Final Expense

[MichaelChiango]

I am considering pursuing final expense via telesales as part of my practice. Does anyone know if it is more efficient to sell face to face or via the telephone?

Thanks, Mike

 

[Frank Stastny]

I am considering pursuing final expense via telesales as part of my practice. Does anyone know if it is more efficient to sell face to face or via the telephone?
Thanks, Mike

You will get a lot of different views and opinions on this. This one is mine. I take a different approach than most.

I have sold a substantial amount of final expense and every app I have ever written has been the result of a Med Supp contact/appointment. It is relatively easy. In my opinion it is a whole lot easier to cross sell to a Med Supp client than to cold call and prospect just for FE.

The reason is that when I sell a FE plan I am not using any "new" money. I'm using the money I have saved them on their Med Supp. Money they already have budgeted and are spending.

Med Supps are, in my opinion, the easiest kind of insurance to prospect for and the easiest kind to sell. And yes, for the last three to four years I have seen Med Supps getting easier and easier to sell over the phone.

 

[alphawave2k]

The reason is that when I sell a FE plan I am not using any "new" money. I'm using the money I have saved them on their Med Supp. Money they already have budgeted and are spending.

Frank, I've been reading your posts as an avid fan based on a couple of conversations with you and the general feedback you get on the forum. I have seen you post the above selected quote, and I'm very curious if you could be so kind as to flesh out some numbers on the above.
From what I can see on Med Supps the savings are not that large, typically. What is the largest differential that you have seen when switching someone to a different carrier on a Med Supp, and what is the typical range for someone to buy a $10-$15K DB, FE policy?
I realize there are a lot of variables loaded here, but for fun and giggles, it would be interesting to hear your take.
I have had some people decide not to switch their Med Supp policy even when I have been able to save them $50/mos.

 

[theinsuranceman]

I am considering pursuing final expense via telesales as part of my practice. Does anyone know if it is more efficient to sell face to face or via the telephone?

Thanks, Mike

Yes...there are differing opinions about this. I sold FE face to face for 7 yrs., and the last 3 3/4 yrs. over the phone with no seeing the prospect and no wet signature needed, don't even crank the car up. Worked 20-30 leads per week with both methods.

Face 2 face yields slightly higher closing % than over the phone. Selling over the phone eliminates wasted time....no shows, one leggers, not answering the door, etc.

The IMPROVED EFFICIENCY selling over the phone more than compensates for slightly lower closing %. If you have non-resident licenses in other states your market to sell to expands dramatically.

Of course for either method to work you need at least 20 fresh, exclusive leads per week. Some agents flourish with both methods and some agents fail at both methods.

It's not the method that makes you successful, it's YOU that makes you successful. With either method of selling....some days you can't give it away and some days everyone is trying to take it from you.

You also have to know how to talk to the people with a good presentation, sounding honest and sincere, be a great listener, able to think on your feet, know the most common objections, etc.

 

[Frank Stastny]

From what I can see on Med Supps the savings are not that large, typically. What is the largest differential that you have seen when switching someone to a different carrier on a Med Supp...

I have saved a pretty good number of seniors as high as $60+ dollars a month. Occasionally I have saved a senior over $100 per month. I would say the average savings, although that isn't something I track, would be $30 to $50 per month range. Although, I have had them change for as little as $12 to $15 per month.

..., and what is the typical range for someone to buy a $10-$15K DB, FE policy?

I have sold very few FE plans that are over $10,000. Remember, I do not prospect for FE. I only cross sell FE to new Med Supp clients. I would say the majority of FE plans I have sold are in the $5,000 to $9,000 range. I have also sold a lot that are under $5,000 also.

I sell FE totally differently than most agents do. I'm not going after a lot of commission on FE nor am I trying to get them to invest the total amount of savings on their Med Supp in a FE plan.

If I save someone $40 per month on their Med Supp I might suggest that they consider reinvesting only a portion of that. I can then tell them that now they have a Med Supp and a FE plan for less than they were paying for their Med Supp and they still get to put extra money in their pocket each month.

Several companies are now adding a section on the Med Supp app for FE insurance. The first several years I was with Cont Life I added a small FE policy to around 75% of every Med Supp app I wrote. It is a pretty sweet way of collecting a small amount of additional commission. I would simply make the suggestion to my new Med Supp client and most liked the idea of having a little extra life insurance. It doesn't lapse either.

I have had some people decide not to switch their Med Supp policy even when I have been able to save them $50/mos.

Sounds like "operator error" to me. Just kidding.

If I find out during the initial phone call that I can save them money, it is usually a sale. Obviously I don't sell everyone I save money for but it is very rare that I don't sell a prospect especially when the savings is that much.

