Charge backs

[PrivClientSG]

I deliver policies. But not to seal the deal.

If it’s a one off don’t worry about it.

If you are losing a lot of policies there’s something wrong that delivering won’t fix.

I also read and have been told that losing 20% is normal.

I’ve never come close to losing 20% of my writes. Not even 10%.

If I was losing 10% I would seek help.

Just because the norm is 20% doesn’t mean you have to accept that.

Excellent point!!!

 

[PrivClientSG]

I deliver policies. But not to seal the deal.

If it’s a one off don’t worry about it.

If you are losing a lot of policies there’s something wrong that delivering won’t fix.

I also read and have been told that losing 20% is normal.

I’ve never come close to losing 20% of my writes. Not even 10%.

If I was losing 10% I would seek help.

Just because the norm is 20% doesn’t mean you have to accept that.

Absolutely you don't have to accept that. Why be the norm? Be better than the norm. Be exceptional! Excellent points!

 

[Newby]

I called it FEX my entire career, until I found the Forum and noticed that most everyone here just called it FE.

You called final expense FEX?
I’m not believing that Todd. Do you have a link to any old post were you did that?

 

[Allen Trent]

Is that helpful to “Seal” the clients and offer more good service such as Living Will, wills & trust etc?

I am confused, are you an Attorney? Not sure your life only license allows you to offer any of those legal documents

 

[DHK]

I am confused, are you an Attorney? Not sure your life only license allows you to offer any of those legal documents

There are legal document preparation services that many agents do.

As long as the agent isn't drafting the actual document and just helping clients to fill in the blanks, they shouldn't be accused of the "Unauthorized Practice of Law".

I would limit this to revocable trusts, medical directives, powers of attorney, and pour-over wills. I wouldn't dare do this with anything irrevocable.

 

[DHK]

How can I seal the clients to avoid chargebacks and offer good services?

Sell annual premiums instead. Hard to charge back what has already been paid.

"Would you like to pay this annually or finance it monthly?" There is always an additional cost to doing monthly payments compared to annual premiums.

However, being in final expense, that's usually not your market to pay annually.

But that is a very viable way to avoid chargebacks.

 

[titeye]

I called it FEX my entire career, until I found the Forum and noticed that most everyone here just called it FE.

I created my telephone number based off the letters FEX, short for Final Expense. Do you think I should hook up with Newby and the real FEX?

 

[jdeasy]

Sell annual premiums instead. Hard to charge back what has already been paid.

"Would you like to pay this annually or finance it monthly?" There is always an additional cost to doing monthly payments compared to annual premiums.

However, being in final expense, that's usually not your market to pay annually.

But that is a very viable way to avoid chargebacks.

No it's not. If the person cancels the agent is charged back. If the person dies the agent is charged back unearned premiums.

 

[DHK]

No it's not. If the person cancels the agent is charged back.

If the client cancels during the free-look period, yes, that's is correct.

If the client cancels after the free-look period, yes, the agent can be charged back, but that's only if a refund is done. A refund should only be done if there was wrongdoing or misrepresentation. Granted, clients can assert such things, but unless proven, I don't see why the insurance company should refund premiums after the free look period.

. If the person dies the agent is charged back unearned premiums.

I'll just assume that that's a final expense policy issue. Certainly not an issue for fully underwritten policies. If a client dies 6 months in, and they paid in 12 months, the death benefit is the death benefit and they already paid in for the year, regardless of when death occurs. Why? Because that's the mode of premium payment made.

Other than the contestability clause for the first two years of a new policy regarding the death benefit, the premium has been paid.

 

[jdeasy]

If the client cancels during the free-look period, yes, that's is correct.

If the client cancels after the free-look period, yes, the agent can be charged back, but that's only if a refund is done. A refund should only be done if there was wrongdoing or misrepresentation. Granted, clients can assert such things, but unless proven, I don't see why the insurance company should refund premiums after the free look period.





I'll just assume that that's a final expense policy issue. Certainly not an issue for fully underwritten policies. If a client dies 6 months in, and they paid in 12 months, the death benefit is the death benefit and they already paid in for the year, regardless of when death occurs. Why? Because that's the mode of premium payment made.

Other than the contestability clause for the first two years of a new policy regarding the death benefit, the premium has been paid.

No, if the person cancels 2 months into an annual pay the agent is charged back 10 months.

3 months in the agent is charged back 9 months.

And so on.

And contestability has nothing to do with it.

If a person dies 6 months into an annual pay the agent is charged back 6 months even if the claim is paid.


And it doesn’t matter if it’s FU or FE. That has nothing to do with it.


Also the beneficiary is paid pro rated premium in addition to the death benefit.

How do you not know these things?