Which FE Product Would Be Sold?

[agentexhorter]

Which Final Expense Product whole life product would typical successful agent market to client? Why? What does the choice say about the agent and/or the industry?

Scenario

Agent…..…: production of $2,000 per week issue/pd ann. prem.
Client……..: $10,000 face for 60 year old male, non-tobacco, no significant health issues, would qualify for all companies
Carriers...…: rated A- Excellent by A.M. Best or better
Renewals…: essentially equal over years 2-10
Variables…: real quotes using typically available commissions

Co. 1 …..$51 mo. prem…110% commission…no phone interview
Co. 2…...$45 mo. prem…105% commission…ph interview req.
Co. 3…...$42 mo. prem…100% commission…no phone interview
Co. 4…...$35 mo. prem… 75% commission…ph interview req

 

[G.Gordon]

4.

hands down.



Of course back in the day when I was building my renewal income 2 or 3, but never 1. 1. is too high

2/3 are close.

Now... 4, because I don't need to make every dollar and doing the best for the client is what drives me.

No matter the choice... I'd still go as earned.

 

[GreenSky]

It depends on the company and what their phone interview sounds like. I have tried very hard to place business with one particular company but their phone interview is more comprehensive than health history taken by a doctor.

I would use company #3. No phone interview means your client can actually get the insurance he/she wants. Also, you get paid for your time.

It does neither of you any good to have a policy not issued due to "failing" the phone interview.

Rick

 

[Newby]

Two things I always look for are the cheapest rate AND the phone interview.

The phone interview helps protect the agent. I don't like to sell a company that doesn't use them.

 

[palerider]

I would choose Company 3 also.

 

[G.Gordon]

We had one company that had this one dude named Chad. Chad was a PITA and basically acted like he was a CIA agent and drilled the hell out of a client when the girls right next to him were pleasant and stayed within the lines of the questionaire.

We complained enough to his boss and encouraged them to listen to his interviews (they are recorded) that he is no longer with the company. Of course this was for a medicare supplement company.

Ditto on liking a phone interview. That is just another level of protection for the agent. If done it's not just the agent's word against the client. This saved my ass when a client filed a complaint against the company and then me when that got them zero compensation. The company hired me an attorney and all he had to ask was: 1. Who filled out the application (the client.) 2. What were her answers to the telephone interview. (lies) 3. If the client were truthfull would she have even been issued the health insurance. (no).

 

[Tom Highway]

How about let the client choose? I've seen that the lowest price is not always the best policy. Tell the client about the four companies, their history, your experience in dealing with them, and the phone interview.

If the client chooses, based on your recommendations, the one that is not the lowest cost, the client understands why sometimes cheaper isn't better, they feel like they've taken ownership of the process and may be less likely to lapse, and they may be more likely to refer you, an agent who genuinely cares about them, to their friends.

 

[agentexhorter]

4.

hands down.



Of course back in the day when I was building my renewal income 2 or 3, but never 1. 1. is too high

2/3 are close.

Now... 4, because I don't need to make every dollar and doing the best for the client is what drives me.

No matter the choice... I'd still go as earned.

"of course back in the day" ... a truly honest answer and, in my opinion, a fair decision given the conundrum of adequately providing for the agent's family while providing what is best for the client

"best for the client is what drives me" ...certainly an honorable goal which would always leave the agent "above reproach"

"I'd still go as earned" ...even more wise counsel from G.Gordon

great responses G. Gordon, thank you for that
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It depends on the company and what their phone interview sounds like. I have tried very hard to place business with one particular company but their phone interview is more comprehensive than health history taken by a doctor.

I would use company #3. No phone interview means your client can actually get the insurance he/she wants. Also, you get paid for your time.

It does neither of you any good to have a policy not issued due to "failing" the phone interview.

Rick

"It depends on the company and what their phone interview sounds like." ... a whole lot of wisdom here... not all interviews are created equal are they?

"have a policy not issed due to 'failing' the phone interview"... so true, no coverage means nobody won
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Two things I always look for are the cheapest rate AND the phone interview.

The phone interview helps protect the agent. I don't like to sell a company that doesn't use them.

"The phone interview helps protect the agent. I don't like to sell a company that doesn't use them" ... Really great consideration you offered Newby. Phone interviews do indeed place a layer of protection over the agent. One of those considerations in product selection often overlooked in the sometimes frenzied sales presentation.

really good input
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How about let the client choose? I've seen that the lowest price is not always the best policy. Tell the client about the four companies, their history, your experience in dealing with them, and the phone interview.

If the client chooses, based on your recommendations, the one that is not the lowest cost, the client understands why sometimes cheaper isn't better, they feel like they've taken ownership of the process and may be less likely to lapse, and they may be more likely to refer you, an agent who genuinely cares about them, to their friends.

"How about let the client choose" ... seems like a reasonable suggestion, but do you think one of the functions of the agent is to determine, based on the client's responses during the sales presentation/info gathering, what is the best product to recommend to the client?

If the client/prospect doesn't trust you...you will not get the check and the client won't be protected, at least by you. I think that maybe that 'trust' is the by-product of how the agent conducts themselves with the client and people sense if the agent's intentions are honest and intended to serve the client/prospect.

Tom Highway, what do you think about maybe offering a fair priced option without the phone interview and the lowest premium while explaining briefly what the interview would entail?

 

[Tom Highway]

"How about let the client choose" ... seems like a reasonable suggestion, but do you think one of the functions of the agent is to determine, based on the client's responses during the sales presentation/info gathering, what is the best product to recommend to the client?

If the client/prospect doesn't trust you...you will not get the check and the client won't be protected, at least by you. I think that maybe that 'trust' is the by-product of how the agent conducts themselves with the client and people sense if the agent's intentions are honest and intended to serve the client/prospect.

Tom Highway, what do you think about maybe offering a fair priced option without the phone interview and the lowest premium while explaining briefly what the interview would entail?

It seems to me that you've already formed your opinion, but I'll take a stab at it anyway.

The presentation of these choices is at the very tail end of the whole process. You've already gone through so many steps in the sales process that the mechanics of the solution isn't the critical part. I'll tell you that while I'm not by any means among the best agents around in many areas, like prospecting, I do a lot of things right.

Retention is one of those things, because I feel it is my job to help a prospect make a financial decision that feels right to them (that's not an original Tom Highway concept, it's from Sid Walker). Feeling right involves a lot of things, including understanding why the FE plan is good for them, being comfortable with and trusting me, knowing that they can afford the premiums, and so many other things.

 

[jacobtn]

Which Final Expense Product whole life product would typical successful agent market to client? Why? What does the choice say about the agent and/or the industry?

Scenario

Agent…..…: production of $2,000 per week issue/pd ann. prem.
Client……..: $10,000 face for 60 year old male, non-tobacco, no significant health issues, would qualify for all companies
Carriers...…: rated A- Excellent by A.M. Best or better
Renewals…: essentially equal over years 2-10
Variables…: real quotes using typically available commissions

Co. 1 …..$51 mo. prem…110% commission…no phone interview
Co. 2…...$45 mo. prem…105% commission…ph interview req.
Co. 3…...$42 mo. prem…100% commission…no phone interview
Co. 4…...$35 mo. prem… 75% commission…ph interview req

I assume you are advanced commissions on all 4 companies equally? You left that part out.

I would do company 1, all day long. No doubt about it. Anyone who says they would do the others is either lying or an *** (unless they are in a situation where they are trying to replace another policy and need to be competitive).