Equitable Life & Casulaty

[sirherbie]

And who's that carrier? There seems to be 150-170% total Fyc in a Fe product plus 10% backend however its divided. With probably 40% max 5 yr persistency (wether by lapses or claims) its amazing any company can make money in Fe.

 

[jdeasy]

And who's that carrier? There seems to be 150-170% total Fyc in a Fe product plus 10% backend however its divided. With probably 40% max 5 yr persistency (wether by lapses or claims) its amazing any company can make money in Fe.

You seem to worry a lot about the companies finances. I'll let you in a little secret, insurance companies are the wealthiest companies in the world.. Not just in profits, they are cash rich too.

They didn't get that way by losing money on the products. They know how to make money.

I don't get this obsession you have with their financial well being. If one of them goes out of business because of being dumb then fine, there's plenty more out there.

 

[Rearden]

Companies are definitely figuring out that lead credits are attention getters for the agents. And they are throwing money in that direction which if we can't have that perfect product, more money to sell what they have is appreciated. Settlers put out their 10% + lead credit for only $3,300 AP this year with no commission reduction at any age. SNL has their sweet 10% credit with monthly roll over which is nice. Trinity has a 5% credit at $5,000 monthly. And there is a carrier that is going to have a lead credit incentive for July, Aug and September to test if that is the way to agents hearts. 10% lead credit for $3,000 in production. 20% lead credit for $5,000 in production. This is the free market system at work. The carriers are all interested in trying to figure out how to become the favorite company of the agents and lead credits seem to be the most effective way to buy the agents attention in 2015. Well 100% approvals and perfect agent service would be the most attractive way but we ain't getting that.

While I agree with agents valuing lead credits, the fact is the cost is coming from somewhere.

SNL cuts comp at typical FE ages and does not pay commission on the policy fee.

However, even if your comp is sometimes upwards of 10-15 points less than an average street level final expense comp, lots of agents find the ease of lead credits with SNL appealing.

 

[Newby]

And who's that carrier? There seems to be 150-170% total Fyc in a Fe product plus 10% backend however its divided. With probably 40% max 5 yr persistency (wether by lapses or claims) its amazing any company can make money in Fe.

You do realize that the first two years of premium has always been considered the marketing cost for life insurance by pretty much the whole industry? That's why most products don't build any cash value until the third year.

Since we know that, we also know that 200% of first year premium is the amount companies allow to sell and administer the policies. And you don't see them spending it on TV commercials.

 

[JoshC]

Lol, you just need a commission bump. Several carriers are higher than SNL with the lead bump.

It's a trans hate-fest in the forum lately, but they are pretty smooth...if you know the app and they don't cut your comp.

Don't forget that Trans charges interest on advances. Unless you're as earned with them you're effectively getting cut at all ages.