Is This A Marketable Product To Final Expense Agents? Would Like Your Feedback

[Baseball7]

I have one or two carriers that only send them to the client which makes the process more complicated.

 

[Agentguy5]

Great thread and topic!

I think with the newer sales, sending a reminder text may remind them that they are paying for something they can barely afford, and more people will likely drop the policy.

With the clients that have been on the books for 9 months, texting seems like a great way to help them stay on the books. They are already vested into their policy and may be more likely to want to keep it.

 

[kuhn123]

I think this would have very little effect on persistency, but would be interested to know the results if someone tries it. The bank draft payment method already has it on auto-pilot, so the payment is made without any effort on their part. For the clients that "beat you to the bank", it's not that they forgot about their payment. That is just their way of cancelling, or not caring if they lose the coverage or not.

I agree that a monthly reminder would just give them an opportunity every month to decide if they would rather have insurance or cable tv. I would rather they not have that internal debate as I know that (cable, casino, smokes) are formidable opponents!

 

[Rearden]

Ironically, I got this idea from a debit dog agent who has had great results doing it chasing down people to pay whom he otherwise could not reach via the phone or in person.

Thanks for the honest opinions. Looks like it's at least 80% against, 20% for.

It's sad when you believe your clients are so irresponsible that payment reminders could possibly encourage second-thoughts. But understand that's not a criticism. It's the reality of the people we deal with. And I tend to bias that way, too.

 

[shonceman]

Ironically, I got this idea from a debit dog agent who has had great results doing it chasing down people to pay whom he otherwise could not reach via the phone or in person. Thanks for the honest opinions. Looks like it's at least 80% against, 20% for. It's sad when you believe your clients are so irresponsible that payment reminders could possibly encourage second-thoughts. But understand that's not a criticism. It's the reality of the people we deal with. And I tend to bias that way, too.

An increasing number of my debit clients, especially if under age 50, seem to prefer communicating by text. I use it mainly to arrange when to collect, but I have a couple that will actually text their card info for me to run their payment. (BTW, I immediately delete their card info!) Also, like your friend, I will use it to reach people who aren't responding to phone calls or door knocks. An automated system might be really helpful for the debit. However, there are some people who I never call or text, because if I just show up on payday they'll usually go ahead & pay me. If I give advance notice they're more likely to put me off in favor of more "pressing" needs. I think a lot of our FE clients operate the same way (especially if on Direct Express card).

 

[bboman23]

Ironically, I got this idea from a debit dog agent who has had great results doing it chasing down people to pay whom he otherwise could not reach via the phone or in person.

Thanks for the honest opinions. Looks like it's at least 80% against, 20% for.

It's sad when you believe your clients are so irresponsible that payment reminders could possibly encourage second-thoughts. But understand that's not a criticism. It's the reality of the people we deal with. And I tend to bias that way, too.

Different for debit dogs since they go pick it up and it's impossible to get to them all on the day they get paid.

 

[Baseball7]

Can't even imagine how debt agents do it. Guess acquring new biz is secondary?

 

[bboman23]

Can't even imagine how debt agents do it. Guess acquring new biz is secondary?

Definitely. Mostly trying to grow your book. Let's say your book is 15,000. By the end of the month you have $200 lapsing or becoming paid up etc.....you need to issue over $200 for the month to have your book on growth.

(Their numbers are all monthly, not AP)

 

[Baseball7]

That's hardly a sustaining week goal on our end.

 

[myinsurebiz]

If you were able to get a signed consent form to be added to that service by the insured for either Text or Automatic Call reminder then it could work.

That would be the only legal way to pull it off.

Not really. When they send a certain KEYWORD to a short code - they basically are opting in. When they double optin - even better. No paper / sig needed to be compliant . . .