Health/ Life Insurance Agency. Is This Realistic?

[5starfinancialhealth]

From crunching the numbers here is what I have come up with...

HEALTH: 25% contract rate for STM with 6 month advance, so average premium of $300 giving me approx $450 per policy with a 20% drop off rate

Life: 100% contract rate for term with 12 month advance, average premium of say $50 so $600 per policy with 5-10% drop off rate

Dental: 70% contract rate with 6 month advance, so average premium of say $25 so $105 per policy

I also plan to offer Critical illness and Accident medical expense. no idea how the average contract rate/ advance works with the company.

Obviously advances are always dangerous when it comes to charge backs, however I am a very clean agent so I have no plans of having more than a 20% drop off rate.

Lead cost of $400 a day for approx 60 leads a day in hopes of generating an average of 3 deals and 2-6 ancillary add ons daily.

I plan on working 9am - 2pm/ 4pm - 8pm. Figure Might as well work the peak times

Licensed in 10 states, so I can maintain an adequate lead volume/contact ratio and plan on getting 10-20 more states.

My question is this: How far off am I from my numbers? Not sales numbers because I sell 4-5 policies daily CONSISTENTLY from various web leads through a brokerage, I have that figured out already. But as far as my expectations of earnings am I that far off?

 

[somarco]

STM usually doesn't renew, so not sure where you got your drop off rate. Don't know anyone paying 25% or advancing commissions on STM.

What kind of dental plan pays 70% commission and advances?

 

[5starfinancialhealth]

STM usually doesn't renew, so not sure where you got your drop off rate. Don't know anyone paying 25% or advancing commissions on STM.

What kind of dental plan pays 70% commission and advances?

Just what I heard for the STM, im glad you said that though, as far as drop off rate, I meant cancellation rate. technically stm is always a 100% drop off rate eventually haha. Might consider either GR or Cigna

The dental: I also heard rumors that assurant dental did like 70% wasnt exactly sure how realistic that was

any suggestions for carriers with half decent contract rates and good ancillary products to offer?

 

[Enosis]

From crunching the numbers here is what I have come up with...

HEALTH: 25% contract rate for STM with 6 month advance, so average premium of $300 giving me approx $450 per policy with a 20% drop off rate

Life: 100% contract rate for term with 12 month advance, average premium of say $50 so $600 per policy with 5-10% drop off rate

Dental: 70% contract rate with 6 month advance, so average premium of say $25 so $105 per policy

I also plan to offer Critical illness and Accident medical expense. no idea how the average contract rate/ advance works with the company.

Obviously advances are always dangerous when it comes to charge backs, however I am a very clean agent so I have no plans of having more than a 20% drop off rate.

Lead cost of $400 a day for approx 60 leads a day in hopes of generating an average of 3 deals and 2-6 ancillary add ons daily.

I plan on working 9am - 2pm/ 4pm - 8pm. Figure Might as well work the peak times

Licensed in 10 states, so I can maintain an adequate lead volume/contact ratio and plan on getting 10-20 more states.

My question is this: How far off am I from my numbers? Not sales numbers because I sell 4-5 policies daily CONSISTENTLY from various web leads through a brokerage, I have that figured out already. But as far as my expectations of earnings am I that far off?

If you're selling 4 to 5 policies a day now - you're probably being fed live hand-offs (either in-bound or pre-qualified/warm from a dialing operation). I can assure you 60 leads of that quality will cost more than $400 per day.

 

[somarco]

Some STM only run 30 - 90 days. People use them to bridge benefits between jobs. Some carriers will allow you to reapply, others don't. Also consider some carriers are leaving the STM business.

Had no idea Cigna had an STM product. They don't have one in GA.

Don't think I have used Assurant for anything other than STM in years. They may have a 70% dental plan, but I doubt it.

Real dental insurance is usually 10 - 15%. Discount plans can run as high as 50%. Dental insurance is another line that doesn't have a lot of sticking power. Most seem to drop off after a few months . . . usually after they use them the first time.

That being said, Assurant has a nice "complement" of ancillary products, so does Humana. In my opinion the Humana products are superior.

There are also marketers like GAC that have a stable of ancillary plans.

 

[TXINSURANCE]

Advances on STM? No such thing.

 

[5starfinancialhealth]

Some STM only run 30 - 90 days. People use them to bridge benefits between jobs. Some carriers will allow you to reapply, others don't. Also consider some carriers are leaving the STM business.

Had no idea Cigna had an STM product. They don't have one in GA.

Don't think I have used Assurant for anything other than STM in years. They may have a 70% dental plan, but I doubt it.

Real dental insurance is usually 10 - 15%. Discount plans can run as high as 50%. Dental insurance is another line that doesn't have a lot of sticking power. Most seem to drop off after a few months . . . usually after they use them the first time.

That being said, Assurant has a nice "complement" of ancillary products, so does Humana. In my opinion the Humana products are superior.

There are also marketers like GAC that have a stable of ancillary plans.

Very interesting, I will DEF check into humana. As for as Cigna, they dont offer short term from what im aware of, I meant for major medical.

I figure lead cost might be more like 5-600, but always trying to be a wishful thinker LOL
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Advances on STM? No such thing.

Lol now that its bee said, I can understand why there isnt advances(very obvious when the name is ''SHORT TERM''. ahhhhh I learn as I go