Final Expense Chargebacks

[jdeasy]

I write a lot of large ones and a fair amount of small policies also.
I have only had one large case fall off that I can ever remember. She canceled when she recieved the policy.
Any lapses or cancelations I usually get are the small cases (20 to $50) monthly.
I don't sell premium. I fact find with them to see what they want the insurance for and then quote whatever amount they need to pay per month to get there. I also encourage 10 pay, 20 pay and single pay over lifetime pay unless they are over age 76.
My average AP on FE is $74 for 2010 but there are a lot of $20 and $30s mixed in there too.
I've had several that are over $250 monthly and they are more solid in my experience than most of the $20 are.

That's my experience as well. I can't remember the last time a more than $100/mo. policy lapsed. I just a returned premium report this morning with 3 NSF's on it. One is $20/mo., one is $25/mo. and the other is $35/mo. Some of my most labor intensive clients are the $20.mo. payers.

The guy that writes the average of over $100/mo. says the same thing. He rarely loses the big payers. I'm sure it's got something to do with the level of committment from the beginning, but, that's a different field of expertise.

 

[pfs.bjohnson]

That's my experience as well. I can't remember the last time a more than $100/mo. policy lapsed. I just a returned premium report this morning with 3 NSF's on it. One is $20/mo., one is $25/mo. and the other is $35/mo. Some of my most labor intensive clients are the $20.mo. payers.

The guy that writes the average of over $100/mo. says the same thing. He rarely loses the big payers. I'm sure it's got something to do with the level of committment from the beginning, but, that's a different field of expertise.

JD,
Just curious as to the approach you take when gathering referrals from FE clients. That is all I sell for right now and I really am looking to increase my bottom line. I've never been a big referral guy but it just seems like it would be too easy to pass up on if I would just ask. Thanks!

 

[jdeasy]

JD,
Just curious as to the approach you take when gathering referrals from FE clients. That is all I sell for right now and I really am looking to increase my bottom line. I've never been a big referral guy but it just seems like it would be too easy to pass up on if I would just ask. Thanks!

My approach is to not do anything. I have never once asked any client for a referral.

I get refferal mostly because of my "warm up" that I do before all presentations. Then I give my clients value and I stay in touch. Everyone I meet with gets a card. If they bought, they get a thank you card. If they didn't buy, they get a nice to have met you card.

I answer my phone when I get calls and I return messages when they are left.

I have found that, if you do a good job for people and they trust you, they will tell their friends and family about you when the subject of insurance comes up.

 

[arnguy]

Excellent post and method, jd!

 

[scottishX]

Yeah jd! That sounds about right.

 

[lleaoclark]

My approach is to not do anything. I have never once asked any client for a referral.

I get refferal mostly because of my "warm up" that I do before all presentations. Then I give my clients value and I stay in touch. Everyone I meet with gets a card. If they bought, they get a thank you card. If they didn't buy, they get a nice to have met you card.

I answer my phone when I get calls and I return messages when they are left.

I have found that, if you do a good job for people and they trust you, they will tell their friends and family about you when the subject of insurance comes up.

Great way of doing business, but something I haven't seen talked about a lot here. This might sound stupid, but do you buy these cards in bulk somewhere and hand write them or do you have a company that does this for you?

Do you use any other ways to keep in contact with customers or appointments? (birthday cards, yearly reviews, follow-up calls, etc.)

You sound like a really successful agent. I am thinking it's little methods like this that set you apart from other agents (I'm sure you are great selling too of course)

 

[jdeasy]

Great way of doing business, but something I haven't seen talked about a lot here. This might sound stupid, but do you buy these cards in bulk somewhere and hand write them or do you have a company that does this for you?

Do you use any other ways to keep in contact with customers or appointments? (birthday cards, yearly reviews, follow-up calls, etc.)

You sound like a really successful agent. I am thinking it's little methods like this that set you apart from other agents (I'm sure you are great selling too of course)

I use Send Out Cards. I don't participate in the MLM part of SOC. I just use them to send cards. It cost me $.88 per card including postage. I have several cards that I use as my favorites. It also allows you to set up their birthday, anniversary or any special date you want and automatically send a card at that time.

I like it because it helps me save time and money and always a lets me track what cards I've sent and if it's been delivered or not.

 

[lleaoclark]

I use Send Out Cards. I don't participate in the MLM part of SOC. I just use them to send cards. It cost me $.88 per card including postage. I have several cards that I use as my favorites. It also allows you to set up their birthday, anniversary or any special date you want and automatically send a card at that time.

I like it because it helps me save time and money and always a lets me track what cards I've sent and if it's been delivered or not.

And do you send out the birthday and other cards to them as well or just the thank you that you mentioned? And if so, do you send them every year after the sale or just the first year?

Thanks!

 

[Frank Stastny]

One can never over communicate with a client. I send several snail mail items to each of my clients every year. I don't use e-mail or a card service for things like birthday greetings, thank you's, etc. I prefer a more personal touch.

I send personalized, hand signed birthday letters and thank you letters, anniversary letters, etc instead of cards. They are so much more appreciated.

Like JD I don't ask for referrals. I have never found it necessary to do so. I get referrals based on what I do and who I am to them.

With that said, I only sell Med Supps and cross sell FE. It is probably more important with Med Supps since companies typically pay first year commission for the first six years.

 

[jdeasy]

And do you send out the birthday and other cards to them as well or just the thank you that you mentioned? And if so, do you send them every year after the sale or just the first year?

Thanks!

For my FE clients, which is my primary business, I only send the thank you card or the nice to have met you card.

For my med sup clients, they get put into the automatic file for birthdays or any other significant events that I know about.

I personalize each card and I have the signature font on file with SOC. I have been in homes after they received my card and you cannot tell that I didn't hand write it.

One thing I do to personalize the card is to always mention the pets by name in the card. I was a t a home this week where the lady had a dog named Cooter that she was very fond of. When I sent the card, I wrote "It was nice to meet you, {and Cooter}, and to discuss your life insurance needs...".

Sending the cards has become part of my routine. It goes right along with faxing in the applications and any other paperwork. To me, the file is not complete until it has "card sent" written on it.