Final Expense Direct Mail Leads

[theinsuranceman]

Typically the response rates for FE direct mail leads hover between 0.75%-2% response rate for mailings to people 55-80, household income 0-40K. Does anyone know ave. response rates for 0-10K, 10K-20K, 20K-30K, 30K-40K income bands? How about for age bands of 55-60, 61-65, 66 -70,71-75, 75-80? Opinions are welcome and hard facts are preferred. Thanks in advance.

 

[Rick K]

I am looking into Final Expense Insurance. Any words of advice regarding companies. Who to look at, who to stay away from?
Thanks,
Rick K

 

[theinsuranceman]

Call Greg 252-292-3350.

 

[jjjtrio]

A good percentage of agents using our service choose 55-80 with income of 15k-40k or 50k. Some still like to include the 0-15k band and about half use the female priority feature.

You will definitely get responses out of the 0-15k band. The biggest thing about this income band is obviously the majority can't afford much of anything.

 

[atlantainsguy]

All compiler databases are estimated household income "banded" -- $0-$15K; $15-$20K; $20-$30K; $30-$40K; and $40-$50K.

There doesn't seem to be a lot of difference except for the $0-$15K band -- response rates average 25-50% higher if the geo is selected properly. There's a school of thought that says $0-$15K are on Medicaid, and therefore have their health care costs for free, which means more disposable income for FE. Not sure I agree, but you will get good response rates at the low income band nonetheless. Many won't have checking or savings accounts, however.

Go above $50K, and your rates drop dramatically.

Ages 48-60 pull about 50% better than the "normal" 60-80. 80-85 will pull about twice as well as 60-80, but now you have many more serious health issues, and astronomical premiums.

Do you include PO Boxes, theinsuranceman?

atlantainsguy

 

[Frank Stastny]

Market Med Supps and cross sell FE. Much easier that way.

 

[theinsuranceman]

All compiler databases are estimated household income "banded" -- $0-$15K; $15-$20K; $20-$30K; $30-$40K; and $40-$50K.

There doesn't seem to be a lot of difference except for the $0-$15K band -- response rates average 25-50% higher if the geo is selected properly. There's a school of thought that says $0-$15K are on Medicaid, and therefore have their health care costs for free, which means more disposable income for FE. Not sure I agree, but you will get good response rates at the low income band nonetheless. Many won't have checking or savings accounts, however.

Go above $50K, and your rates drop dramatically.

Ages 48-60 pull about 50% better than the "normal" 60-80. 80-85 will pull about twice as well as 60-80, but now you have many more serious health issues, and astronomical premiums.

Do you include PO Boxes, theinsuranceman?

atlantainsguy

I try to avoid PO Boxes..too hard to find a street address if they do not leave a phone # or are not listed in phone book or whitepages.com. 48-60 pulls about 50% better than 60-80 for FE? Are you pretty sure this is correct with data/experience or just your opinion?
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Market Med Supps and cross sell FE. Much easier that way.

The only problem is a good % of my time will be prospecting on the phone. I'd rather my time be spent closing and writing, that's why I pay good $$ to work leads. I could get free leads by cold calling seniors, or dialing number after number from an inexpensive list, but I'll make more profit per unit of time working FE leads. May not be true for everyone.

 

[magagent]

Exactly spending time cold calling may work for one agent, but paying for leads works best for another agent.

 

[theinsuranceman]

Exactly spending time cold calling may work for one agent, but paying for leads works best for another agent.

That's true when an agent is not trained on working leads. If an agent is trained by someone who has 10 years experience working leads, then buying leads wins out everytime. Doesn't matter if you go door knock the leads, use the phone to set appointments, or sell over the pnone with a digital recorder.

 

[Frank Stastny]

The only problem is a good % of my time will be prospecting on the phone. I'd rather my time be spent closing and writing, that's why I pay good $$ to work leads. I could get free leads by cold calling seniors, or dialing number after number from an inexpensive list, but I'll make more profit per unit of time working FE leads. May not be true for everyone.

You may very well be right. Sounds like you already have it figured out.