Persistency Ratios - Are They Kidding?

[WinoBlues]

Just got a website update email from UHL.

""Persistency ratios are now available for the 7-month, 13-month, 25-month, and 37-month measuring periods. These ratios should be at least 80%, 65%, 52%, & 44% for each of these measuring periods, respectively............''"


Are they kidding. 1 year = 65% 2 year = 52% That sounds really low.

1\2 of your business falls off after 2 year and 2/3 after 3 years?

That sounds like a really hard way to make a living

 

[Frank Stastny]

I agree. To a professional agent those numbers are horrible.

Need I say more?

 

[WinoBlues]

I agree. To a professional agent those numbers are horrible.

Need I say more?

Hell, why worry about renewals or client refferals. Just get your first year comp and run.
Like only selling term, you are always chasing the next sale to eat that week. I am to lazy to do it that way.

Suggestion to new agents: Service what you sell.

 

[scagnt83]

Suggestion to new agents: Service what you sell.

Great advice.
It benefits both you and your clients. An active contact system and yearly review system will increase your sales more than most think it would.

 

[dgoldenz]

I would bet part of the reason for the low ratios is that the type of people buying these plans are mostly living paycheck to paycheck. I wrote one two months ago and they paid the first two months of premium. In the third month, the policy lapsed, couldn't write the $75/month check.