Life Insurance Renewal Income

imperatorrex

New Member
13
Hi Everyone

I have a question regarding renewals for life insurance policies. I heard that for most companies if you sell a term life insurance product such as mortgage protection. When the policy renews the insurance company usually does not provide you any renewal income or maybe very little renewal like 1%. Is that true?

Thank you very much
 
Hi Everyone

I have a question regarding renewals for life insurance policies. I heard that for most companies if you sell a term life insurance product such as mortgage protection. When the policy renews the insurance company usually does not provide you any renewal income or maybe very little renewal like 1%. Is that true?

Thank you very much

Generally speaking, yes. Most term policies do not pay renewals, or they pay very low renewals. But a 20 year term policy averages 90%-100% on first year commission.

Whole Life and UL pay renewals. Usually in the 3%-8% range depending on the product.
 
Hi Everyone

I have a question regarding renewals for life insurance policies. I heard that for most companies if you sell a term life insurance product such as mortgage protection. When the policy renews the insurance company usually does not provide you any renewal income or maybe very little renewal like 1%. Is that true?

Thank you very much

I get 1 and 2% renewals on the old mp policies I sold with Shenandoah and F&G. I get 4% on RNA term.

Some of the others I get zero.

Just depends on your contract.

On most of my whole life I get 7 to 9%.
 
How is their Term product? Would you mind sharing some details or send me a PM with them? Is it FU or SI? Are rates competitive?

It's kinda OK. It's FU and SI depending on age and face. Under age 60 it's non med to $250K.

It's completely an eApp or iPad app. No paper app available even if you want to do paper.

Instant decision on non med. No table ratings on the SI. Accept/reject. They draft the initial payment upon approval. You can't chose a future draft on the initial premium.

They say they are changing that but it hasn't been changed yet.

It's priced decent for non med.

The application process is long and tedious. The last one I did took almost an hour. It seemed we had a slow connection but the one I did before that was slow like that too.
 
Term insurance can also pay renewals in other ways. Average family moves about every 8 years, mostly into a higher priced home. Re-write the mortgage protection.
You can also sell term insurance and convert some of them(WL or UL) or cross sell other insurance products at a much higher closing rate.
I get more referals from term only clients at year 5 then at the initial sale. Some of it skills, most of it because they dont see you as a salesman anymore and they drop their guards down.
So don't get stuck on the 1% you make on year 6.
 
Hi Everyone

I have a question regarding renewals for life insurance policies. I heard that for most companies if you sell a term life insurance product such as mortgage protection. When the policy renews the insurance company usually does not provide you any renewal income or maybe very little renewal like 1%. Is that true?

Thank you very much

Several companies pay a renewal on term. I think it mine are in the 2-5% area. Assurity may be higher.

The real renewal$ are in conversions and rewrites.

I got a call from a client's wife last night. They just got the term renewal letter from the company. States that their current $157 premium is guaranteed till X, then their monthly premium will be $3,100.00 or higher. They have options. However, the conversion option expires in a couple years. He is in his early 70s.

We will do some business now or later. She is highly motivated.

He was originally a MP orphan policy owner.
 
It's kinda OK. It's FU and SI depending on age and face. Under age 60 it's non med to $250K.

It's completely an eApp or iPad app. No paper app available even if you want to do paper.

Instant decision on non med. No table ratings on the SI. Accept/reject. They draft the initial payment upon approval. You can't chose a future draft on the initial premium.

They say they are changing that but it hasn't been changed yet.

It's priced decent for non med.

The application process is long and tedious. The last one I did took almost an hour. It seemed we had a slow connection but the one I did before that was slow like that too.

Thanks. I might have to take a look at it. Trying to learn more about the SI market.
 
It's kinda OK. It's FU and SI depending on age and face. Under age 60 it's non med to $250K.

It's completely an eApp or iPad app. No paper app available even if you want to do paper.

Instant decision on non med. No table ratings on the SI. Accept/reject. They draft the initial payment upon approval. You can't chose a future draft on the initial premium.

They say they are changing that but it hasn't been changed yet.

It's priced decent for non med.

The application process is long and tedious. The last one I did took almost an hour. It seemed we had a slow connection but the one I did before that was slow like that too.

By long and tedious do you mean filling out the eapp or is there a POS involved? If the eapp I find having a touch screen and stylus helps a lot.

How long, on average, to get an approval? Does it go to an underwriter or is it similar to Sagicor's Accelerwriting process?

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Term insurance can also pay renewals in other ways. Average family moves about every 8 years, mostly into a higher priced home. Re-write the mortgage protection.
You can also sell term insurance and convert some of them(WL or UL) or cross sell other insurance products at a much higher closing rate.
I get more referals from term only clients at year 5 then at the initial sale. Some of it skills, most of it because they dont see you as a salesman anymore and they drop their guards down.
So don't get stuck on the 1% you make on year 6.

Oops, must have been typing at the same time. What you said.

Many times I take the copy of the renewal/conversion letter they get annually and jot a note on it and snail mail it. That is two touches. I may follow that up with a "here's my contact information again" email or text. I try to create inbound calls.
 
By long and tedious do you mean filling out the eapp or is there a POS involved? If the eapp I find having a touch screen and stylus helps a lot.

How long, on average, to get an approval? Does it go to an underwriter or is it similar to Sagicor's Accelerwriting process?

I mean just filling in the information. There's a terrible lag time between screens. You can't just go to the next page. You have wait until they let you go on.

There is no POS. It's all done on the iPad. Or laptop or PC. All of them I have done have been iPad.

The answer is supposed to be instant. And it has been on all I've done. Even the decline was on the spot.

I've been told that there are occasions where they can't give an answer on the spot and it takes a couple days for the answer.

As for being like Sagicor, I have no idea. Never written them.
 
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