Is FE worth it?

[XYZ99qq]

Is FE worth it to sell?

High Premium - The premium is quite high relative to the death benefit compared to other forms of life insurance. I understand the reason for that is that FE is not fully underwritten.

Retention Issues - Many agents comment that retention is around 80% for the first year.

What percentage of policies stay on the books after the first year? I know it doesn't affect the agents commission, but it may affect the contract with the carrier.

Poor Client - The client is usually poor and on fixed income. Do they really need life insurance? Could they better spend the $40 - $60/month of premium on other things?​

Anyway, just reading what agents say about FE and while some agents do well, I keep seeing agents having problems.

Maybe it just depends on the agent.

 

[rousemark]

Is FE worth it to sell?

High Premium - The premium is quite high relative to the death benefit compared to other forms of life insurance. I understand the reason for that is that FE is not fully underwritten.

Retention Issues - Many agents comment that retention is around 80% for the first year.

What percentage of policies stay on the books after the first year? I know it doesn't affect the agents commission, but it may affect the contract with the carrier.

Poor Client - The client is usually poor and on fixed income. Do they really need life insurance? Could they better spend the $40 - $60/month of premium on other things?​

Anyway, just reading what agents say about FE and while some agents do well, I keep seeing agents having problems.

Maybe it just depends on the agent.

High Premium: Fe is is issued standard to table 4 in most cases so the premium is certainly going to be higher than fully underwritten plans,

Retention Issues: 80% first year retention should be your minimum goal. Most agents have better than that. After the first year the retention gets much better. And, it doe affect the agents commission.. If business drops of the books you no longer receive renewals on it. Plus, some companies tract second year retention and base bonuses and perks on it not being below a certain level.

Poor Client If the client is poor then they most likely do not have any savings. Who do you suggest paying for the final expenses? Pu them all in a pauper's grave? .. Most of their families are not well off either but they want their folks to have a decent burial or cremation service and to provide that they either have to beg for money or go into debt.

Is it worth it? It can pay a much better than average income to the agent who works at it, but that is up to you to decide.

 

[titeye]

Is it worth it? That is a relative question. With that said, I would say you are the only one who can determine whether or not it is worth it.
If your priority is enjoyment from working with the impoverished senior population, then income may be secondary; and therefore, not as important. If income is the priority, then your net profit margin may be the determination as to whether or not it is worth it.
Hope this helps!

 

[LostDollar]

Anyway, just reading what agents say about FE and while some agents do well, I keep seeing agents having problems.

Caveat, not an agent.

Just a comment. If I cared to take the time to read across a lot of sub forums, in 3 months give or take, I can read about:

AGENTS HAVING PROBLEMS SELLING:

Final Expense
Life Insurance
Disability Insurance
Long Term Care Insurance
Medical Insurance
Medicare Supplement Insurance
MAPD and MA Plans
Prescription Drug Plans
House Insurance
Trucking Insurance
Car Insurance
Vision Insurance

And an agent in CA is picking up cans on the side of the road because he can't make any money selling Dental Insurance

I think the really big money now may be in selling Prescription Discount Cards and Dental Discount Plans.

Insurance Agents are an endangered species. I expect in another 10 years our children will be able to see displays at the zoo or the museum, not sure which, labelled "Insurance Agent of the early 21st Century".

 

[rousemark]

Caveat, not an agent.

Just a comment. If I cared to take the time to read across a lot of sub forums, in 3 months give or take, I can read about:

AGENTS HAVING PROBLEMS SELLING:

Final Expense
Life Insurance
Disability Insurance
Long Term Care Insurance
Medical Insurance
Medicare Supplement Insurance
MAPD and MA Plans
Prescription Drug Plans
House Insurance
Trucking Insurance
Car Insurance
Vision Insurance

And an agent in CA is picking up cans on the side of the road because he can't make any money selling Dental Insurance

I think the really big money now may be in selling Prescription Discount Cards and Dental Discount Plans.

Insurance Agents are an endangered species. I expect in another 10 years our children will be able to see displays at the zoo or the museum, not sure which, labelled "Insurance Agent of the early 21st Century".

No, the agent is not going to go away.. There will always be a need for an agent to approach those people who will not take the initiative to buy it own their own.

 

[Life Hawk]

Caveat, not an agent.

Just a comment. If I cared to take the time to read across a lot of sub forums, in 3 months give or take, I can read about:

AGENTS HAVING PROBLEMS SELLING:

Final Expense
Life Insurance
Disability Insurance
Long Term Care Insurance
Medical Insurance
Medicare Supplement Insurance
MAPD and MA Plans
Prescription Drug Plans
House Insurance
Trucking Insurance
Car Insurance
Vision Insurance

And an agent in CA is picking up cans on the side of the road because he can't make any money selling Dental Insurance

I think the really big money now may be in selling Prescription Discount Cards and Dental Discount Plans.

Insurance Agents are an endangered species. I expect in another 10 years our children will be able to see displays at the zoo or the museum, not sure which, labelled "Insurance Agent of the early 21st Century".

I believe of what you speak is referred to as "natural selection"... eat or be eaten.

 

[DHK]

If he can do it... well, it shows that he can do it.

 

[theinsuranceman]

Is FE worth it to sell?

High Premium - The premium is quite high relative to the death benefit compared to other forms of life insurance. I understand the reason for that is that FE is not fully underwritten.

Retention Issues - Many agents comment that retention is around 80% for the first year.

What percentage of policies stay on the books after the first year? I know it doesn't affect the agents commission, but it may affect the contract with the carrier.

Poor Client - The client is usually poor and on fixed income. Do they really need life insurance? Could they better spend the $40 - $60/month of premium on other things?​

Anyway, just reading what agents say about FE and while some agents do well, I keep seeing agents having problems.

Maybe it just depends on the agent.

If you work FE 40+ hours per week working 20+ leads it is definitely worth it.
If you do otherwise it's not worth it.

 

[Duane Freeman]

I wrote about $418k in the FEX Market last year with one carrier doing telesales. I never look at it as selling policies, but more on the side of helping each client. It felt worth it to me, and not because of the money. It's bitter sweet when I receive I death notification. I'm sad at the lost of life, but happy that I know I helped take the burden off some loved one. My 9 years as a state trooper and 4 years as a detective I believe has helped me dig and investigate into people problems and showing value. Makes a HUGE difference.

 

[rousemark]

I wrote about $418k in the FEX Market last year with one carrier doing telesales. I never look at it as selling policies, but more on the side of helping each client. It felt worth it to me, and not because of the money. It's bitter sweet when I receive I death notification. I'm sad at the lost of life, but happy that I know I helped take the burden off some loved one. My 9 years as a state trooper and 4 years as a detective I believe has helped me dig and investigate into people problems and showing value. Makes a HUGE difference.

Mind sharing the carrier name?