FE Replacements

[damadcrapper]

Experts please weigh in - for every 100 FE cases submitted, how many would you expect to be replacements of existing FE contracts? I have a broker running at about 30% - not sure if that is high, low or just about right. All of his replacements are disclosed, have the appropriate paperwork, appear justified and come from a variety of carriers.

 

[Baseball7]

40-60%

 

[damadcrapper]

Thanks Baseball7. Love the Closer's Corner as well!

 

[WinoBlues]

What are the top 3 reasons people replace?

 

[rousemark]

What are the top 3 reasons people replace?

Premium.. premium … premium...… Oh, and current agent not staying in contact.

 

[Life Hawk]

Experts please weigh in - for every 100 FE cases submitted, how many would you expect to be replacements of existing FE contracts? I have a broker running at about 30% - not sure if that is high, low or just about right. All of his replacements are disclosed, have the appropriate paperwork, appear justified and come from a variety of carriers.

Depends on how many people I meet with policies already on the books.

Premium.. premium … premium...… Oh, and current agent not staying in contact.

Not always... cash value might be part of this as well. Some folks are in a tight spot and see a value in paying a higher premium to get the usage of cash value out of an older policy.

Of course you need to evaluate current health status and premium increases, as well as current needs and how they plan on going (box vs. can).

Time changes many things for folks.

 

[Newby]

What are the top 3 reasons people replace?

1. Bought GI or graded when they are healthy enough for prefered.
2. Bought term or accidental for whole-life need
3. Paying too much -found better price
4. Bonus- was clean-sheeted on current policy.

 

[DonP]

Baseball thats mind boggling that you can be running into that many people to replace . Outside having KSKJ to have a much better premium and good underwriting i just don't see how you can be replacing that many policy's. Americian Amicable your go to company has very mediocre rates . I find it hard to believe you can be running into that many 2-8 yr old policy's that you can replace ethically . Even doing paid up additions and writing another policy won't be a better deal.

 

[WinoBlues]

1. Bought GI or graded when they are healthy enough for prefered.
2. Bought term or accidental for whole-life need
3. Paying too much -found better price
4. Bonus- was clean-sheeted on current policy.

Good reasons.

 

[tribetime32]

50% is a reasonable number for a good agent. The reality is that many folks have companies like Lincoln Heritage, American Income, AARP term, Colonial Penn etc. On top of that, a policy that has been on the books for a number of years can be ethically replaced for sure by using reduced paid up provisions.

There are a lot of agents who are taught to sell on price only. Many folks want more coverage but are hesitant to pay much more. Feel free to check out this free training on the subject.