Reduced Comp with Americo

[Rearden]

I gotta say I'm with VolAgent on this one. If you are 81-85 and still need to buy life insurance the last thing you need is an overpriced policy. To me it's no different than selling Kemper to someone 50-80 that needs GI, no reason in the world other than comp, but at what price?

For most agents it's such a small part of their business anyway, why not let them have AmMem and move on. On the bright side they didn't decrease the renewals.

So, are you advocating healthy, bread-and-butter business needs should all go to Christian Fidelity?

And what if 5Star with their on-going internal issues, releases a new 81-85 pricing structure that beats American Memorial pricing in the same age group by 25%, but the first year comp is 20% for street level commission?

Am I now morally obligated to write 5Star's product, assuming all else is equal?

 

[Newby]

I gotta say I'm with VolAgent on this one. If you are 81-85 and still need to buy life insurance the last thing you need is an overpriced policy. To me it's no different than selling Kemper to someone 50-80 that needs GI, no reason in the world other than comp, but at what price?

For most agents it's such a small part of their business anyway, why not let them have AmMem and move on. On the bright side they didn't decrease the renewals.

That's real easy for us to do (I know you have the same comp level as me.) But for a struggling agent on street level, it's another matter.

I wouldn't suggest an agent is doing the wrong thing if he chooses not to sell at less then half his regular commission.

And lifetime renewals only go so far on 85 year olds.

 

[360]

So, are you advocating healthy, bread-and-butter business needs should all go to Christian Fidelity?

And what if 5Star with their on-going internal issues, releases a new 81-85 pricing structure that beats American Memorial pricing in the same age group by 25%, but the first year comp is 20% for street level commission?

Am I now morally obligated to write 5Star's product, assuming all else is equal?

Not at all. I guess I just think people in that age bracket are a lot like the GI cases, they've got enough problems already. I also think there is a point where you've got to make sure YOUR business is viable overall as no one is served by having less agents out there selling to an already under-served market. It would be pretty tough sledding trying to live on CF comp.

To be fair on a 60 year old female CF and and the next carrier are 2 bucks apart so I don't think anyone is going to give up half their comp for a couple of bucks. I just think it's a fair argument to through AmMem vs. others at that age bracket into the same category of SL/LH, we've got choices and the difference is significant.

That said to each his own. Just because it's what I would do doesn't mean it's the only way for sure. We are after all talking about maybe one case every few months here for most agents.

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That's real easy for us to do (I know you have the same comp level as me.) But for a struggling agent on street level, it's another matter.

I wouldn't suggest an agent is doing the wrong thing if he chooses not to sell at less then half his regular commission.

And lifetime renewals only go so far on 85 year olds.

Common brother usually you're the one carrying the water for AmMem. I do hear you though on it being a tougher call if you're just getting rolling.

Just as a thought though if agents did pitch AmMem to every 81-85 you do have to wonder if they would sell more of it? I'm not saying they would sell twice as much but I have to think it would be more for sure.

 

[lifeagent007]

Not at all. I guess I just think people in that age bracket are a lot like the GI cases, they've got enough problems already. I also think there is a point where you've got to make sure YOUR business is viable overall as no one is served by having less agents out there selling to an already under-served market. It would be pretty tough sledding trying to live on CF comp.

To be fair on a 60 year old female CF and and the next carrier are 2 bucks apart so I don't think anyone is going to give up half their comp for a couple of bucks. I just think it's a fair argument to through AmMem vs. others at that age bracket into the same category of SL/LH, we've got choices and the difference is significant.

That said to each his own. Just because it's what I would do doesn't mean it's the only way for sure. We are after all talking about maybe one case every few months here for most agents.

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Common brother usually you're the one carrying the water for AmMem. I do hear you though on it being a tougher call if you're just getting rolling.

Just as a thought though if agents did pitch AmMem to every 81-85 you do have to wonder if they would sell more of it? I'm not saying they would sell twice as much but I have to think it would be more for sure.

I agree with you brad. I think do what is best for your client. Karma seems to catch up though as I have and alot of my 80+ business refer me to their 60-65 year old sons and daughters. (and those I did get my full comp

 

[Newby]

Not at all. I guess I just think people in that age bracket are a lot like the GI cases, they've got enough problems already. I also think there is a point where you've got to make sure YOUR business is viable overall as no one is served by having less agents out there selling to an already under-served market. It would be pretty tough sledding trying to live on CF comp.

