Premium finance

[ctt35]

I have been looking into premium financing for a few months. I have a few potential cases.

There is probably good seminar potential for premium financing. Have yet to run across a good power point though.

 

[Tahoe Ray]

I have been looking into premium financing for a few months. I have a few potential cases.

There is probably good seminar potential for premium financing. Have yet to run across a good power point though.

Slides don't sell anything...you do.

Make one yourself (or develop the content and hire someone from fiverr or upwork do do the design) and run your seminar.

Seminars for premium finance will not be cheap but you can certainly make a ton of money from even one case.

Good luck!

 

[ATM]

A seminar for premium financing?

I'd be very interested in seeing the costs associated with such a seminar and the revenue generated. My guess it will be 100% loss. Not meaning to rain on the parade but I have some experience in the market and would caution you against it.

I have seen many agents try to market premium financing as a marketing scheme to get people to buy no cost insurance. It doesn't work.

 

[ctt35]

A seminar for premium financing?

I'd be very interested in seeing the costs associated with such a seminar and the revenue generated. My guess it will be 100% loss. Not meaning to rain on the parade but I have some experience in the market and would caution you against it.

I have seen many agents try to market premium financing as a marketing scheme to get people to buy no cost insurance. It doesn't work.

I would say marketing no cost insurance would be a little too deceiving for my blood. I would market it a little different. I did start making my own presentation. I’ll keep you posted.

 

[Lloyds of Lubbock]

Most premium financing premiums are way north of 100k.
Do you think a stranger getting a free meal at a seminar is going to pursue this with a stranger.
Minimum net worth of a finance program is 5 million dollars.
People like this dont attend seminars.
Premium financing strategies that have no out pocket have the guarantee....they will all fail.

 

[Barry Noel]

Premium financing is actually a very good product. Large cases are the norm, the service work is what you need to have in place to sell one though.

 

[Lloyds of Lubbock]

Premium finance is a method of payment...not a product.
Service work is exhausting.
We have agents calling to take over service and split renewals.
Unfortunately we are not set up for that.

 

[WMSG]

I"m betting that 90% of agents have no idea what a premium finance policy, less they have actually sold one.

Have you ever sold a premium finance policy? If so, how long did the entire process take?

Yes, I have, for many years, and it is a regular part of my business. I have a staff person who handles every case. Medical underwriting and financial underwriting (for the loan) can take place simultaneously. I've had clients in medical underwriting first, and others begin at the same time.

Don't get me wrong, a few of them took some extra time, and I was "waiting" -- from 2 weeks to 4 weeks. One case added two months, and that was due to the bank. The financial underwriting is usually easy -- if you are prepared, and if the client is as well, and everyone collaborates. It's the closing of the loan and the documentation, covenants, agreements, etc., that is more onerous than underwriting. Yet I've had several cases go from beginning to end in four to six weeks. Perhaps that's because I've been doing for a long time, automated a lot of process, make sure we are very efficient and effective, and I deal with a few key lenders, banks, etc., on a very regular basis, and we integrate and coordinate very well.

I've long said that premium finance is no different plutonium -- it can be very powerful, very dangerous, and should only be handled by experts! LOL.

 

[WMSG]

Premium financing is actually a very good product. Large cases are the norm, the service work is what you need to have in place to sell one though.

In all due respect, premium financing is not a product. It is a method to pay premium.

 

[Jason T Brown]

Just seeing this pot for the first time...from back in June. Yes, I've been involved in several premium finance cases! I can't speak for others, but in my experience it absolutely does not take a year. In fact, not even close! That aspect depends on having everything IGO (in good order), the funding partner and the design etc. We use IUL with early cash value riders for our premium finance cases and the banks prefer this! 2020 has created some extra hurdles this year, but it's still going fairly smooth...all things considered. In my opinion, life insurance agents should at least get educated about the Pros & Cons of this market. It's too big of an opportunity for certain buyers/customers and life insurance professionals to ignore...