Why Not Specialize in Term Insurance?

Jul 2, 2015

  1. 62doddst
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    62doddst New Member

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    I have been in the insurance biz for 34 years, 14 year agent, 20 year wholesaling and training. Every gray hair I have has been earned in this biz. I am new to this forum and have only commented a few times, but know I have a question. I see that many of you are in the final expense market, med supplements, etc. Why? I do not see many posts on the everyday term market. I ask this question "why not sell term to replace income to the middle market?" I would think that an agent that is contracted with the top term carriers and who can spreadsheet (VitalTerm, etc) would do well in this market. The everyday family term market seems underserved to me. The average term premium in the industry is about $700 annual according to LIMRA. Term first year commissions are in the 80-100% + area. What am I missing? Term for income replacement seems to be an easier and much more sticky sale. Thoughts?
     
    Last edited: Jul 2, 2015
  2. Cash
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    That pretty much is my market.

    1. The reason why it is not talked about a lot is because there isn't much too talk about. The products are pretty boring, there isn't much strategy or controversy. It isn't like comparing IUL vs WL or one IUL vs another IUL.

    2. Marketing. There isn't a set why of marketing term to your average family. The internet guys have their own forum so they are rarely on this one, there are no lead programs lie there are in FE and MedSups, no seminars like annuities.

    3. Money - the money kind of sucks. The 20 and 30 somethings make you work, to get a hold of them, to make a decision, to get the FREAKING EXAM! It is a lot more work than FE where you can get paid quick and get a higher commission.

    Although the young family that buys insurance is probably going to be successful, clean (unlike FE people), and a great client for the future. They will buy DI, plan for retirement, etc. So yes there are a lot of good things about the market.

    One thing I emphasis to people is that I have the same at worst and usually better rates than the guys on the radio, tv, and internet, which is true. When they hear that it can make for an easy sale.

    The hard part in my experience has been getting the people to get their exam.
     
  3. cowgoesMoO
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    cowgoesMoO Super Genius

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    I'm younger and have only been an insurance agent for 3 years, but in my limited experience it has been easier to get a 65 year old trailer park terry to spend 700$/year on a $10,000 policy than a healthy 40 year old 500$/year on a $250,000 policy.

    middle aged people who are best suited for term policies have busy schedules. and the ones with lots of money are even busier. I eventually just said screw it and am in the process of switching over to FE, and it always seems like puling teeth to get these people to spend 100/mo

    I agree that these people are under served, but in my opinion they want to to be.....

    Also, there are plenty of agents targeting mortgage protection markets as well
     
  4. Newby
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    Newby Guru

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    Seniors hate term. They already had that and feel like it didn't pay off for them.
     
  5. NinjaNic
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    NinjaNic Guru

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    What is your process? Is this in home sales or phone? Do you esign if phone sales or mail apps?
     
  6. Cash
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    These are almost all in person sales, friends acquaintances, half my church. I am building a website though right now for term life.

    I have been using AG's QuickTicket, with eh results, honestly it hasn't been worth it. I haven't bothered to mess with VOYA's e app in a long time because it took about three times as long as just getting it on paper.

    I built a website a year ago trying to get some business insurance leads but that didn't do much for me. I am letting that domain get some age on it and may do some more with the site in a year or so. I am going big with my new site because I have a writing and PR project with an agency that is taking care of the bills for now so I figured this is my chance.
     
  7. NinjaNic
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    NinjaNic Guru

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    You should connect with jroot on here. For full disclosure, he and I work together on some projects. May be a good way to get expedited in selling by phone. I know we always have lead deals we need help fulfilling too. We all use the EZLife platform...the app completion rates are very high, exam completion rates are very high etc. FAR better than the carrier drop tickets.
     
  8. Cash
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    I will do that.

    I listened to y'alls podcast a year or so ago when I was flirting with doing a term life site instead of the business sites. I should have pulled the trigger then on the term site but oh well, lessen learned.
     
  9. DHK
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    DHK Sweep the Leg!

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    I don't specialize in "term". I specialize in solutions to my client's problems.

    Term solves one problem and does it well.
    Permanent life solves many problems and can also do it well.

    Term insurance is an easy sale, so where it fits, I sell it... or more accurately, when nothing else immediately fits, I sell it.
    Permanent life is also an easy sale... as long as the agent makes it simple.

    Term insurance doesn't require any skills to sell.
    Permanent life does require skills to explain simply to help the client understand it.

    Term has a lower premium, but I'm also in this business for the long haul and plan to serve and convert these policies.

    There is nothing to "specialize" with term. Either you sell it or you don't.
     
  10. NinjaNic
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    NinjaNic Guru

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    None? Geez...I guess selling thousands of term policies over the years could have been done by my 7 year old son. What is the minimum licensing age these days?
     
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