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I'm sure there are plenty of life agents putting in 5 apps a week. At $25 per month on 100% commish that's a $1,500 a week or $75,000+ a year.
How does it work....?
- Thread starter TonyC
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- key man life
- 2,152
I would hope your prospects need more then 100 grand death benefit. You have to get beyond the 25 dollar monthly premium, personally I see the average life sale to be around 400-750 grand or let us use 500 grand level term for 20 years on a 40 yr old to be average. That is around 600-800 dollar premium annually, or at least that is what I would call the average sale not counting spouse or children or upgrading a portion of the DB to WL. Sell two a week or 100 a year and you are between 60-80 grand a year doing the "least" amount across the board!
Now count on getting some spouses insured and using WL, let us use WL 20% of the time or 20% portion of the DB and you are in 6 figures. Increase the 100 to 150 or 2.5 sales per week and you are well into the six figure income.
PS of course you can use a combination of products, the use of UL or WL whichever you prefer. Adding in DI when possible is great.
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An apple a day keeps the doctor away.
An app a day keeps the bill collectors away.
- 2,090
I have known plenty of life agents making 100k per year, but that was back when everyone was selling UL and these guys were getting people to dump one hundred grand premium on a million dollar policy - for estate planning.
In TonyC's example, sell 10 a week and make 3 grand a week. Where's the money in selling life? Lots of folks do it, they just sell a lot of volume.
In TonyC's example, sell 10 a week and make 3 grand a week. Where's the money in selling life? Lots of folks do it, they just sell a lot of volume.
- 7,790
I believe that volume works when you are not selling big ticket items. To make an analogy, take candy bars by Mars or Hershey. Very inexpensive (at least in the past), but with the total volume of sales the family that owns Mars are billionaires and on the Forbes list. Of course, hershey is owned by a trust. Although candy bars are consumable items, I think the idea of volume is valid for any low ticket item.
The answer is, do a needs analysis. You will find out that most people need more than $100,000 of coverage. A lot of people will also need a combination of term and permanent insurance which will result in a higher premium. I sell a lot of 1 million dollar policies to people in their 40's and 50's. My average commission is way over a thousand dollars for each sale.
I
Imladris
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Could you give an example needs analysis?
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A need-based analysis is pretty straight-forward. Here's one I just did yesterday.
Married couple, He's an attorney pulling $105,000/year and she stays at home with the two babies (twins, age 4). Current net worth is $2.1MM.
Income Replacement for 14 years: $1,470,000
Kid #1 College for 5 years @ $40,000: $200,000
Kid #2 College for 5 years @ $40,000: $200,000
Kid #1 Trust Fund: $200,000
Kid #2 Trust Fund: $200,000
Wife's retirement needs: $1,500,000
Final Expenses, misc: $50,000
Total Need: $3,820,000
__________________________________________
Total Need: $3,820,000
Less Current Net Worth: $2,100,000
Total Life Coverage Needed: $1,720,000
Married couple, He's an attorney pulling $105,000/year and she stays at home with the two babies (twins, age 4). Current net worth is $2.1MM.
Income Replacement for 14 years: $1,470,000
Kid #1 College for 5 years @ $40,000: $200,000
Kid #2 College for 5 years @ $40,000: $200,000
Kid #1 Trust Fund: $200,000
Kid #2 Trust Fund: $200,000
Wife's retirement needs: $1,500,000
Final Expenses, misc: $50,000
Total Need: $3,820,000
__________________________________________
Total Need: $3,820,000
Less Current Net Worth: $2,100,000
Total Life Coverage Needed: $1,720,000
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This is all very technically correct - but very clinical.
NEED is not nearly the strong buying motivator that WANT is.
If you stress the tax advantages of permanent insurance, along with the fact the cash values are "creditor-proof" (if applicable in your state), in my opinion, you'll have more success with prospects like attorneys and physicians.
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Absolutely! I love when a client gets generous in death.
If I say, "OK, we can do the $1.7MM policy for XXXX a year".
They come back with, "Hmmm... how much for a cool $2 mil? I want my little girl to be REALLY set".
The best clients are the ones that upsell themselves!
