in your other post you said they pay something as long as the business stays on the books...
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Why?
I seem to remember reading somewhere that the industry average is the average policy only stays on the books for something like 3-4 years...
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Why?
I seem to remember reading somewhere that the industry average is the average policy only stays on the books for something like 3-4 years...
- 378
I said aarp pays flat commission but only yr 1-6
You know how average is calculated, right?
If one client keeps is for 1 yr and another for 7 yrs than the average is 4.
In this case (and many others) average means not much at all.
Some keep their supp for 15 yrs. I like to get paid for business I write. Don't you?
- 163
Why?
I seem to remember reading somewhere that the industry average is the average policy only stays on the books for something like 3-4 years...[/QUOTE]
I think AARP business really sticks. Think how many 80 year olds out there took AARP when they turned 65 and haven't ever really thought about it since.
Yes I can try to move those people before year 6, but if an existing client is happy with their policy then I'm inclined to leave them alone. I'm a slow to no churn type of agent.
Many times they won't qualify for other coverage medically and be stuck too.
I seem to remember reading somewhere that the industry average is the average policy only stays on the books for something like 3-4 years...[/QUOTE]
I think AARP business really sticks. Think how many 80 year olds out there took AARP when they turned 65 and haven't ever really thought about it since.
Yes I can try to move those people before year 6, but if an existing client is happy with their policy then I'm inclined to leave them alone. I'm a slow to no churn type of agent.
Many times they won't qualify for other coverage medically and be stuck too.
- Thread starter
- #34
Same. As someone in their 30's, I'm looking to grow business with strong renewal income. I'm done with the "eat what you kill today and do it all again tomorrow" part of this business.
ballfan
Expert
- 85
Ditto, it makes a heck of a difference 10 yrs down the road. But there re just some people that have to have their AARP unfortunately.
- 163
I don't sell anything paying GOOD lifetime renewals. I do write Anthem sometimes which pays 4% lifetime renewal on the current premium (not premium at issue).
If you write a 65 year old AARP at age 71 your commission is 0. If someone lives to age 65, they live on average about 20 more years.
The residual may be small but hey, we are talking about 14 more years of it.
