LTC Possible Addition to Current Sales?

[Thomas NW]

100% agree with you, Jack. There's no need for pressure.

unfortunately, most of the agents selling LTCi use high pressure tactics. It's a shame. They try to do a "one call close" presentation via desktop sharing software.

And that's why most of them place less than 50% of the apps they submit.

What's their overall success ratio? Are they earning enough to justify their methods?

The reason I'm asking is that I know people who sell other products using a rather less efficient methods, but still make significant incomes. They know their methods have low "conversion rates", but they make it up with the volume and "mass-production" mindset. If you told them to take more time and slow down, they wouldn't know what to do... and probably switch to vinyl siding sales!

 

[Mr_Ed]

What's their overall success ratio? Are they earning enough to justify their methods?

The reason I'm asking is that I know people who sell other products using a rather less efficient methods, but still make significant incomes. They know their methods have low "conversion rates", but they make it up with the volume and "mass-production" mindset. If you told them to take more time and slow down, they wouldn't know what to do... and probably switch to vinyl siding sales!

You're missing the point. They're using high pressure tactics to get people to apply for a policy without them understanding what they are buying. They are doing little health prequalifying.

The insurer is wasting tons of money underwriting applications for people who are either uninsurable OR are likely to cancel the policy within the 30 day free look period.

The last time I did the math from one of their press releases, the company that has the largest number of agents using these methods, the average agent was placing less than $4,000 in premium per month.

 

[Thomas NW]

You're missing the point. They're using high pressure tactics to get people to apply for a policy without them understanding what they are buying. They are doing little health prequalifying.

The insurer is wasting tons of money underwriting applications for people who are either uninsurable OR are likely to cancel the policy within the 30 day free look period.

The last time I did the math from one of their press releases, the company that has the largest number of agents using these methods, the average agent was placing less than $4,000 in premium per month.

Yeah, that's what I thought. They'd get anybody to apply regardless if they have any chance for approval or even have a true need for the product...

 

[billberry12]

"They'd get anybody to apply regardless if they have any chance for approval or even have a true need for the product..."


When I was a career agent with Genworth/AARP, they actually based new agents bonus qualifying on "submitted apps", but you only got the bonus on "placed" apps.

Agents, from the beginning of their career developed a bad habit of submitting apps and crossing their fingers.

Some agents loved to hear their named called on the weekly submitted business totals on the conference calls each week. We even had one agent that was calling in big numbers each week and leading the district for a few weeks, until the found out he wasn't even submitting what he was calling in.

My point is, this was/is the way hundreds of agents were/are trained to do this business. With most of the career shops becoming a thing of the past, I think you can safely say that method did not/will not work.

 

[ltcadviser]

My point is, this was/is the way hundreds of agents were/are trained to do this business. With most of the career shops becoming a thing of the past, I think you can safely say that method did not/will not work.

Exactly Bill. To your point, last week I went to the funeral of the John Hancock recruiter who brought me into the business 18 years ago. He died suddenly of a heart attack. At his funeral I ran into my old sales manager that I had not seen or talked to in 13 years. Over lunch as we were catching up I remarked to him that it is interesting how much has changed with the demographics of the policyholders; the internet, etc., that I haven't done the "7 step sales process" approach to write a long term care policy in 13 years. I explained to him that it is simply consultative today, and policies can be written in 10-20 minutes of time.

You how he reacted?

"You don't do a sales presentation to write long term care insurance? I hope your business sticks to the books, Jack."

(I just laughed inside cos it all sticks to the books)

This guy is still stuck in 1997.

Ironically all of the business sticks if you have a consultative approach. Business sold through scripted canned sales presentations is the business that is at risk for not being placed.

Back in the 90's you could spend your whole day driving around to see people; make presentations; complete applications and get checks; and arrive back to your office (pre-cell phone days) only to see the red message light blinking on your phone. "Hi. This is Mr. and Mrs. Jones. You were at our house this morning. We have decided not to apply for coverage. Please mail us back our check."

And my old sales manager knows no other way to do it.

 

[Mr_Ed]

Exactly Bill. To your point, last week I went to the funeral of the John Hancock recruiter who brought me into the business 18 years ago. He died suddenly of a heart attack. At his funeral I ran into my old sales manager that I had not seen or talked to in 13 years. Over lunch as we were catching up I remarked to him that it is interesting how much has changed with the demographics of the policyholders; the internet, etc., that I haven't done the "7 step sales process" approach to write a long term care policy in 13 years. I explained to him that it is simply consultative today, and policies can be written in 10-20 minutes of time.

You how he reacted?

"You don't do a sales presentation to write long term care insurance? I hope your business sticks to the books, Jack."

(I just laughed inside cos it all sticks to the books)

This guy is still stuck in 1997.

Ironically all of the business sticks if you have a consultative approach. Business sold through scripted canned sales presentations is the business that is at risk for not being placed.

Back in the 90's you could spend your whole day driving around to see people; make presentations; complete applications and get checks; and arrive back to your office (pre-cell phone days) only to see the red message light blinking on your phone. "Hi. This is Mr. and Mrs. Jones. You were at our house this morning. We have decided not to apply for coverage. Please mail us back our check."

And my old sales manager knows no other way to do it.

Exactly, Jack.

The agents who are stuck on making "sales presentations" have the worst placement rates--especially when they do the presentation via the web.

Those of us who use a consultative approach and spend more time listening than talking, have great placement rates.