Volume Life Ins Practice

[StarBear]

I'd love to pick the brains of any contributors who have insight on management of a high volume life insurance practice.

I receive 20-30 referrals weekly across three new england states. The referrals are handled by myself and one junior agent (for now).

Having started my career in captive agencies, my instinct is to attempt to meet each client face-to-face for a full financial review.

However, that's neither practical for efficiency purposes, nor what I feel is preferred by the majority of my clients. So I've made this concession. In that trade-off I fear I'm sacrificing average case size (2017 avg case was 1300 premium) for predictable high volume term cases and perhaps selling short the value I can provide the clients if I spent more time to better know their circumstances.

I can't be alone in this circular thought and would love some best practices and tips on process (from client contact to delivery) that will help improve the service I'm able to provide my clients while maximizing the opportunity for my agency. Thanks.

 

[DHK]

You get what you ask for.

What criteria are you using for asking for that many referrals? You can probably "raise your prices" by raising your referral standards... if you have a process to help sell larger premiums and solve bigger problems.

 

[DHK]

I highly recommend improving the quality of your services and improving your client referral process. I recommend getting the training from Sandy Schussel for only $37.

Products

You can also listen to Dave Duford's interview with Claude Whitacre and get the basic idea... but if you want to do things with a planning perspective, I recommend Sandy's training.

 

[DigitalBGA.com]

If you go "high volume" and sell via internet/phone you won't be too far off that average case size. Our VSA program produces hundreds of in force cases a month and we are just under $1200 average case size. We sell a lot of living benefit products, non med, final expense, term, GUL etc.

I was actually surprised to see that your face to face referrals are only averaging $1300. Like DHK said, I would work on that...you are leaving a lot of planning and dollars on the table. If you are going and meeting these people face to face, I would stop that and give them the choice...most don't want to meet you and are perfectly comfortable doing it by phone...just ask Winoblues. Then, your $1300 average is fine since you have very little overhead and are putting less miles on your car.

Things you need (among other things):
CRM to nurture contacts
esignature carriers
Hand off admin work to a 3rd party that specializes in making the process efficient

 

[StarBear]

Thanks guys. I appreciate the feedback. To be clear, only about 15-20% of clients were a traditional face-to-face process last year. The rest were primarily phone and email proposal exchanges.

Where my hesitation comes in is, while I agree this is the preferred method of transaction for the client, I don't feel I'm providing as high a level of value as if I go through a traditional FNA process.

I frankly have to recruit to service the size of the opportunity I have and that's fine. But before I can place myself in a position to teach a process, I have to have confidence in the process I'm using.

Upon receipt of a qualified referral, what is your typical process? Given a volume practice what is good standard of expectation for FNA clients compared to transactional term/DI clients? Any help of perspective is sincerely appreciated.

 

[DHK]

Where my hesitation comes in is, while I agree this is the preferred method of transaction for the client, I don't feel I'm providing as high a level of value as if I go through a traditional FNA process.

You need to learn how to REALLY do a fact-find. And I don't mean an interrogation to get information OUT of the client, but how to provide value WHILE doing the fact-find.

The Insurance Pro Shop teaches this better than anybody else in the industry (that I know of).





I would join their online membership site for their video training for $30/month and you'll learn how to do a QUALITY fact-find.

The Leading Insurance Marketing & Sales Tools, Tips & Training

 

[DHK]

Upon receipt of a qualified referral, what is your typical process? Given a volume practice what is good standard of expectation for FNA clients compared to transactional term/DI clients? Any help of perspective is sincerely appreciated.

You first need to know who you do your BEST work with. Then you ask for referrals that FIT those kinds of cases.

 

[walthamny]

I am also in MA. If a referral comes to me for just a opening a new Roth IRA, everything is done by phone and skype. I never drive to these appointments. During the IRA opening process if I discover a need, I may move to book a deeper fact find or not.

I have never seen a DI lead that was not a large case. If somebody wants DI, they are also good candidates for life, retirement planning and tax planning. I have never done a DI transaction. So this is telling me something is at miss in your process.

If you worked too long in the captive world, you may not be used to as much fact finding on the phone and closing on the phone( captive compliance brainwashes you).

It is also a long term skill to get 2 or 3 introductions a week and close 1 household a month at 20K annual life premium and whatever you make on AUM and annuities. If you are getting 20 names a week, the name flow is not warm enough. The captive world wants high referral numbers because the management gets measured by how much market penetration they have in their assigned zip codes.

 

[StarBear]

Thanks for the material DHK - I'll give it a watch.
Waltham - I agree, my phone fact-find skills are likely lacking. Any tips on how to expedite the learning curve?

 

[walthamny]

I think you need a coach. If I watched you I could figure out what you are missing easily but I am not experienced to change you and coach you. I found Sid Walker to be great for me, but there are others. I am sure DHK can give you a long list of coaches.

To improve phone skills you need a tape recorder and a mirror. You should record yourself answering objections on the phone, your own introduction, why they should do business with you, how you handle common objections like too expensive, I am all set, I will think about it, I got life insurance from work, etc. The critical part of your phone conversation is why they should do business with you. I am sure that part needs a lot of improvement.

There is a youtube video Simon Sinek It starts with why, there are many versions of this but there is one for about 20 minutes. Watch it few times