Medicare Supplement/Gap Vs Final Expense

[Bcrane0305]

I think Thad was being dramatic...no way 3 month placement/persistency in 60%...unless he's speaking of his telesales experience.

I always wondered when persitancy officially starts? It's after 2nd month usually, right? First month is a nto and typical numbers should be around 10 percent. I do agree one of the biggest hurdles is dealing with those cancellations and ntos. Something no IMO will ever mention to you.

 

[Gooner]

I always wondered when persitancy officially starts? It's after 2nd month usually, right? First month is a nto. I do agree one of the biggest hurdles is dealing with those cancellations and ntos. Something no IMO will ever mention to you.

I don't have issues with ntos or cancellations...way under 5% for me. If I write an app, it's getting placed...unless it gets rated up

 

[sirherbie]

Still whats worrying longer term is there's very little talk from agents in Final expense 10 plus yrs about a strong renewal base. So all these 7-13% renewals are really just pie in the sky. I got to admit it would be nice to write 150 med sup's a yr for 10 straight yrs and just sit back and service them and make $200k plus a yr. Figure if you catch the avg med sup at 67 they're going to live to be 82-85 on avg.Plus add in some life here and there and you could be looking at a nice income just managing your book. Will a med sup company terminate you and take your renewals if you replace your on policy with another company?

 

[Bcrane0305]

I don't have issues with ntos or cancellations...way under 5% for me. If I write an app, it's getting placed...unless it gets rated up

Ssi drafting is helping me.... But I think all agents need to budget for 20 percent non placements and 10 percent nto. Call any carrier and they will tell u that's about average.

 

[Thad.Sipple]

I think Thad was being dramatic...no way 3 month placement/persistency in 60%...unless he's speaking of his telesales experience.

Like I said it could be argued + or -

That said, lets say for argumentative purposes it's 20% bump within 3 months. 80% sticks.

But then we would all agree that the advertised 13 month persistency is 80%.

20% falls off.

So you write 100 application in one month. Within 3 months 20 fall off, that leaves you with 80.

Then another 16 fall off sometime from 3 months to 12 months. So 13 month + you have approx 64 clients left.

You paid for the leads to write 100 (not 64)

Average 12 month commission $550 (approx) $35,700 earned.

100 MS application in one month via MS 95% stick for 13 months +

You paid for the leads to write 100. (lead cost for MS is about the same as FE)

Average commission is $330 (approx) $31,500 earned.

2nd year FE commission = (assuming all 64 stick) $36 = $2,304 + first year difference = $3,504

2nd year MS commission = $31,500


With MS you can cross sell the f out of them. FE, LTC, Annuities, Part D.
Referrals from MS is way way higher than FE.

With FE you can cross sell almost nothing.

Ya Ya I know my numbers for FE persistency doesn't line up with a recruiters numbers but I don't give a rats arse.

Ya Ya Ya I know the 2 or 3 top producers numbers are a shade or so better, but your numbers don't help Plain Jane and Average Joe producer.

 

[Gooner]

Ssi drafting is helping me.... But I think all agents need to budget for 20 percent non placements and 10 percent nto. Call any carrier and they will tell u that's about average.

^^^^that^^^^ is garbage

Not even close to reality. I wrote over 35 apps last month...I've had 1 cancel before first draft. I had 2 not draft correctly, so they will be on the books for next month. No where near your 30%. If that is happening to you then you are forcing the sale.

 

[senior-advisor-indiana]

Still whats worrying longer term is there's very little talk from agents in Final expense 10 plus yrs about a strong renewal base. So all these 7-13% renewals are really just pie in the sky. I got to admit it would be nice to write 150 med sup's a yr for 10 straight yrs and just sit back and service them and make $200k plus a yr. Figure if you catch the avg med sup at 67 they're going to live to be 82-85 on avg.Plus add in some life here and there and you could be looking at a nice income just managing your book. Will a med sup company terminate you and take your renewals if you replace your on policy with another company?

I make $260k a year working 6 hours per week....

 

[Bcrane0305]

^^^^that^^^^ is garbage

Not even close to reality. I wrote over 35 apps last month...I've had 1 cancel before first draft. I had 2 not draft correctly, so they will be on the books for next month. No where near your 30%. If that is happening to you then you are forcing the sale.

Good insight about forcing sales #very true.... Those are typical numbers though. I've asked a few different carriers that question...any type of abrehension during presentation is a charebAck waiting to happen. No question about it. The people terrible with money who would lapse from a nsf and being too lazy to get back on books on are being conserved from ssi draft ( from my experience).

 

[Gooner]

Like I said it could be argued + or - That said, lets say for argumentative purposes it's 20% bump within 3 months. 80% sticks. But then we would all agree that the advertised 13 month persistency is 80%. 20% falls off. So you write 100 application in one month. Within 3 months 20 fall off, that leaves you with 80. Then another 16 fall off sometime from 3 months to 12 months. So 13 month + you have approx 64 clients left. You paid for the leads to write 100 (not 64) Average 12 month commission $550 (approx) $35,700 earned. 100 MS application in one month via MS 95% stick for 13 months + You paid for the leads to write 100. (lead cost for MS is about the same as FE) Average commission is $330 (approx) $31,500 earned. 2nd year FE commission = (assuming all 64 stick) $36 = $2,304 + first year difference = $3,504 2nd year MS commission = $31,500 With MS you can cross sell the f out of them. FE, LTC, Annuities, Part D. Referrals from MS is way way higher than FE. With FE you can cross sell almost nothing. Ya Ya I know my numbers for FE persistency doesn't line up with a recruiters numbers but I don't give a rats arse. Ya Ya Ya I know the 2 or 3 top producers numbers are a shade or so better, but your numbers don't help Plain Jane and Average Joe producer.

Simmer down bro. My 13 month persistency is around 78%. So while I stick to my original statement that you were being dramatic....and you are/were...I'm not disagreeing that MS is a great venue for residual income...I actually agree it is much better long term...problem is a lot of people don't have the resources to live off of rice and beans for 3 years...

We are like the JG Wentworth commercial....need cash now...ok now that's kinda funny

 

[Thad.Sipple]

I make $260k a year working 6 hours per week....

Wow 260,000 pesos per year. That's really tight.