FE Comission Vesting

[Rearden]

Rule of Thumb -- Agents are an expense to the Home Office, not an investment.

Carriers are always looking for ways to cut expenses.

 

[WinoBlues]

I roll Medicare Supplements every couple of years, but that is in the customer's best interests because of premium increases...if I don't do it someone else will. I don't see how you can roll FE policies like that without screwing the customer unless you can save them money/give them more face amount...they haven't built up any cash value...and their health hasn't changed. Since FE premiums don't go up, how likely is that?

You justify your replacement by saving them $2. Or reminding them that they have a few bucks in cash values. It is the FE market

 

[Newby]

What you say is true.. But why should an agent walk off (or die) and leave the renewals behind unnecessarily? I have renewals coming in from business written as long as 20 -25 years ago.. But I have even more that is not being paid because I did not pay serious attention to the vesting provisions of the contracts.

I agree 100% that you should get everything your family has coming. I just hear a lot of agents saying they will retire off their renewals. That won't be a very long retirement if they don't put some real retirement plan in place.

 

[goillini52]

You justify your replacement by saving them $2. Or reminding them that they have a few bucks in cash values. It is the FE market

I was talking about rolling my own customers...I would've already put them in the lowest priced policy I could. I guess I could see this happening if I picked up a new carrier that came out with cheaper rates than I had to offer at the time. I'd have no problem replacing someone else's policies.

I need to start looking at this differently. I've sold some FE over the years (if I tripped over it), but never was that interested in it until I started reading the threads on the Forum. I always felt that if a policy had much cash value built up that I should leave it alone. What you just said (and what I read on here)really hit home...they're worried about the final expense not the cash value. Like you said it's the Final Expense market. Good point...I've been walking away from FE sales.

 

[WinoBlues]

I was talking about rolling my own customers...I would've already put them in the lowest priced policy I could. I guess I could see this happening if I picked up a new carrier that came out with cheaper rates than I had to offer at the time. I'd have no problem replacing someone else's policies.

I need to start looking at this differently. I've sold some FE over the years (if I tripped over it), but never was that interested in it until I started reading the threads on the Forum. I always felt that if a policy had much cash value built up that I should leave it alone. What you just said (and what I read on here)really hit home...they're worried about the final expense not the cash value. Like you said it's the Final Expense market. Good point...I've been walking away from FE sales.

Sorry, I was being sarcastic. While I do my share of replacing, some people wholesale replace everyone they can regardless whether it is in the client's best interest.

 

[goillini52]

Sorry, I was being sarcastic. While I do my share of replacing, some people wholesale replace everyone they can regardless whether it is in the client's best interest.

That's ok...but I do need to start looking closer at some of these policies. I'm not talking about trying to replace everyone of them, and certainly not for $2(I'd think you'll end up in hot water if you do that)....but when they tell me they've had a policy more than a few years, I backed off.

I must not have had enough coffee yet when I responded to you...I can usually spot that sarcasm.

 

[TDFnCali]

Renewals are great but I would never count on building a retirement off them. Most of your FE and Med Sup clients will die off by the early years of your retirement.

You plan your retirement by selling yourself annuities every year, let them defer and then turn on the lifetime income.

I thought about that, until I discovered IULs...I prefer them now.