FE Companies for OVER THE PHONE Sales ?

[nfl72]

I used to use Equitable and they were pretty decent to work with at first. Then they got real tight as far as underwriting and wanted to change my apps from Level to Graded or even modified because of script checks.

At first they would ask the client about certain scripts and would listen to their answer now they just seem to go to the worst case scenerio.

And yes their rates were quite high.

 

[MrProducer]

American Memorial.

Rates are also high on most ages but they pay the highest commissions also.

What?!?!? Highest FE commissions on Am Memorial???? How much are you at through them???

 

[Newby]

What?!?!? Highest FE commissions on Am Memorial???? How much are you at through them???

They have lifetime renewals. So say if you sold a $600 annual premium and they live 30-years you will have over $2,500 over the 30-years give or take a little depending on your contract level.

Is there any other FE company that is even close to that?

 

[MrProducer]

They have lifetime renewals. So say if you sold a $600 annual premium and they live 30-years you will have over $2,500 over the 30-years give or take a little depending on your contract level.

Is there any other FE company that is even close to that?

Quick correction on your math there. I think street for Am Memorial is 100% first year, 6% thereafter. So on a $600 AP, you would receive a total of $1,644, assuming every one of your clients lived 30 years.

So, first of all (with all due respect), how many 65 yr olds live 30 more years?...... Heck, how many 50 yr olds who have to get an FE policy are in perfect health, and will likely live 30 years??? If they are in perfect health, Am Memorial is not the most cost effective option.

Therefore, I think 15 would be considered a good average.

So, taking 15 yr lifespan average (some live longer, others live 2 years or less.....why? because they're old.)

$1,000 AP
100% commission yr 1 = $1,000 commission
6% years 2-15 = $60 per year commission x 14 yrs = $840 commission.
TOTAL Commission (15 years) = $1,840 (Am Memorial)

Now, let's look at a different carrier.... Assurity
$1,000 AP
100% commission yr 1 = $1,000 commission
15% year 2 = $150.
15% year 3 = $150
14% year 4 = $120
9% years 5-10 = $90 per year x 6 yrs = $540
4% years 11-15 = $40 per year x 5 yrs = $200
TOTAL Commission (15 years) = $2,160 ($320 more than Am Memorial)

Or, how about..... UHL
$1,000 AP
120% commission yr 1 = $1,200 commission
16% year 2 = $160.
6% years 3-10 = $60 per year x 8 yrs = $420
TOTAL Commission (15 years) = $1,840 (same as Am Memorial, EXCEPT you get the UHL amount 5 years sooner).


I think it's safe to say that Am Memorial has a good commission structure, but there are a couple of carriers that are as good or better. Again, this is all assuming you are still alive in 15 years (some of us are getting old...LOL). Also, that the client (even if they are alive), has not come across an agent who shows them a policy whose rates are lower than Am Memorial's (I do this often).

You say, "rates won't be lower if they're sick". True, but then they REALLY won't be living 15 years most likely.

We should all keep an open mind, and never sell a carrier solely because "the commission is better". That's what increases the number of policies that either lapse due to nonpayment, or get replaced by a lower premium alternative.

Newby, no offense, seriously. I read a lot of your posts, and you seem like a sharp guy. I just like a good friendly, professional debate from time to time. Feel free to counter any of my statements above.

 

[nfl72]

just a quick queston on future commissions. When I got into this business I was attracted to getting paid rather quickly and relatively high up front commissions. I really wasn't looking so much to the future but to the immediate pay.

The number that seems to be the most widely respected is 20% of the business you write will fall off the books within the first year. Which fits what I write. I have a 93% retention rate from Foresters and about 75% from Genwroth for one year. I would assume you continue to lose people every year in the future.

If the average retention rate after one year is 80%, what is it after 3 years? What is it after 5 years?

How bout ten years?

 

[Todd King]

Mr. Producer,

American Memorial's street is 110%, not 100%.

 

[Josh]

Depending on age. Starts to drop off pretty drastically as they get up there.

 

[MrProducer]

Mr. Producer,

American Memorial's street is 110%, not 100%.

You can tell I don't sell Am Memorial very often... LOL.

You're right, it is 110%. Therefore, add a total of $100 to the commission totals for Am Memorial above.

Good catch Joe Cool

 

[ims01]

We put all the FE carriers that have a phone app process into a matrix. We looked at FYC, renewals, process, call center hours, price, product, support, etc. About a year ago Balt. Life came up on top and they continue to be at the top based on our criteria.

 

[Newby]

You can tell I don't sell Am Memorial very often... LOL.

You're right, it is 110%. Therefore, add a total of $100 to the commission totals for Am Memorial above.

Good catch Joe Cool

If Am Mem street is 110%, I don't know a single agent who has that low of a contract. And lifetime renewals are much higher than what you stated also.

You need to shop your AmMem contract a little bit.

I stand by my original statement. They pay the highest commissions to MOST agents.