People who Cancel Policies

[SomeDude99]

I met this woman who does well financially. She wanted to get coverage on her husband (who has serious medical issues, cancer) and we went with vantis. I then signed up her two sons one for universal life and one for FE. About ten months later all of her policies lapsed and were cancelled. The Vantis one was a killer as I had to pay back about $400 in premium.

She now contacts me and says she wants to reinstate all of them and is apologetic. I said this doesnt reflect well on me as an agent. She then gets all upset and is like are u kidding me things happen and people do this all the time etc. My question is what do you do with people who cancel and then want to reinstate? Do you take on that risk? I already got burned with this woman for three policies and she doesnt seem to place enough importance on the coverage. She did contact me however. New agent here.

 

[Toranaga]

I met this woman who does well financially. She wanted to get coverage on her husband (who has serious medical issues, cancer) and we went with vantis. I then signed up her two sons one for universal life and one for FE. About ten months later all of her policies lapsed and were cancelled. The Vantis one was a killer as I had to pay back about $400 in premium.

She now contacts me and says she wants to reinstate all of them and is apologetic. I said this doesnt reflect well on me as an agent. She then gets all upset and is like are u kidding me things happen and people do this all the time etc. My question is what do you do with people who cancel and then want to reinstate? Do you take on that risk? I already got burned with this woman for three policies and she doesnt seem to place enough importance on the coverage. She did contact me however. New agent here.

No way.............................

 

[STIBROKER]

My question is what do you do with people who cancel and then want to reinstate? Do you take on that risk?

Yes........a client is a client.....worst case you rewrite them for a new commission.......

 

[jdeasy]

I met this woman who does well financially. She wanted to get coverage on her husband (who has serious medical issues, cancer) and we went with vantis. I then signed up her two sons one for universal life and one for FE. About ten months later all of her policies lapsed and were cancelled. The Vantis one was a killer as I had to pay back about $400 in premium.

She now contacts me and says she wants to reinstate all of them and is apologetic. I said this doesnt reflect well on me as an agent. She then gets all upset and is like are u kidding me things happen and people do this all the time etc. My question is what do you do with people who cancel and then want to reinstate? Do you take on that risk? I already got burned with this woman for three policies and she doesnt seem to place enough importance on the coverage. She did contact me however. New agent here.

Every situation is different. Sometimes I will help them get nw policies. Sometimes I will let them go to another agent. Gotta go with your gut.

Sometimes I guess wrong and get burned a second time. It happens.

AmCon has a rule that you can write a person more than 3 times. Where did that rule come from? Didn't happen in a vacuum. Obviously agents rewrite people regulary and they fall off the books a second time and a third time.

 

[VolAgent]

I have to agree with her, I don't really get your response to her. It does happen and most people don't really realize what it means.

Did she duck you when they lapsed? Avoid you or blow you off? If not, just re-write them all. I wouldn't put the husband with Vantis again though. I'd use someone that doesn't charge back ALL commissions if there is a lapse.

She does it again, she's on her own.

 

[John Galt]

Sure I'll rewrite you but I'm not goons reinstate you, sorry, can't do that.....so here are your new higher rates since you are a year older dumbass

 

[Lhand17]

I met this woman who does well financially. She wanted to get coverage on her husband (who has serious medical issues, cancer) and we went with vantis. I then signed up her two sons one for universal life and one for FE. About ten months later all of her policies lapsed and were cancelled. The Vantis one was a killer as I had to pay back about $400 in premium.

She now contacts me and says she wants to reinstate all of them and is apologetic. I said this doesnt reflect well on me as an agent. She then gets all upset and is like are u kidding me things happen and people do this all the time etc. My question is what do you do with people who cancel and then want to reinstate? Do you take on that risk? I already got burned with this woman for three policies and she doesnt seem to place enough importance on the coverage. She did contact me however. New agent here.

Honestly If you are financially able to put yourself on the hook for that loss than you should definitely go ahead and take the risk and earn your money back from the Chargeback. If the chargeback makes you feel uncomfortable then I would just let the client know that you cant take on the risk due to financial situations. Sometimes people dont realize that when they cancel the policy that the money comes out of YOUR POCKET.
Cheers

 

[SPUR CITY]

Every situation is different. Sometimes I will help them get nw policies. Sometimes I will let them go to another agent. Gotta go with your gut. Sometimes I guess wrong and get burned a second time. It happens. AmCon has a rule that you can write a person more than 3 times. Where did that rule come from? Didn't happen in a vacuum. Obviously agents rewrite people regulary and they fall off the books a second time and a third time.

Trinity does the same thing. 3 times and you're out. I had a lady that had Trinity a few times already in the past that she did not tell me about. When I wrote her out I sent the policy in and got a letter saying they would not accept her policy because she had canceled three previous policies with Trinity. I went ahead and wrote her up with Forester's and crossed my fingers and it has been on the books for about five months now. It takes money (not a lot but it takes $ to process each app and pay out commissions and a few other back office things we don't always see).

I would absolutely rewrite this lady up I don't see any real risk in my opinion. The only real risk is if you get paid and go spend all that commission money and don't have any reserves. I don't have that problem so there is no risk. All I see is another potential rewrite.

 

[VolAgent]

Trinity does the same thing. 3 times and you're out. I had a lady that had Trinity a few times already in the past that she did not tell me about. When I wrote her out I sent the policy in and got a letter saying they would not accept her policy because she had canceled three previous policies with Trinity. I went ahead and wrote her up with Forester's and crossed my fingers and it has been on the books for about five months now. It takes money (not a lot but it takes $ to process each app and pay out commissions and a few other back office things we don't always see).

I would absolutely rewrite this lady up I don't see any real risk in my opinion. The only real risk is if you get paid and go spend all that commission money and don't have any reserves. I don't have that problem so there is no risk. All I see is another potential rewrite.

If you are at a 120% commission, they are paying a 20% over what they are receiving just for the privilege of collecting your money for you in the first year. That doesn't even account for the actual cost of processing business.

When you add in overrides it gets even worse. So I can't blame a company for limiting how many times they will take back a lapsed client.

 

[Justin Bilyj]

I fired a client who lapsed twice on me. She acted like it was the usual thing to happen with her lifestyle and all. I told her, NO, I will not write her policy, the best part? I got to tell her she was irresponsible and a waste of time. That felt good.