Figuring Out Orphans

[briko3]

OK, I was reading some sales stuff and was wondering...is it better to:
1) Call them and see if there's anything you can do for them and after that see if they're interested in you looking to see if you can find them a better value.
2) Call them to set up an appointment and then work from there and possibly get some referrals, but also run the risk of wasting a lot of time to driving for people that don't want to change anything.

Which would you do?

 

[HarryRenard]

2) Call them to set up an appointment and then work from there and possibly get some referrals, but also run the risk of wasting a lot of time to driving for people that don't want to change anything.

Which would you do?

Personally I love working orphan policy holders, I feel they are the best leads you can work.
Usually there is all ready some creditability because they are paying a company premiums.

I think you should always go out and see them lets be honest half the time do the customers really know what they want.

If I could schedule my week full, week in and week out full of orphans I would be a lot happier, the problem is when your and indy they are a lot harder to come by, and there are usually strings.

 

[maleman2045]

When I was captive @ Bankers, I requested some orphan clients.

I tried to fit them in my day, based on the area I was travelling, so it did not feel like 'a wasted trip'.

You never know what can come from an orphan visit, so for me it was worth the visit, especially when coupled with other visits than were close.

 

[scagnt83]

As the "young guy" of our firm (we are independent) I usually get most of the orphans when they come through just because non of the old guys want to bother with them...lol.

They really are hit or miss in my opinion, but I usually enjoy working them. Here is my system:
--I gather all the info I can from the policy brief that I receive on them. (Lots of orphans these days have ULs from the 80s that are falling apart, so I get inforce illustrations on those to see how much it will take to save them)
--I initially call just to feel them out. Tell them that I am their new servicing agent and that Im just calling to introduce myself. I usually ask when the last time was that they reviewed their policy and/or or their finances as a whole. I also ask if they have any questions about their existing coverage.
-- If they are open to a review then I go that route. If not, depending on the tone of the conversation, I might ask about the need for new products (life changes, CDs, annuities out of surrender, higher interest rates, guaranteed returns, etc.)
--But IMO ULs that are falling apart are the best to work. When you tell the client that their policy will be lapsed in the next year or two (or whenever its due to lapse), it really gets their attention. Sometimes you have to deal with some anger or resentment towards the writing agent. But once you get past that you really earn their trust. And if they are still insurable, most of the time you write new business to replace the falling apart policy, and its a very easy sale.

The down side of orphans is that you run into a lot of servicing work that doesnt make you any money. I usually lay it off to my assistant or to the company customer service line (unless I think they are a prospect for new business)

 

[HarryRenard]

But IMO ULs that are falling apart are the best to work. When you tell the client that their policy will be lapsed in the next year or two (or whenever its due to lapse), it really gets their attention. Sometimes you have to deal with some anger or resentment towards the writing agent. But once you get past that you really earn their trust. And if they are still insurable, most of the time you write new business to replace the falling apart policy, and its a very easy sale.

I agree that old ul's are easy, But they dont have to be from the 80's the 90's weren't that much better and for that matter most aren't sold properly anyway.

But I also think any policies with loans are good to work, and term policies, either for some conversion work or to shop rates and extend terms.

The truth of it is you never know what you walking into, so if you think they are part of your target market GO out and see them and be DIFFERENT then other agents and stay in contact with them and it will pay off.

 

[scagnt83]

But I also think any policies with loans are good to work, and term policies, either for some conversion work or to shop rates and extend terms.

I agree.
Some companies will accept loans from other companies through a 1035 replacement. Through a combination of interest rate arbitrage from the new rates, and a more efficient policy; I have been able to get loans paid down without the customer having to contribute anymore per month to the policy.
Its a great trick in the right situation.

 

[xrac]

I have a friend who started with Bankers and he got a call from an orphan who needed some type of service work on a small policy. He went out to see them and found a couple near 80 in an older neighborhood in a very small house. He did the service work and began a freindship with the couple. Eventually he wound up actually mowing their grass and doing small handyman and go for type projects. He did this out of his Christian faith and goodness of his heart not because he ever expected to gain from it financially.

They called him over one day and had him come over. They put a stack of papers in front of him wanting to know what they should do with this stuff. Imagine his suprise when he started going through the papers and finding Certificates of Deposits and Bonds. That day he found out that this couple owned several house and other real estate, had over $3,000,000 in liquid assets, and were quite well to do. Over a period of about 3 years he helped them combine accounts and find better instruments (annutities and insurance) for the assets. In the process he made between $100-$200,000 in commissions. This was from and orphan account.

 

[johndale]

Number is way better than the first one. It was based from experience though.