To be fair on a 60 year old female CF and and the next carrier are 2 bucks apart so I don't think anyone is going to give up half their comp for a couple of bucks. I just think it's a fair argument to through AmMem vs. others at that age bracket into the same category of SL/LH, we've got choices and the difference is significant.

That said to each his own. Just because it's what I would do doesn't mean it's the only way for sure. We are after all talking about maybe one case every few months here for most agents.

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Common brother usually you're the one carrying the water for AmMem. I do hear you though on it being a tougher call if you're just getting rolling.

Just as a thought though if agents did pitch AmMem to every 81-85 you do have to wonder if they would sell more of it? I'm not saying they would sell twice as much but I have to think it would be more for sure.

The margins are certainly nice for the up line. If the agents will sell it, I'm not going to talk them out of it. They just have to have their own triggers for when they can use it.

 

[PaperHanger]

I gotta say I'm with VolAgent on this one. If you are 81-85 and still need to buy life insurance the last thing you need is an overpriced policy. To me it's no different than selling Kemper to someone 50-80 that needs GI, no reason in the world other than comp, but at what price?

For most agents it's such a small part of their business anyway, why not let them have AmMem and move on. On the bright side they didn't decrease the renewals.

They way I was trained, selling a policy is like a 3 legged stool....it has to be good for 1) the client 2) the company 3) the agent...in no particular order.

If a carrier has cheaper rates than other companies for the 80+ group, yet their commissions are cut for the agent....hmmm...makes me wonder where they got those cheap rates? Maybe took it from the agent?

I try not to sell 'overpriced' policies, but I also don't want to sell 'under-commissioned' policies either. For example RNA, big cut on commissions recently. I don't even bring out their rate sheet for the oldest ages. And Essential Life? Not unless they're getting 100k face amount.

Think of it this way. Lets say there's a new FE company called CheapoInsure.They have great rates, but their street commish is 50%. Who here would evensign up with that? I know I wouldn't. Many here say an IMO giving agents this commish should be jailed for robbery.

So that said, I am signed with RNA, however the older ages are cut down to 50%. So, if I wouldn't sign with a company that gave 50%, why would I write RNA for an age that gives 50%.

It's the company sending a message that it doesn't want that type of business. They either raise the rates on those folks, or cut commissions. The message is clear, "don't send us that business". So why write it?

 

[lifeagent007]

It's the company sending a message that it doesn't want that type of business. They either raise the rates on those folks, or cut commissions. The message is clear, "don't send us that business". So why write it?

If the company has the lowest rates compared to any other company it would seem to me they are saying we want to stand out and be the most competitive company over 80 y.o. so please send us any business that you want to be the most competitive rate wise.

 

[PaperHanger]

If the company has the lowest rates compared to any other company it would seem to me they are saying we want to stand out and be the most competitive company over 80 y.o. so please send us any business that you want to be the most competitive rate wise.

If that company wants to provide me free leads and pay me miles on my car, then no problem, that means they really do want the agents to demonstrate to the world how much they stand out...oh but wait, the higher comish company already gives me 'extra' money to pay for those things *

I've never seen a TV commercial or print advertisement for an (agent) FE company, and never heard of an agent sitting back taking calls from new prospects all day, they both put all the weight on the agent. So really it's up to the agents on the street to decide what is fair. So from that prospective one can say "no, rna didn't cut my commission on those age bands, because I don't sell it anymore"

Imagine a boss coming in one day to a worker "I'm going to try something new, and need to cut your pay in half to do it", and the employee simply pulls a piece of paper from his desk and signs his name...!Poof! The boss disappears in a puff of smoke.

Ya gotta love this biz!

Full disclosure, one time rna called me and said a prospect in my area had called them for a policy, would I go write it? I went and wrote them rna, nothing else came out of my bag.

 

[liorselamb]

Who do you write your smoker's with?

ACI and AmAm are pretty good for smokers

 

[jdeasy]

ACI and AmAm are pretty good for smokers

ACI is OK. AmAm?? No way!