Final Expense Chargebacks

[usakr]

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.

That brings up another good topic. So you get referrals for final expense? I would have thought referrals would be non-existant in that market.

 

[jdeasy]

That brings up another good topic. So you get referrals for final expense? I would have thought referrals would be non-existant in that market.

Not for me. I get quite a few referrals. I've had 3 appointments this week from referrals and got a call this evening from another.

 

[Frank Stastny]

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.

I generally start with a low premium that I think they will agree to. Since I only attempt to sell FE to new Med Supp clients. I already know how much money I just saved them and have a good feel for the amount I can suggest that they use to reinvest in a FE plan.

If they don't balk at that amount then I show them the next benefit level up from the one I just showed them and ask if they think that an extra $10, or what ever, will fit in their budget. If they say yes then I write the app.

If they say no then I will suggest we write the app for the original amount I showed them. It usually works pretty smooth that way.

The key is that I'm not using any new money. I'm using money they already have budgeted and were already spending on their old Med Supp.

I always want to leave them with additional money in their pocket. This way I can tell them that now they have both a Med Supp and a FE plan for less money than they were paying just for their Med Supp and you still have extra money to get your hair done.

When sold that way charge backs are virtually non existent.

Where agents make a huge mistake is that they get greedy. They want to use all of the money they saved them and put it in a FE plan. Shame on greedy agents.

 

[jdeasy]

I agree with that, Frank. When I speak of the FE market on here, I'm talking about the people that send in the FE mailers, {leads}.

Those people do not have an agent. They do not have a finanacial planner. Many are just getting by. As I said before, they did not get to be that age and not have their funerals taken care of because they have been good with their money.

The way you sell FE would be much more enjoyable. And, it is your secondary market. It is my primary market. Med sups are my secondary. I only sell med sups to my FE clients and to referrals. More to referrals than from FE clients garnered from the leads for the reasons already stated.

 

[TheInsuranceChic]

If ya never stood in someones trailer/home-sweet-home to them and looked at their big picture of which all their worldly possessions & home combined cost considerably less then the car you drove up in... You may think about my approach. Esspecially since I came there after being referred by someone a couple trailers down. These are also the people that think the world of you and before long you have written FE & MA's to half of the trailer park residents. I never wrote an MA until then.
Everyone has their own approach. I do not only write FE but do have this branch of referrals that has grown into a vine from it. You go for the $35 one & next year I'll be there writing the $25 one they keep. So thanks! ; )
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Yes, Frank I totally agree on your way. I am only referring to people that barely get by and would never be able to afford the luxury of a Med Sup. In fact they prob all get food stamps, Heap & LIS. Only this demographic will I ever use that approach.

 

[arkansaslr]

If ya never stood in someones trailer/home-sweet-home to them and looked at their big picture of which all their worldly possessions & home combined cost considerably less then the car you drove up in... You may think about my approach. Esspecially since I came there after being referred by someone a couple trailers down. These are also the people that think the world of you and before long you have written FE & MA's to half of the trailer park residents. I never wrote an MA until then.
Everyone has their own approach. I do not only write FE but do have this branch of referrals that has grown into a vine from it. You go for the $35 one & next year I'll be there writing the $25 one they keep. So thanks! ; )
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Yes, Frank I totally agree on your way. I am only referring to people that barely get by and would never be able to afford the luxury of a Med Sup. In fact they prob all get food stamps, Heap & LIS. Only this demographic will I ever use that approach.

I totally agree that the approach with these types of lower income families have to be treated a little different, I was in the auto finance business selling warranties and yes the 10 year 100k mile warranty looked good but they could only truely afford the 5year 60k mile warranty that they kept and never canceled...... Id rather take all the ones thats affordable and be happy with the referrals that they gladly give than to try to make all the money on one sale. or a "chargeback" waiting to happen....I'm just saying .............

 

[usakr]

There's a guy in equita that averages about 102 a month per app. He's written well over $400,000 in premiums this yr. How does he do it? Do you think he has a high charge back percentage? If he did wouldn't the insurance companies cancel his contract? But they haven't so his business must be good.

 

[jdeasy]

There's a guy in equita that averages about 102 a month per app. He's written well over $400,000 in premiums this yr. How does he do it? Do you think he has a high charge back percentage? If he did wouldn't the insurance companies cancel his contract? But they haven't so his business must be good.

He wrote over $400,000 last year, too. I don't know what his persistancy is, but, I know that mine is 89% with my top company and I've been told that his percentancy is equal to, or higher, than mine.

I know the guy. He is a terrific FE agent. He is alos good at whatever part of the unsurance business he wants to tackle. He has been in the biz for 25 years.

But, he has one secret that doesn't get told. He works his ass off. I will tell you honestly that i do not work like he does and I will not. Most agents won't admit to that, but, I have no desire to work the hours that he works and at the pace that he works. They guy is a machine.. On top of his production he recruits and runs a team of agents. And, if I called him right now with a problem, he would take time to talk to me and help me. I'm not on his team, so, that would be free time for him.

I don't know how he averages over $100/month premium, but, it's not smoke and mirrors, he has been doing it for over two years. The guy has submitted over $2000 ap for 100 weeks in a row. He is not only good, he is consistant.

 

[thall]

If you write a lot, you're going to lose a lot more than the average agent. If you're writing business, that's the cats meow, you're the king.

 

[theinsuranceman]

He wrote over $400,000 last year, too. I don't know what his persistancy is, but, I know that mine is 89% with my top company and I've been told that his percentancy is equal to, or higher, than mine.

I know the guy. He is a terrific FE agent. He is alos good at whatever part of the unsurance business he wants to tackle. He has been in the biz for 25 years.

But, he has one secret that doesn't get told. He works his ass off. I will tell you honestly that i do not work like he does and I will not. Most agents won't admit to that, but, I have no desire to work the hours that he works and at the pace that he works. They guy is a machine.. On top of his production he recruits and runs a team of agents. And, if I called him right now with a problem, he would take time to talk to me and help me. I'm not on his team, so, that would be free time for him.

I don't know how he averages over $100/month premium, but, it's not smoke and mirrors, he has been doing it for over two years. The guy has submitted over $2000 ap for 100 weeks in a row. He is not only good, he is consistant.

Doesn't $2000 ap per week = $100,000 ap per year rather than $400,000 per year? Typo?