Selling Final Expense Via Telephone

Discussion in 'Final Expense Forum' started by matilda654, Jul 22, 2010.

  1. jdeasy
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    jdeasy Guru

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    That's a huge savings. I don't generally run into that much of a deal for the clients. I can usually save them 20 to 25% even if they have had the LH policy for 2 to 3 years.

    I do think the FCGS thing is a good deal, but, it is worthless until the policy is out of contestability. That's one thing that LH agents forget to tell people.
     
  2. luke4275
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    fe via phone is tough work
     
  3. jdeasy
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    I'm going to agree with Grag on this one. Selling FE by phone or face to face is tough work.
     
  4. steveadlman
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    You make some very good points. I pre-qualify my FE prospects before I go to see them face to face. I close 95% of my FE prospects after I pre-qualify them over the phone. Selling face to face or over the phone are now choices agents have when selling FE. I believe selling insuracne over the phone will continue to grow in popularity with agents.
     
  5. Frank Stastny
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    Lots of questions. I'll try to answer them this way:

    What % of your Med Supp replacements take out a FE plan?

    When I was selling Med Supps for Cont. Life, the company that required it, I was adding a small FE policy to about 70% to 80% of the Med Apps I turned in. They have a combo app that makes it very smooth.

    Do they usually take out the FE plan on that Med Supp sale or a later date?

    The best time to cross sell a FE plan is at the time you sell them the Med Supp. They haven't had a chance to spend the money you saved them yet.

    What is the ave. savings on their Med Supp after you help them?

    It varies dramatically. The average is probably around $30 to $40 per month. It all depends on what company you are replacing and how long they have had it. I have saved a lot of clients well over $100 per month. I recently saved a woman $67 per month.

    What is the ave. FE premium that you cross sell?

    I have found that the biggest mistake agents make is that they try to get 100% of the money they save their new client and put it in a FE Plan. At that point the agent appears as nothing more than the public's perception of who insurance agents are as opposed to someone who is there to help them. I only want a portion of the money I save them. It is important that I leave them with more money in their pocket when I leave than they had when I arrived.

    I have sold a lot of FE plans for $15 to $30 per month. I don't make my money from selling FE plans. The renewals suck. When I sell a FE plan I look at it as a bonus. The "real" money is in the Med Supp renewals.

    A lot of seniors I talk to are not necessarily looking for a $10,000 to $15,000 benefit. They may already have some life insurance and only want to add a small amount to what they already have. Agents make a huge mistake by going for "big" dollars first. I start low and then show them that for, say an addition $10 per month, they can increase the benefit. It works much smoother that way than starting "high" and then trying to reduce the premium if it is "too high".

    When you replace a Med Supp policy, don't you have to keep up with when their premiums increase so you can re-replace them again?

    Yes, definitely. That is why I still have seniors as clients who I sold Med Supps to in 1993, my first year as an agent and I'm still earning commission from them when they make a premium payment.

    When/if you re-replace the Med Supp policy doesn't this delete the future comm. from the 1st sale, but start 1st year comm. again on this second sale?

    That is exactly what happens. I am most often always in a position where I am earning "first year commission". Med Supp companies typically pay first year commission for the first six years. When you replace a policy with a new company the first year commission for six years starts all over again.

    Seems like 1st year comm. would be the bulk of the revenue unless their premiums did not increase for a few years or they were just happy paying their higher premium.

    No, first year commission is paid for six years, see above. The renewals for Med Supps pay first year commission for the first six years in the majority of states. I believe it is eight years in IN and seven years in TX for example.

    Do you always see the Med Supp client face 2 face to pick up the check and fill in the app or do you ever sell it over the phone...never visiting the prospect?

    Most of what I am selling right now is over the phone. I currently don't have the luxury of having the time to go on appointments. Cross selling FE is easier sitting at the kitchen table than it is when Med Supps are sold over the phone. The agent really needs to have well honed phone skills for that to be successful.

    Using your prospecting method about how many contacts do you talk with before you have a sale (how many phone numbers were dialed where you talked with the prospect/suspect)?

    There is no answer to that question or at least I would not quote numbers. There are too many variables that come into play. I laugh every time I see something like "make 100 calls, set 12.6 appointments, from them you will make 4.37 sales". You will never see me quoting numbers.

    I have had days when I make a sale after five calls. I have also had days when it seems like I couldn't give one away if I was including a new car. This is selling, it is not a lab experiment done under controlled conditions.

    These are only some of the variables that will come into play:

    1. Does the agent really "give good phone"? They all think they do but believe me when I say the vast majority of them really don't.
    2. Does the agent know how to maintain control of the call?
    3. Does the agent have a well practiced and effective phone presentation, not just a "script"?
    4. Are the proper key words used to elicit the desired response?
    5. Does the agent realize the importance of the timing with which words are said?
    6. Does the agent know how to smoothly make the transition from a phone call to a relaxed casual conversation? Nothing is sold during a phone call.
    7. Does the agent know how to ask for the sale when on the phone?
    8. What is the weather like on the day the agent is calling? Weather plays a big part on how many people an agent can talk to on any given day.

    I think you get the idea.

     
  6. Newby
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    he bought the LH at age 50 and is now 52. But they also padded the premium 7.50 with ID protection that he saw no value in.

    You're correct that his dad died within the first 2 years. The "Benefit "Society" wouldn't even assist him to fill out the forms to get his premiums back. They were less than useless.

    LH has another very unhappy camper out there spreading the good word about them.
     
  7. Frank Stastny
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    There is no question as to whether or not it is growing in popularity with agents, it already has. There are also a lot of, especially new agents, who are failing because they believe it can be done beginning day one.

    The questions is, not are they selling more, but is what they are selling staying on the books long enough for the agent to earn the full year of commission. For the "pros"? The answer is most probably yes. For the rookies? The are probably going to go broke buying leads and incurring charge backs.

    Just because it is possible to do does not mean that every agent with a computer and telephone is going to be successful at it.

    God love the "new guys" who want to become underwear agents right out of the box. It's job security for those seasoned, professional agents who know how to help prospects make well-informed, intelligent decisions as opposed to just trying to sell them something.
     
  8. WinoBlues
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    Could not agree more.

    If I may add #5a. Also the tone and cadence of your voice. Smile they can see you in your voice.

    I sale a lot by phone. WL, UL, FE and Term. Just need to add MedSups.

    Good points!
     
  9. Frank Stastny
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    Point well taken.

    It truly needs to be a well rehearsed, conversational, professional sales presentation. Simply having a "script" doesn't cut it.

    I tell agents I train to roll play on the phone with a friend first, record their presentation, plan it back and listen to it with a very critical ear. I can almost guarantee what they think they are saying and how they are saying it, is not what the person on the other end of the phone hears.
     
  10. soulchild
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    Jdeasy,

    That $130,000 ap YTD with only spending $4k on marketing is an amazing ROI. What lead company are you using? Are you doing direct mail or buying individual leads? I am in the process of getting started selling final expense (been in business for almost 6 years just in a different market) and am trying to learn as much as possible on the best way to market. I have been buying individual leads for $18 a pop and they have not been as profitable. Any help would be greatly appreciated.
     
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