Online Term Vs Agents' Term - Can Agents Compete Price-wise?

TomZack

Super Genius
Can independent agents compete with Select Quote and other direct marketers of term insurance in terms of price?

New to the game and I have been told some conflicting things.

Anyone here who definitively knows and is kind enough to respond and share their thoughts?

My understanding is that the online and direct marketers pay lower commissions, thus offering more competitively priced product - apples to apples.

Can someone enlighten me please?
 
Can independent agents compete with Select Quote and other direct marketers of term insurance in terms of price? New to the game and I have been told some conflicting things. Anyone here who definitively knows and is kind enough to respond and share their thoughts? My understanding is that the online and direct marketers pay lower commissions, thus offering more competitively priced product - apples to apples. Can someone enlighten me please?

Everyone sells at the same price. Online quoters are just agents themselves. We all have an even playing field.
 
Carriers set the price, which is the same for everyone. The fact that online agents who work for SQ, LQ, etc. get lower commissions, does not matter.

To specifically answer your first question, YES, independent agents like you CAN offer the same product and price and should be able to compete favorably with the call centers out there. Ask your client if they prefer buying something from someone in a call center a thousand miles away...or YOU, who will be able to offer value added service or, at the very least, have a relationship with. Then, it's up to you to keep them with you for a lifetime.
 
Thank you both.

I'm good with those answers.

So next.....

Which companies for Term products do you recommend to sign up with to sell?

1) I'm guessing: Combo of pricing, ease of working with, commissions, communicate with underwriting, etc.

2) If in a pricing competition....who do you find offers the most competitively priced term options across the board?
 
Can independent agents compete with Select Quote and other direct marketers of term insurance in terms of price?

New to the game and I have been told some conflicting things.

Anyone here who definitively knows and is kind enough to respond and share their thoughts?

My understanding is that the online and direct marketers pay lower commissions, thus offering more competitively priced product - apples to apples.

Can someone enlighten me please?


read the book..................................

http://www.insurance-forums.net/for...e-insurance-agent-book-amazon-com-t83739.html
 
Yes, you can compete, and win, against the big shops. Consumer don't care about what the big shops think they care about, price. Sure, have Banner and Protective in your arsenal, but the top independent agent shops maybe do 10% of their business with those 2 carriers while the big name SQs of the world do 50% there.

Don't compete on price, ever. If you are competing on price, go sell cars. Insurance is not a commodity, and it requires a process that is not like "driving off the lot."

Compete on process. Offer choice, let the consumer be part of the process. Secret shop a selectquote, get a quote for yourself, and you will see where you will shine vs. their internal agents. I took a call once and I played along, told him my 6 figure income, non working spouse etc. I was told that $300k with AIG would be perfect for me...so "1 year of my income is it?" No thanks.

Offering no exam products is crucial. You may think to yourself, that nobody will buy a higher priced no exam option, or you feel dirty not saving your client the most money but those are personal issues. Get over it. Talk about it. Let your client tell you what they want, vs. you telling them what they want.

We offer 3 options. Super basic, but phrasing in a way that it will not only close but will show a consumer we don't care what they choose, as long as they choose. Fully underwritten, new pref+ priced non med product, and a non med with living benefits. Cheapest, cheap and expensive. 80% for for option 2. Best part is, you can compete against the "I have a medical exam tomorrow with SelectQuote" objection.


By the way, that Protective Costco product is not the same product agents sell. It is trimmed down.
 
Thank you Stibroker.

I just ordered the book!

----------

PICnic.....

Thanks for sharing your thoughts and expertise. As a newbie, I am not aware of the importance of non med policies....yet.

When you say 80% for option #2, do you mean 80% prefer option 2?

----------

With Banner and Protective seeming to have some of the lowest prices, in case you need them in a pinch....what are THEIR shortcomings?

Lower commissions? Less bells and whistles (i.e. convertibility options, other riders?) Poor communication/execution?

----------

I just did some online research and found out that Banner is, at least, not very customer service friendly.

In addition...

Some reviews state they offer you one rate but after underwriting, the quoted rate can double (their words) for their actual offer. I know many reviewers lack the understanding of what actually happens when they apply for a life insurance policy so I take that with a grain of salt.

It seems, from some quarters, that Banner is good to have in the hip pocket for more liberal underwriting for some rated cases.

Ohio National (which I am approved for) would appear to be the better option overall.

N'est pas?
 
When offered, the vast majority of people prefer to not complete an exam. Problem is, most agents think all clients care about is price.
 
An agent who really understands how underwriting works can get the business no matter who they are up against. If the customer has a quote from another company, and they CAN qualify for the rating they were quoted, you can normally match that price at that rating and there is no reason they would buy online instead of from you at the same price. If you can show them that they can't qualify for the rating they were quoted at (i.e. a diabetic person getting quoted at a preferred rate) then any other quotes they got don't matter anymore anyway. Learn how underwriting works and nobody can compete with you.
 
Back
Top