DI Rates

[Briefcaseboy]

I called my friend who worked for AFLAC many years. I asked the question, " You sold DI for AFLAC didn't you ? " He said...Yes, but in the 20 years I worked for them I only sold 2-3 DI policies. He said when he made a DI presentation, the prospect would get excited and, be really interested, but when he showed them the rates, they would back off. Is this common ? Is that why DI agents target physicians, dentists, lawyers etc. ?

 

[Full Throttle]

To make money selling DI, you need bigger premiums (higher income) or volume. That being said, the middle market does buy it.

Not everyone will buy a to age 65 policy, max income replacement, and with all the bells and whistles. Get them the most you can with a budget that works for them.

 

[insurehound]

Nothing like commenting on a thread one year later. I was questioning how one makes money selling IDI as the commission levels can be quite low compared to other products. But as Full Throttle stated, you need lots of volume or higher incomes. 50% first year/5% there after can be tough!

 

[VolAgent]

That comp is a little low, more like 70/10 as an independent or after factoring in bonuses as a captive. But if you get in with those that buy it, you are set. Also the buyers, professionals, executives and some business owners, are ripe for life and investment sales. You better believe any decent DI agent is writing or splitting these cases as well.

 

[insurehound]

That comp is a little low, more like 70/10 as an independent or after factoring in bonuses as a captive. But if you get in with those that buy it, you are set. Also the buyers, professionals, executives and some business owners, are ripe for life and investment sales. You better believe any decent DI agent is writing or splitting these cases as well.

I'm using the wrong GA.

 

[dgoldenz]

Yes you are....you should be able to get 60-70% with most companies relatively easily. Renewal comp will depend on your production and persistency rate.

Given that the average DI premium is around $2-3k, 60-70% plus renewals isn't bad, and the people typically buying DI are also usually more affluent and good for cross-sales with life/business planning. Having the right clients for DI can also lead to a lot of future income with FIO's being exercised too. That $1500 graded premium policy on a resident could become a $10-15k policy by the time they max out coverage.