How Often Do Your Clients Cancel or Refuse a Policy Upon Delivery?

[WinoBlues]

On non taken? Maybe 2 in the last 5 years. And those were canceled in underwriting. One of them was last week.

On persistentsy(sp)? I do not know. I do not track it. First year lapse are pretty rare. 1 to 5 year surrenders/lapses a little higher but not bad. I am sometimes the the replacing the agent. After that, they pretty much stick unless I am replacing or rewriting them.

The last few years I have gotten more people surrendering for the cash values and then rewriting them.

 

[rousemark]

On non taken? Maybe 2 in the last 5 years. And those were canceled in underwriting. One of them was last week.

On persistentsy(sp)? I do not know. I do not track it. First year lapse are pretty rare. 1 to 5 year surrenders/lapses a little higher but not bad. I am sometimes the the replacing the agent. After that, they pretty much stick unless I am replacing or rewriting them.

The last few years I have gotten more people surrendering for the cash values and then rewriting them.

Got the hiccups this morning?

 

[skay]

I am fairly new agent and I am seeing approximately 25% of my business not retaining. I am in final expense & our leads are for low to middle income families and I believe they want the coverage but really can't afford it. It is frustrating because every month I feel like I am just trying to play catchup with the defaults. I try not to oversell, stress the need etc and they still default.

 

[GMANPRO]

I am fairly new agent and I am seeing approximately 25% of my business not retaining. I am in final expense & our leads are for low to middle income families and I believe they want the coverage but really can't afford it. It is frustrating because every month I feel like I am just trying to play catchup with the defaults. I try not to oversell, stress the need etc and they still default.

Still. If you sell to low income families, that is going to happen. Let's face it, life insurance payment? Or elecricity shut off?

 

[skay]

I agree but from my understanding most final expense companies target seniors in the low to middle income bracket. Leads are expensive and I really need some advice, as a new agent should I be focusing on another type of product?

 

[salesystem101]

I agree but from my understanding most final expense companies target seniors in the low to middle income bracket. Leads are expensive and I really need some advice, as a new agent should I be focusing on another type of product?

I have been in the Final Expense market for just under 3 years now. It is the segment in the market that is the fastest growing and will continue to be driven by baby boomers as over 10,000 people everyday are becoming 65.

Yes it is true that sometimes people drop policies because they can not afford them but there are ways to save policies from totally falling off the books. you might want to try a drive by if someone says they want to cancel. Trying to save a policy by telling them to lower their face amount so they can keep some sort of coverage. this will work better if during the original presentation you did a good job of selling the need. I noticed you are in the Jacksonville area, I am also. This is a great city for FE because there are massive amount of potential clients. just last week I sold 9 policies for $4,700 in Jax. Let me know if I can help you out anymore.

 

[Cory]

I have a client who is the sweetest lady you have ever met and I have placed her three times with a final expense policy... each time asking if she was sure the premium was manageable. I took "extra" precautions and find a plan that worked for her budget. After the 3rd chargeback over many years for insufficient funds I respectfully told her I couldn't help her any further. There are things you can do to minimize... but it just happens some times.

 

[edward67]

Do you guys hand deliver most of your policies? How in the world do you have time for that if you do?

 

[tins]

Do you guys hand deliver most of your policies? How in the world do you have time for that if you do?

I will, at times, if there is something I wanted to follow up on. But in general, I do not.

 

[edward67]

Thanks for that Tins. I just cant see how in the world someone who works FE full time can deliver policies. Of course there are a lot of things I cant see.