Mortgage Protection Vs Final Expense

[Arookaria]

What is the difference between "rescinded" and "chargeback"?
What is a GI policy exactly?
I googled this and got lots of different stuff for GI policy.
Sorry but I'm REALLY new and there are lots of acronyms in these forums
Appreciate your guys help

Sent from my IPhone
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Many successful agents take "as earned" commissions. If you can swing it financially, that would be best.
50% advance would be another option that shouldn't get you in too much trouble if you manage it properly.

Thank you again PCB. I like the idea of just taking commissions "as earned". I think what got me worried is there was a thread on here about a guy that did so well in FE that he opened his own web site to teach other people how to sell it. It shows up in google results when searching for info on FE. I was about to pay the money for access to the site until I saw that some people on the forums were saying he went broke from chargebacks. I don't know if it's true or not just what I read on here.

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[Newby]

What is the difference between "rescinded" and "chargeback"?
What is a GI policy exactly?
I googled this and got lots of different stuff for GI policy.
Sorry but I'm REALLY new and there are lots of acronyms in these forums
Appreciate your guys help

Sent from my IPhone
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Thank you again PCB. I like the idea of just taking commissions "as earned". I think what got me worried is there was a thread on here about a guy that did so well in FE that he opened his own web site to teach other people how to sell it. It shows up in google results when searching for info on FE. I was about to pay the money for access to the site until I saw that some people on the forums were saying he went broke from chargebacks. I don't know if it's true or not just what I read on here.

Sent from my IPhone

Chargebacks is any death or lapsw that you owe commission back on months that you were paid an advance on. If you are as earned you won't get those except on GI Guaranteed Issue policies which charge them back 100% 1st year and often 50% 2nd year.

Recinded is when the insurance company finds a reason to cancel the policy and give the payer the premiums back due to something that was not right on the health underwriting. This usually happens if someone dies in the 1st two years and they find a reason to do it in the contestibility period. It can also happen when another agent comes in behind you and points out the policy was issued but they didn't qualify. Often it's when smokers get issued as non-smokers. You lose all commissions on those even if you were as earned.

The training website you are talking about is an extreme example of an agent who had a lot of potential but did a lot of things wrong in a short time frame. He told his own story of huge sales and his big crash several years ago on the forum. You will have to dig through old posts to find it. His was a very short lived success. The Website does well for him though. Probably some decent info on there.

 

[Arookaria]

Thank you for that answer Newby. If I decide to focus on FE ill go "as earned" and also set aside a small percentage for the occasional but inevitable rescinded policies.
Also let me say thank you for the interviews you posted on your site, I listened to the one with the new agent who was doing well after a couple of weeks selling FE, would be great to hear a follow up interview with him in the future.

Sent from my IPhone
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Any life product can be charged back in the first two years if it is rescinded. As earned versus advanced won't make a different at all. You will be giving back everything you received on that policy in that case.

There is nothing wrong with taking advances, particularly when you are new. The key is to make sure you write quality business. Don't strongarm people or sell them more than they can afford. Also, when you get NSFs be proactive and fix it. If you do that, chargebacks will be the exception and not the rule. They will still happen and they happen more frequently and are more painful when you start, but it still happens later on.

Also, term people lapse quite frequently. The 30 year old buying just a small term policy is probably your future FE prospect. Same mentality, just younger.

Thank you volagent for your answer! I appreciate everyone's help on these forums.

Sent from my IPhone

 

[Newby]

Thank you for that answer Newby. If I decide to focus on FE ill go "as earned" and also set aside a small percentage for the occasional but inevitable rescinded policies.
Also let me say thank you for the interviews you posted on your site, I listened to the one with the new agent who was doing well after a couple of weeks selling FE, would be great to hear a follow up interview with him in the future.

Sent from my IPhone
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Thank you volagent for your answer! I appreciate everyone's help on these forums.

Sent from my IPhone

Most agents can't start out as earned. The cash flow won't work to operate your business. 50% advances (6-months) is a good way to go.

It's funny to me how many agents think they can't work with less than a 75% advance but they will often take an 80% contract to get it. It doesn't occur to them that a 50% advance on a 110% contract would get them close to the same amount up front but would leave more money the insurance company pays you later in the year.

