- 15,041
Good question. I'm not completely sure.
Primerica reports 13% growth in term life net premiums in 3Q, 5% increase in agents
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Good question. I'm not completely sure.
- 4,556
Without a pro active conversation from a 3rd party bringing the topic up, only a small fraction of the public will go out on their own to be a buyer of life insurance. it is not something they love to think about, they believe it is more complicated than it is & most of all it doesnt go from 0-60 in 4 seconds, doesn't have a white sand beach, doesnt float on the water, etc. So, because it is a intangible product compared to all the tangible products & services we all blow money on as consumers, it doesnt get done for the majority of the public without prompting by someone else, whether it be a professional agent, a radio talk show host or an HRD department at their employer
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- 4,556
I think this is why the PC agents are so perfectly lined up to take care of these lower premium term only cases. They make the majority of their income from PC sales & renewals. Life only agents cant take enough time to sell those low premium term for $20-$30 per month. Studies show consumers want to buy it from their PC agents, but the same studies show the consumers don't think their PC agent sell it.
- 15,041
So that would suggest more affordable premiums are actually the problem. If there isn't enough money to pay agents to be interested and pursue the business, then ultimately consumers suffer because no one is actively soliciting them to buy coverage.
- 11,272
There are 3 kinds of life insurance leads & sales (generally speaking):
1) The uninsurable hoping to get coverage; these people are looking for coverage because they can't get it.
2) The insurable who doesn't feel the need to spend much on coverage; they feel that they are healthy enough in their health, lifestyle, and activities that it's a "checkmark" on their financial planning checklist.
3) Get healthy people to spend thousands, or even tens of thousands of dollars for coverage. But they need to see the reasons why it makes sense for them to do it. And that takes a well-trained agent.
Most people think agents only help with #1 and #2. They don't know that #3 exists. Most AGENCIES don't know that #3 exists.
Strangely enough, companies WANT sales like #3 because it helps their general investment account. #1 are higher risk of early claims and #2 may be profitable as long as they keep their term life for a long time and then let it expire.
1) The uninsurable hoping to get coverage; these people are looking for coverage because they can't get it.
2) The insurable who doesn't feel the need to spend much on coverage; they feel that they are healthy enough in their health, lifestyle, and activities that it's a "checkmark" on their financial planning checklist.
3) Get healthy people to spend thousands, or even tens of thousands of dollars for coverage. But they need to see the reasons why it makes sense for them to do it. And that takes a well-trained agent.
Most people think agents only help with #1 and #2. They don't know that #3 exists. Most AGENCIES don't know that #3 exists.
Strangely enough, companies WANT sales like #3 because it helps their general investment account. #1 are higher risk of early claims and #2 may be profitable as long as they keep their term life for a long time and then let it expire.
- 4,556
That could definitely be an issue. in our race for cheaper rates as agents for competition and consumers, we also now have not only cheaper, we also have worse products today in terms of conversion privileges, renewal rates after level period, etc.
interesting stuff
- 15,041
While I can't say this is the real problem, I don't think it helps.
A joke I heard some time ago, and I think applies to many industries.
When the pilot of the plane says, "Thank you for flying Delta today." He's really thinking, "**** you! Your cheap fares and free peanuts cost me my pension."
I'm sure I got it wrong, but hopefully you get the gist.
- 4,556
so true. Throw in with life carriers the historic low interest rate environment for them to invest money, the escalating expense ratios for all the technology needed today & the race for lower premiums, it is the marketing/distribution compensation areas to suffer along with worse customer service for the consumer
- 15,041
Because let's remember, there is more than just straight salary/commission to consider. As I alluded to above, there are also benefits. And training, really good training, is a benefit to a salesperson. I'm pretty sure the training and coaching today from carriers is nothing compared to what it use to be.
- 24,939
Generational differences.
30 year old male in 1950 v a 30 year old male today.
No more man rasing.
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