keep it?
b. look closely at the interest charged on such commissions as well as the whole advanced balance

MY diagnosis: You're selling to a predetermined income need. Say you need $3,090/mo... you'll sell withing 10% give or take of that needed level. When that goal is realized you lose the drive to keep going . When you're selling to satisfy a set income need and miss a sale or get a chargeback you're hurting, but when you pass it you pay bills or blow it.

I may be way off base with you, but I've watched many many agents living off advances and what I'm talking about rings true more often that not.

Your a dick... who are u to pre judge??

Hi all. im a health agent now getting into med sups... i may be around a bit....

 

[Josh]

Your a dick... who are u to pre judge??

Hi all. im a health agent now getting into med sups... i may be around a bit....

Not for nothing, but I think he just described close to 80% or more of life agents. Like it or not, that's just the situation for what it is.
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United Heritage

Also you may want to start backing off your advance percentage. Say, 75% to 50% then to 25% Then as earned. I like 25% only because that first little advance feels like an "at a boy" for the sale.

There isn't much wrong with a 75% advance if an agent can keep at least 75% of his/her premium on the books. The biggest problem I've seen with a 25% or 50% advance is that if you're paying for your own marketing it can really limit the amount of marketing you can do which will limit the amount of premium that an be written, just something to think about.

 

[Russ]

I have no problems with getting advances. The interest some companies charge for them is so insignificant it doesn't bother me(a few dollars a month).

As far as losing clients and having to pay back some or almost all of an advance...that goes with the job. I can see cold-door knocking and writing FE's as a riskier field vs. T65's entering Medicare. Dealing with some clients who live from week to week vs. those with more money is a higher risk.

Cold-door knocking is a higher risk. You'll have a small percent that will call you the next morning saying they couldn't really afford it. I'd rather not write it, then to write it and lose it.

I haven't cold-door knocked in years...close to 20? Yes, I'm costing myself sales, but I prefer telemarketing T65's.

 

[5pill]

After some time, a new agent can build up quite a large debit balance. After a while he begins to learn how to pick and choose which business he writes like any good business man who knows who and who not to do business with.

But even then, some prospects will write up just to get you out of the house....then cancel the next day or just not make the first premium payment. (Mostly, the latter). Many don't know how to tell you "NO". So, it really tickles me to read in different places how to "close" the sale, or, the GREAT closing techniques of today...Strongarming these folks is a great big waste of time.
If they even glance at their watch or make utterances that
deviate fom the business at hand, I just close up shop and tell them to let me know if they decide later.

I'm reminded of a fairly recent sale where I drove about 250 miles to a sister and then her brothers house and back and forth to complete all the paperwork. It seemed solid to me...but even now I get fooled. Got everything done, submitted the business, ($970 advance), it went pending, whole life, and 2 days later she called.

She got a mailer showing her that she could get it cheaper, and she cancelled. No, it did'nt matter that it might have been term, or graded.

Some are good. Some are no good.

Throw 'em against the wall. A few will stick!

 

[theinsuranceman]

Not for nothing, but I think he just described close to 80% or more of life agents. Like it or not, that's just the situation for what it is.
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There isn't much wrong with a 75% advance if an agent can keep at least 75% of his/her premium on the books. The biggest problem I've seen with a 25% or 50% advance is that if you're paying for your own marketing it can really limit the amount of marketing you can do which will limit the amount of premium that an be written, just something to think about.

I believe you meant to say keep the business on the books for 75% of the 1st year. But I knew what you meant. Advances are beautiful especially when chargebacks are NOT deducted from advances (only a few co.'s will do this).

 

[Josh]

I believe you meant to say keep the business on the books for 75% of the 1st year. But I knew what you meant. Advances are beautiful especially when chargebacks are NOT deducted from advances (only a few co.'s will do this).

I meant 75% of the premium. If an agent writes $10,000 in premium one month, has policies totaling $1,200-$2,499 in premium drop then by the end of month 12 the agent would still have a positive balance with the agent and usually will have no problem with that. Usually the carriers start wanting their money back if it looks like their projected commission accrual would not be sufficient to cover the advance. Make sense? So as long as agents keep at least 75% of the premium they write on the books, most carriers wont be coming back to them looking for money.

 

[Frank Stastny]

This may sound strange but an agent can be too good at selling and closing. So good that they convince people to take a policy when they talk to them, the prospect gets all excited about taking a policy and then after thinking about it for a few days they change their mind.

I probably take a different approach than most. I suggest a premium and face amount that I think will be easily affordable for them. Let's say $30 per month. I then ask them if that amount will easily fit in their budget.

If they say yes then I will show them that for an additional $10 per month they can increase the benefit amount. If they don't think that the additional $10 will work for them then I don't argue with them, I just start writing the app.

For me that works a lot better than starting too high and then trying to come down on the premium. Once they say no to the higher amount I have found that it is hard to turn that no into a yes. They have already made the "no" decision and many won't budge from it.

This can go a long way in reducing charge backs.

 

[arnguy]

Frank, IMHO your approach will get clients that will stay on the books and not look around for better deals. You may close less, but will close better. As usual you are the man!

 

[G.Gordon]

Your a dick... who are u to pre judge??

Hi all. im a health agent now getting into med sups... i may be around a bit....

Reading... not one of your strong suits?

Notice in the second paragraph where I made the statement: "I may be way off with you... "

And as pointed out by others... this is true for most new agents out there.

I've trained dozens of agents and one piece of information I gathered per my training was "What do you need to live on per week?"... this information used later was a very telling indicator why their sales reached a certain level and rarely exceeded that level.
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Frank, IMHO your approach will get clients that will stay on the books and not look around for better deals. You may close less, but will close better. As usual you are the man!

I used a close like Franks. I'd even add: "The best life insurance policy is the one inforce when you die. If you buy more than you can afford and drop it, it does no good to anyone concerned."

This at times resulted in a lower face sale, but I can't remember the last time a life policy fell off the books.

 

[WinoBlues]

Now this is coming from an agent that does not buy leads, so that colors my suggestion.

When I went Independent, I started out at 75% on all my companies. I found that I was always chasing the advance/loan check. Living on credit. Then if someone lapsed or non-took, that loan would come due. Then I was chasing the loan payoff so that I could chase the advance check. I think that is the main reason so many agents wind up with Vector hits.

I understand a new agent needing to start with advance. However, staying there keeps you a slave to the advance. Do not take a week off, have a slow week or get sick. I have advised people to blend their percent of advance and as earned through their companies contracted.

I myself still have a couple at 75%, most are as earned, the rest are 50% to 25%. I will not be seeing anyone this week. I will still get a check(EFT) next week.

Again, I do not do leads. If I did that would most likely change my blend.

Just my 2 cents.

Not for nothing, but I think he just described close to 80% or more of life agents. Like it or not, that's just the situation for what it is.
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There isn't much wrong with a 75% advance if an agent can keep at least 75% of his/her premium on the books. The biggest problem I've seen with a 25% or 50% advance is that if you're paying for your own marketing it can really limit the amount of marketing you can do which will limit the amount of premium that an be written, just something to think about.

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25% lapse? Somebody would be doing something very wrong. IMHO

I meant 75% of the premium. If an agent writes $10,000 in premium one month, has policies totaling $1,200-$2,499 in premium drop then by the end of month 12 the agent would still have a positive balance with the agent and usually will have no problem with that. Usually the carriers start wanting their money back if it looks like their projected commission accrual would not be sufficient to cover the advance. Make sense? So as long as agents keep at least 75% of the premium they write on the books, most carriers wont be coming back to them looking for money.