It is usually a matter of using factual information presented logically so they understand it. When I finish my "dog and pony show" it leads them to only one conclusion, having a policy with me is the wisest investment of their premium dollar.

The people I sell FE to all have checking accounts, they all make the decision to take some extra life insurance and I always ask them what premium amount are they comfortable with. When they pick a premium amount then we look at the benefit amount. Many times, when the see the extra benefit amount they can get for an additional $5 or $10 per month they will want to increase the premium a little.

It's like having a license to steal when you are not using "new" money.
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It's not the method that makes you successful, it's YOU that makes you successful. With either method of selling....some days you can't give it away and some days everyone is trying to take it from you.

You also have to know how to talk to the people with a good presentation, sounding honest and sincere, be a great listener, able to think on your feet, know the most common objections, etc.

Well said. I have no doubt that you are extremely successful at what you do. You "get it".

I'm sure the years you spent sitting at the "kitchen table" helped you greatly in being able to transition from F to F to smoothly and effectively sell over the phone.

I know that it was a great help to me in me being to sell Med Supps over the phone.

 

[alphawave2k]

I have saved a pretty good number of seniors as high as $60+ dollars a month. Occasionally I have saved a senior over $100 per month. I would say the average savings....would be $30 to $50 per month range. Although, I have had them change for as little as $12 to $15 per month.

That sounds reasonable, and depending on the person/prospect they might just switch 'cause they like you, and either they didn't have anybody help them choose their current policy, or the person that sold it to them hasn't been in contact since they sold it. to them

I have sold very few FE plans that are over $10,000.... I would say the majority of FE plans I have sold are in the $5,000 to $9,000 range. I have also sold a lot that are under $5,000 also.

Wow, doing the FE limbo rock on that last one....How low can you go?

I sell FE totally differently than most agents do. I'm not going after a lot of commission on FE nor am I trying to get them to invest the total amount of savings on their Med Supp in a FE plan.

Very sensible Frank....a nibble here, a nibble there and pretty soon you got yourself a full meal
alphawave2k I have had some people decide not to switch their Med Supp policy even when I have been able to save them $50/mos.

Sounds like "operator error" to me. Just kidding.

It's true though not the rule thankfully, but it is an occasional occurrence. I do know better than to say "you smell and you're ugly to boot". after losing the sale the one time I said it..

It's like having a license to steal when you are not using "new" money.

How much does this license cost? I would be very interested in getting it.

 

[Frank Stastny]

It's true though not the rule thankfully, but it is an occasional occurrence. I do know better than to say "you smell and you're ugly to boot". after losing the sale the one time I said it.

Yea, I learned that lesson also, the hard way. However, sometimes I just "can't hold back". I have stories about that.

How much does this license cost? I would be very interested in getting it.

I have a standing offer to train agents for free who are using YIO. It isn't a ploy to sell YIO. It is an integral part of what I do and how I sell insurance. I spend an average of 4 to 6 hours on the phone with an agent. Many of them a whole lot more.

 

[cgrish]

There are LOTS of them. Depends on what your definition of best is.

Best for uninsurable people...Presidential Life is guaranteed issue

Best for ease of selling...Americo has Palm and Windows Mobile quote software and easy issue with no phone call needed

Best commissions and renewals...I like Shenandoah and Americo but there are lots of others.

Best for overweight...Motorists and Monumental do not ask height and weight

Best for Smokers...Citizens Security doesn't ask about smoking

Best for Funeral Expense...Forethought pays the funeral home within 48-hours of death (no death certificate needed)

Best for lowest premium for healthy people...Oxford Life, LaFayette Life

Best for the MOST confusing product lineup...Continental Life of Brentwood, TN (what the hell are they thinking with that mess?!!!)

Lots of other good ones out there too.

What good companies will give u a contract if u are in chap. 13 bankruptcy?
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I have sold 5K-15K final expense plans to young Moms before, especially if they had child term riders available at the company I worked for. That was when I was mainly a debit agent, though.

Are u with a home service ins. company?

 

[FinalExpenseGir]

I'm Cold Calling to gain from FE appointments. Any suggestions on a Script???

 

[theinsuranceman]

Not to sure about that! I sell in field but tried Baltimore over the phone and had about the same success. Overall close and persistence were about the same. Just got involved with a terrible up line and terminated my contract. B** and Sher** Scott out of TN( I think)..............
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Yes, I terminated the contract. They promised a lead program and never delivered.

If you want to get with my group and sell FE over the phone with 25-40 FRESH EXCLUSIVE leads per week PM me. Training and mentoring included.