Policy Fees.......

[VolAgent]

3 quotes, 3 different couples......Just looking at several and noted the fees.

It might matter to buyer as it is coming out of their account! granted not very much!

WRONG!

It matters more to you. The policyholder just cares what the premium is, who cares if it is COI or policy fee. What is the total premium? It matters to you because most companies don't pay commission on term policy fees. They will pay on permanent policy fees, but most won't on term fees.

 

[Larry Tew]

See, the thing is... well... what I meant to say was... how much... why... oh, never mind. It wasn't really important.

What I really want to know is why do some companies staple the policy across the top and some staple on the side. No client has ever asked me about it, but just in case one ever does, I want to be ready.

 

[VolAgent]

To expand on what Larry said, people who buy insurance could care less about the policy fee on term, WL, UL, latest gimmick, whatever.

Here is what buyers actually care about:

1. Can I see myself doing business with this person?
2. Does his solution fix my problem? (As the prospect sees it, not reality)
3. Can I afford his solution? (Again, as seen by the prospect, reality be damned)

 

[BNTRS]

Now now, I was pretty sure this was a question asked by someone who had no idea what it meant, and I was admittedly fishing a bit with my question. His answer validates my thoughts.

The fee is inclusive of the total quoted premium, so there's really no point in worrying about the fee. It's not negotiable, it is what it is. The insurance company can break things down differently if they wish (i.e. if company A wants to say $100/mo with a $10 fee and company B wants to say $100/mo with a $20 fee for the same db there is no difference to the client). There may be a difference to you the agent, but in honestly if the commission difference because of a fee is something you feel you need to pay attention to, you are doing something horribly wrong.

 

[jacobtn]

He is either greedy, or just dumb. Not sure which is worse.

 

[agentjhc]

BNTRS, you are correct....jacobtn guess I am just dumb, thought fee might be on top of premium

 

[Larry Tew]

BNTRS, you are correct....jacobtn guess I am just dumb, thought fee might be on top of premium

I'm just giving you a good-natured ribbing, as I'm pretty sure the policy fee issue was covered somewhere in your licensing studies.

And if I were you, I'd just ignore the "dumb" comment. Lots of keyboard studs on the internet who hit "ENTER" without really thinking it through.

 

[agentjhc]

Yeah, figured as much. A lot of things were covered in pre-lic course. Much of which I am sure was more academic than covering the nuts and bolts/practical aspects of business.

 

[WinoBlues]

Yeah, figured as much. A lot of things were covered in pre-lic course. Much of which I am sure was more academic than covering the nuts and bolts/practical aspects of business.

If you take anything from this thread. Take that it is just a part of the calculation. Kind of like adding a sales tax to a purchase. All the buyer cares about is the total price payed.

Do not get confused with all the nuts and bolts. Find your products and learn the benefits and sweet spots.

Sure there are people out there that want to know what the cow ate and how it lived. But there are more people out there that really just want the sizzle, smell and taste. When you are starting out, those are your target. Get paid, Get paid, Get paid.

I could not tell you what the policy fee is with any of the companies I sold this week. Nor could I tell you if I get paid on the fee. I guarantee you I did not mention a policy fee to any of the clients.

 

[GreenSky]

I could not tell you what the policy fee is with any of the companies I sold this week.

That's a lie and you know it. You told me that there is a policy fee of $150 for every time you help me with where to place a policy that must be paid to you.

Is there another kind of policy fee?

Rick