Final Expense Chargebacks

[usakr]

I understand when you work the FE market you work with people who make between 0-50k a yr. Many of those people are on SS fixed income probably making less than $800.00 a month. What percentage of chargebacks can a person expect if you work this market?

 

[Mark]

At least 80% of your business should still be active after 13 months.

Some companies will even fire you for less than this.

 

[G.Gordon]

Or more than that if you do a good job getting an idea of what premium amount will fit their budget. Too many agents push for a larger sale and end up with a bust in a few months.

 

[Focus LTC]

Or more than that if you do a good job getting an idea of what premium amount will fit their budget. Too many agents push for a larger sale and end up with a bust in a few months.

Overselling...

The number 1 reason for chargebacks.

 

[TheInsuranceChic]

I just ask up front what they can afford monthly. $15, $25, $35... As soon as the comfort gies out of their eyes
- - - - - - - - - - - - - - - - - -
Alright sorry I am totally new here... Ooops!
As soon as the comfort goes out of their eyes and they are a bit wide-eyed, you have just gone beyond their comfort level! Go back one number, now they are smiling & accepting. When I do this- they stick until well... I am delivering a check to the bene.

 

[YouGotMyMoney]

I just ask up front what they can afford monthly. $15, $25, $35... As soon as the comfort gies out of their eyes
- - - - - - - - - - - - - - - - - -
Alright sorry I am totally new here... Ooops!
As soon as the comfort goes out of their eyes and they are a bit wide-eyed, you have just gone beyond their comfort level! Go back one number, now they are smiling & accepting. When I do this- they stick until well... I am delivering a check to the bene.

I have never sold FE insurance, but here are my thoughts, let
me know if I am off base.

I would never ask someone "what they can afford", some people will be insulted even if they are broke, that you would dare ask them that question, as if they are some broke loser...

I would try a trial close, like....35 is 5k , 25 is 3k benefit which do you prefer/want?

 

[jdeasy]

I have never sold FE insurance, but here are my thoughts, let
me know if I am off base.

I would never ask someone "what they can afford", some people will be insulted even if they are broke, that you would dare ask them that question, as if they are some broke loser...

I would try a trial close, like....35 is 5k , 25 is 3k benefit which do you prefer/want?

I agree. I would never ask that directly. I use the "four questions" type presentation and the first question is "how much?". On that question I tell people it's an amount they can easily afford and they not take a policy with anyone that busts their budget, and that includes from me. As I go thru my whole presentation, it is usually pretty clear what they can do and what they can't. When I give pricing at the end, I give 3 amounts usually and then I ask them, "does any of this fit your budget?" I never ask, "how does this sound?". It all sounds great. They will always let me know if it fits

The FE market is different thatn other insurance market. These folks didn't get to be 65-75 years old and not have their funerals taken care of because they have been good planners.

As to the original question, there is no reason for an agent to not have a 13 month persistancy of over 80% on their primary company or companies.

 

[usakr]

Hey Jd out of 15 leads how many appts do you generally set,and how many apps do you write? Thanks.

 

[WinoBlues]

Hey Jd out of 15 leads how many appts do you generally set,and how many apps do you write? Thanks.

All of them.

 

[jdeasy]

Hey Jd out of 15 leads how many appts do you generally set,and how many apps do you write? Thanks.

I don't track it that way. I get 15 leads per week. I run 10 to 12 appointments every week. That includes referrals. Of course, most of my referrals come from people I met from a lead. I have averaged 6.5 apps per week this year.