 

[jdeasy]

"Any life product can be charged back in the first two years if it is rescinded."
*****************
In your estimation, what percentage of all life products get "rescinded" in the first two years?

Depends greatly on the company. Settlers is the only FE company I know of that publishes the % of paid contestable claims. Last one I saw it was over 99%.

Other companies won't tell you even if you ask. I had a claims rep at Americo tell me a few years ago that they called it "50/50 gamble" there at the company. Now I believe she was wrong. I don't beleive they pay 50% of their contestable claims.

AmAm has a terrible reputation of paying those as well but, again, they won't give the info when asked. Among ther funeral homes in this area LH has a really bad reputation for paying contestable claims.

RNA won't tell you either but my personal experience with them has been that they have apid every contestable claim except for one. And in that case the wife admitted later that there were some VA doctor visits and treatments that they "forgot" to mention. Her husband dies 23 months and 2 weeks into the policy.

 

[thomasjmcgill]

I do both and I'm rocking it!

 

[Mimic]

the hunter who chases two rabbits catches none

 

[thomasjmcgill]

the hunter who chases two rabbits catches none

This isnt a cartoon.
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What is the difference between "rescinded" and "chargeback"?
What is a GI policy exactly?
I googled this and got lots of different stuff for GI policy.
Sorry but I'm REALLY new and there are lots of acronyms in these forums
Appreciate your guys help

Sent from my IPhone
- - - - - - - - - - - - - - - - - -


Thank you again PCB. I like the idea of just taking commissions "as earned". I think what got me worried is there was a thread on here about a guy that did so well in FE that he opened his own web site to teach other people how to sell it. It shows up in google results when searching for info on FE. I was about to pay the money for access to the site until I saw that some people on the forums were saying he went broke from chargebacks. I don't know if it's true or not just what I read on here.

Sent from my IPhone

Make sure you sell it right. Don't force the sale to increase your bank account. The magic number for monthly premium, $60! Do your best to stay in this range. Give or take a few dollars either side.

I always provide 3 options. For example:
Option A 12K in coverage, $110
Option B 10 K in coverage, $85
Option C 8 K in coverage, $60

Tell me, which one of these options fit your budget? Now don't pick one now, while your thinking about it. Who do you want the money to go to?

The more people you truly want to help, your clients will pick up on that and know that your sincere.Help others get what they want, ultimately, you get what you want!
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the hunter who chases two rabbits catches none

I have it down to a science! I use to send out my own direct mailers for mp. I stopped doing that. I gather the data of the new homeowners in the area I work FE. I have a laminated mp letter. I knock on the door and show the homeowner the letter. I just let them know that I'm the local state approved field underwriter and I'm following up to the letter they may have received like this. I give them my laminated letter and ask if they have taken the steps necessary to protect their family.

I hear a variety of answers. I keep it simple. I then offer them a coupon sheet and welcome them to the neighborhood. The coupon sheet provides the new homeowners with great discounts and freebies from the local businesses. A free oil change from a mechanic, a free heating/ac inspection, a free month of lawn service, free installation on new windows, a free pizza, buy one get one at a restaurant, etc etc etc.

I offer them at no charge a needs analysis and policy review. What I find is most folks count on their coverage at work. The average person who is married, mortgage and kids. At a minimum should have a policy of 1 million just based off the facts of income replacement, debt and mortgage. Hope this helps!

 

[GreenSky]

I have it down to a science! I use to send out my own direct mailers for mp. I stopped doing that. I gather the data of the new homeowners in the area I work FE. I have a laminated mp letter. I knock on the door and show the homeowner the letter. I just let them know that I'm the local state approved field underwriter and I'm following up to the letter they may have received like this. I give them my laminated letter and ask if they have taken the steps necessary to protect their family.

Where do I get the "field underwriter" license? In CA, we get insurance licenses so not to deceive the public.

Rick

 

[thomasjmcgill]

Where do I get the "field underwriter" license? In CA, we get insurance licenses so not to deceive the public.

Rick

The insurance companies refer to producing agents as field underwriters. In essence, thats what we are. We initially are the eyes and ears for the insurance company. We have to write the application. We are the first point of contact with a client representing the carriers.