Term life carrier wanted

[Crabcake Johnny]

My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous. Renewals are given to agents to service policies and keep clients on the books. With health insurance you do a fair amount of servicing and also have to help the client with options at the time of renewal. But what exactly does an agent have to do after a term sale is made?

 

[NHB_MMA]

My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous. Renewals are given to agents to service policies and keep clients on the books. With health insurance you do a fair amount of servicing and also have to help the client with options at the time of renewal. But what exactly does an agent have to do after a term sale is made?

Your basic servicing would only amount to seeing if any additional benefit is needed, that is--do they need to purchase more coverage...or should they convert any?

John, did NASE teach you to service? I'm just asking because you're always talking about the service work with health insurance and with NASE and even NHIC we were never taught to service. In fact, most guys I knew of would never even contact a person after selling them. Maybe it's pretty self-explanatory with NASE. After all, people do have claims.

 

[NHB_MMA]

The captive carriers are the only ones that may still pay a renewal on term. Cant think of a single brokerage company. Term stays on the books around 3 years. Why even bother with taking a smaller commission on the front for something on the back that may never pay out?

Why does term only stay on the books for 3 years? That's terrible retention.

 

[Guest]

My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous.

Oh. I thought it was to entice people to become and stay agents... as well as to keep you semi-captive (i.e. still producing for that carrier) in that some carriers have a rule that if you don't have X dollars on the books you lose the renewal (Colonial Life, for example.)

Al

 

[Crabcake Johnny]

My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous. Renewals are given to agents to service policies and keep clients on the books. With health insurance you do a fair amount of servicing and also have to help the client with options at the time of renewal. But what exactly does an agent have to do after a term sale is made?

Your basic servicing would only amount to seeing if any additional benefit is needed, that is--do they need to purchase more coverage...or should they convert any?

John, did NASE teach you to service? I'm just asking because you're always talking about the service work with health insurance and with NASE and even NHIC we were never taught to service. In fact, most guys I knew of would never even contact a person after selling them. Maybe it's pretty self-explanatory with NASE. After all, people do have claims.

Yeah, with UGA you hope your clients lost your phone number. It took me a while after I went independent to figure out that you really need to stay in touch with your clients. Yes, claims are filed and no one's happy when they have to pay any large amount out of pocket. But if you're not in contact with them the policy is likely to lapse. Sometimes people are just looking to vent. Once they vent and get it off their chest they're ok.

I sold a HSA over a year ago and both husband and wife we're all over it. They filed a major claim and owed the first $5,000. The wife went nuts. She called me, chewed me out for even recommending it and said they're screwed because they don't have $5,000. I believe her quote was "this plan sucks!"

After she calmed down I went over some PPO quotes with her - about $180 more a month with the SAME OOP for an individual. To put her an a PPO plan and lower the individual OOP would have made her rate $250 a month higher. Then she got it and they're still with me.

If they would have lost my number they would have just called the company and likely cancelled.

But you're right - when you stay in constant touch with your clients you're the whipping boy everytime they're pissed. I'm basically getting a call anytime someone gets outpatient lab testing:

"John, why do I owe $1,200 for a MRI?"

It's also why I sell HSAs - they're easy for clients to understand. Under the deductible = you owe it. PPO plans are confusing the most people.

 

[arnguy]

A few years ago, Jackson National gave agents (non-captive) the choice of taking an upfront commission at the time of the sale or a lower first year commission with a trail commission for a certain number of years. I am not certain that they still do this. There were a couple of other term companies that did that but I cannot recall which ones. Most agents opted for the upfront full commission at time of the sale.

 

[Dave020]

Brokers Alliance now offering health coverage to producers

I just got a letter from Brokers Alliance in AZ that they are offering health, dental, vision and DI to producers who write term with them. As I understand it, you can buy it for the full premium and depending on your production, they will pay some or all of it for you. It is Humana National POS Coverage First.

Interesting, I have been trying to convince Blue Cross CA to offer producers coverage under some similar arrangement for awhile now with absolutely no success. I guess this is a good incentive to get my term life production up!

Dave

 

[tjwacht5]

Check out American Brokerage Services (absgo.com). Great company with many life and annuity carriers. Some of the carriers pay 85-110%.

 

[dgoldenz]

This post is 3 years old.