In the old days, $3 a month was not worth it, if you had to drive more than 1 mile. Gas, travel time, cancellation. Now everything with e-app and telesales, $3 a month is for me worth it, especially if the client makes less than 50k a year and there are no medical issues. The ones that you don't replace are when client tells you that they bought a life policy 7 years ago and forgot to mention their past heart attack in another country and now they want you to shop around their policy for better rate.
Replacements
- Thread starter bwayne
- Start date
tribetime32
Guru
- 377
Replacements are around half of my business. There are so many value adds that if you know what you are looking at can help clients immensely. As Scott stated, just make sure that you are writing clean business. Here are some instances where replacing business can be helpful...
1. Decrease in premium/increase in coverage
2. Using reduced paid up to get more coverage or lower bill
3. Doing a 1035 exchange into a single premium
4. Agent clean sheeting previous policy
5. Trading graded or modified for a level benefit
6. Client has policy loans that are insurmountable
There are probably some more scenarios, but these are several of the instances where replacements can be a valuable tool.
1. Decrease in premium/increase in coverage
2. Using reduced paid up to get more coverage or lower bill
3. Doing a 1035 exchange into a single premium
4. Agent clean sheeting previous policy
5. Trading graded or modified for a level benefit
6. Client has policy loans that are insurmountable
There are probably some more scenarios, but these are several of the instances where replacements can be a valuable tool.
- 4,305
I understand all these reasons, but don't totally agree, mostly because of concerns with restarting contestability. No matter how clean you think a case is, you're taking a risk. It may not be as clean as you think.
I agree with this, except that I won't usually replace LH either if they're close to being out of contestability.
One of the things I hate most in this business is having to tell a deceased client's family that their policy was rescinded and the claim denied. I do my best to keep that from ever happening.
I agree with this . Many times a dr's records different from what the client believes and that can cause a denied claim. I noticed last week a $10k policy on a 76 yr old client was off bank draft . I went by yesterday and he said he never did it .He said other agent was there 2 weeks ago and he "didnt recall " signing anything . The agent gave pulled it off back draft . It was 18 months old and he wanted to keep it . We put him back on draft . In a month I'm going to go back by and check his bank statement. I bet he has 4-5 policy's .
