Looking at Insurance for New Career! Help!!

[insuranceexec]

I imagine it just all depends on what target market the agent is working.

In my world - if someone comes in and replaces a non-med that I wrote and the client got a better deal - then it was deserved. But - it's also part of the game we play. We know going into the FE world and the Non Med world that up to 25% of our book will chargeback - it's a stat that doesn't feel good - but it happens.

Hopefully - I've developed a decent relationship with the client, to where if someone comes in and tries to sell them insurance - they will contact me to let me know.

I send a welcome card to each new client and include a few magnetic business cards with my ugly old mug on it. I ask them to stick this on their refrigerator and call me if they ever have any questions OR if one of them "insurance agents" call them or stop by and try and sell them something OR start asking a whole bunch of financial information and try to get them to switch their insurance . . .

If someone does - I ask them to call me right away because you just never know who you trust or not!

But - in the end - you win some and you lose some. The key is to win more than you lose . . .

Tom

I personally sell very little FE, so I am in NO way an authority; but know a good many people who sell it as a core product.

Is the 25% loss of the business your average; or industry average?

That just seems extremely high. Also how long does your average FE policy stay on the books? I thank you in advance for answering my remedial questions.

 

[nka245]

I only sell FE where it fits the clients' needs so I have never had an FE policy cancel. Not one, ever. I wish all my business was as solid. I have 14% cancel, lapse, or die on my other business; I would like to get that down to half of that this year but my FE is 100% persistent. I don't sell very much of it, though and I haven't had any die on me yet, either.

 

[insuranceexec]

I only sell FE where it fits the clients' needs so I have never had an FE policy cancel. Not one, ever. I wish all my business was as solid. I have 14% cancel, lapse, or die on my other business; I would like to get that down to half of that this year but my FE is 100% persistent. I don't sell very much of it, though and I haven't had any die on me yet, either.

You are always the exception............LOL. Nobody would ever cancel on you..........I am still curious if that 25% figure is industry wide.

 

[nka245]

You are always the exception............LOL. Nobody would ever cancel on you..........I am still curious if that 25% figure is industry wide.

Come on now, not always...
Seriously, though, I have been very blessed with the clients I have. I think the FE is so solid when I sell it because I only sell it when I have no other option available for the client and they KNOW that it is their only option so therefore they would be insane to cancel it unless they were content with being buried in a cardboard box.

Oh and like I said, 14% of my other clients cancel or whatever within the first year so obviously I am not a "perfect" agent although; I strive to be, HUMPH! :p~

 

[myinsurebiz]

We tell our Agents to plan and budget for 25% - we like to have worse case scenarios.

My personal average is less than 20%.

I just pulled the numbers on a few agents - here they are:

Girl - Oct to Dec 2008 - placed 58 policies - 13 lapsed or were no taken. 22.4%

Guy - Same dates - placed 44 policies - 9 lapsed or not taken. 20.4%

No body died however.

With certain carriers - an agent can be advanced on issue regardless of EFT draft date. So - not takens may have been paid on already.

See y'all Monday . . .

Tom

 

[insuranceexec]

Come on now, not always...
Seriously, though, I have been very blessed with the clients I have. I think the FE is so solid when I sell it because I only sell it when I have no other option available for the client and they KNOW that it is their only option so therefore they would be insane to cancel it unless they were content with being buried in a cardboard box.

Oh and like I said, 14% of my other clients cancel or whatever within the first year so obviously I am not a "perfect" agent although; I strive to be, HUMPH! :p~

My personal practice is focused on advanced case design and annuities. After emancipating myself from a captive organization about 5 years ago; I have had 3 cancellations, and 5 deaths. This represents less than 1% of my business that I have lost due to the aforementioned.

This is why it is hard for me to get a handle on the 25% figure; or even on the 14% figure. Then again it does depend on the market you are working, and maybe it is not for me to understand.

 

[nka245]

yeah, totally different than what you are doing. Term life has a much higher churn that what you do with advanced case design. I focus mostly on term so that is why my persistency is at 86% but in my market, that is awesome... most people are at 70-75%. I want better than awesome, though. I want to be that exception where my persistency is just amazingly stellar. It's my goal this year. I also am going to be branching out and going into different markets this year so it should be fun. Tons of training to get through which I should be doing now...

 

[insuranceexec]

We tell our Agents to plan and budget for 25% - we like to have worse case scenarios.

My personal average is less than 20%.

I just pulled the numbers on a few agents - here they are:

Girl - Oct to Dec 2008 - placed 58 policies - 13 lapsed or were no taken. 22.4%

Guy - Same dates - placed 44 policies - 9 lapsed or not taken. 20.4%

No body died however.

With certain carriers - an agent can be advanced on issue regardless of EFT draft date. So - not takens may have been paid on already.

See y'all Monday . . .

Tom

So you do not count declines?

 

[nka245]

I would imagine with just selling FE that they don't get too many declines... I could be wrong, though as I don't focus on FE.

 

[insuranceexec]

I would imagine with just selling FE that they don't get too many declines... I could be wrong, though as I don't focus on FE.

Good point.