To be successful in selling life insurance

[shonceman]

These guys are hilarious!!!!!But I like it....

They are funny. But in defense of us debit agents, I have never dug for loose change in the pockets of a corpse when I was tucking him in! Now, if I notice some coins in the casket, well...
Welcome to the show, Olley!

 

[OLLEY B STRONG]

Happy To Be Here.....

 

[goillini52]

These guys are hilarious!!!!!But I like it....

You'll get along just fine here OLLEY.

Welcome to the Forum.

 

[OLLEY B STRONG]

Appreciated!!!!

 

[WinoBlues]

You'll get along just fine here OLLEY.

Welcome to the Forum.

Suck up.

 

[Abrasax]

What's the deal with the debit agents? Is it just for people without checking and/or direct express? Is it the full old fashioned system of driving around collecting premiums?

Curious the reasons why people go with this (customers and agents).

 

[DHK]

Many years ago, there were agents that collected on debits. I don't think that happens anymore.

But there are two general categories of insurance companies: ordinary life and debits. John Savage wrote about this in his book "High Touch Selling" on page 162 (published in 1985).

I'm reaching the masses through the vehicle of the classes. This leads me to tell you this - where the practitioner is missing the boat. It's well worth your trip here tonight: The debit companies may very well rule the business in the future.

Look, here's Massachusetts Mutual, Connecticut Mutual, Northwestern, the Maccabees, the Equitable, and State Farm. Now, all their agents are moving toward the big sale, the professional upgrade. "Make sure you're talking to people with more income." But down below, where the little people live, there is no competition. What I've done is say goodbye to "up there" and moved to "down here." Where they all buy. And nobody's going for this clientele. This is 90 percent of American and it's almost untouched. I met an agent recently from Southwestern who's in the debit arena - and he's making $80,000 a year. He takes care of his debt Monday and Tuesday of every week. Door to door. Wednesday, Thursday, and Friday he gets a little bit and then he comes back to his nest. And nobody gets to his clientele. He's there every week, like a watchdog.

 

[goillini52]

Suck up.

Just being on the safe side...OLLEY looks like a big guy.

 

[shonceman]

What's the deal with the debit agents? Is it just for people without checking and/or direct express? Is it the full old fashioned system of driving around collecting premiums?

Curious the reasons why people go with this (customers and agents).

The debit system is primarily focused on lower income people who live paycheck to paycheck. It's appealing for people who like to deal in cash, or if they use an account, they want to keep control of the drafts. Many clients prefer the high level of personal service from their home service agent. Some just don't manage money well and need the agent to help them. A lot of people would have no life insurance if it weren't for the debit agent and his old fashioned ways. I have people that pay with cash, money orders, checks, and debit cards (bank, netspend, direct express). I still drive around collecting premiums, but I have a growing number of people who pay over the phone.

There are several reasons agents do it.

First, there is still a huge market for the debit system. Even as the number of old line captives that were using it have dwindled to near zero over the last 30 years, a number of companies have emerged that work with independent debit agents.

Which brings me to point two: The home service contracts usually pay lower first year commissions, but much higher renewal commissions. If you look at total commissions paid out over 5 or 10 years, a Life policy sold on the debit will pay the agent at least 2 or 3 times as much as other policies.

Point 3 is that if an agent (like me) was originally trained under that system, he might never leave it, because he loves it! I've said it before, but my main reasons for continuing to operate that way is simply that I enjoy it. I like the regular, frequent personal contact with my clients. They in turn are very loyal to me. I become not just their agent, but their friend. They refer me to their friends and family, and rarely even consider replacing me.

Many years ago, there were agents that collected on debits. I don't think that happens anymore.

But there are two general categories of insurance companies: ordinary life and debits. John Savage wrote about this in his book "High Touch Selling" on page 162 (published in 1985).

It does still go on, more than most people realize. There also seems to be increasing interest in it as more and more people are affected by identity theft through data breaches. It's always been much more prevalent in the southeastern states, where it's part of the culture. But it goes on just about everywhere that has any significant population who are descendants of "The Great Migration". For example, one of the oldest captive debit companies, United Insurance, has three offices in your home state of California.

For the record, debit is not all I do. I consider myself a "generalist" agent, meaning I can work with anybody as long as we're not getting into very complex financial areas. I have clients that range from very poor, whose sole income is social security, to much wealthier clients who have a couple million in the bank. (Admittedly, the majority of my clients are working class or seniors with limited income.) But the debit has been my most profitable area over the long run, so it's become a more important focus over the last couple of years for me.

 

[rousemark]

The debit system is primarily focused on lower income people who live paycheck to paycheck. It's appealing for people who like to deal in cash, or if they use an account, they want to keep control of the drafts. Many clients prefer the high level of personal service from their home service agent. Some just don't manage money well and need the agent to help them. A lot of people would have no life insurance if it weren't for the debit agent and his old fashioned ways. I have people that pay with cash, money orders, checks, and debit cards (bank, netspend, direct express). I still drive around collecting premiums, but I have a growing number of people who pay over the phone.

There are several reasons agents do it.

First, there is still a huge market for the debit system. Even as the number of old line captives that were using it have dwindled to near zero over the last 30 years, a number of companies have emerged that work with independent debit agents.

Which brings me to point two: The home service contracts usually pay lower first year commissions, but much higher renewal commissions. If you look at total commissions paid out over 5 or 10 years, a Life policy sold on the debit will pay the agent at least 2 or 3 times as much as other policies.

Point 3 is that if an agent (like me) was originally trained under that system, he might never leave it, because he loves it! I've said it before, but my main reasons for continuing to operate that way is simply that I enjoy it. I like the regular, frequent personal contact with my clients. They in turn are very loyal to me. I become not just their agent, but their friend. They refer me to their friends and family, and rarely even consider replacing me.


It does still go on, more than most people realize. There also seems to be increasing interest in it as more and more people are affected by identity theft through data breaches. It's always been much more prevalent in the southeastern states, where it's part of the culture. But it goes on just about everywhere that has any significant population who are descendants of "The Great Migration". For example, one of the oldest captive debit companies, United Insurance, has three offices in your home state of California.

For the record, debit is not all I do. I consider myself a "generalist" agent, meaning I can work with anybody as long as we're not getting into very complex financial areas. I have clients that range from very poor, whose sole income is social security, to much wealthier clients who have a couple million in the bank. (Admittedly, the majority of my clients are working class or seniors with limited income.) But the debit has been my most profitable area over the long run, so it's become a more important focus over the last couple of years for me.

I inherited a small debit account with COL.. All except one mail me a money order each month... The one, I actually collect.. I would not mind building a debit under the independent system if I were younger.
especially with LBL paying 40% renewals. It would be a lot more enjoyable and a lot less pressure than it was in the captive system. As an independent, if a case lapses, that simply means you don't get any future commission from that case.. In the old days, with some companies, it cost you just as much if a 3 or 4 year old policy lapsed as you would make writing a new case.. That created a situation where chasing arrears was a necessity..