Replacements

[Cornelius]

Do the people doing mainly FE come across many opportunities to replace policies or have been replaced? I see people comparing rates on the board but I have yet to see any of the seniors I know of really contacted even on a small scale by an agent to sell them a FE policy. That being said does the individual carrier really come into play beyond just getting the coverage in place?

 

[jdeasy]

Do the people doing mainly FE come across many opportunities to replace policies or have been replaced? I see people comparing rates on the board but I have yet to see any of the seniors I know of not really contacted even on a small scale by an agent to sell them a FE policy. That being said does the individual carrier really come into play beyond just getting the coverage in place?

I've always estimated that 20-30% of my business is replacements but I don't track it.

That figure is going up all the time as more and more people that I see have some insurance. That didn't use to be the case.

i can't say that the carrier makes any difference. Some claim they like to write MoO or Aetna because of the name recognition. I can't think of one situation where the name mattered. I don't even tell people what company I'm recommending until I've asked health questions and put down the pricing.

As for people in whole life plans I don't do a lot of replacing of those unless you happen to be lucky enough to run across LH, Bankers or Old American or something along those lines that are just way over priced.

Most replacements for me come from crap plans they have bought through the mail like the AARP term or Globe or MoO, etc.

The MoO is very hard to replace on price but it's a 2 year ROP sold to many people that do not have to be an ROP plan. It doesn't bother people to leave MoO for a company they have never heard of if they get immediate coverage instead of a 2 year wait.

 

[Cornelius]

So just from observation do people see many seniors making a purchase mainly from TV ads rather than from agent contact? I know there will always be bad apples but I wonder why the industry never went back after the DNC legislation.

 

[jdeasy]

So just from observation do people see many seniors making a purchase mainly from TV ads rather than from agent contact? I know there will always be bad apples but I wonder why the industry never went back after the DNC legislation.

Not so much from TV, at least I don't see that, but I do run across many that have bought through the mail.

Now, most don't have a clue as to what they have bought so it's more of an education process than selling but those are my favorite prospects to meet.

 

[Cornelius]

Not to go off in another direction but have any of the FE buyers ever mentioned the BTID concept and how they thought they wouldn't need coverage at a later age?

 

[Tom from Denver]

Only about 10 to 15% of what I write is replacement.

Like JD, policies being replaced are generally wrong for the clients because they are term, graded or modified on a healthy person, pre-need polices that weren't explained to folks, or the occasional UL that's underfunded and now has increasing premiums.

Having several carriers to select from, I feel like we can help most folks by getting them connected with a carrion that's looking for people with their health conditions. Monumental is good for someone on maintenance meds for heart conditions, but not a good choice for insulin dependent diabetics.

Sent from my iPhone

 

[jdeasy]

Not to go off in another direction but have any of the FE buyers ever mentioned the BTID concept and how they thought they wouldn't need coverage at a later age?

No, those people are not the FE market. You are talking about people that had a plan but the plan didn't work out like expected. The FE market is people that are world class procrastinators.

I've had the BTID conversation one time in funning over 500 FE appointments per year for more than 5 years now. So over 2500 appointments and it came up one time.

And that was from the husband of the prospect and he interjected into the conversation because he was that had actually bought term and invested the difference and was sitting in good shape now. They had only been married a few years so the current wife, {my prospect}, had not been with him back then and not gotten his sterling advice.

I congratulated him on what he had done and told him that most people had not invested the difference and his now wife was one of those and, if we could roll the clock back 30 years she could do the same. He halfway agreed with my point but they wouldn't buy. It seemed to me that even though she really needed and wanted what I was offering that he had poisoned the well.

I left there without a sale. About an hour later and I was between appointments I got a call from him asking if I was still in the area. I was and he wanted to know if I had time to come back and write up his wife. I did have time and I went back and wrote up a $75/mo plan for her. That was 3 or 4 years ago and she still has it.

I guess he had to replace on what I had told them before realizing that what I was saying was correct. It probably didn't hurt that I had congratulated him on being so foreward thinking with his own business.

 

[deadhead]

I replace about 3-5 a month. Some are price and the rest are crap plans through the mail

 

[Newby]

My replacements are around 20-25% of my FE sales. Usually the standard stuff already mentioned (AARP, Globe, MOO, LH,) but sometimes it's people who just aren't a good match for the plan they got sold (Monumental for insulin diabetics for example) or a clean sheeted app or a smoker written as a non-smoker.

I've had a few FE people that had traditional term. They always claim they didn't understand what term really was. Some thought it worked like limited pay WL. Others thought they would only get one premium increase and were unrealistic about how much that would be (like 10% ).

I've never had an FE prospect that would have any clue about BTID.

 

[Cornelius]

Yes I know the probable answer but we've all heard there are no dumb questions so I won't take it personal if I get blasted. Does anyone know of any carrier that will waive the contestable period on a replacement?