Final Expense is the Way to Go

[TPAAgent]

Greetings- you wouldnt happen to be looking to buy any insurance would ya?

More clients to meet during the day, not like the days of Mortgage protection with your 1st appt at 6:30 pm

Great market- Doing better than expected in the Tampa Bay Area.

Only drawback I see is alot of clients are on fixed income and the best time to sell is from the 15th to the 1st if you wanna get paid quickly- Lots of seniors usually want to start when they get their SSI checks and if its past the 10th- they are usually broke until the following month

So far in 6 months averaging a lapse of 2 outta 10

 

[YouGotMyMoney]

So after 12 months do you expect a lapse rate of 40%?

 

[TPAAgent]

So after 12 months do you expect a lapse rate of 40%?

20% in my 1st 6 months- looks to be the number

Spending $100 a week and writing 5-6 apps a week- I kinda went into this thing slowly and spending as little as possible to see where the highest returns will come from before dropping the cash, signed up with 3-4 IMO's that give discounts on mailings using diffent companies. The current $100 is too inconsistant for my liking and some weeks are great and others are bad- still looking to find a consistant flow of 12-15 per week

 

[mpstone20]

Which IMO's are you using that give discounts on mailings?

 

[Josh]

So after 12 months do you expect a lapse rate of 40%?

Something to be said for low expectations.

 

[WinoBlues]

Man, every time I see your avatar I think to myself, "I HAVE made the world a better place!"

Funny, I keep thinking "Man, If she would only dip that shoulder a bit"

 

[Fisher]

So after 12 months do you expect a lapse rate of 40%?

Math is faulty.

 

[TPAAgent]

Which IMO's are you using that give discounts on mailings?

I got 3- one of them I decided to not persue- Equita- spoke to someone there and they said they split the cost on the leads- and their cost is around $65 a piece? blah-- thats an awful return, especially considering they own their own mailing house.. $65 bones?? Man thats less thant a 1% return on a 1000 mailout- I gotta believe they were BS'ng me, splitting that cost of thousand is about the going rate anyways of $325-350 or so per 1000

The other 2 are at about $275 per thousand- you can PM and I'll give you their info- contract still pending so I dont know how their returns are but they say they are aound 1.5 or so-- we'll see

 

[myinsurebiz]

Math is faulty.

I take it he assumes the lapse ratio to double since the number of months did as well.

 

[theinsuranceman]

I take it he assumes the lapse ratio to double since the number of months did as well.

You are correct. He says he's "lapsing 2 outta 10" over a 6 month period....he's lapsing 20%. If after 2 years, instead of 6 months, he's still "lapsing 2 outta 10" then he's still lapsing 20% over a 2 year period just like over a 6 month period.

However the "lapse rate" changes over time. For ex., people on the books for 3 yrs. are less likely to lapse than people on the books 3 weeks. They become "attached" to their policy and are in the habit of paying the premium and have adjusted their budget to accomadate the premium. (Not counting death lapses).