Renewal Commission - Life Insurance

Discussion in 'General Insurance Agent Discussions' started by Advisor06, Jul 25, 2017.

  1. pfg1
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    pfg1 Well-Known Member

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    Perm life has decent renewals, and so does med supp. But yes, it doesn't last forever and staying in touch will help keep the business on the books.
     
  2. aclaro
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    aclaro Well-Known Member

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    If you want great renewals, sell disability insurance. You should be talking to your life clients about it anyways. Review their current coverages and improve, add on or at least make sure they have some.

    A majority of group plans fall short and most small businesses don't offer any coverage.
     
  3. Fisher
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    Fisher Well-Known Member

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    With Allianz I can take 95% of target as FYC OR I can choose 47.5% of target as FYC followed by 6 years trailing at 12.8%.

    It's obviously a no-brainer and I would be freaking DELIGHTED if other companies would follow that payout model.

    The only potential downside is if the biz falls off the books earlier than 4 years 9 months after issue, I suppose.
     
  4. ktmorgan
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    ktmorgan Well-Known Member

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    Sell DI. I always lead each client engagement with "How's your DI coverage?":yes:

    And you don't have to always seek out only Doctors and Dentists to make sales of the White Collar DI plans. If you have those clients then great. My Guardian DI sales give me 18% residuals on those. But Illinois Mutual has a great Blue Collar DI plan too. So there's ton of opportunity to make great DI sales to a lot of people (not available in CA, NY, DC)

    Also, depending on your contract level you can receive decent residuals with your Perm Life sales. For example my Allianz contract gives me 125% of Target FYC and almost 5% per/yr for yrs 2-10 for my LifePro+ IUL. I'm direct to Allianz though. Through a FMO it's likely a bit less. But it still adds up.
     
  5. me112233
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    me112233 Well-Known Member

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    Very true about the senior products -- I lose more med supplement policies to death of policyholder than I do to general-purpose lapses. I also lose one or two a year to nursing home confinement and Medicaid stepping in.

    In the big picture, once a policy pays that 25th month payment, it probably isn't going to lapse. I have discovered that I lose a lot of my under-60 final expense sales to lapses. I guess a 55 year old on disability with a heart attack under his belt still thinks he is going to live forever.
     
  6. RK38
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    RK38 Member

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    From my opinion, there's a few ways you can look at this. Here are a few ideas:

    1. You can look to diversify the product line up and cross sell with products that provide better renewal streams (DI, etc.)
    2. If securities licensed, you can try to partner up with an investment guy and work together on cross selling. Work with them in building up the AUM and investment advisory fees.
    3. You can try to tap into a higher end client base and try to do advanced planning (estate planning, executive benefits, etc.). Some of these sale concepts like premium financing usually lead to bigger sales and usually a WL or IUL product which should provide renewals.
    4. You can try to automate some of the selling via internet, lead generation services, etc.

    I hope that helps.
     
  7. rousemark
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    rousemark Well-Known Member

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    That, plus the value of the money being deferred... There is a reason that companies offer the deferred commission and it is not because they think it is better for the agents..:no:

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    If you take the money upfront and have the discipline to pay yourself the lesser amount and invest the rest, you can then pay yourself the higher renewals each year. If the policy lapses during the first 5 years, you are ahead of the game.. If not, you are even.
     
  8. johndf
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    johndf Well-Known Member

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    Our Agency and agents have built a good revenue stream off of supplemental benefit products over the years. One of the things that has helped our growth is that we take care of our existing clients and as a result our agents have prospered via client referrals. Since we are dealing with Middle America with disposable income and the under 65 market our business stays on the books.
     
  9. whirledpeas
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    whirledpeas New Member

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    Anyone know the typical first year and renewal commissions on a Guardian whole life policy, accelerated pay (10 or 20 pay)?

    Thank you.
     

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