Should I Leave EFES?

[John Galt]

Congrats on your production, most agents do not stay around long enough to figure it out. The key to writing 150K per year is having a consistent flow of new leads per week(preferably 20 direct mail leads). Its tough for a lot of agents to consistently afford 20 leads every single week, that is why companies like LH finance leads for their agents. You have a good lead cost, as long as you have a competitive contract(least 100%), you have a protected territory, so I think you are in a good spot. The Agency that I am with provides exclusive direct mail leads for $24.50 with a 100% contract. The cost for the leads are deducted from commissions. The lead financing has helped me maximize my production. Some companies have great leads with low comp, or great comp and a substandard lead program. You have to find the right combination.

Good Luck

$24.50 per lead at only 100% is not really that great, some others have better deals. I'm in a program now that is better, not bragging just saying.

 

[FE101]

$24.50 per lead at only 100% is not really that great, some others have better deals. I'm in a program now that is better, not bragging just saying.

I agree there's better deals out there. 100% is the starting point for agents who need lead financing, to get them rolling.
If you're able to bank roll your own lead campaign and write 15-20k monthly you would do better on the higher level contracts.

 

[jdeasy]

I agree there's better deals out there. 100% is the starting point for agents who need lead financing, to get them rolling.
If you're able to bank roll your own lead campaign and write 15-20k monthly you would do better on the higher level contracts.

You don't have to write that much to get higher than 100% contracts with FEX. In fact, you don't have to have proven production at all for FEX.

 

[FE101]

You don't have to write that much to get higher than 100% contracts with FEX. In fact, you don't have to have proven production at all for FEX.

I apologize for the misunderstanding. There's no production requirement for a higher contract level. i.e 110. For the lead financing contract, the starting point is a 100%. At any time an agent can pay for their leads up front, and receive a contract higher than a 100%. Agents have an option to choose which works best for them. The goal of a full time FE agent should be to write at least 10-15k per month. It's takes some agents a while to ramp up to 20 leads every week. The financing can help jump start their production.

 

[John Galt]

I agree there's better deals out there. 100% is the starting point for agents who need lead financing, to get them rolling.
If you're able to bank roll your own lead campaign and write 15-20k monthly you would do better on the higher level contracts.

I never said anything about lead financing, that is the quickest way for an agent to die off, good luck with that. I looked at every lead finance program out there 2 years ago, yea, no vesting, they keep your renewals and you are more than likely captive, you are trying to bs the wrong audience.

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I apologize for the misunderstanding. There's no production requirement for a higher contract level. i.e 110. For the lead financing contract, the starting point is a 100%. At any time an agent can pay for their leads up front, and receive a contract higher than a 100%. Agents have an option to choose which works best for them. The goal of a full time FE agent should be to write at least 10-15k per month. It's takes some agents a while to ramp up to 20 leads every week. The financing can help jump start their production.

Wrong on so many levels, lead financing is nothing but a scheme to lock up an agents contracts and to line the pockets of the up line or IMO from future renewals and commissions, do you even sell fe?

 

[FE101]

I never said anything about lead financing, that is the quickest way for an agent to die off, good luck with that. I looked at every lead finance program out there 2 years ago, yea, no vesting, they keep your renewals and you are more than likely captive, you are trying to bs the wrong audience. ---------- Wrong on so many levels, lead financing is nothing but a scheme to lock up an agents contracts and to line the pockets of the up line or IMO from future renewals and commissions, do you even sell fe?

I agree with you. That's true in a lot of cases.
You're captive, selling a crappy product with no renewals and no vesting. Companies like LH and senior life are lead companies first. They know if they provide you leads, they're in control. Therefore you are forced to sell a crappy product with low to zero renewals. A independent agent needs immediate vesting. I started with LH 16 yrs ago with that system, making my Upline rich. Wrote 200k in premium,



3rd in the country, back then there 1999 their convention was in Hawaii. The Powell's who now own Senior life was still with them. I have personally written over 1000 policies over the past several years. More than happy to send you verification.

 

[peteybear]

Maybe Newby can chime in on this. I've noticed from many different companys different back ends on similar or slightly different fyc. For instance I've seen an imo offer 115 %and 9% renewals and another imo offer 120% and 7% renewals. My question is does each imo have the ability to not only control the front end but also control the back end?

 

[FE101]

Maybe Newby can chime in on this. I've noticed from many different companys different back ends on similar or slightly different fyc. For instance I've seen an imo offer 115 %and 9% renewals and another imo offer 120% and 7% renewals. My question is does each imo have the ability to not only control the front end but also control the back end?

FE Companies today are hungry for production.
Most of them will allow the IMO to write their own contracts, which includes how the renewals are structured. New companies are coming into the Final expense market every year, with cheaper rates. In most cases 5-10yrs, their product is pulled or major changes. i.e Texas Life. I would also be weary of the Fraternals companies. There was a company called ACA Assurance, they went into rehabilitation and one of my clients passed. They reduced their insurance from 10k to 7k.
Since Fraternals do not pay into the state insurance fund, they reinsure themselves. Page 14 of forrersters contracts indicates this. Tip- you can use this info to replace their policies. I replace 5 of their polices a year with this info.

 

[rousemark]

FE Companies today are hungry for production.
Most of them will allow the IMO to write their own contracts, which includes how the renewals are structured. New companies are coming into the Final expense market every year, with cheaper rates. In most cases 5-10yrs, their product is pulled or major changes. i.e Texas Life. I would also be weary of the Fraternals companies. There was a company called ACA Assurance, they went into rehabilitation and one of my clients passed. They reduced their insurance from 10k to 7k.
Since Fraternals do not pay into the state insurance fund, they reinsure themselves. Page 14 of forrersters contracts indicates this. Tip- you can use this info to replace their policies. I replace 5 of their polices a year with this info.

Interesting.. The Fraternal boys are always trying to say it hasn't happened in the last 100 years but here is the first assessment letter ACA certificate holders received.

http://www.nh.gov/insurance/legal/rehabs/documents/aca_assess_ltr-1.pdf

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It got worse.. after a three year moratorium on cash surrenders and loans, preneed plans were assessed 40% with the lifting of the moratorium.. If they had purchased a 10K preneed plan they ended up with 6K.

What benefits are payable upon my death?

This assessment will result in a forty percent (40%) proportionate reduction in benefits
payable under your policy. In other words, while the assessment is in place, ACA will pay 60%
of the amount of any death claims received on or
after April I, 2011. Upon the assumption of your policy by Royal Arcanum,
Royal Arcanum will likewise pay 60% of the amount of any death claims received.

Can I surrender my policy?

Yes.
A moratorium had been in place with respect to the surrender of policies and with respect
to new policy loans from September 2008 until April 22, 20 II. This moratorium has been lifted
as to surrenders, and you may surrender your policy to ACA at any time prior to the closing date
of the assumption of your policy by Royal Arcanum. If you elect to surrender your policy during
this period, your payment will equal the cash surrender of your policy reduced by 40%. In other
words, you will receive 60%
of the cash surrender value.

 

[FE101]

After that happen, I made a commitment to never sale for a fraternal again, no matter how low their rates are. At that time they had a GI product. Lost renewals and credibility with my clients