How Social Security Billing Helped Me

[TripleH]

My go to carrier used to be TransAmerica and unfortunately, no longer is. Adapt or die in business. For me personally, I now lead with Prosperity and it is amazing the difference in my persistency increase since they rolled out their true Social Security Billing.

Some times agents get this confused with the Direct Express card. Social Security Billing has nothing to do with this green card. What it does, is it effectively makes sure that money is out of your clients out account as soon as the money hits the bank. November 2019 is a good example, the 3rd (which is about 90% of my clients) fell on a Sunday, so when do our clients get paid? They get paid on the 1st or the Friday before.

So how does this help you? With our clients, when the money hits their account, they think the insurance company should get it and they are RIGHT. Prosperity, Royal Neighbors of America and American Amicable will be drafting the funds out of their account on the Friday before in accordance with Social Security Billing whereas other Carriers will not get the funds till Monday, Tuesday or Wednesday or the following week (4th, 5th or 6th), meaning our clients have had their funds for 3-5 days before the insurance company even attempts to get their premium. They also allow you to choose one of the weird Wednesday's as a draft day instead of having to choose the 15th or 28th of each month. Just select the third Wednesday and they draft it EVERY third Wednesday!

How did this help me?
I personally wrote over $252,000 last year on my own pen and my persistency went up 13% with my go-to carrier. 13% is $32,760 more money staying in my pockets!

 

[Baseball7]

Fair to say carriers that don’t do this are behind the times. To think there are some that still can't draft on wednesday’s is even worse.

 

[TripleH]

Fair to say carriers that don’t do this are behind the times. To think there are some that still can't draft on Wednesday’s is even worse.

So true - since you changed your profile picture on here, I was confused at who was posting. Weird Wednesdays are a must

 

[Newby]

Social Security draft dates are definitely nice. And on debt express card business it’s a requirement for sure. On most FE business I’m not as certain that it’s as important as other factors. Such as competitive rate.

Our agency places several million in premium each year with KSKJ. They do not offer Social Security draft dates. But it has not been an issue since they also don’t accept debit express card payers. Our agency 13th month persistency has remained at 91% on all of that business and many of the top producers are over that with 94 and 95%. I don’t know how much better that would get if they start doing Social Security draft dates? Which they will someday, I’m sure. But beyond maybe 1% or so, I don’t think FE persistency can get much higher.

Another carrier we do a lot of volume with is a Trinity/Family Benefit. They DO have social security draft dates but our persistency is actually a couple points lower than with KSKJ. But I think it taints the results slightly because Trinity does take debit express business which we all know is the most financially dysfunctional group of people that you will find.

So my findings is yes Social Security draft dates are a good thing. Every company needs to offer them. But they are only real important on the debit express payers and others who are completely dysfunctional.

 

[Baseball7]

There is no reason a carrier shouldn’t do it. Outside of not wanting to spend the money to update there systems.

 

[Newby]

There is no reason a carrier shouldn’t do it. Outside of not wanting to spend the money to update there systems.

I can agree with that. No reason NOT to offer it.

 

[BarryNY]

the 3rd (which is about 90% of my clients)

Hi. Wow do I have this correct - you've got some real old new clients and/or poor on SSI too? Anyone drafting on the 3rd fits the below:

Social Security benefits prior to May 1997; or if receiving both Social Security and SSI, Social Security is paid on the third

Prior to 1997 means they were the youngest 62 in 1997 which makes them 84 today...

 

[HoosierLife]

Hi. Wow do I have this correct - you've got some real old new clients and/or poor on SSI too? Anyone drafting on the 3rd fits the below:

Social Security benefits prior to May 1997; or if receiving both Social Security and SSI, Social Security is paid on the third

Prior to 1997 means they were the youngest 62 in 1997 which makes them 84 today...

I think most of our clients must also be receiving SSI.

 

[TripleH]

Hi. Wow do I have this correct - you've got some real old new clients and/or poor on SSI too? Anyone drafting on the 3rd fits the below:

Social Security benefits prior to May 1997; or if receiving both Social Security and SSI, Social Security is paid on the third

Prior to 1997 means they were the youngest 62 in 1997 which makes them 84 today...

Second half is correct. I don’t write many 84 year olds. What days do your FE clients primarily draft?

 

[TripleH]

Social Security draft dates are definitely nice. And on debt express card business it’s a requirement for sure. On most FE business I’m not as certain that it’s as important as other factors. Such as competitive rate.

Our agency places several million in premium each year with KSKJ. They do not offer Social Security draft dates. But it has not been an issue since they also don’t accept debit express card payers. Our agency 13th month persistency has remained at 91% on all of that business and many of the top producers are over that with 94 and 95%. I don’t know how much better that would get if they start doing Social Security draft dates? Which they will someday, I’m sure. But beyond maybe 1% or so, I don’t think FE persistency can get much higher.

Another carrier we do a lot of volume with is a Trinity/Family Benefit. They DO have social security draft dates but our persistency is actually a couple points lower than with KSKJ. But I think it taints the results slightly because Trinity does take debit express business which we all know is the most financially dysfunctional group of people that you will find.

So my findings is yes Social Security draft dates are a good thing. Every company needs to offer them. But they are only real important on the debit express payers and others who are completely dysfunctional.

A pretty large amount of FE clients seems to be dysfunctional